SRC-MAX H.B. 1043 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1043
By: Bailey (Lindsay)
Education
5-15-97
Engrossed


DIGEST 

Currently, a higher education facilities corporation created by a
sponsoring local government may issue bonds to provide facilities for an
institution of higher education.  These bonds may be issued as tax-exempt,
and as a result private universities and colleges have borrowed through
such corporations to achieve lower borrowing costs and interest rates.
Higher education facilities corporations are also allowed to issue bonds
for certain primary and secondary schools which are military-related and
located in specific types of counties.  This bill expands the types of
property  or revenues which may be pledged to pay bonds received from a
higher education facilities corporation.   
PURPOSE

As proposed, H.B. 1043 sets forth provisions regarding the issuance of
bonds under the Higher Education Authority Act. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 53.02, Education Code, by adding Subdivision
(12), to define "accredited primary or secondary school." 

SECTION 2. Amends Section 53.34(b), Education Code, to require bonds
issued by higher education facilities corporations (bonds) to be payable
from and secured by a pledge of all or any part of the gross or net
revenue to be derived from the operation of the facility or facilities and
any other revenue or assets pledged for the purpose, rather than any other
revenue resulting from the ownership of the educational facilities
properties.  

SECTION 3. Amends Section 53.48, Education Code, as follows:

Sec.  53.48.  New heading:  BONDS FOR ACCREDITED PRIMARY OR SECONDARY
SCHOOLS.  Authorizes a higher education facilities corporation to issue
bonds to finance or refinance educational facilities or housing facilities
to be used by an accredited primary or secondary school, rather than for
certain military-related primary or secondary schools. Deletes the
definition of "military-related primary or secondary school."  

SECTION 4. Provides that this Act does not affect the validity of certain
bonds issued under Section 53.48, Education Code. 

SECTION 5. Emergency clause.
  Effective date:  upon passage.