78R3622 JSA-F

By:  Carona                                                       S.B. No. 415



A BILL TO BE ENTITLED

AN ACT

relating to the powers of certain nonprofit corporations to finance 
facilities for an institution of higher education under the Higher 
Education Authority Act.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 53.35(b), Education Code, is amended to 
read as follows: 
	(b)  In addition to or in lieu of establishing an authority 
under the provisions of this chapter, the governing body of a city 
or cities may request or order created one or more nonprofit 
corporations to act on its behalf and as its duly constituted 
authority and instrumentality to exercise the powers granted to an 
authority under the provisions of Section 53.33[, Texas Education 
Code].  If a nonprofit corporation is created for such purposes or 
agrees to such request, the directors thereof shall thereafter be 
appointed and be subject to removal by the governing body of the 
city or cities.  In addition to the powers of lease or acquisition 
of facilities granted under Section 53.33, the corporation shall 
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.  In 
addition to the provisions of Section 53.33 and the Texas 
Non-Profit Corporation Act, as amended (Article 1396-1.01, 
Vernon's Texas Civil Statutes), Sections 53.131, 53.14, 53.15, 
53.31, 53.32, 53.331, 53.34, 53.35, 53.38, and 53.41[, Texas 
Education Code,] shall apply to and govern such corporation and its 
procedures and bonds.
	SECTION 2.  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.