SRC-JRN S.B. 853 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 853
By: Ellis
Education
3-22-97
As Filed


DIGEST 

Currently, a higher education facilities corporation created by a
sponsoring local government may issue bonds to provide facilities for
certain institutions of higher education.  Because bonds issued by higher
education facilities corporations are payable from revenues received from
a borrowing university or college, and are not the debts of the State of
Texas or any political subdivision, facilities costs may be lowered if
other educational entities use these types of bonds.  This bill expands
the the types of property or revenue which may be pledged for the issuance
of bonds and authorizes the issuance of bonds by higher education
facilities corporations to be used to benefit primary and secondary
schools. 

PURPOSE

As proposed, S.B. 853 expands the types of property or revenue which may
be pledged for the issuance of bonds and authorizes the issuance of bonds
by higher education facilities corporations to be used to benefit primary
and secondary 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 Section 53.02, Education Code, by adding Subdivision
(12), to define "accredited primary or secondary school." 

SECTION 2. Amends Section 53.34(b), Education Code, to require bonds to be
payable from and secured by a pledge of all or any part of the gross or
net revenue to be derived from the operation of any facilities and any
other revenue or assets pledged for the purpose.  Deletes the provision
that bonds are payable from revenue resulting from the ownership of the
educational facilities properties. 

SECTION 3. Amends Section 53.48, Education Code, as follows:

Sec. 53.48.  New heading:  BONDS FOR ACCREDITED PRIMARY OR SECONDARY
SCHOOLS.  Authorizes a corporation created under Section 53.35(b) to issue
bonds to be used by an accredited, rather than a military-related, primary
or secondary school.  Deletes location and ownership requirements of the
primary or secondary school, including a definition of "military-related
primary or secondary school."  Makes conforming changes. 

SECTION 4. Provides that this Act does not affect the validity of bonds
issued under Section 53.48, Education Code, as that section existed before
amendment by this Act, to finance or refinance educational or housing
facilities to be used by a military-related primary or secondary school. 

SECTION 5. Emergency clause.
  Effective date: upon passage.