SRC-TBR H.B. 658 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 658
By: Junell (Ellis, Rodney)
Finance
5/4/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, the governing board of an institution of higher
education (institution) is authorized to issue bonds or notes to acquire,
purchase, construct, improve, renovate, enlarge, or equip property,
buildings, structures, facilities, roads, and other infrastructure related
to the institution.  Certain systems and institutions may need more funds
to finance these types of projects.  H.B. 658 authorizes the board of
regents at certain universities and university systems to issue additional
bonds to fund infrastructure projects at the specified institutions.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 55B, Education Code, by adding Sections 55.1731,
55.1732, 55.1733, 55.1734, 55.1735, 55.1736, 55.1737, 55.1738, 55.1739,
55.17391, and 55.17392 as follows: 

Sec. 55.1731.  THE TEXAS A&M UNIVERSITY SYSTEM; ADDITIONAL BONDS. (a)
Authorizes board of regents of The Texas A&M University System (board),
that, in addition to the other authority granted by this subchapter, the to
issue in accordance with this subchapter and in accordance with a
systemwide revenue financing program adopted by the board bonds for
specified institutions not to exceed specified aggregate principal amounts
to finance projects specified. 

(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 Texas A&M University System, including student tuition
charges.  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. 

(c)  Authorizes the board, if sufficient funds are not available to the
board to meet its obligations under this section, to transfer funds among
institutions, branches, and entities of The Texas A&M University System to
ensure the most equitable and efficient allocation of available resources
for each institution, branch, or entity to carry out its duties and
purposes. 

(d)  Authorizes any portion of the proceeds of bonds authorized by this
section for one or more specified projects at an institution that is not
required for the specified projects to be used to renovate existing
structures and facilities at the institution. 

(e)  Prohibits the bonds authorized by Subsection (a)(1)(D) for Prairie
View A&M University from being issued before March 1, 2003. 
 

Sec. 55.1732.  THE UNIVERSITY OF TEXAS SYSTEM; ADDITIONAL BONDS. (a)
Authorizes the board of regents of The University of Texas System (board),
in addition to the other authority granted by this subchapter, to issue in
accordance with this subchapter and in accordance with a systemwide revenue
financing program adopted by the board bonds for specified institutions not
to exceed aggregate principal amounts to finance projects specified. 

(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 Texas System, including student tuition
charges.  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. 

(c)  Authorizes the board, if sufficient funds are not available to the
board to meet its obligations under this section, to transfer funds among
institutions, branches, and entities of The University of Texas System to
ensure the most equitable and efficient allocation of available resources
for each institution, branch, or entity to carry out its duties and
purposes. 

(d)  Authorizes any portion of the proceeds of bonds authorized by this
section for one or more specified projects at an institution that is not
required for the specified projects to used to renovate existing structures
and facilities at the institution. 

Sec. 55.1733.  THE UNIVERSITY OF HOUSTON SYSTEM; ADDITIONAL BONDS. (a)
Authorizes the board of regents of the University of Houston System
(board), in addition to the other authority granted by this subchapter, to
issue in accordance with this subchapter and in accordance with a
systemwide revenue financing program adopted by the board bonds for
specified institutions not to exceed specified aggregate principal amounts
to finance projects specified. 

(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, including student tuition
charges.  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. 

(c)  Authorizes the board, if sufficient funds are not available to the
board to meet its obligations under this section, to transfer funds among
institutions, branches, and entities of the University of Houston System to
ensure the most equitable and efficient allocation of available resources
for each institution, branch, or entity to carry out its duties and
purposes. 

(d)  Authorizes any portion of the proceeds of bonds authorized by this
section for one or more specified projects at an institution that is not
required for the specified projects to be used to renovate existing
structures and facilities at the institution. 

Sec. 55.1734.  TEXAS STATE UNIVERSITY SYSTEM; ADDITIONAL BONDS. (a)
Authorizes the board of regents of the Texas State University System
(board) in addition to the other authority granted by this subchapter, to
issue in accordance with this subchapter and in accordance with a
systemwide revenue financing program adopted by the board bonds for the
following specified institutions not to exceed the following specified
aggregate principal amounts to finance projects specified. 

(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 Texas State  University System, including student tuition
charges.  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. 

(c)  Authorizes the board, if sufficient funds are not available to the
board to meet its obligations under this section, to transfer funds among
institutions, branches, and entities of the Texas State University System
to ensure the most equitable and efficient allocation of available
resources for each institution, branch, or entity to carry out its duties
and purposes. 

(d)  Authorizes that any portion of the proceeds of bonds authorized by
this section for one or more specified projects at an institution that is
not required for the specified projects to be used to renovate existing
structures and facilities at the institution. 

Sec. 55.1735.  UNIVERSITY OF NORTH TEXAS SYSTEM; ADDITIONAL BONDS. (a)
Authorizes the board of regents of the University of North Texas System
(board), in addition to the other authority granted by this subchapter, to
issue in accordance with this subchapter and in accordance with a
systemwide revenue financing program adopted by the board bonds for the
following specified institutions not to exceed the following specified
aggregate principal amounts to finance projects specified. 

(b)  Authorizes the board to pledge irrevocably to the payment of those
bonds all or any part of the revenue funds of the University of North Texas
or the University of North Texas Health Science Center at Fort Worth,
including student tuition charges. 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. 

(c)  Authorizes that if sufficient funds are not available to the board to
meet its obligations under this section, the board may transfer funds
between the University of North Texas and the University of North Texas
Health Science Center at Fort Worth to ensure the most equitable and
efficient allocation of available resources for the University of North
Texas and the University of North Texas Health Science Center at Fort Worth
to carry out their duties and purposes. 

(d)  Authorizes any portion of the proceeds of bonds authorized by this
section for one or more specified projects at an institution that is not
required for the specified projects to be used to renovate existing
structures and facilities at the institution. 

Sec. 55.1736.  TEXAS WOMAN'S UNIVERSITY.  (a)  Authorizes the board of
regents of Texas Woman's University (board) in addition to the other
authority granted by this subchapter, to issue bonds in accordance with
this subchapter in the aggregate principal amount not to exceed $27,315,000
to finance the renovation of academic and administrative buildings at Texas
Woman's University. 

(b)  Authorizes the board to pledge irrevocably to the payment of those
bonds all or any part of the revenue funds of Texas Woman's University,
including student tuition charges.  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. 

(c)  Authorizes any portion of the proceeds of bonds authorized by this
section for one or more specified projects that is not required for the
specified projects to be used to renovate existing structures and
facilities at the institution. 

 
Sec. 55.1737.  MIDWESTERN STATE UNIVERSITY; ADDITIONAL BONDS. (a)
Authorizes the board of regents of Midwestern State University (board), in
addition to the other authority granted by this subchapter, to issue in
accordance with this subchapter bonds not to exceed specified aggregate
principal amounts to finance specified projects at Midwestern State
University. 

(b)  Authorizes the board to pledge irrevocably to the payment of those
bonds all or any part of the revenue funds of Midwestern State University,
including student tuition charges.  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. 

(c)  Authorizes any portion of the proceeds of bonds authorized by this
section for one or more specified projects that is not required for the
specified projects to used to renovate existing structures and facilities
at the institution. 

Sec. 55.1738.  STEPHEN F. AUSTIN STATE UNIVERSITY. (a)  Authorizes the
board of regents of Stephen F. Austin State University (board), in addition
to the other authority granted by this subchapter, to issue in accordance
with this subchapter bonds not to exceed  specified aggregate principal
amounts to finance specified  projects at Stephen F. Austin State
University. 

(b)  Authorizes the board to pledge irrevocably to the payment of those
bonds all or any part of the revenue funds of Stephen F. Austin State
University, including student tuition charges.  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. 

(c)  Authorizes any portion of the proceeds of bonds authorized by this
section for one or more specified projects that is not required for the
specified projects may be used to renovate existing structures and
facilities at the institution. 

Sec. 55.1739.  TEXAS TECH UNIVERSITY SYSTEM; ADDITIONAL BONDS. (a)
Authorizes the board of regents of the Texas Tech University System
(board), in addition to the other authority granted by this subchapter, to
issue in accordance with this subchapter and in accordance with a
systemwide revenue financing program adopted by the board bonds for
specified institutions not to exceed specified aggregate principal amounts
for projects specified. 

(b)  Authorizes the board to pledge irrevocably to the payment of those
bonds all or any part of the revenue funds of Texas Tech University or the
Texas Tech University Health Sciences Center, including student tuition
charges.  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. 

(c)  Authorizes that, if sufficient funds are not available to the board to
meet its obligations under this section, the board to transfer funds
between Texas Tech University and the Texas Tech University Health Sciences
Center to ensure the most equitable and efficient allocation of available
resources for Texas Tech University and the Texas Tech University Health
Sciences Center to carry out their duties and purposes. 

(d)  Authorizes any portion of the proceeds of bonds authorized by this
section for one or more specified projects at an institution that is not
required for the specified projects to be used to renovate existing
structures and facilities at the institution. 


 Sec. 55.17391.  TEXAS SOUTHERN UNIVERSITY; ADDITIONAL BONDS. (a)
Authorizes the board of regents of Texas Southern University (board), in
addition to other authority granted by this subchapter, to issue in
accordance with this subchapter bonds not to exceed the following specified
aggregate principal amounts to finance specified projects at Texas Southern
University. 

(b)  Authorizes the board to pledge irrevocably to the payment of those
bonds all or any part of the revenue funds of Texas Southern University,
including student tuition charges required or authorized by law to be
imposed on students enrolled at the university.  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. 

(c)  Authorizes any portion of the proceeds of bonds authorized by this
section for one or more specified projects that is not required for the
specified projects to be used to renovate existing structures and
facilities at the institution. 

(d)  Prohibits the bonds authorized by Subsections (a)(4) and (5) from
being issued before March 1, 2003. 

Sec. 55.17392.  TEXAS STATE TECHNICAL COLLEGE SYSTEM. (a)  Authorizes the
board of regents of the Texas State Technical College System to issue in
accordance with this subchapter and in accordance with a systemwide revenue
financing program adopted by the board bonds for specified institutions not
to exceed specified aggregate principal amounts for projects specified. 

(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 Texas State Technical College System, including student
tuition charges.  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. 

(c)  Authorizes that if sufficient funds are not available to the board to
meet its obligations under this section, the board to transfer funds among
institutions, branches, and entities of the Texas State Technical College
System to ensure the most equitable and efficient allocation of available
resources for each institution, branch, or entity to carry out its duties
and purposes. 

(d)  Authorizes any portion of the proceeds of bonds authorized by this
section for one or more specified projects at an institution that is not
required for the specified projects to be used to renovate existing
structures and facilities at the institution. 

SECTION 2.  Effective date: upon passage or September 1, 2001.