BILL ANALYSIS


                                                        H.B. 2747
                                     By: Holzheauser (Armbrister)
                                                          Finance
                                                         05-22-95
                              Senate Committee Report (Unamended)
BACKGROUND

Since 1972, the University of Houston-Victoria (UHV) and Victoria
College have had a lessee/landlord arrangement.  UHV is now at a
crossroad in its growth and development.  In 1994, the University
of Houston System board of regents approved UHV's master plan for
facilities to provide for its future development.  UHV and Victoria
College intend to continue their partnership by sharing the student
center, the bookstore, the auditorium, the wellness center and
library space.

PURPOSE

As proposed, H.B. 2747 authorizes the board of regents of the
University of Houston System to issue $9 million in tuition revenue
bonds for the University of Houston-Victoria.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 55A, Education Code, by adding Section
55.173, as follows:

     Sec.  55.173.  THE UNIVERSITY OF HOUSTON SYSTEM.  (a) 
     Authorizes the board of regents (board) of the University of
     Houston System (system), in addition to the authority granted
     by other sections of this code, to acquire, purchase,
     construct, renovate, enlarge, and equip buildings, facilities,
     roads, land, and infrastructure for the University of Houston-Victoria.
     
     (b)  Authorizes the board to issue bonds under this
       subchapter in an aggregate principal amount not to exceed $9
       million to finance those items beginning September 1, 1995.
       
       (c)  Authorizes the board to pledge irrevocably to the
       payment of those bonds all or any of the aggregate amount of
       student tuition charges required or authorized by law to be
       imposed on students enrolled at the University of Houston-Victoria or at a component of the system.  Prohibits the
       amount of a pledge made under this subsection from being
       reduced or abrogated while the bonds for which the pledge is
       made, or bonds issued to refund those bonds, are
       outstanding.
       
       (d)  Authorizes the board to repay the interest and
       principal on bonds issued under this section and maintenance
       and operations of the facility with appropriations that
       otherwise would have been for the lease of facilities.
       
     SECTION 2.     Emergency clause.
           Effective date:  upon passage.