BILL ANALYSIS


                                                        S.B. 1549
                                                        By: Ellis
                                                          Finance
                                                         05-02-95
                                       Committee Report (Amended)
BACKGROUND

Current law authorizes junior college districts to issue revenue
bonds.  As last amended in 1987, Section 130.125(a)(5), Education
Code, provides a definition of the term "obligations."  That
definition is similar to the definition contained in other
statutes, such as Article 717q, V.T.C.S.  However, the definition
of "obligations" in Section 130.125(a)(5) omits a phrase, as a
result of which the subsection cannot effectively be used by junior
college districts.

PURPOSE

As proposed, S.B. 1549 redefines "obligations" to include notes,
warrants, or other special obligations authorized to be issued by
an issuer and all "bonds," which, prior to the delivery thereof,
have been rated by a nationally recognized rating agency for
municipal securities in one of the four highest ranking categories
for long-term obligations.

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 130.125(a)(5), Education Code, to
redefine "obligations" to include notes, warrants, or other special
obligations authorized to be issued by an issuer and all "bonds,"
which, prior to the delivery thereof, have been rated by a
nationally recognized rating agency for municipal securities in one
of the four highest ranking categories for long-term obligations.

SECTION 2. Amends Section 130.125, Education Code, by adding
Subsection (f-1), to authorize the governing body of an "eligible
issuer" to enter into credit agreements as described in Subsection
(d).  Defines "eligible issuer."

SECTION 3. Emergency clause.
           Effective date: upon passage.