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.