SRC-HRD H.B. 1531 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1531
By: Woolley (Ellis)
Finance
4-21-97
Engrossed


DIGEST 

Currently, Texas law provides that bonds issued by higher education
facilities corporations are payable solely from revenues received from the
borrowing university or college, and are not the debts of the State of
Texas or any political subdivisions of the state.  This bill authorizes
nonprofit corporations which own and operate certain schools to issue
bonds to finance or refinance educational facilities to be used by certain
schools.
PURPOSE

As proposed, H.B. 1531 authorizes certain schools owned and operated by
nonprofit corporations to issue bonds to finance or refinance educational
facilities.
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 Chapter 53C, Education Code, by adding Section 53.49, as
follows: 

Sec. 53.29.  BONDS FOR CERTAIN SCHOOLS OWNED AND OPERATED BY NONPROFIT
CORPORATIONS.  Authorizes a corporation created under Section 53.35(b), in
the same manner that a corporation may issue bonds under this chapter for
an institution of higher education, to issue bonds to finance or refinance
educational facilities to be used by certain schools.   Authorizes bonds
issued under this section, notwithstanding Section 53.34(b), to be payable
from and secured by a pledge of any revenue or assets pledged for that
purpose.   

SECTION 2. Emergency clause.
  Effective date: upon passage.