HBA-LJP H.B. 658 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 658 By: Junell Higher Education 3/26/2001 Introduced BACKGROUND AND PURPOSE Under current law, the governing board of an institution of higher education 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. Texas A&M International University and the University of Houston-Clear Lake may need more funds to finance these types of projects. House Bill 658 authorizes the board of regents for each university to issue additional bonds to fund infrastructure projects at those institutions. 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. ANALYSIS House Bill 658 amends the Education Code to authorize the board of regents of The Texas A&M University System and the board of regents of the University of Houston System to finance the acquisition, purchase, construction, improvement, renovation, enlargement, or equipping of certain infrastructure at Texas A&M International University and the University of Houston-Clear Lake, respectively, by the issuance of bonds. The bonds are to be issued in accordance with stipulated guidelines in an aggregate principal amount not to exceed $100,000. Each board is authorized to pledge irrevocably to pay the bonds with all or any part of the revenue funds of any entity of their respective university systems. The bill prohibits the reduction or abrogation of the amount of a pledge made under these provisions while the bonds or bonds issued to refund those bonds are outstanding. If a board does not have sufficient funds available to meet its obligations under these provisions, the bill authorizes the board to transfer funds among entities of its university system to ensure equitable and efficient resource allocation. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.