BILL ANALYSIS


                                                        S.B. 1550
                                                        By: Brown
                                      Intergovernmental Relations
                                                          4-20-95
                                     Committee Report (Unamended)
BACKGROUND

The enrollment at the campus of the Houston Community College
System (HCCS) located in the City of Stafford has experienced
enormous growth since its inception in 1987, quadrupling in size to
over 4,000 students.  The campus has fostered economic development
in the city by establishing a free enterprise center with a
business incubator, the operation of a small business development
center, and the development of numerous technical programs used to
train workers for employers located in Stafford.  The Stafford
campus has worked with area high schools to facilitate the movement
of students from their high school training program to the receipt
of technical or junior college degrees.  However, because of its
fast growth, the campus presently faces severe restrictions on
increased enrollment due to its limited and inadequate facilities.

The City of Stafford and HCCS have entered into an agreement for
the city to afford its credit to HCCS to build a 70,000 square foot
facility on 17 acres of land located in the city which will then be
purchased by the city and leased back to HCCS at payments equal to
or greater than the amount of the principal, interest, and costs
necessary to finance the total cost of the municipal bonds utilized
by the city for the purchase and construction of the facility.

PURPOSE

As proposed, S.B. 1550 authorizes the acquisition of land and
facilities and issuance of bonds by a municipality.

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 2, Article 835s, V.T.C.S., to authorize
a home-rule or general-law municipality to acquire land, by any
lawful means other than eminent domain, and to construct or
otherwise acquire a building or other facility for the purpose of
selling, pursuant to an installment sale agreement or otherwise, or
leasing, with or without an option to purchase, without the need
for public notice or bidding, and otherwise on such terms as the
governing body of the municipality may find acceptable, including
an institution of higher education.

SECTION 2. Amends Section 4(a), Article 835s, V.T.C.S., by amending
Subdivision (1), to authorize a municipality to provide for the
payment of the principal of and interest on general obligation
bonds by pledging all or part of the designated revenues from the
sale or lease of any or all of the land, buildings, or other
facility after deduction of the reasonable cost of operation and
maintenance.

SECTION 3. Amends Section 7, Article 835s, V.T.C.S., to make a
conforming change.

SECTION 4. Emergency clause.
           Effective date: upon passage.