HBA-KMH H.B. 1641 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1641
By: Coleman
Higher Education
3/4/1999
Introduced



BACKGROUND AND PURPOSE 

The City of Houston has offered to sell an existing building in the Texs
Medical Center to the University of Houston. H.B 1641 grants authorization
to the board of regents of the University of Houston System to issue bonds
in an aggregate principal amount not to exceed $20 million for a range of
uses relating to the maintenance and development of the University of
Houston System. This bill also authorizes a transfer of sufficient funds as
necessary throughout the system to meet obligations incurred for this
purpose. 

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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter B, Chapter 55, Education Code, by adding
Section 55.1731, as follows: 

Sec.  55.1731.  THE UNIVERSITY OF HOUSTON SYSTEM.  (a) Authorizes the board
of regents of the University of Houston System (board) to acquire,
purchase, construct, improve, renovate, enlarge, or equip property,
buildings, structures, facilities, roads, or related infrastructure for the
University of Houston (university) to be financed by the issuance of bonds
in accordance with this subchapter and in accordance with a systemwide
revenue financing program adopted by the board in an aggregate principal
amount not to exceed $20 million. 

(b) Authorizes the board to pledge irrevocably to the payment of those
bonds all or any part of the revenue funds of an institution, branch, or
entity of the University of Houston System (system), including student
tuition charges required or authorized by law to be imposed on students
enrolled at an institution, branch, or entity of the system.  Prohibits the
amount pledged 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. 

(c) Authorizes the board to transfer funds among institutions, branches,
and entities of the system, if sufficient funds are not available to the
board to meet its obligations under this section. 

SECTION 2.  Emergency clause.