HBA-CMT H.B. 2516 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2516
By: Garcia
County Affairs
4/1/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, cities or counties may create nonprofit cultural educational
facilities finance corporations for the sole purpose of acquiring,
constructing, providing, improving, financing, and refinancing cultural
educational facilities for public purposes.  The authority of these
corporations cannot be exercised outside the limits of the city or county
that created the corporation, and the corporation is subject to taxes
imposed on it by the state.  House Bill 2516 authorizes a corporation's
authority to be exercised outside of the limits of the city or county that
created the corporation without the consent of that city or county, and
exempts the corporation from certain taxes imposed by the state. 

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 2516 amends the Cultural Education Facilities Finance
Corporation Act to require the corporation created under this Act by a city
or county to be created and organized with respect to educational
facilities, housing facilities, and other facilities incidental,
subordinate, or related to those facilities in the same manner and has the
same powers, authority, and rights that a nonprofit corporation created for
the issuance of bonds has under provisions for higher education
authorities.     
The bill exempts from all taxes imposed by this state or any political
subdivision of this state property owned by a corporation created by a city
or county, property owned by a nonprofit corporation or limited liability
company whose sole member is such a corporation, the income from the
property, all bonds issued by the corporation, the income from the bonds,
and the transfer of the bonds.  Regardless of any provision in the Health
Facilities Development Act, the authority of  such a corporation is
authorized to be exercised outside the limits of the city or county that
created the corporation without the consent of that city or county unless
the articles of incorporation or bylaws of the corporation provide
differently.    

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.