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.