HBA-MSH, SEP H.B. 1261 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1261
By: Hardcastle
Business & Industry
2/22/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, nonprofit cooperative corporations are authorized to
deliver unclaimed money to a scholarship fund for rural students or an
economic development fund for the stimulation of rural economic development
in an amount not to exceed $1 million.  This cap limits the use of such
unclaimed money as a funding source for rural scholarships and economic
development.  House Bill 1261 removes the $1 million cap placed on all
transfers. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1261 amends the Property Code to remove the provision that
prohibits the total amount of money transferred by all nonprofit
cooperative corporations from exceeding $1 million during a state fiscal
year under provisions for delivery of money for rural scholarships and
economic development.  The bill also removes the provision that requires
the comptroller to adopt procedures to record the total amount of money
transferred annually under these provisions for a specified purpose.  

EFFECTIVE DATE

September 1, 2001 and applies only to specified property presumed abandoned
that is held by a nonprofit cooperative corporation on or after June 30,
2000, and required to be delivered on or after November 1, 2001.