By: Leedom S.B. No. 1420 73R8412 SMH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the leasing of property by an institution of higher 1-3 education to a private business. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter Z, Chapter 51, Education Code, is 1-6 amended by adding Section 51.929 to read as follows: 1-7 Sec. 51.929. LEASE OF PROPERTY BY INSTITUTION OF HIGHER 1-8 EDUCATION TO PRIVATE BUSINESS. An institution of higher education, 1-9 as defined by Section 61.003 of this code, shall include in the 1-10 amount for which it leases real property to a private business an 1-11 amount equal to the estimated amount of ad valorem tax that would 1-12 have been imposed on the property during the term of the lease if 1-13 it were owned by the business, less an amount equal to the amount 1-14 of ad valorem tax, if any, imposed on the leasehold interest of the 1-15 business in the property during the term of the lease. This 1-16 section applies only to a lease of real property that is exempt 1-17 from ad valorem taxation to the owner of the property. 1-18 SECTION 2. This Act takes effect September 1, 1993, and 1-19 applies only to a lease executed on or after the effective date of 1-20 this Act. A lease executed before the effective date of this Act 1-21 is governed by the law in effect when the lease was executed, and 1-22 that law is continued in effect for that purpose. 1-23 SECTION 3. The importance of this legislation and the 1-24 crowded condition of the calendars in both houses create an 2-1 emergency and an imperative public necessity that the 2-2 constitutional rule requiring bills to be read on three several 2-3 days in each house be suspended, and this rule is hereby suspended.