C.S.H.B. 2915 78(R)    BILL ANALYSIS


C.S.H.B. 2915
By: Wise
Higher Education
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

There are five Texas  higher education authorities which are defined as
Qualified Nonprofit Corporations under Chapter 53, Subchapter 53.47 of the
Education Code.  These authorities are nonprofit corporations that were
established over 25 years ago by the  Legislature to provide student loan
access in the state of Texas.   Their programs are funded primarily
through the issuance of taxexempt student loan bonds. 

Section 53.47 of the Education Code currently requires any new non-profit
corporation that wishes to issue tax-exempt student loan bonds to prove
that it fills a need not already met by the five existing Qualified
Nonprofit Corporations.   

During the 77th Regular Session,  CSHB 1938 was passed which limited the
authority for making education loans to Texas nonprofit corporations that
had an established record of servicing loans under the Texas Higher
Education Authority Act.  The definition of a "qualified nonprofit
corporation" as outlined in House Bill 1938 is due to expire in September
1, 2003.   This legislation would remove that expiration date and leave
the current definition in statute. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

CSHB 2915 repeals Section 53.47(k), Education Code, to eliminate the
expiration of Section 53.47(a)(6), which provides the definition of a
"qualified non-profit corporation." 

CSHB 2915 provides that if this Act takes effect on or after September 1,
2003, Section 53.47(a), Education Code, is amended by adding Subdivision
(6) to reinstate the existing definition of a qualified non-profit
corporation. 

EFFECTIVE DATE

This Act takes effect immediately if it receives a vote of two-thirds of
all the members elected to each house, as provided by Section 39, Article
III, Texas Constitution.  If this Act does not receive the vote necessary
for immediate effect, this Act takes effect September 1, 2003. 


COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute conforms the original to Texas Legislative Council style
and format, and reinstates the definition of a qualified non-profit
corporation.