BILL ANALYSIS



H.B. 686
By: Hernandez
02-17-95
Committee Report (Unamended)


BACKGROUND

Since Texas voters first approved $85 million in bonds to support
the state's Hinson-Hazlewood College Student Loan Program in 1965
they have returned three times to the polls to approve bonds to
fund it. In fiscal year 1993, the Hinson-Hazlewood Program became
fully self-supporting. The Texas Higher Education Coordinating
Board cannot meet current loan demand without new bonding
authority.

PURPOSE

As proposed, H.B. 686 provides for the student loan program
administered by the Texas Higher Education Coordinating Board and
authorizes the issuance of bonds.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 52.01, Education Code, to require the
Texas Higher Education Coordinating Board (board) to administer the
student loan program authorized by this chapter pursuant to Article
III, Section 50b-4, as well as 50b, 50b-1, 50b-2, and 50b-3.

SECTION 2. Amends Section 52.501(4), Education Code, to make a
conforming change.

SECTION 3. Amends Section 52.81(2), Education Code, to make a
conforming change.

SECTION 4. Amends Section 52.82(a), Education Code, to authorize
the board to authorize the issuance of general obligation bonds in
total aggregate amounts not to exceed $300 million under Section
50b-3 and $400 million under Section 50b-4, Article III, Texas
Constitution.

SECTION 5. Amends Section 52.87, Education Code, to make a
conforming change.

SECTION 6. Provides that this Act takes effect on the date on which
the constitutional amendment proposed by the 74th Legislature,
Regular Session, 1995, providing for the issuance of $400 million
in general obligation bonds to finance educational loans to
students takes effect.

SECTION 7. Emergency clause.


SUMMARY OF COMMITTEE ACTION

Pursuant to a notice posted on February 15, 1995 the Committee on
Financial Institutions convened in a public hearing on February 20,
1995 to consider HB 686.  The following persons testified in favor
of the bill:  Representative Hernandez, Carol L. McDonald.  The
following persons testified neutrally on the bill:  Kenneth
Ashworth, Mack C. Adams, James McWhorter.
The motion to report HB 686 to the House favorably without
amendments prevailed by the following vote:  8 Ayes, 0 Nays, 0 PNV,
1 Absent.