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


Senate Research Center   S.B. 1289
By: Zaffirini
Education
4/1/1999
As Filed


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 would
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 proposed, 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 and
improvements, or any other interest in real property to institutions of
higher education to promote a public purpose related to higher education.
Authorizes a political subdivision to take such action for less than the
fair market value of the real property 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 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 and improvements, or any other interest in real
property for less than fair market value of the 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.