HBA-DMH C.S.H.B. 2628 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2628
By: Wolens
County Affairs
4/8/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Unlike some nonprofit organizations, the Greater Dallas Jewish Community
Capital Campaign (Capital Campaign) does not engage in just one type of
activity.  The Capital Campaign serves as an umbrella fund raising
organization for a number of community organizations with different
missions.  Under current law, the Capital Campaign is required to obtain
separate sources of financing for each type of facility it assists.
C.S.H.B. 2628 modifies the powers, authority, and rights of a cultural
educational facilities finance corporation. 

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

C.S.H.B. 2628 amends the Cultural Education Facilities Finance Corporation
Act to provide that a cultural educational facilities finance corporation
(corporation) is required to be created and organized in the same manner
and have the same powers, authority, and rights that a health facilities
development corporation has with respect to health facilities under the
Health Facilities Development Act and that a nonprofit corporation or
authority has with respect to educational and housing facilities. 

Regardless of any provision under the Health Facilities Development Act or
the Higher Education Authority Act, the bill authorizes the authority of
the corporation to be exercised inside or outside the limits of the city or
county that created the corporation without the consent or other action of
any person that would otherwise be required unless the articles of
incorporation or bylaws of the corporation provide differently. The bill
prohibits the authority of a corporation from preempting the police powers
of any sponsoring entity or any other laws regulating or empowering
sponsoring entities to regulate the activities of the corporation. 

EFFECTIVE DATE

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

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2628 differs from the original bill by deleting the provision that
property owned by a cultural educational facilities finance corporation
(corporation), property owned by a nonprofit corporation or limited
liability company whose sole member is the corporation, the income from the
property, all bonds issued by the corporation, the income from the bonds,
and the transfer of the bonds are exempt, as public property used for
public purposes, from all taxes imposed by this state or any political
subdivision of this state.  

C.S.H.B. 2628 modifies the consent requirements for a corporation to
exercise its authority and modifies the manner in which a corporation is
created and organized.  The substitute prohibits the authority of a
corporation from preempting the police powers of any sponsoring entity to
regulate the activities of the corporation.