SRC-AAA S.B. 696 75(R)BILL ANALYSIS


Senate Research CenterS.B. 696
By: Ellis
Finance
4-4-97
Committee Report (Amended)


DIGEST 

Currently, 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. 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, S.B. 696 authorizes nonprofit corporations which own and
operate certain schools to issue bonds to finance or refinance educational
facilities to be used by certain schools. 

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. 53.49. BONDS FOR CERTAIN SCHOOLS OWNED AND OPERATED BY NONPROFIT
CORPORATIONS.  Authorizes certain corporations  to issue bonds  for
certain schools to finance or refinance educational facilities.
Authorizes bonds to be payable from and secured by assets for that
purpose. 

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

SUMMARY OF COMMITTEE CHANGES

Amendment 1.

(1)  In SECTION 1 of the bill, in proposed Section 53.49(a), Education
Code (introduced version page 1, line 19), strike "and." 

(2)  In SECTION 1 of the bill, in proposed Section 53.49(a), Education
Code (introduced version page 1, between lines 19 and 20), insert the
following: "(4) is accredited by an organization approved by the Texas
Education Agency for private school accreditation; and." 

(3)  In SECTION 1 of the bill, in proposed Section 53.49(a), Education
Code (introduced version page 1, line 20), strike "(4)" and substitute
"(5)."