SRC-AAA C.S.H.B. 1235 75(R)BILL ANALYSIS Senate Research CenterC.S.H.B. 1235 By: Junell (Ratliff) Finance 5-2-97 Committee Report (Substituted) DIGEST Currently, under the Education Code, institutions of higher education have the authority to issue revenue bonds for certain purposes. These bonds may be backed by future tuition revenues. This bill grants authority to the board of regents of various institutions of higher education to finance capital improvements. Additionally, this bill allows the board of regents of the various institutions of higher education to pledge certain items for payment of the bonds. PURPOSE As proposed, C.S.H.B. 1235 grants authority to the board of regents of various institutions of higher education to finance capital improvements and to pledge certain items for payment of the bonds. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 55.17(e), Education Code, by adding Subdivision (4), to set forth requirements for issuing bonds for Texas Tech University and the Texas Tech Health Center. SECTION 2. Amends Chapter 55B, Education Code, by adding Sections 55.1721-55.1728, as follows: Sec. 55.1721. THE TEXAS A&M UNIVERSITY SYSTEM. Sets forth requirements for issuing bonds and payment of bonds, and sets forth the principal amounts for: Prairie View A&M University, Tarleton State University, Texas A&M University, Texas A&M University Health Science Center, Texas A&M University at Galveston, Texas A&M--Commerce, Texas A&M--Corpus Christi, Texas A&M International University, Texas A&M-Kingsville, Texas A&M--Texarkana, West Texas A&M University, and Baylor College of Dentistry. Sec. 55.1722. THE UNIVERSITY OF TEXAS SYSTEM. Sets forth requirements for issuing bonds and payment of bonds, and sets forth the principal amounts for: University of Texas at Arlington, University of Texas at Austin, University of Texas at Brownsville, University of Texas at Dallas, University of Texas at El Paso, University of Texas--Pan American, University of Texas of the Permian Basin, University of Texas at San Antonio, and University of Texas at Tyler, University of Texas at Tyler, Nursing-Palestine Extension, University of Texas Southwestern Branch at Dallas, University of Texas Medical Branch at Galveston, University of Texas Health Science Center at Houston, University of Texas Health Science Center at San Antonio. Sec. 55.1723. THE UNIVERSITY OF HOUSTON SYSTEM. Sets forth requirements for issuing bonds and payment of bonds for the University of Houston System. Sec. 55.1724. TEXAS STATE UNIVERSITY SYSTEM. Sets forth requirements for payment of bonds for the Texas State University System. Sec. 55.1725. UNIVERSITY OF NORTH TEXAS AND UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER AT FORT WORTH. Sets forth requirements for issuance of principal and payment of bonds for University of North Texas and UNT Health Science Center. Sec. 55.1726. TEXAS WOMAN'S UNIVERSITY. Sets forth requirements for issuance of principal amounts and payment of bonds for Texas Woman's University. Sec. 55.1727. MIDWESTERN STATE UNIVERSITY. Sets forth requirements for the issuance of principal amounts and payment of bonds for Midwestern State University. Sec. 55.1728. STEPHEN F. AUSTIN UNIVERSITY. Sets forth requirements for the issuance of principal amounts and payment of bonds for Stephen F. Austin University. SECTION 3. Amends Chapter 55B, Education Code, bu adding Section 55.174, as follows: Sec. 55.174. TEXAS SOUTHERN UNIVERSITY. Sets forth requirements for issuance of principal amounts and payment of bonds for Texas Southern University. SECTION 4. Amends Section 61.0572(e), Education Code, to make conforming changes. SECTION 5. Amends Section 61.058(b), Education Code, to make a conforming change. SECTION 6. Emergency clause. Effective date: upon passage. SUMMARY OF COMMITTEE CHANGES SECTION 2. Amends Section 55.1721, Education Code, to set forth new principal amounts and new institutions of the Texas A&M University System to finance. Amends Section 55.1722, Education Code, to set forth new principal amounts and new institutions of the University of Texas System to finance. Amends Section 55.1723, Education Code, to set forth new principal amounts and new institutions of the University of Houston System to finance. Amends Section 55.1724, Education Code, to set forth new principal amounts for the Texas State University System to finance. Amends Section 55.1728, Education Code, to set forth a new principal amount not to exceed $37 million. SECTION 4. Amends Section 61.0572(e), Education Code, to make conforming changes. SECTION 5. Amends Section 61.058(b), Education Code, to make a conforming change.