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.