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.