Texas Senate Bill SB2240

Texas 2009 - 81st Regular

• Out of Senate Committee: 5/1/09
• Voted on by Senate: 5/12/09
• Out of House Committee: 5/22/09
• Voted on by House: 5/27/09
• Governor Action: 6/19/09
• Enrolled: 5/28/09
• Passed: 6/19/09

Caption

Relating to the financing of educational and related facilities by higher education facility authorities or nonprofit corporations performing the functions of those authorities and to the governance of certain higher education facility authorities.

Impact

The enactment of SB2240 is expected to have a significant impact on the processes surrounding the financing of educational structures within the state. By formalizing a clearer role for the attorney general in approving bonds, the bill aims to enhance the transparency and security of financial dealings associated with educational facilities. This measure should help institutions secure funding more effectively while ensuring accountability in how funds are managed. The bill could result in expedited financing for colleges and universities seeking to expand or improve their infrastructure, which is crucial for supporting educational growth and student needs in Texas.

Summary

SB2240 pertains to the financing of educational facilities by higher education authorities in Texas. The bill specifically addresses the processes involved in the approval and issuance of bonds for educational facilities, ensuring that these financial obligations are valid and enforceable. The legislation seeks to simplify the governance and operational structure of higher education facility authorities or nonprofit corporations, which are instrumental in the financing of such educational needs. The provision stipulates that bonds submitted for approval must be reviewed by the attorney general to confirm they meet prescribed standards for legality and compliance.

Contention

Despite its intended benefits, SB2240 may face scrutiny regarding the governance provisions it inserts into the existing legislative framework. Some stakeholders might argue about the adequacy of oversight and whether the changes might inadvertently limit local governance by transferring more power to state authorities. Concerns may arise about the potential for conflicts of interest or mismanagement when financial powers are concentrated further. Additionally, there could be debates on how these changes affect independent decisions made by educational institutions in matters of bonding and financial strategy.