SRC-JRN S.B. 395 75(R) BILL ANALYSIS Senate Research CenterS.B. 395 By: Gallegos Intergovernmental Relations 3-27-97 As Filed DIGEST Currently, a nonprofit corporation that is created and operated to provide governmental functions and services is not included in the definition of a "political subdivision." Unless a political subdivision of a municipality is specifically authorized to contract with a nonprofit corporation to provide services, a nonprofit corporation is not authorized to contract with local governments to jointly receive funds or to provide services, such as joint purchasing activities. This bill includes a nonprofit corporation that is created and operated to provide governmental functions and services in the definition of "political subdivision." PURPOSE As proposed, S.B. 395 includes a nonprofit corporation that is created and operated to provide governmental functions and services in the definition of "political subdivision." RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 791.003(5), Government Code, to define "political subdivision" as any corporate and political entity organized under state law, including a nonprofit corporation that is created and operated to provide one or more governmental functions and services. SECTION 2. Emergency clause. Effective date: upon passage.