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.