By Bailey                                             H.B. No. 1043

         75R5284 ESH-F                           

                                A BILL TO BE ENTITLED

 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 the Texas Education Agency or by an accreditation

1-10     body that is a member of the Texas Private School Accreditation

1-11     Commission.

1-12           SECTION 2.  Section 53.34(b), Education Code, is amended to

1-13     read as follows:

1-14           (b)  The bonds shall be payable from and secured by a pledge

1-15     of all or any part of the gross or net revenue to be derived from

1-16     the operation of the facility or facilities and any other revenue

1-17     or assets pledged for the purpose [resulting from the ownership of

1-18     the educational facilities properties].  The bonds may be

1-19     additionally  secured by a mortgage or deed of trust on real

1-20     property of the authority or by a chattel mortgage on its personal

1-21     property, or by both.

1-22           SECTION 3.  Section 53.48, Education Code, is amended to read

1-23     as follows:


 2-1     PRIMARY OR SECONDARY SCHOOLS.   [(a)]  In  the same manner that a

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

 2-3     of higher education, a corporation created under Section 53.35(b)

 2-4     may issue bonds to finance or refinance educational facilities or

 2-5     housing facilities to be used by an accredited [a military-related]

 2-6     primary or secondary school [that is:]

 2-7                 [(1)  located in a county:]

 2-8                       [(A)  with a population of more than 120,000 and

 2-9     bordered by the Brazos River; or]

2-10                       [(B)  bordering the Rio Grande and the Gulf of

2-11     Mexico; and]

2-12                 [(2)  owned and operated by a nonprofit corporation

2-13     that is exempt from taxation under Section 501(a), Internal Revenue

2-14     Code, by being listed under Section 501(c)(3), Internal Revenue

2-15     Code].

2-16           [(b)  In this section, "military-related primary or secondary

2-17     school" includes a primary or secondary school that formerly

2-18     offered military instruction for a period of at least 60 years.]

2-19           SECTION 4.  This Act does not affect the validity of bonds

2-20     issued under Section 53.48, Education Code, as that section existed

2-21     before amendment by this Act, to finance or refinance educational

2-22     facilities or housing facilities to be used by a military-related

2-23     primary or secondary school.

2-24           SECTION 5.  The importance of this legislation and the

2-25     crowded condition of the calendars in both houses create an

2-26     emergency and an imperative public necessity that the

2-27     constitutional rule requiring bills to be read on three several

 3-1     days in each house be suspended, and this rule is hereby suspended,

 3-2     and that this Act take effect and be in force from and after its

 3-3     passage, and it is so enacted.