1-1                                   AN ACT

 1-2     relating to authorizing the issuance of revenue bonds for certain

 1-3     public institutions of higher education.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 55.17(e), Education Code, is amended by

 1-6     adding Subdivision (4) to read as follows:

 1-7                 (4)  In addition to the other authority granted by this

 1-8     subchapter, the board of regents of Texas Tech University and the

 1-9     Texas Tech University Health Sciences Center may issue bonds in

1-10     accordance with this subchapter and in accordance with a systemwide

1-11     revenue financing program adopted by the board to finance the items

1-12     listed under Subdivision (1) of this subsection in an additional

1-13     aggregate principal amount for Texas Tech University not to exceed

1-14     $30 million, and in an additional aggregate principal amount for

1-15     the Texas Tech University Health Sciences Center not to exceed

1-16     $32.5 million.  The board may pledge irrevocably to the payment of

1-17     those bonds all or any part of the revenue funds of Texas Tech

1-18     University or the Texas Tech University Health Sciences Center,

1-19     including student tuition charges required or authorized by law to

1-20     be imposed on students enrolled at Texas Tech University or at the

1-21     Texas Tech University Health Sciences Center.  The amount of a

1-22     pledge made under this subdivision may not be reduced or abrogated

1-23     while the bonds for which the pledge is made, or bonds issued to

1-24     refund those bonds, are outstanding.  Of the proceeds of bonds

 2-1     authorized by this subdivision for the Texas Tech University Health

 2-2     Sciences Center, $2.5 million may be used only to build and equip a

 2-3     surgical and medical facility in the Midland County Hospital

 2-4     District for a cardiology residency program.

 2-5           SECTION 2.  Subchapter B, Chapter 55, Education Code, is

 2-6     amended by adding Sections 55.1721, 55.1722, 55.1723, 55.1724,

 2-7     55.1725, 55.1726, 55.1727, and 55.1728 to read as follows:

 2-8           Sec. 55.1721.  THE TEXAS A&M UNIVERSITY SYSTEM.  (a)  In

 2-9     addition to the other authority granted by this subchapter, the

2-10     board of regents of The Texas A&M University System may acquire,

2-11     purchase, construct, improve, renovate, enlarge, or equip property,

2-12     buildings, structures, facilities, roads, or related infrastructure

2-13     for the following institutions to be financed by the issuance of

2-14     bonds in accordance with this subchapter and in accordance with a

2-15     systemwide revenue financing program adopted by the board in

2-16     aggregate principal amounts not to exceed the following amounts:

2-17                 (1)  Prairie View A&M University, $15 million;

2-18                 (2)  Tarleton State University, $15 million;

2-19                 (3)  Texas A&M University, $12.5 million;

2-20                 (4)  Texas A&M University Health Science Center, $6

2-21     million;

2-22                 (5)  Texas A&M University--Commerce, $4.2 million;

2-23                 (6)  Texas A&M University--Corpus Christi, $25 million;

2-24                 (7)  Texas A&M International University, $39.5 million;

2-25                 (8)  Texas A&M University--Kingsville, $15 million;

2-26                 (9)  Texas A&M University--Texarkana, $4 million; and

2-27                 (10)  West Texas A&M University, $9 million.

 3-1           (b)  The board may pledge irrevocably to the payment of those

 3-2     bonds all or any part of the revenue funds of an institution,

 3-3     branch, or entity of The Texas A&M University System, including

 3-4     student tuition charges required or authorized by law to be imposed

 3-5     on students enrolled at an institution, branch, or entity of The

 3-6     Texas A&M University System.  The amount of a pledge made under

 3-7     this subsection may not be reduced or abrogated while the bonds for

 3-8     which the pledge is made, or bonds issued to refund those bonds,

 3-9     are outstanding.

3-10           (c)  If sufficient funds are not available to the board to

3-11     meet its obligations under this section, the board may transfer

3-12     funds among institutions, branches, and entities of The Texas A&M

3-13     University System to ensure the most equitable and efficient

3-14     allocation of available resources for each institution, branch, or

3-15     entity to carry out its constitutional and statutory duties and

3-16     purposes.

3-17           (d)  Of the proceeds of bonds authorized by this section for

3-18     Texas A&M International University, $4.5 million may be used only

3-19     to purchase library books, journals, and other library materials,

3-20     equipment, and furniture for the university's library.

3-21           Sec. 55.1722.  THE UNIVERSITY OF TEXAS SYSTEM.  (a)  In

3-22     addition to the other authority granted by this subchapter, the

3-23     board of regents of The University of Texas System may acquire,

3-24     purchase, construct, improve, renovate, enlarge, or equip property,

3-25     buildings, structures, facilities, roads, or related infrastructure

3-26     for the following institutions to be financed by the issuance of

3-27     bonds in accordance with this subchapter, including bonds issued in

 4-1     accordance with its systemwide revenue financing program and

 4-2     secured as provided by that program in aggregate principal amounts

 4-3     not to exceed the following amounts:

 4-4                 (1)  The University of Texas at Arlington, $16 million;

 4-5                 (2)  The University of Texas at Austin, $12.5 million;

 4-6                 (3)  The University of Texas at Brownsville, $22.5

 4-7     million;

 4-8                 (4)  The University of Texas at Dallas, $5 million;

 4-9                 (5)  The University of Texas at El Paso, $14 million;

4-10                 (6)  The University of Texas--Pan American, $17

4-11     million;

4-12                 (7)  The University of Texas of the Permian Basin,

4-13     $25.8 million;

4-14                 (8)  The University of Texas at San Antonio, $50

4-15     million;

4-16                 (9)  The University of Texas at Tyler, $9.5 million;

4-17                 (10)  The University of Texas Southwestern Medical

4-18     Center at Dallas, $20 million;

4-19                 (11)  The University of Texas Health Science Center at

4-20     Houston, $17.5 million; and

4-21                 (12)  the Lower Rio Grande Valley Academic Health

4-22     Center, $30 million, if that institution is established.

4-23           (b)  The board may pledge irrevocably to the payment of those

4-24     bonds all or any part of the revenue funds of an institution,

4-25     branch, or entity of The University of Texas System, including

4-26     student tuition charges required or authorized by law to be imposed

4-27     on students enrolled at an institution, branch, or entity of The

 5-1     University of Texas System.  The amount of a pledge made under this

 5-2     subsection may not be reduced or abrogated while the bonds for

 5-3     which the pledge is made, or bonds issued to refund those bonds,

 5-4     are outstanding.

 5-5           (c)  If sufficient funds are not available to the board to

 5-6     meet its obligations under this section, the board may transfer

 5-7     funds among institutions, branches, and entities of The University

 5-8     of Texas System to ensure the most equitable and efficient

 5-9     allocation of available resources for each institution, branch, or

5-10     entity to carry out its constitutional and statutory duties and

5-11     purposes.

5-12           (d)  Of the proceeds of bonds authorized by this section:

5-13                 (1)  for The University of Texas at San Antonio, $35

5-14     million may be used only to build or construct the university's

5-15     downtown campus, phase III; and

5-16                 (2)  for The University of Texas at Tyler:

5-17                       (A)  $4 million may be used only for an

5-18     upper-level educational center at Longview; and

5-19                       (B)  $500,000 may be used only for The University

5-20     of Texas at Tyler, Nursing-Palestine Extension.

5-21           Sec. 55.1723.  THE UNIVERSITY OF HOUSTON SYSTEM.  (a)  In

5-22     addition to the other authority granted by this subchapter, the

5-23     board of regents of the University of Houston System may acquire,

5-24     purchase, construct, improve, renovate, enlarge, or equip property,

5-25     buildings, structures, facilities, roads, or related infrastructure

5-26     for the following institutions to be financed by the issuance of

5-27     bonds in accordance with this subchapter and in accordance with a

 6-1     systemwide revenue financing program adopted by the board in an

 6-2     aggregate principal amount not to exceed the following amounts:

 6-3                 (1)  the University of Houston, $12 million;

 6-4                 (2)  the University of Houston--Downtown, $7.5 million;

 6-5     and

 6-6                 (3)  the University of Houston--Victoria, $10 million.

 6-7           (b)  The board may pledge irrevocably to the payment of those

 6-8     bonds all or any part of the revenue funds of an institution,

 6-9     branch, or entity of the University of Houston System, including

6-10     student tuition charges required or authorized by law to be imposed

6-11     on students enrolled at an institution, branch, or entity of the

6-12     University of Houston System.  The amount of a pledge made under

6-13     this subsection may not be reduced or abrogated while the bonds for

6-14     which the pledge is made, or bonds issued to refund those bonds,

6-15     are outstanding.

6-16           (c)  If sufficient funds are not available to the board to

6-17     meet its obligations under this section, the board may transfer

6-18     funds among institutions, branches, and entities of the University

6-19     of Houston System to ensure the most equitable and efficient

6-20     allocation of available resources for each institution, branch, or

6-21     entity to carry out its duties and purposes.

6-22           Sec. 55.1724.  TEXAS STATE UNIVERSITY SYSTEM.  (a)  In

6-23     addition to the other authority granted by this subchapter, the

6-24     board of regents of the Texas State University System may acquire,

6-25     purchase, construct, improve, renovate, enlarge, or equip property,

6-26     buildings, structures, facilities, roads, or related infrastructure

6-27     for the following institutions to be financed by the issuance of

 7-1     bonds in accordance with this subchapter and in accordance with a

 7-2     systemwide revenue financing program adopted by the board in

 7-3     aggregate principal amounts not to exceed the following:

 7-4                 (1)  Angelo State University, $20 million;

 7-5                 (2)  Lamar University--Beaumont, $8 million;

 7-6                 (3)  Lamar University Institute of Technology, $2

 7-7     million;

 7-8                 (4)  Lamar University--Orange, $3.5 million;

 7-9                 (5)  Lamar University--Port Arthur, $2.75 million;

7-10                 (6)  Sam Houston State University, $7.5 million;

7-11                 (7)  Southwest Texas State University, $19.7 million;

7-12     and

7-13                 (8)  Sul Ross State University, $17.5 million.

7-14           (b)  The board may pledge irrevocably to the payment of those

7-15     bonds all or any part of the revenue funds of an institution,

7-16     branch, or entity of the Texas State University System, including

7-17     student tuition charges required or authorized by law to be imposed

7-18     on students enrolled at an institution, branch, or entity of the

7-19     Texas State University System.  The amount of a pledge made under

7-20     this subsection may not be reduced or abrogated while the bonds for

7-21     which the pledge is made, or bonds issued to refund those bonds,

7-22     are outstanding.

7-23           (c)  If sufficient funds are not available to the board to

7-24     meet its obligations under this section, the board may transfer

7-25     funds among institutions, branches, and entities of the Texas State

7-26     University System to ensure the most equitable and efficient

7-27     allocation of available resources for each institution, branch, or

 8-1     entity to carry out its duties and purposes.

 8-2           Sec. 55.1725.  UNIVERSITY OF NORTH TEXAS AND UNIVERSITY OF

 8-3     NORTH TEXAS HEALTH SCIENCE CENTER AT FORT WORTH.  (a)  The board of

 8-4     regents of the University of North Texas may acquire, purchase,

 8-5     construct, improve, renovate, enlarge, or equip property,

 8-6     buildings, structures, facilities, roads, or related infrastructure

 8-7     for the University of North Texas or the University of North Texas

 8-8     Health Science Center at Fort Worth to be financed by the issuance

 8-9     of bonds in accordance with this subchapter in the aggregate

8-10     principal amounts not to exceed $20 million for the University of

8-11     North Texas and $19 million for the University of North Texas

8-12     Health Science Center at Fort Worth.

8-13           (b)  The board may pledge irrevocably to the payment of those

8-14     bonds all or any part of the revenue funds of the University of

8-15     North Texas or the University of North Texas Health Science Center

8-16     at Fort Worth, including student tuition charges required or

8-17     authorized by law to be imposed on students enrolled at the

8-18     University of North Texas or the University of North Texas Health

8-19     Science Center at Fort Worth.  The amount of a pledge made under

8-20     this subsection may not be reduced or abrogated while the bonds for

8-21     which the pledge is made, or bonds issued to refund those bonds,

8-22     are outstanding.

8-23           (c)  If sufficient funds are not available to the board to

8-24     meet its obligations under this section, the board may transfer

8-25     funds between the University of North Texas and the University of

8-26     North Texas Health Science Center at Fort Worth to ensure the most

8-27     equitable and efficient allocation of available resources for the

 9-1     University of North Texas and the University of North Texas Health

 9-2     Science Center at Fort Worth to carry out their duties and

 9-3     purposes.

 9-4           Sec. 55.1726.  TEXAS WOMAN'S UNIVERSITY.  (a)  The board of

 9-5     regents of Texas Woman's University may acquire, purchase,

 9-6     construct, improve, renovate, enlarge, or equip property,

 9-7     buildings, structures, facilities, roads, or related infrastructure

 9-8     for Texas Woman's University to be financed by the issuance of

 9-9     bonds in accordance with this subchapter in the aggregate principal

9-10     amount not to exceed $8.5 million.

9-11           (b)  The board may pledge irrevocably to the payment of those

9-12     bonds all or any part of the revenue funds of Texas Woman's

9-13     University, including student tuition charges required or

9-14     authorized by law to be imposed on students enrolled at Texas

9-15     Woman's University.  The amount of a pledge made under this

9-16     subsection may not be reduced or abrogated while the bonds for

9-17     which the pledge is made, or bonds issued to refund those bonds,

9-18     are outstanding.

9-19           Sec. 55.1727.  MIDWESTERN STATE UNIVERSITY.  (a)  The board

9-20     of regents of Midwestern State University may acquire, purchase,

9-21     construct, improve, renovate, enlarge, or equip property,

9-22     buildings, structures, facilities, roads, or related infrastructure

9-23     for Midwestern State University to be financed by the issuance of

9-24     bonds in accordance with this subchapter in the aggregate principal

9-25     amount not to exceed $9 million.

9-26           (b)  The board may pledge irrevocably to the payment of those

9-27     bonds all or any part of the revenue funds of Midwestern State

 10-1    University, including student tuition charges required or

 10-2    authorized by law to be imposed on students enrolled at Midwestern

 10-3    State University.  The amount of a pledge made under this

 10-4    subsection may not be reduced or abrogated while the bonds for

 10-5    which the pledge is made, or bonds issued to refund those bonds,

 10-6    are outstanding.

 10-7          Sec. 55.1728.  STEPHEN F. AUSTIN STATE UNIVERSITY.  (a)  The

 10-8    board of regents of Stephen F. Austin State University may acquire,

 10-9    purchase, construct, improve, renovate, enlarge, or equip property,

10-10    buildings, structures, facilities, roads, or related infrastructure

10-11    for Stephen F. Austin State University to be financed by the

10-12    issuance of bonds in accordance with this subchapter in the

10-13    aggregate principal amount not to exceed $6 million.

10-14          (b)  The board may pledge irrevocably to the payment of those

10-15    bonds all or any part of the revenue funds of Stephen F. Austin

10-16    State University, including student tuition charges required or

10-17    authorized by law to be imposed on students enrolled at Stephen F.

10-18    Austin State University.  The amount of a pledge made under this

10-19    subsection may not be reduced or abrogated while the bonds for

10-20    which the pledge is made, or bonds issued to refund those bonds,

10-21    are outstanding.

10-22          SECTION 3.  Subchapter B, Chapter 55, Education Code, is

10-23    amended by adding Section 55.174 to read as follows:

10-24          Sec. 55.174.  TEXAS SOUTHERN UNIVERSITY.  (a)  In addition to

10-25    other authority granted by this subchapter, the board of regents of

10-26    Texas Southern University may acquire, purchase, construct,

10-27    improve, renovate, enlarge, or equip property, buildings,

 11-1    structures, facilities, roads, or related infrastructure for Texas

 11-2    Southern University to be financed by the issuance of bonds in

 11-3    accordance with this subchapter and in accordance with a revenue

 11-4    financing program adopted by the board in an aggregate principal

 11-5    amount not to exceed $18 million.

 11-6          (b)  The board may pledge irrevocably to the payment of those

 11-7    bonds all or any part of the revenue funds of Texas Southern

 11-8    University, including student tuition charges required or

 11-9    authorized by law to be imposed on students enrolled at the

11-10    university.  The amount of a pledge made under this subsection may

11-11    not be reduced or abrogated while the bonds for which the pledge is

11-12    made, or bonds issued to refund those bonds, are outstanding.

11-13          SECTION 4.  Section 61.0572(e), Education Code, is amended to

11-14    read as follows:

11-15          (e)  Approval of the board is not required to acquire real

11-16    property that is financed by bonds issued under Section 55.17(e)(3)

11-17    or (4), [or] 55.1713-55.1718, 55.1721-55.1728, or 55.174 [of this

11-18    code], except that the board shall review all real property to be

11-19    financed by bonds issued under those sections to determine whether

11-20    the property meets the standards adopted by the board for cost,

11-21    efficiency, and space use.  If the property does not meet those

11-22    standards, the board shall notify the governor, the lieutenant

11-23    governor, the speaker of the house of representatives, and the

11-24    Legislative Budget Board.

11-25          SECTION 5.  Section 61.058(b), Education Code, is amended to

11-26    read as follows:

11-27          (b)  This section does not apply to construction, repair, or

 12-1    rehabilitation financed by bonds issued under Section 55.17(e)(3)

 12-2    or (4), [or] 55.1713-55.1718, 55.1721-55.1728, or 55.174 [of this

 12-3    code], except that the board shall review all construction, repair,

 12-4    or rehabilitation to be financed by bonds issued under those

 12-5    sections to determine whether the construction, rehabilitation, or

 12-6    repair meets the standards adopted by board rule for cost,

 12-7    efficiency, and space use.  If the construction, rehabilitation, or

 12-8    repair does not meet those standards, the board shall notify the

 12-9    governor, the lieutenant governor, the speaker of the house of

12-10    representatives, and the Legislative Budget Board.

12-11          SECTION 6.  The importance of this legislation and the

12-12    crowded condition of the calendars in both houses create an

12-13    emergency and an imperative public necessity that the

12-14    constitutional rule requiring bills to be read on three several

12-15    days in each house be suspended, and this rule is hereby suspended,

12-16    and that this Act take effect and be in force from and after its

12-17    passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1235 was passed by the House on March

         25, 1997, by a non-record vote; that the House refused to concur in

         Senate amendments to H.B. No. 1235 on May 12, 1997, and requested

         the appointment of a conference committee to consider the

         differences between the two houses; and that the House adopted the

         conference committee report on H.B. No. 1235 on May 24, 1997, by a

         non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1235 was passed by the Senate, with

         amendments, on May 8, 1997, by the following vote:  Yeas 30, Nays

         0; at the request of the House, the Senate appointed a conference

         committee to consider the differences between the two houses; and

         that the Senate adopted the conference committee report on H.B. No.

         1235 on May 26, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor