SRC-MWN C.S.S.B. 1081 77(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1081
77R10516 JMG-FBy: Shapiro
Intergovernmental Relations
3/28/2001(REVISED)
Committee Report (Substituted)


DIGEST AND PURPOSE 

Under current law, a cultural educational facilities finance corporation is
required to issue one bond for each project undertaken. This requires
duplication of efforts and resources for legal fees and other costs
associated with the bond financing program. C.S.S.B. 1081 amends the
Cultural Education Facilities Finance Corporation Act and allows a single
bond issuer to provide bond financing for more than one project. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 4, Cultural Education Facilities Finance
Corporation Act (Article 1528m, V.T.C.S.), as follows: 

 Sec. 4. New heading: CREATION OF CORPORATIONS; POWERS; ISSUANCE OF BONDS;
TAX EXEMPTION. (b) Requires the corporation to be created and organized in
the same manner and have the same powers, authority, and rights with
respect to cultural facilities and health facilities that a health
facilities development corporation has with respect to health facilities
under Chapter 221 (Health Facilities Development Act), Health and Safety
Code, and with respect to educational facilities, housing facilities, and
other facilities incidental, subordinate, or related to those facilities
that a nonprofit corporation created under Section 53.35(b) (Administrative
Provisions), Education Code, or an authority created under Section 53.11
(Creation of Authority), Education Code, has under Chapter 53 (Higher
Education Authorities), Education Code.  

(c) Provides that the powers of a corporation under this section include
the power to perform certain procedures.  

(d) Authorizes the authority of the corporation, regardless of any
provision in Chapter 221 (Health Facilities Development Act), Health and
Safety Code, or Chapter 53, Education Code, 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 under Chapter 221, Health and Safety Code, or Chapter 53,
Education Code, unless the articles of incorporation or bylaws of the
corporation provide differently. Requires the authority of a corporation
under this section to not preempt the police powers of any sponsoring
entity or any other laws regulating or empowering sponsoring entities to
regulate the activities of the corporation. Deletes "cultural." Makes
conforming changes. 

SECTION 2. Effective date: upon passage or September 1, 2001. 
 
SUMMARY OF COMMITTEE CHANGES

SECTION 1. Amends As Filed S.B. 1081, Section 4, Cultural Education
Facilities Finance Corporation Act (Article 1528m, V.T.C.S.), as follows: 

 _Adds new proposed language in Subsection (b) regarding an authority
created under Section 53.11, Education Code. 

 _Deletes previously proposed Subsection (d) regarding property and
renumbers previous Subsection (e) as (d). 

 _Adds new language in renumbered Subsection (d) regarding the authority of
the corporation.