By: Watson, Hancock  S.B. No. 1147
         (In the Senate - Filed February 28, 2017; March 7, 2017,
  read first time and referred to Committee on Business & Commerce;
  April 5, 2017, reported favorably by the following vote:  Yeas 9,
  Nays 0; April 5, 2017, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the establishment of the Texas State Music Museum and
  Texas Music Foundation; authorizing fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle D, Title 4, Government Code, is amended
  by adding Chapter 446 to read as follows:
  CHAPTER 446.  TEXAS STATE MUSIC MUSEUM AND TEXAS MUSIC FOUNDATION
         Sec. 446.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the State Preservation Board.
               (2)  "Capitol Complex" has the meaning assigned by
  Section 443.0071.
               (3)  "Foundation" means the Texas Music Foundation.
               (4)  "Museum" means the Texas State Music Museum.
               (5)  "Presiding officer" means the presiding officer of
  the foundation.
         Sec. 446.002.  ESTABLISHMENT OF MUSEUM. (a)  The Texas
  State Music Museum is established to:
               (1)  educate and engage visitors in the rich and varied
  heritage of the music of this state;
               (2)  display objects and information relating to the
  heritage described by Subdivision (1); and
               (3)  honor musical artists and other persons who have
  contributed to the heritage described by Subdivision (1).
         (b)  The museum shall provide exhibits, concerts, programs,
  and activities that support the musical education of the people of
  this state, including students.
         (c)  The cost of operating the museum shall be paid from
  revenue generated or collected by the museum and the foundation. 
         Sec. 446.003.  ESTABLISHMENT OF FOUNDATION. The board shall
  establish and maintain the Texas Music Foundation as a Texas
  nonprofit corporation, exempt from federal income taxation under
  Section 501(a), Internal Revenue Code of 1986, as an organization
  described by Section 501(c)(3) of that code. The foundation is a
  nonpolitical legal entity dedicated solely to supporting the
  mission and goals of the museum.
         Sec. 446.004.  FOUNDATION DIRECTORS. (a)  The foundation is
  governed by 13 directors, appointed by the governor, as chairman of
  the board, in consultation with the other board members.
         (b)  The executive director of the board and a person
  designated by the governor's office serve as ex officio directors
  of the foundation, without voting privileges.
         (c)  Each director serves at the will of the governor.
         (d)  The governor shall designate a director to serve as the
  presiding officer of the foundation.
         (e)  A director serves without compensation but is entitled
  to reimbursement for reasonable and necessary expenses incurred in
  the performance of duties as director.
         (f)  A person who is required to register as a lobbyist under
  Chapter 305 may not serve as a director.
         Sec. 446.005.  BOARD OVERSIGHT AND DESIGNATION OF MUSEUM
  SPACE. (a)  The museum is under the jurisdiction of the board.
         (b)  The board, with the assistance of the Texas Facilities
  Commission, shall designate sufficient space in a building in the
  Capitol Complex to house the museum. The building is not subject to
  Section 2165.005.
         (c)  The board shall name the building.
         Sec. 446.006.  AGREEMENT BETWEEN BOARD AND FOUNDATION. The
  board shall enter into an agreement with the foundation for the
  management, operation, and financial support of the museum. The
  agreement must:
               (1)  detail the expectations and goals of the board and
  the foundation;
               (2)  outline the management and operation of the
  museum;
               (3)  establish management standards;
               (4)  provide for oversight by the board;
               (5)  address funding and payment of costs;
               (6)  address equipment needed for the museum;
               (7)  establish insurance coverage requirements;
               (8)  address construction, maintenance, and repair of
  the museum;
               (9)  establish the term of the agreement;
               (10)  require submission of financial information from
  the foundation to the board;
               (11)  establish the foundation as a trustee of the
  museum for the benefit of this state;
               (12)  address ownership by this state of the museum and
  museum contents;
               (13)  include a dispute resolution process;
               (14)  provide that the laws of this state govern the
  agreement;
               (15)  include notice requirements;
               (16)  establish a conflict of interest policy for
  foundation officers, directors, and employees;
               (17)  establish a budget for the operation of the
  foundation; and
               (18)  allow the board to provide personnel and office
  support to the foundation.
         Sec. 446.007.  FOUNDATION PERSONNEL. (a)  The foundation
  shall employ personnel necessary to operate the museum.
         (b)  A foundation employee is not a state employee. The
  foundation may set the salaries of foundation employees, subject to
  board oversight.
         Sec. 446.008.  FOUNDATION POWERS AND DUTIES. (a)  The
  foundation shall manage and operate the museum.
         (b)  Any authority granted to the museum may be exercised by
  the foundation, except as otherwise directed by the board.
         (c)  The foundation shall raise money to finance and support
  the museum.
         (d)  With the approval of the board, the foundation may
  conduct concerts, programs, and fund-raising activities in the
  Capitol Complex outside the fence line of the Capitol grounds.
         Sec. 446.009.  FUNDING AND FEES. (a)  The foundation may
  solicit and accept gifts, grants, sponsorships, and donations from
  individuals and public or private foundations and organizations to
  further the foundation's mission, including a gift, grant,
  sponsorship, or donation made in the name of the museum.
         (b)  Money raised by the foundation may be used to acquire
  personal property for or engage in construction activities related
  to the museum. 
         (c)  The foundation may set and collect fees in amounts
  necessary to provide for the operation of the museum, including
  fees for:
               (1)  admission to exhibits, theaters, concerts,
  programs, and activities;
               (2)  parking and transportation; and 
               (3)  facility rental. 
         (d)  The foundation may sell at the museum items manufactured
  or publications printed under contract with the museum.
         (e)  The foundation may establish a museum membership
  program. 
         Sec. 446.010.  TEXAS STATE MUSIC MUSEUM FUND. (a)  Money
  and securities received by the foundation and museum shall be held
  in trust outside the state treasury by the comptroller in a special
  fund to be known as the Texas State Music Museum fund.
         (b)  The foundation may spend money in the Texas State Music
  Museum fund for any lawful purpose connected with the museum.
         (c)  Subtitle D, Title 10, does not apply to a purchase or
  lease made with money from the fund.
         Sec. 446.011.  FACILITIES. (a)  The foundation may operate
  in the museum:
               (1)  a theater or other venue for hosting a musical
  concert or performance;
               (2)  a gift shop;
               (3)  unmanned teller machines;
               (4)  food services; and
               (5)  other services and facilities convenient or
  necessary for visitors to the museum.
         (b)  Chapter 355, Labor Code, does not apply to vending
  facilities operated by or approved for operation in the museum.
         Sec. 446.012.  NAMING OF MUSEUM AREAS. With the approval of
  the board, the foundation may name areas in the museum, including
  rooms and exhibition halls, in honor of donors or benefactors, or
  other persons who have contributed to the musical heritage of this
  state.
         Sec. 446.013.  INTELLECTUAL PROPERTY RIGHTS. The foundation
  may secure museum-related intellectual property rights for this
  state.
         Sec. 446.014.  AUDIT. The museum is subject to audit by the
  state auditor as provided by Chapter 321.
         Sec. 446.015.  PARKING AND TRANSPORTATION. The foundation
  may provide at the museum parking for visitors and, in cooperation
  with other public and private authorities, may participate in
  providing transportation for visitors between other musical and
  cultural sites.
         Sec. 446.016.  PRIVATE EVENTS. The foundation may rent all
  or part of the museum's facilities for private events and provide
  for the sale, gift, possession, and consumption of alcoholic
  beverages at a private event held in the facilities.
         Sec. 446.017.  MARKETING AND PUBLIC RELATIONS. The
  foundation may engage in marketing and public relations to
  publicize the museum and the museum's mission.
         Sec. 446.018.  INSURANCE. The foundation may purchase
  insurance policies to insure the museum's contents and other
  personal property against any insurable risk, including insurance
  covering historical artifacts, art, or other items on loan to the
  museum. 
         Sec. 446.019.  CONTRACTS. The foundation may contract with
  public or private entities to the extent necessary or convenient
  for the operation of the museum's exhibits, concerts, programs,
  activities, and facilities, including contracts for the
  acquisition by purchase or loan of items for exhibition.
         Sec. 446.020.  AGREEMENT FOR UTILITIES AND OTHER SERVICES.
  The foundation may enter into an agreement with the Texas
  Facilities Commission to reimburse the commission for the costs of
  providing utilities and other necessary services for the museum.
         Sec. 446.021.  ANNUAL REPORT. Not later than the 60th day
  after the last day of each state fiscal year, the foundation shall
  submit to the board an electronic report itemizing all income and
  expenditures of the foundation and describing all activities of the
  foundation and museum during the preceding state fiscal year.
         Sec. 446.022.  OPEN MEETINGS AND PUBLIC INFORMATION
  EXEMPTION. The foundation is not subject to Chapter 551 or 552.
         Sec. 446.023.  TAX EXEMPTION; FILING REQUIREMENT. (a)  All
  income, property, and other assets of the foundation are exempt
  from taxation by this state and political subdivisions of this
  state.
         (b)  The foundation shall comply with all filing
  requirements of the secretary of state and the Internal Revenue
  Service. 
         Sec. 446.024.  PROHIBITED ACTIVITIES. The foundation may
  not:
               (1)  donate funds to a political campaign or endorse a
  political candidate;
               (2)  lobby or otherwise attempt to influence a member
  of the legislature; or 
               (3)  directly or indirectly attempt to influence
  legislation.
         SECTION 2.  As soon as practicable after the effective date
  of this Act:
               (1)  the State Preservation Board shall establish the
  Texas Music Foundation under Chapter 446, Government Code, as added
  by this Act; and
               (2)  the governor shall appoint directors to the Texas
  Music Foundation as provided by Section 446.004, Government Code,
  as added by this Act.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2017.
 
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