Texas Local Government Code Title 9, Chapter 303 - Public Facility Corporations

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 303.001 - Short Title
  This chapter may be cited as the Public Facility Corporation Act. Added by Acts 1999, 76th Leg., ch. 227, Sec. 11, eff. Sept. 1, 1999.
• Texas Section 303.002 - Purpose; Construction
  (a) The purpose of this chapter is to authorize the creation and use of public facility corporations with the broadest possible powers to finance or...
• Texas Section 303.003 - Definitions
  In this chapter: (1) "Board of directors" means the board of directors of a corporation. (2) "Bonds" includes notes, interim certificates, or other evidences of...
• Texas Section 303.004 - Adoption Of Alternate Procedure In Case Of Constitutional Violation
  If a court holds that a procedure under this chapter violates the federal or state constitution, a corporation or its sponsor by resolution may provide...
• Texas Section 303.005 - Effect Of Chapter On Other Law
  (a) This chapter does not limit the police power provided by law to this state or a municipality or other political subdivision of this state,...
• Texas Section 303.006 - Limitation Of Chapter
  This chapter does not authorize a sponsor to issue a sponsor obligation, use a letter of credit, or mortgage a public facility. Added by Acts...

SUBCHAPTER B CREATION AND OPERATION OF PUBLIC FACILITY CORPORATION

• Texas Section 303.007 - Natural Gas As Public Facility
  Natural gas purchased by a corporation for resale to a local government under an interlocal cooperation contract described by Section 791.025, Government Code, between the...
• Texas Section 303.021 - Authority To Create
  (a) A sponsor may create one or more nonmember, nonstock, nonprofit public facility corporations to: (1) issue bonds under this chapter, including bonds to purchase...
• Texas Section 303.022 - Creation Under Other Law
  A nonprofit corporation created by a housing authority under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) is considered a...
• Texas Section 303.023 - Procedure
  A governing body of a sponsor that determines that it is in the public interest and to the benefit of the sponsor's residents and the...
• Texas Section 303.024 - Articles Of Incorporation
  (a) The articles of incorporation of the corporation must include: (1) the corporation's name; (2) a statement that the corporation is a nonprofit public corporation;...
• Texas Section 303.025 - Certificate Of Incorporation; Beginning Of Corporate Existence
  (a) The incorporators shall deliver to the secretary of state the original and two copies of the articles of incorporation and a certified copy of...
• Texas Section 303.026 - Organizational Meeting
  (a) After issuance of the certificate of incorporation and at the call of a majority of the incorporators, the board of directors named in the...
• Texas Section 303.027 - Amendment Of Articles Of Incorporation
  (a) Articles of incorporation may be amended to contain a provision that is lawful under this chapter if the sponsor's governing body by appropriate resolution...
• Texas Section 303.028 - Certificate Of Amendment
  (a) The original and two copies of the articles of amendment and a certified copy of the resolution of the sponsor's governing body authorizing the...
• Texas Section 303.029 - Restated Articles Of Incorporation
  (a) A corporation may authorize, execute, and file restated articles of incorporation by following the procedure to amend articles of incorporation, including obtaining authorization from...
• Texas Section 303.030 - Restated Certificate Of Incorporation
  (a) The original and two copies of the restated articles of incorporation and a certified copy of the resolution of the sponsor's governing body authorizing...
• Texas Section 303.031 - Registered Office And Agent
  (a) A corporation shall continuously maintain a registered office and registered agent in this state. (b) The registered office shall be the same as the...
• Texas Section 303.032 - Change Of Registered Office Or Agent
  (a) A corporation may change its registered office, registered agent, or both by filing the original and a copy of a statement in the office...
• Texas Section 303.033 - Resignation Of Registered Agent
  (a) A registered agent of a corporation may resign by: (1) mailing or delivering written notice to the corporation; and (2) filing the original and...
• Texas Section 303.034 - Agents For Service
  (a) The president, each vice president, and the registered agent of a corporation are the corporation's agents on whom a process, notice, or demand required...
• Texas Section 303.035 - Board
  (a) A corporation's affairs are governed by a board of directors composed of at least three individuals appointed by the sponsor's governing body. Directors may...
• Texas Section 303.036 - Officers
  (a) The officers of a corporation are: (1) the president, vice president, and secretary; and (2) other officers, including a treasurer, and assistant officers considered...
• Texas Section 303.037 - Indemnification
  (a) Except as provided by Subsection (c), a corporation may indemnify a director, officer, employee, or agent or former director, officer, employee, or agent for...
• Texas Section 303.038 - Bylaws
  (a) The board of directors shall adopt a corporation's initial bylaws and may amend or repeal the bylaws or adopt new bylaws. The bylaws and...
• Texas Section 303.039 - Committees
  (a) If permitted by the articles of incorporation or bylaws, the board of directors, by resolution adopted by a majority of directors in office, may...
• Texas Section 303.040 - Meetings; Quorum
  (a) A regular or special meeting of the board of directors must be called and held as provided by the bylaws. A regular or special...
• Texas Section 303.041 - Corporation's General Powers
  (a) Subject to Section 303.045, a corporation has the rights and powers necessary or convenient to accomplish the corporation's purposes, including the power to: (1)...
• Texas Section 303.042 - Taxation
  (a) A public facility, including a leasehold estate in a public facility, that is owned by a corporation and that, except for the purposes and...
• Texas Section 303.043 - Net Earnings
  No part of a corporation's net earnings remaining after payment of its bonds and expenses in accomplishing its public purpose may benefit a person other...
• Texas Section 303.044 - Open Meetings; Open Records
  A corporation and its board of directors are considered to be governmental bodies under Chapters 551 and 552, Government Code. Added by Acts 1999, 76th...
• Texas Section 303.045 - Alteration Of Corporation Or Activities
  The sponsor of a corporation, in its sole discretion, may alter the corporation's structure, organization, programs, or activities, consistent with the other provisions of this...
• Texas Section 303.046 - Examination Of Books And Records
  A representative of the sponsor may examine all books and other records of the corporation at any time. Added by Acts 1999, 76th Leg., ch....

SUBCHAPTER C BONDS

• Texas Section 303.047 - Waiver Of Notice
  If a notice is required to be given to a director by this chapter, the articles of incorporation, or the bylaws, a written waiver of...
• Texas Section 303.071 - Authority To Issue
  With the specific approval by resolution of the governing body of its sponsor, a corporation may issue or incur bonds, including refunding bonds, to finance,...
• Texas Section 303.072 - Source Of Payment
  (a) Bonds of a corporation are payable from revenue derived from public facilities or sponsor obligations. Bonds issued under this chapter are not an obligation...
• Texas Section 303.073 - Terms
  (a) A bond issued under this chapter must mature not later than 40 years after its date. (b) Bonds issued under this chapter may be...
• Texas Section 303.074 - Use Of Proceeds
  (a) The proceeds of the bonds of a corporation may be used to: (1) finance, refinance, or provide one or more public facilities; (2) maintain...
• Texas Section 303.075 - Refunding Obligations
  (a) A corporation may issue or incur bonds to refund its outstanding bonds or sponsor obligations of its sponsor, including any redemption premium on them...
• Texas Section 303.076 - Approval Of Bonds By Other Entities
  Except as required by Chapter 1202, Government Code, and Section 303.071 a corporation may issue bonds, acquire sponsor obligations, and enter into credit agreements under...
• Texas Section 303.077 - Perfection Of Security Interest
  (a) This section applies only to a security interest granted by: (1) a corporation as security for its bonds; (2) a credit agreement pledged as...

SUBCHAPTER D DISSOLUTION OF CORPORATION

• Texas Section 303.078 - Purchase Of Sponsor Obligations
  A sponsor may sell its sponsor obligations to a corporation that the sponsor has created at public or private sale on the terms the governing...
• Texas Section 303.101 - Dissolution Authorized
  After a corporation's bonds and other obligations are paid and discharged, or adequate provision is made for their payment and discharge, the sponsor's governing body...
• Texas Section 303.102 - Articles Of Dissolution
  (a) Articles of dissolution on behalf of the corporation must be executed by: (1) the president or vice president and the secretary or assistant secretary;...
• Texas Section 303.103 - Certificate Of Dissolution
  (a) The original and two copies of the articles of dissolution shall be delivered to the secretary of state. (b) If the secretary of state...
• Texas Section 303.104 - Extension Of Duration
  If a corporation is dissolved by expiration of its duration, the corporation may amend its articles of incorporation to extend its duration before the third...
• Texas Section 303.105 - Vesting Property In Sponsoring Entity
  The title to all funds and other property owned by a corporation when it dissolves automatically vests in the corporation's sponsor without further conveyance, transfer,...

SUBCHAPTER E ADMINISTRATION BY SECRETARY OF STATE

• Texas Section 303.106 - Rights, Claims, And Liabilities Before Dissolution
  (a) The dissolution of a corporation by the expiration of its duration or by the issuance of a certificate of dissolution does not impair a...
• Texas Section 303.121 - Administration Of Chapter
  The secretary of state may act as reasonably necessary to efficiently administer this chapter and to perform the duties imposed by this chapter. Added by...
• Texas Section 303.122 - Fees
  (a) The secretary of state shall charge and collect fees for: (1) filing articles of incorporation and issuing two certificates of incorporation; (2) filing articles...
• Texas Section 303.123 - Notice And Appeal Of Disapproval
  (a) If the secretary of state does not approve a document required by this chapter to be approved by the secretary of state, the secretary...
• Texas Section 303.124 - Documents As Prima Facie Evidence
  A court, public office, or official body shall receive the following documents as prima facie evidence of the facts, or the existence or nonexistence of...

Last modified: September 28, 2016