MMA H.B. 1531 75(R)BILL ANALYSIS HIGHER EDUCATION H.B. 1531 By: Woolley 3-14-97 Committee Report (Amended) BACKGROUND Under Chapter 53 of the Texas Education Code, a higher education facilities corporation created by a sponsoring local government may issue bonds to provide facilities for an institution of higher education. Because such bonds, which are issued for a qualifying institution may be issued as tax-exempt, private universities and colleges have borrowed through such corporations to issue such bonds for certain primary and secondary schools which are military related and located in specific counties. 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 subdivision of the State. PURPOSE As proposed, HB 1531 would allow certain schools owned and operated by nonprofit corporations to issue bonds to finance or refinance educational facilities. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter C, Chapter 53, Education Code, by adding Section 53.49 to read as follows: Sec. 53.49. BONDS FOR CERTAIN SCHOOLS OWNED AND OPERATED BY NONPROFIT CORPORATIONS. (a) Authorizes the issuance of bonds by corporations created under 53.35(b) for the purpose of issuing bonds to finance or refinance educational facilities for schools: (1) located in a county with a population of more than 1,800,000; (2) located within three miles of a designated enterprise zone; (3) providing primary and secondary education to at least 1,000 students; (4) owned and operated by a corporation created under the Texas NonProfit Corporation Act. (b) Authorizes bonds issued under this section to be payable from and secured by a pledge of any revenue or assets pledged for that purpose. SECTION 2. Emergency clause. EXPLANATION OF AMENDMENTS Committee amendment no. 1 would add that a school eligible to be issued bonds for capital improvements be accredited by an organization approved by the Texas Education Agency for private school accreditation.