SRC-DPW S.B. 1289 76(R)BILL ANALYSIS


Senate Research CenterS.B. 1289
By: Zaffirini
Education
6/29/1999
Enrolled


DIGEST 

Currently, Texas law requires political subdivisions and economic
development corporations that wish to convey property to institutions of
higher education to comply with certain notice, bidding and sale
requirements in exchange for that institution's consideration of the
location of an educational facility on the property. Recently, institutions
throughout the state that wished to further existing educational programs
or develop new educational programs on land to be donated by the political
subdivisions or economic development corporations could not receive the
donated land because current law prohibits such transfers.  This bill will
provide the enabling legislation permitting political subdivisions or
economic development corporations to bypass notice, bidding, and sale
requirements in order to donate property to a university as long as the
land is used to promote a public purpose related to higher education. 

PURPOSE

As enrolled, S.B. 1289 sets forth guidelines for the donation and transfer
of real or personal property to institutions of higher education. 

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 272.001, Local Government Code, by amending
Subsection (a) and adding Subsection (j), to authorize a political
subdivision to donate, exchange, convey, sell, or lease land, improvements,
or any other interest in real property to institutions of higher education
to promote a public purpose related to higher education.  Requires a
political subdivision to determine the terms and conditions of the
transaction so as to effectuate and maintain the public purpose.
Authorizes a political subdivision to make such a transaction for less than
the fair market value of the real property interest and without compliance
with the notice and bidding requirements of Subsection (a). 

SECTION 2. Amends Article 5190.6, V.T.C.S., by amending Subsection 2(10),
and adding Subsection 2(15), to redefine "project" and to define
"institution of higher education." 

SECTION 3. Amends Article 5190.6, V.T.C.S., by amending Section 3, to
declare that the existence, development, and expansion of higher education
is essential to the economic growth of this state, and that the assistance
provided by industrial development corporations in promoting higher
education opportunities will encourage and foster the development and
diversification of the economy of the state and the elimination of
unemployment and underemployment.  Makes conforming changes. 

SECTION 4. Amends Article 5190.6, V.T.C.S., by amending Subsection 23(a),
to grant the Texas Small Business Industrial Development Corporation
(corporation) the power to donate, exchange, convey, sell, or lease
interests in real property, fixtures or equipment, or personal property to
an institution of higher education upon certain terms and conditions.
Makes conforming changes.   

SECTION 5. Amends Chapter 130A, Education Code, by adding Section 130.0021,
as follows: 

Sec. 130.0021. CONVEYANCE OF CERTAIN REAL PROPERTY. Authorizes a public
junior college or a public junior college district to donate, exchange,
convey, sell, or lease land, improvements, or any other interest in real
property for less than fair market value of the real  property interest if
such an exchange is being make to a university system and the governing
board of the public junior college or district also finds the exchange
promotes a certain public purpose. 

SECTION 6.Emergency clause.
  Effective date: upon passage.