SRC-TAG S.B. 415 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 415
78R3622 JSA-FBy: Carona
Subcommittee on Higher Education
2/20/2003
As Filed


DIGEST AND PURPOSE 

Currently, the Higher Education Authority Act, Chapter 53, Education Code,
which extends the tax-exempt financing opportunities under the federal
Internal Revenue Code to non-profit institutions of higher education, does
not adequately define the allowable use of that tax-exempt aid or issuance
of bonds for the financing or refinancing of facilities at non-profit
institutions of higher education.  As proposed, S.B. 415 expands the
ability of institutions of higher education to fund and construct
co-curricular facilities through tax-exempt aid or bond by clarifying the
purposes for which aid may be given and bonds issued.   

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 53.35(b), Education Code, as follows:

(b)   Deletes text referencing the Texas Education Code.  Requires a
nonprofit corporation created to finance higher education facilities, in
addition to the powers of lease or acquisition of facilities granted under
Section 53.33, to have all powers granted under the Texas Non-Profit
Corporation Act for the purpose of aiding institutions of higher education
in providing educational facilities and housing facilities and facilities
incidental, subordinate, or related thereto or appropriate in connection
therewith, and in providing any other facility that the institution of
higher education for which the facility is provided is authorized by law
or by the institution's charter, articles of incorporation, or bylaws to
provide.  Makes a conforming change. 

SECTION 2.  Effective date: upon passage or September 1, 2003.