Texas § ED.53.351 - BONDS FOR OPEN-ENROLLMENT CHARTER SCHOOL FACILITIES

§ ED.53.351. BONDS FOR OPEN-ENROLLMENT CHARTER SCHOOL FACILITIES

BONDS FOR OPEN-ENROLLMENT CHARTER SCHOOL FACILITIES. (a) The Texas Public Finance Authority shall establish a nonprofit corporation to act on behalf of the state, as its duly constituted authority and instrumentality, to issue revenue bonds for authorized open-enrollment charter schools for the acquisition, construction, repair, or renovation of educational facilities of those schools. (b) The Texas Public Finance Authority shall appoint the directors of the corporation in consultation with the commissioner of education and subject to the approval of the governor. Directors serve without compensation but are entitled to reimbursement for travel expenses incurred in attending board meetings. The board shall meet at least once a year. (c) The corporation has all powers granted under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes), or granted to a nonprofit corporation under the Business Organizations Code, for the purpose of aiding authorized open-enrollment charter schools in providing educational facilities. In addition, Sections 53.131 , 53.15 , 53.31 , 53.32 , 53.331 , 53.34 , 53.35 , 53.38 , 53.40 , and 53.41 apply to and govern the corporation and its procedures and bonds. The corporation may exercise the powers granted to the governing body of an issuer with regard to the issuance of obligations and the execution of credit agreements under Chapter 1371 , Government Code. (d) The corporation shall adopt rules governing the issuance of bonds under this section. (e) The comptroller shall establish a fund dedicated to the credit enhancement of bonds issued by any issuer under this subchapter for any open-enrollment charter school. The fund may receive donations. The corporation may also use the money held under this subsection to provide loans or other credit support for the obligations of any open-enrollment charter school issued by any issuer in any manner not inconsistent with the Texas Non-Profit Corporation Act (Article 1396-1.01, Vernon's Texas Civil Statutes), or the provisions of the Business Organizations Code governing nonprofit corporations. The obligation of the fund is limited to an amount equal to the balance of the fund. (f) Except as provided by Subsection (f-1), a revenue bond issued under this section is not a debt of the state or any state agency, political corporation, or political subdivision of the state and is not a pledge of the faith and credit of any of these entities. A revenue bond is payable solely from the revenue of the authorized open-enrollment charter school on whose behalf the bond is issued. A revenue bond issued under this section must contain on its face a statement to the effect that: (1) neither the state nor a state agency, political corporation, or political subdivision of the state is obligated to pay the principal of or interest on the bond; and (2) neither the faith and credit nor the taxing power of the state or any state agency, political corporation, or political subdivision of the state is pledged to the payment of the principal of or interest on the bond. (f-1) Subsection (f) does not apply to a revenue bond issued under this section for a charter district if the bond is approved for guarantee by the permanent school fund under Subchapter C , Chapter 45 . (g) An educational facility financed in whole or in part under this section is exempt from taxation if the facility: (1) is owned by an authorized open-enrollment charter school; (2) is held for the exclusive benefit of the school; and (3) is held for the exclusive use of the students, faculty, and staff members of the school. Added by Acts 2001, 77th Leg., ch. 1504, Sec. 32, eff. Sept. 1, 2001. Reenacted and amended by Acts 2005, 79th Leg., Ch. 641 (H.B. 2701 ), Sec. 1, eff. September 1, 2005. Amended by: Acts 2007, 80th Leg., R.S., Ch. 1357 (H.B. 1400 ), Sec. 1, eff. June 15, 2007. Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1 ), Sec. 59.20, eff. September 28, 2011. Acts 2015, 84th Leg., R.S., Ch. 800 (H.B. 2851 ), Sec. 1, eff. June 17, 2015.