1-1                                   AN ACT

 1-2     relating to the issuance of bonds under the Higher Education

 1-3     Authority Act.


 1-5           SECTION 1.  Section 53.02, Education Code, is amended by

 1-6     adding Subdivision (12) to read as follows:

 1-7                 (12)  "Accredited primary or secondary school" means a

 1-8     primary or secondary school, including a preschool, that is

 1-9     accredited by an accreditation body that is a member of the Texas

1-10     Private School Accreditation Commission.

1-11           SECTION 2.  Section 53.34(b), Education Code, is amended to

1-12     read as follows:

1-13           (b)  The bonds shall be payable from and secured by a pledge

1-14     of all or any part of the gross or net revenue to be derived from

1-15     the operation of the facility or facilities and any other revenue

1-16     or assets pledged for the purpose [resulting from the ownership of

1-17     the educational facilities properties].  The bonds may be

1-18     additionally  secured by a mortgage or deed of trust on real

1-19     property of the authority or by a chattel mortgage on its personal

1-20     property, or by both.

1-21           SECTION 3.  Section 53.48, Education Code, is amended to read

1-22     as follows:


1-24     PRIMARY OR SECONDARY SCHOOLS.   [(a)]  In  the same manner that a

 2-1     corporation may issue bonds under this chapter for an institution

 2-2     of higher education, a corporation created under Section 53.35(b)

 2-3     may issue bonds to finance or refinance educational facilities or

 2-4     housing facilities to be used by an accredited [a military-related]

 2-5     primary or secondary school [that is:]

 2-6                 [(1)  located in a county:]

 2-7                       [(A)  with a population of more than 120,000 and

 2-8     bordered by the Brazos River; or]

 2-9                       [(B)  bordering the Rio Grande and the Gulf of

2-10     Mexico; and]

2-11                 [(2)  owned and operated by a nonprofit corporation

2-12     that is exempt from taxation under Section 501(a), Internal Revenue

2-13     Code, by being listed under Section 501(c)(3), Internal Revenue

2-14     Code].

2-15           [(b)  In this section, "military-related primary or secondary

2-16     school" includes a primary or secondary school that formerly

2-17     offered military instruction for a period of at least 60 years.]

2-18           SECTION 4.  This Act does not affect the validity of bonds

2-19     issued under Section 53.48, Education Code, as that section existed

2-20     before amendment by this Act, to finance or refinance educational

2-21     facilities or housing facilities to be used by a military-related

2-22     primary or secondary school.

2-23           SECTION 5.  The importance of this legislation and the

2-24     crowded condition of the calendars in both houses create an

2-25     emergency and an imperative public necessity that the

2-26     constitutional rule requiring bills to be read on three several

2-27     days in each house be suspended, and this rule is hereby suspended,

 3-1     and that this Act take effect and be in force from and after its

 3-2     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1043 was passed by the House on May

         13, 1997, by a non-record vote.


                                                 Chief Clerk of the House

               I certify that H.B. No. 1043 was passed by the Senate on May

         23, 1997, by the following vote:  Yeas 25, Nays 0, 1 present, not



                                                 Secretary of the Senate

         APPROVED:  _____________________