BILL ANALYSIS Senate Research Center S.B. 500 81R4903 EAH-D By: Shapiro Economic Development 3/3/2009 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT The Cultural Education Facilities Finance Corporation Act (Act) was originally enacted in the 69th Legislature on June 14, 1985. Certain cultural organizations have been unable to finance their activities due to restrictive interpretations of the Act. As proposed, S.B. 500 redefines "cultural facility." S.B. 500 also authorizes certain nonprofit corporations, charitable organizations, and 501(c)(3) organizations to finance any activity in which the entity is permitted to engage. 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 3(5), Cultural Education Facilities Finance Corporation Act (Article 1528m, V.T.C.S.), to redefine "cultural facility." SECTION 2. Amends Section 4(b), Cultural Education Facilities Finance Corporation Act (Article 1528m, V.T.C.S.), to require that the cultural education facilities finance corporation (corporation) be created and organized in the same manner as a health facilities development corporation under Chapter 221 (Health Facilities Development Act), Health and Safety Code, and have the same powers, authority, and rights with respect to certain facilities. SECTION 3. Amends the Cultural Education Facilities Finance Corporation Act (Article 1528m, V.T.C.S.), by adding Section 4B, as follows: Sec. 4B. AUTHORIZATION TO FINANCE ACTIVITIES. Provides that this Act authorizes a nonprofit corporation exempt from the state franchise tax under Section 171.063 (Exemption-Nonprofit Corporation Exempt from Federal Income Tax), Tax Code; organization that qualifies as a charitable organization under Section 11.18 (Charitable Organizations), Tax Code; or an organization described in Section 501(c)(3), Internal Revenue Code of 1986 to finance any activity in which the entity is permitted to engage. SECTION 4. Effective date: upon passage or September 1, 2009.
BILL ANALYSIS
Senate Research Center S.B. 500
81R4903 EAH-D By: Shapiro
Economic Development
3/3/2009
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The Cultural Education Facilities Finance Corporation Act (Act) was originally enacted in the 69th Legislature on June 14, 1985. Certain cultural organizations have been unable to finance their activities due to restrictive interpretations of the Act.
As proposed, S.B. 500 redefines "cultural facility." S.B. 500 also authorizes certain nonprofit corporations, charitable organizations, and 501(c)(3) organizations to finance any activity in which the entity is permitted to engage.
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 3(5), Cultural Education Facilities Finance Corporation Act (Article 1528m, V.T.C.S.), to redefine "cultural facility."
SECTION 2. Amends Section 4(b), Cultural Education Facilities Finance Corporation Act (Article 1528m, V.T.C.S.), to require that the cultural education facilities finance corporation (corporation) be created and organized in the same manner as a health facilities development corporation under Chapter 221 (Health Facilities Development Act), Health and Safety Code, and have the same powers, authority, and rights with respect to certain facilities.
SECTION 3. Amends the Cultural Education Facilities Finance Corporation Act (Article 1528m, V.T.C.S.), by adding Section 4B, as follows:
Sec. 4B. AUTHORIZATION TO FINANCE ACTIVITIES. Provides that this Act authorizes a nonprofit corporation exempt from the state franchise tax under Section 171.063 (Exemption-Nonprofit Corporation Exempt from Federal Income Tax), Tax Code; organization that qualifies as a charitable organization under Section 11.18 (Charitable Organizations), Tax Code; or an organization described in Section 501(c)(3), Internal Revenue Code of 1986 to finance any activity in which the entity is permitted to engage.
SECTION 4. Effective date: upon passage or September 1, 2009.