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.