HBA-TBM S.B. 1419 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1419
By: West, Royce
Civil Practices
4/23/2001
Engrossed



BACKGROUND AND PURPOSE 

Under current law, a statute of limitations of six years limits the amount
of time certain governmental entities have to file suit on an outstanding
debt.  As a result, The University of Texas System is currently owed $26.5
million in delinquent debt that cannot be collected.  Senate Bill 1419
eliminates the statute of limitations on negotiable instruments for a
public institution of higher education and the Texas Higher Education
Coordinating Board.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Bill 1419 amends the Business & Commerce Code to provide that a
right of action of a public institution of higher education or the Texas
Higher Education Coordinating Board is not barred by the statute of
limitations for negotiable instruments.   

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.