1-1                                   AN ACT
 1-2     relating to the revenues of public institutions of higher education
 1-3     and to the issuance of revenue bonds to fund capital projects at
 1-4     those institutions.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 51.008, Education Code, is amended by
 1-7     adding Subsection (h) to read as follows:
 1-8           (h)  Tuition revenues and revenue collected under Section
 1-9     34.017, Natural Resources Code, that are deposited in the treasury
1-10     pursuant to this section, and the interest earned on those
1-11     revenues, shall be treated as designated funds in the general
1-12     revenue fund.  Notwithstanding a pledge of those revenues made or
1-13     to be made in the proceedings approved by the governing board of an
1-14     institution of higher education authorizing the issuance or
1-15     incurrence of bonds, the deposit of those revenues in the treasury
1-16     to the credit of an account in the general revenue fund does not:
1-17                 (1)  affect in any manner the pledge of the revenues or
1-18     the governing board's ability to pledge the revenues to secure and
1-19     pay bonds issued or incurred by the governing board in accordance
1-20     with law;
1-21                 (2)  cause the bonds to constitute a debt of the state
1-22     or be payable from the full faith and credit of the state;
1-23                 (3)  change the character of the revenues as separate
1-24     revenue of the institution collecting the revenue; or
 2-1                 (4)  cause the revenue to be considered general revenue
 2-2     for purposes of Sections 17 and 18, Article VII, Texas
 2-3     Constitution.
 2-4           SECTION 2. Section 55.16, Education Code, is amended to read
 2-5     as follows:
 2-6           Sec. 55.16.  BOARD RESPONSIBILITY. (a)  Each board shall be
 2-7     authorized to fix and collect rentals, rates, and charges from
 2-8     students and others for the occupancy, services, use, and/or
 2-9     availability of all or any of its property, buildings, structures,
2-10     activities, operations, or other facilities as provided by this
2-11     section [, in such amounts and in such manner as may be determined
2-12     by the board].
2-13           (b)  Unless expressly provided by law that specified money
2-14     under the control of a board is not considered revenue funds, a
2-15     provision of this title or another law that limits the purposes for
2-16     which money under the control of the board may be spent does not
2-17     impair the board's authority to pledge and use any revenue or money
2-18     under the board's control to secure or pay obligations of the board
2-19     under this chapter or other law.
2-20           (c)  A board shall fix each rental, rate, charge, or fee that
2-21     the board is authorized by this title to fix in an amount the board
2-22     determines necessary to pay or provide, for each activity or
2-23     service for which the rental, rate, charge, or fee is imposed, all
2-24     associated capital costs, including debt service, operation and
2-25     maintenance costs, including associated overhead costs of a system
2-26     or institution, and prudent reserves.  Except as otherwise provided
2-27     by Subsection (e), this section does not authorize a board to
 3-1     impose a rental, rate, charge, or fee in an amount that exceeds any
 3-2     applicable limit imposed by another provision of this title.
 3-3           (d)  For billing and reporting purposes, a governing board
 3-4     may accumulate all mandatory fees or charges authorized by this
 3-5     section or by Chapter 54 as a separate facilities and services
 3-6     charge.
 3-7           (e)  If bonds have been or are issued pursuant to this title,
 3-8     or secured or to be secured by a pledge of part or all of the
 3-9     board's revenue funds, and if, at the time of authorizing the
3-10     issuance of the bonds, (1) the estimated maximum amount per
3-11     semester hour of such pledged revenue funds (based on then current
3-12     enrollment and conditions) during any future semester necessary to
3-13     provide for the payment of the principal of and interest on the
3-14     bonds when due, together with (2) the aggregate amount of all such
3-15     pledged revenue funds which were levied on a semester hour basis
3-16     for the then current semester to pay the principal of and interest
3-17     on all previously issued bonds, do not exceed the amount permitted
3-18     by this title, then any necessary fees, tuition, rentals, rates, or
3-19     other charges constituting revenue funds shall be levied and
3-20     collected when and to the extent required by the resolution
3-21     authorizing the issuance of the bonds in any amount required to
3-22     provide revenue funds sufficient for the payment of the principal
3-23     of and interest on the bonds, regardless of any other provision or
3-24     limitation provided by this title.
3-25           (f) [(b)]  A board is not required to charge students
3-26     enrolled in different degree programs at the institution the same
3-27     rentals, rates, charges, and fees under this section.
 4-1           SECTION 3. Subchapter B, Chapter 55, Education Code, is
 4-2     amended by adding Sections 55.1731, 55.1732, 55.1733, 55.1734,
 4-3     55.1735, 55.1736, 55.1737, 55.1738, 55.1739, 55.17391, and 55.17392
 4-4     to read as follows:
 4-5           Sec. 55.1731.  THE TEXAS A&M UNIVERSITY SYSTEM; ADDITIONAL
 4-6     BONDS. (a)  In addition to the other authority granted by this
 4-7     subchapter, the board of regents of The Texas A&M University System
 4-8     may issue in accordance with this subchapter and in accordance with
 4-9     a systemwide revenue financing program adopted by the board bonds
4-10     for the following institutions not to exceed the following
4-11     aggregate principal amounts to finance projects specified as
4-12     follows:
4-13                 (1)  Prairie View A&M University:
4-14                       (A)  $53 million to construct or renovate
4-15     engineering facilities, construct and renovate an architecture
4-16     building, and carry out other campus renovations; and
4-17                       (B)  $15 million to construct a juvenile justice
4-18     and psychology building;
4-19                 (2)  Tarleton State University, $18.7 million for a
4-20     library addition and renovation of a mathematics building;
4-21                 (3)  Texas A&M University--Commerce, $14,960,000 to
4-22     replace a science building wing;
4-23                 (4)  Texas A&M University--Corpus Christi, $34 million
4-24     to construct a classroom and laboratory facility and for
4-25     construction of the Harte Research Center;
4-26                 (5)  Texas A&M International University, $21,620,000 to
4-27     construct a science building (Phase IV);
 5-1                 (6)  Texas A&M University at Galveston, $10,030,000 to
 5-2     construct an engineering building;
 5-3                 (7)  Texas A&M University--Kingsville, $20,060,000 to
 5-4     construct facilities for a pharmacy school and to construct a
 5-5     student services building;
 5-6                 (8)  Texas A&M University--Texarkana, $17 million to
 5-7     construct a health science building and for library renovation;
 5-8                 (9)  West Texas A&M University, $22,780,000 to
 5-9     construct a fine arts complex; and
5-10                 (10)  The Texas A&M University Health Science Center,
5-11     $14.3 million for construction of classroom and faculty office
5-12     facilities for the School of Rural Public Health.
5-13           (b)  The board may pledge irrevocably to the payment of those
5-14     bonds all or any part of the revenue funds of an institution,
5-15     branch, or entity of The Texas A&M University System, including
5-16     student tuition charges.  The amount of a pledge made under this
5-17     subsection may not be reduced or abrogated while the bonds for
5-18     which the pledge is made, or bonds issued to refund those bonds,
5-19     are outstanding.
5-20           (c)  If sufficient funds are not available to the board to
5-21     meet its obligations under this section, the board may transfer
5-22     funds among institutions, branches, and entities of The Texas A&M
5-23     University System to ensure the most equitable and efficient
5-24     allocation of available resources for each institution, branch, or
5-25     entity to carry out its duties and purposes.
5-26           (d)  Any portion of the proceeds of bonds authorized by this
5-27     section for one or more specified projects at an institution that
 6-1     is not required for the specified projects may be used to renovate
 6-2     existing structures and facilities at the institution.
 6-3           (e)  The bonds authorized by Subsection (a)(1)(B) for Prairie
 6-4     View A&M University may not be issued before March 1, 2003.
 6-5           Sec. 55.1732.  THE UNIVERSITY OF TEXAS SYSTEM; ADDITIONAL
 6-6     BONDS. (a)  In addition to the other authority granted by this
 6-7     subchapter, the board of regents of The University of Texas System
 6-8     may issue in accordance with this subchapter and in accordance with
 6-9     a systemwide revenue financing program adopted by the board bonds
6-10     for the following institutions not to exceed the following
6-11     aggregate principal amounts to finance projects specified as
6-12     follows:
6-13                 (1)  The University of Texas at Arlington, $16,635,945
6-14     to construct a science building;
6-15                 (2)  The University of Texas at Brownsville,
6-16     $26,010,000 to construct a life and health science and education
6-17     facility (Phase II) and to procure and install permanent equipment
6-18     and other fixtures in the facility;
6-19                 (3)  The University of Texas at Dallas, $21,993,750 to
6-20     renovate Founders Hall, Founders Annex, and Berkner Hall;
6-21                 (4)  The University of Texas at El Paso, $12,750,000 to
6-22     construct a biomedical and health sciences research center;
6-23                 (5)  The University of Texas--Pan American, $29,950,000
6-24     for education complex, library, and multipurpose center renovation
6-25     and construction;
6-26                 (6)  The University of Texas of the Permian Basin,
6-27     $5,610,000 for integrated Mesa Building renovations and gymnasium
 7-1     renovations;
 7-2                 (7)  The University of Texas at San Antonio,
 7-3     $22,950,000 to construct a science building on the main campus;
 7-4                 (8)  The University of Texas at Tyler, $20,910,000 to
 7-5     construct an engineering, sciences, and technology building and
 7-6     make other physical plant improvements;
 7-7                 (9)  The University of Texas Southwestern Medical
 7-8     Center at Dallas, $40 million for North Campus phase IV
 7-9     construction;
7-10                 (10)  The University of Texas Medical Branch at
7-11     Galveston, $20 million to renovate and expand research facilities;
7-12                 (11)  The University of Texas Health Science Center at
7-13     Houston, $19,550,000 to construct a classroom building;
7-14                 (12)  The University of Texas Health Science Center at
7-15     San Antonio, $28.9 million to construct a facility for student
7-16     services and academic administration and to construct and develop a
7-17     facility at the Laredo Extension Campus for educational and
7-18     administrative purposes;
7-19                 (13)  the Regional Academic Health Center established
7-20     under Section 74.611, $25.5 million to construct a teaching and
7-21     learning laboratory in or near the city of Harlingen;
7-22                 (14)  The University of Texas Health Center at Tyler,
7-23     $11,513,250 to construct a biomedical research center addition; and
7-24                 (15)  The University of Texas M. D. Anderson Cancer
7-25     Center, $20 million to construct a basic sciences research
7-26     building.
7-27           (b)  The board may pledge irrevocably to the payment of those
 8-1     bonds all or any part of the revenue funds of an institution,
 8-2     branch, or entity of The University of Texas System, including
 8-3     student tuition charges.  The amount of a pledge made under this
 8-4     subsection may not be reduced or abrogated while the bonds for
 8-5     which the pledge is made, or bonds issued to refund those bonds,
 8-6     are outstanding.
 8-7           (c)  If sufficient funds are not available to the board to
 8-8     meet its obligations under this section, the board may transfer
 8-9     funds among institutions, branches, and entities of The University
8-10     of Texas System to ensure the most equitable and efficient
8-11     allocation of available resources for each institution, branch, or
8-12     entity to carry out its duties and purposes.
8-13           (d)  Any portion of the proceeds of bonds authorized by this
8-14     section for one or more specified projects at an institution that
8-15     is not required for the specified projects may be used to renovate
8-16     existing structures and facilities at the institution.
8-17           Sec. 55.1733.  THE UNIVERSITY OF HOUSTON SYSTEM; ADDITIONAL
8-18     BONDS. (a)  In addition to the other authority granted by this
8-19     subchapter, the board of regents of the University of Houston
8-20     System may issue in accordance with this subchapter and in
8-21     accordance with a systemwide revenue financing program adopted by
8-22     the board bonds  for the following institutions not to exceed the
8-23     following aggregate principal amounts to finance projects specified
8-24     as follows:
8-25                 (1)  the University of Houston, $51 million to
8-26     construct science and engineering research and classroom
8-27     facilities;
 9-1                 (2)  the University of Houston--Downtown, $18,232,500
 9-2     to construct a classroom building;
 9-3                 (3)  the University of Houston--Clear Lake, $30,918,750
 9-4     to construct a student services and classroom building; and
 9-5                 (4)  the University of Houston--Victoria, $2,805,000 to
 9-6     remodel the University West facility, acquire and renovate a
 9-7     facility services building, and renovate and expand a facility for
 9-8     the center for community initiatives.
 9-9           (b)  The board may pledge irrevocably to the payment of those
9-10     bonds all or any part of the revenue funds of an institution,
9-11     branch, or entity of the University of Houston System, including
9-12     student tuition charges.  The amount of a pledge made under this
9-13     subsection may not be reduced or abrogated while the bonds for
9-14     which the pledge is made, or bonds issued to refund those bonds,
9-15     are outstanding.
9-16           (c)  If sufficient funds are not available to the board to
9-17     meet its obligations under this section, the board may transfer
9-18     funds among institutions, branches, and entities of the University
9-19     of Houston System to ensure the most equitable and efficient
9-20     allocation of available resources for each institution, branch, or
9-21     entity to carry out its duties and purposes.
9-22           (d)  Any portion of the proceeds of bonds authorized by this
9-23     section for one or more specified projects at an institution that
9-24     is not required for the specified projects may be used to renovate
9-25     existing structures and facilities at the institution.
9-26           Sec. 55.1734.  TEXAS STATE UNIVERSITY SYSTEM; ADDITIONAL
9-27     BONDS. (a)  In addition to the other authority granted by this
 10-1    subchapter, the board of regents of the Texas State University
 10-2    System may issue in accordance with this subchapter and in
 10-3    accordance with a systemwide revenue financing program adopted by
 10-4    the board bonds for the following institutions not to exceed the
 10-5    following aggregate principal amounts to finance projects specified
 10-6    as follows:
 10-7                (1)  Angelo State University, $16,917,550 to expand and
 10-8    renovate institutional facilities;
 10-9                (2)  Lamar University--Beaumont, $21,792,096 to
10-10    renovate and repair campus buildings;
10-11                (3)  Lamar Institute of Technology, $5,301,960 to
10-12    renovate Gentry Hall and convert it to classroom and laboratory
10-13    use;
10-14                (4)  Lamar State College--Orange, $2,125,000 for campus
10-15    landscaping, renovation of the old library for physical plant
10-16    purposes, renovation of the Main Building and Electronics Commerce
10-17    Resource Center, and demolition of the old physical plant building;
10-18                (5)  Lamar State College--Port Arthur, $7,650,000 to
10-19    construct a performing arts and classroom building and to expand
10-20    the Gates Memorial Library and develop an adjacent plaza;
10-21                (6)  Sam Houston State University, $18 million to
10-22    renovate and expand the Farrington Building;
10-23                (7)  Southwest Texas State University, $18,436,500 to
10-24    construct a business building; and
10-25                (8)  Sul Ross State University, $15,175,000 to renovate
10-26    and expand the range animal science facility and science building
10-27    annex and to carry out other building renovations.
 11-1          (b)  The board may pledge irrevocably to the payment of those
 11-2    bonds all or any part of the revenue funds of an institution,
 11-3    branch, or entity of the Texas State University System, including
 11-4    student tuition charges.  The amount of a pledge made under this
 11-5    subsection may not be reduced or abrogated while the bonds for
 11-6    which the pledge is made, or bonds issued to refund those bonds,
 11-7    are outstanding.
 11-8          (c)  If sufficient funds are not available to the board to
 11-9    meet its obligations under this section, the board may transfer
11-10    funds among institutions, branches, and entities of the Texas State
11-11    University System to ensure the most equitable and efficient
11-12    allocation of available resources for each institution, branch, or
11-13    entity to carry out its duties and purposes.
11-14          (d)  Any portion of the proceeds of bonds authorized by this
11-15    section for one or more specified projects at an institution that
11-16    is not required for the specified projects may be used to renovate
11-17    existing structures and facilities at the institution.
11-18          Sec. 55.1735.  UNIVERSITY OF NORTH TEXAS SYSTEM; ADDITIONAL
11-19    BONDS. (a)  In addition to the other authority granted by this
11-20    subchapter, the board of regents of the University of North Texas
11-21    System may issue in accordance with this subchapter and in
11-22    accordance with a systemwide revenue financing program adopted by
11-23    the board bonds  for the following institutions not to exceed the
11-24    following aggregate principal amounts to finance projects specified
11-25    as follows:
11-26                (1)  the University of North Texas, $52,933,750 to
11-27    construct a science building and to develop the campus and
 12-1    facilities of the University of North Texas at Dallas; and
 12-2                (2)  the University of North Texas Health Science
 12-3    Center at Fort Worth, $27.5 million to construct a biotechnology
 12-4    center and school of public health building.
 12-5          (b)  The board may pledge irrevocably to the payment of those
 12-6    bonds all or any part of the revenue funds of the University of
 12-7    North Texas or the University of North Texas Health Science Center
 12-8    at Fort Worth, including student tuition charges.  The amount of a
 12-9    pledge made under this subsection may not be reduced or abrogated
12-10    while the bonds for which the pledge is made, or bonds issued to
12-11    refund those bonds, are outstanding.
12-12          (c)  If sufficient funds are not available to the board to
12-13    meet its obligations under this section, the board may transfer
12-14    funds between the University of North Texas and the University of
12-15    North Texas Health Science Center at Fort Worth to ensure the most
12-16    equitable and efficient allocation of available resources for the
12-17    University of North Texas and the University of North Texas Health
12-18    Science Center at Fort Worth to carry out their duties and
12-19    purposes.
12-20          (d)  Any portion of the proceeds of bonds authorized by this
12-21    section for one or more specified projects at an institution that
12-22    is not required for the specified projects may be used to renovate
12-23    existing structures and facilities at the institution.
12-24          (e)  The board may not issue bonds under Subsection (a)(1)
12-25    for the University of North Texas at Dallas before September 1,
12-26    2003.
12-27          Sec. 55.1736.  TEXAS WOMAN'S UNIVERSITY. (a)  In addition to
 13-1    the other authority granted by this subchapter, the board of
 13-2    regents of Texas Woman's University may issue bonds in accordance
 13-3    with this subchapter in the aggregate principal amount not to
 13-4    exceed $25,797,500 to finance the renovation of academic and
 13-5    administrative buildings at Texas Woman's University.
 13-6          (b)  The board may pledge irrevocably to the payment of those
 13-7    bonds all or any part of the revenue funds of Texas Woman's
 13-8    University, including student tuition charges.  The amount of a
 13-9    pledge made under this subsection may not be reduced or abrogated
13-10    while the bonds for which the pledge is made, or bonds issued to
13-11    refund those bonds, are outstanding.
13-12          (c)  Any portion of the proceeds of bonds authorized by this
13-13    section for one or more specified projects that is not required for
13-14    the specified projects may be used to renovate existing structures
13-15    and facilities at the institution.
13-16          Sec. 55.1737.  MIDWESTERN STATE UNIVERSITY; ADDITIONAL BONDS.
13-17    (a)  In addition to the other authority granted by this subchapter,
13-18    the board of regents of Midwestern State University may issue in
13-19    accordance with this subchapter bonds not to exceed $8,967,500 to
13-20    finance campus improvements at Midwestern State University.
13-21          (b)  The board may pledge irrevocably to the payment of those
13-22    bonds all or any part of the revenue funds of Midwestern State
13-23    University, including student tuition charges.  The amount of a
13-24    pledge made under this subsection may not be reduced or abrogated
13-25    while the bonds for which the pledge is made, or bonds issued to
13-26    refund those bonds, are outstanding.
13-27          (c)  Any portion of the proceeds of bonds authorized by this
 14-1    section for one or more specified projects that is not required for
 14-2    the specified projects may be used to renovate existing structures
 14-3    and facilities at the institution.
 14-4          Sec. 55.1738.  STEPHEN F. AUSTIN STATE UNIVERSITY. (a)  In
 14-5    addition to the other authority granted by this subchapter, the
 14-6    board of regents of Stephen F. Austin State University may issue in
 14-7    accordance with this subchapter bonds not to exceed $14,070,000 to
 14-8    finance campus infrastructure improvements, the construction of a
 14-9    telecommunications building, the renovation of power plant
14-10    facilities, and the replacement or renovation of the Birdwell
14-11    Building at Stephen F. Austin State University.
14-12          (b)  The board may pledge irrevocably to the payment of those
14-13    bonds all or any part of the revenue funds of Stephen F. Austin
14-14    State University, including student tuition charges.  The amount of
14-15    a pledge made under this subsection may not be reduced or abrogated
14-16    while the bonds for which the pledge is made, or bonds issued to
14-17    refund those bonds, are outstanding.
14-18          (c)  Any portion of the proceeds of bonds authorized by this
14-19    section for one or more specified projects that is not required for
14-20    the specified projects may be used to renovate existing structures
14-21    and facilities at the institution.
14-22          Sec. 55.1739.  TEXAS TECH UNIVERSITY SYSTEM; ADDITIONAL
14-23    BONDS. (a)  In addition to the other authority granted by this
14-24    subchapter, the board of regents of the Texas Tech University
14-25    System may issue in accordance with this subchapter and in
14-26    accordance with a systemwide revenue financing program adopted by
14-27    the board bonds for the following institutions not to exceed the
 15-1    following aggregate principal amounts for projects specified as
 15-2    follows:
 15-3                (1)  Texas Tech University, $23,647,000 to construct an
 15-4    experimental science research facility; and
 15-5                (2)  Texas Tech University Health Sciences Center,
 15-6    $66,882,525 to construct a clinical and research facility in the
 15-7    city of Lubbock and to construct facilities to support the center's
 15-8    educational programs in the city of El Paso.
 15-9          (b)  The board may pledge irrevocably to the payment of those
15-10    bonds all or any part of the revenue funds of Texas Tech University
15-11    or the Texas Tech University Health Sciences Center, including
15-12    student tuition charges.  The amount of a pledge made under this
15-13    subsection may not be reduced or abrogated while the bonds for
15-14    which the pledge is made, or bonds issued to refund those bonds,
15-15    are outstanding.
15-16          (c)  If sufficient funds are not available to the board to
15-17    meet its obligations under this section, the board may transfer
15-18    funds between Texas Tech University and the Texas Tech University
15-19    Health Sciences Center to ensure the most equitable and efficient
15-20    allocation of available resources for Texas Tech University and the
15-21    Texas Tech University Health Sciences Center to carry out their
15-22    duties and purposes.
15-23          (d)  Any portion of the proceeds of bonds authorized by this
15-24    section for one or more specified projects at an institution that
15-25    is not required for the specified projects may be used to renovate
15-26    existing structures and facilities at the institution.
15-27          Sec. 55.17391.  TEXAS SOUTHERN UNIVERSITY; ADDITIONAL BONDS.
 16-1    (a)  In addition to other authority granted by this subchapter, the
 16-2    board of regents of Texas Southern University may issue in
 16-3    accordance with this subchapter bonds not to exceed $79 million to
 16-4    finance the construction of a science building, the construction of
 16-5    a building for the school of public affairs, the renovation of
 16-6    campus facilities, including electrical and piping systems, and
 16-7    campus landscaping.
 16-8          (b)  The board may pledge irrevocably to the payment of those
 16-9    bonds all or any part of the revenue funds of Texas Southern
16-10    University, including student tuition charges required or
16-11    authorized by law to be imposed on students enrolled at the
16-12    university.  The amount of a pledge made under this subsection may
16-13    not be reduced or abrogated while the bonds for which the pledge is
16-14    made, or bonds issued to refund those bonds, are outstanding.
16-15          (c)  Any portion of the proceeds of bonds authorized by this
16-16    section for one or more specified projects that is not required for
16-17    the specified projects may be used to renovate existing structures
16-18    and facilities at the institution.
16-19          (d)  Of the bonds authorized by Subsection (a), $14.5 million
16-20    may not be issued before March 1, 2003, and may be used only to
16-21    finance campus renovations.
16-22          Sec. 55.17392.  TEXAS STATE TECHNICAL COLLEGE SYSTEM. (a)
16-23    The board of regents of the Texas State Technical College System
16-24    may issue in accordance with this subchapter and in accordance with
16-25    a systemwide revenue financing program adopted by the board bonds
16-26    for the following institutions not to exceed the following
16-27    aggregate principal amounts for projects specified as follows:
 17-1                (1)  Texas State Technical College--Harlingen, $3.4
 17-2    million to construct a facility for a learning resource center and
 17-3    distance learning center;
 17-4                (2)  Texas State Technical College--Marshall,
 17-5    $1,785,000 to construct a facility for a library and administrative
 17-6    activities;
 17-7                (3)  Texas State Technical College--Waco, $3.4 million
 17-8    to renovate the industrial technology center; and
 17-9                (4)  Texas State Technical College--West Texas,
17-10    $2,295,000 to construct a transportation technologies building.
17-11          (b)  The board may pledge irrevocably to the payment of those
17-12    bonds all or any part of the revenue funds of an institution,
17-13    branch, or entity of the Texas State Technical College System,
17-14    including student tuition charges.  The amount of a pledge made
17-15    under this subsection may not be reduced or abrogated while the
17-16    bonds for which the pledge is made, or bonds issued to refund those
17-17    bonds, are outstanding.
17-18          (c)  If sufficient funds are not available to the board to
17-19    meet its obligations under this section, the board may transfer
17-20    funds among institutions, branches, and entities of the Texas State
17-21    Technical College System to ensure the most equitable and efficient
17-22    allocation of available resources for each institution, branch, or
17-23    entity to carry out its duties and purposes.
17-24          (d)  Any portion of the proceeds of bonds authorized by this
17-25    section for one or more specified projects at an institution that
17-26    is not required for the specified projects may be used to renovate
17-27    existing structures and facilities at the institution.
 18-1          SECTION 4. (a)  All acts and proceedings of each governing
 18-2    board of an institution of higher education relating to the
 18-3    establishment and collection of rates, rentals, charges, and fees
 18-4    are validated as of the date the act or proceeding occurred.
 18-5          (b)  This section does not apply to an act or proceeding that
 18-6    on the effective date of this Act:
 18-7                (1)  is involved in litigation that results in a final
 18-8    judicial determination that the act or proceeding is invalid; or
 18-9                (2)  has been held to be invalid by a final judgment of
18-10    a court.
18-11          (c)  In this section:
18-12                (1)  "Governing board" means a governing board as
18-13    defined by Section 55.01, Education Code, and includes the
18-14    governing body of a public junior college.
18-15                (2)  "Institution of higher education" has the meaning
18-16    assigned by Section 61.003, Education Code.
18-17          SECTION 5.  This Act takes effect immediately if it receives
18-18    a vote of two-thirds of all the members elected to each house, as
18-19    provided by Section 39, Article III, Texas Constitution.  If this
18-20    Act does not receive the vote necessary for immediate effect, this
18-21    Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 658 was passed by the House on May 2,
         2001, by a non-record vote; that the House refused to concur in
         Senate amendments to H.B. No. 658 on May 21, 2001, 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. 658 on May 26, 2001, by a
         non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 658 was passed by the Senate, with
         amendments, on May 17, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting; 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. 658 on May 26, 2001, by the following
         vote:  Yeas 30, Nays 0, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor