1-1     By:  Bailey (Senate Sponsor - Lindsay)                H.B. No. 1043

 1-2           (In the Senate - Received from the House May 13, 1997;

 1-3     May 13, 1997, read first time and referred to Committee on

 1-4     Education; May 18, 1997, reported favorably by the following vote:

 1-5     Yeas 10, Nays 0; May 18, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the issuance of bonds under the Higher Education

 1-9     Authority Act.


1-11           SECTION 1.  Section 53.02, Education Code, is amended by

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

1-13                 (12)  "Accredited primary or secondary school" means a

1-14     primary or secondary school, including a preschool, that is

1-15     accredited by an accreditation body that is a member of the Texas

1-16     Private School Accreditation Commission.

1-17           SECTION 2.  Section 53.34(b), Education Code, is amended to

1-18     read as follows:

1-19           (b)  The bonds shall be payable from and secured by a pledge

1-20     of all or any part of the gross or net revenue to be derived from

1-21     the operation of the facility or facilities and any other revenue

1-22     or assets pledged for the purpose [resulting from the ownership of

1-23     the educational facilities properties].  The bonds may be

1-24     additionally  secured by a mortgage or deed of trust on real

1-25     property of the authority or by a chattel mortgage on its personal

1-26     property, or by both.

1-27           SECTION 3.  Section 53.48, Education Code, is amended to read

1-28     as follows:


1-30     PRIMARY OR SECONDARY SCHOOLS.   [(a)]  In  the same manner that a

1-31     corporation may issue bonds under this chapter for an institution

1-32     of higher education, a corporation created under Section 53.35(b)

1-33     may issue bonds to finance or refinance educational facilities or

1-34     housing facilities to be used by an accredited [a military-related]

1-35     primary or secondary school [that is:]

1-36                 [(1)  located in a county:]

1-37                       [(A)  with a population of more than 120,000 and

1-38     bordered by the Brazos River; or]

1-39                       [(B)  bordering the Rio Grande and the Gulf of

1-40     Mexico; and]

1-41                 [(2)  owned and operated by a nonprofit corporation

1-42     that is exempt from taxation under Section 501(a), Internal Revenue

1-43     Code, by being listed under Section 501(c)(3), Internal Revenue

1-44     Code].

1-45           [(b)  In this section, "military-related primary or secondary

1-46     school" includes a primary or secondary school that formerly

1-47     offered military instruction for a period of at least 60 years.]

1-48           SECTION 4.  This Act does not affect the validity of bonds

1-49     issued under Section 53.48, Education Code, as that section existed

1-50     before amendment by this Act, to finance or refinance educational

1-51     facilities or housing facilities to be used by a military-related

1-52     primary or secondary school.

1-53           SECTION 5.  The importance of this legislation and the

1-54     crowded condition of the calendars in both houses create an

1-55     emergency and an imperative public necessity that the

1-56     constitutional rule requiring bills to be read on three several

1-57     days in each house be suspended, and this rule is hereby suspended,

1-58     and that this Act take effect and be in force from and after its

1-59     passage, and it is so enacted.

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