By Junell                                              H.B. No. 658
         77R3622 JSA-D                           
                                A BILL TO BE ENTITLED
 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.  Subchapter B, Chapter 55, Education Code, is
 1-6     amended by adding Sections 55.1731 and 55.1733 to read as follows:
 1-7           Sec. 55.1731.  THE TEXAS A&M UNIVERSITY SYSTEM; ADDITIONAL
 1-8     BONDS. (a)  In addition to the other authority granted by this
 1-9     subchapter, the board of regents of The Texas A&M University System
1-10     may acquire, purchase, construct, improve, renovate, enlarge, or
1-11     equip property, buildings, structures, facilities, roads, or
1-12     related infrastructure for Texas A&M International University to be
1-13     financed by the issuance of bonds in accordance with this
1-14     subchapter and in accordance with a systemwide revenue financing
1-15     program adopted by the board in an aggregate principal amount not
1-16     to exceed $100,000.
1-17           (b)  The board may pledge irrevocably to the payment of those
1-18     bonds all or any part of the revenue funds of an institution,
1-19     branch, or entity of The Texas A&M University System, including
1-20     student tuition charges.  The amount of a pledge made under this
1-21     subsection may not be reduced or abrogated while the bonds for
1-22     which the pledge is made, or bonds issued to refund those bonds,
1-23     are outstanding.
1-24           (c)  If sufficient funds are not available to the board to
 2-1     meet its obligations under this section, the board may transfer
 2-2     funds among institutions, branches, and entities of The Texas A&M
 2-3     University System to ensure the most equitable and efficient
 2-4     allocation of available resources for each institution, branch, or
 2-5     entity to carry out its duties and purposes.
 2-6           Sec. 55.1733.  THE UNIVERSITY OF HOUSTON SYSTEM; ADDITIONAL
 2-7     BONDS. (a)  In addition to the other authority granted by this
 2-8     subchapter, the board of regents of the University of Houston
 2-9     System may acquire, purchase, construct, improve, renovate,
2-10     enlarge, or equip property, buildings, structures, facilities,
2-11     roads, or related infrastructure for the University of
2-12     Houston--Clear Lake to be financed by the issuance of bonds in
2-13     accordance with this subchapter and in accordance with a systemwide
2-14     revenue financing program adopted by the board in an aggregate
2-15     principal amount not to exceed $100,000.
2-16           (b)  The board may pledge irrevocably to the payment of those
2-17     bonds all or any part of the revenue funds of an institution,
2-18     branch, or entity of the University of Houston System, including
2-19     student tuition charges.  The amount of a pledge made under this
2-20     subsection may not be reduced or abrogated while the bonds for
2-21     which the pledge is made, or bonds issued to refund those bonds,
2-22     are outstanding.
2-23           (c)  If sufficient funds are not available to the board to
2-24     meet its obligations under this section, the board may transfer
2-25     funds among institutions, branches, and entities of the University
2-26     of Houston System to ensure the most equitable and efficient
2-27     allocation of available resources for each institution, branch, or
 3-1     entity to carry out its duties and purposes.
 3-2           SECTION 2.  This Act takes effect immediately if it receives
 3-3     a vote of two-thirds of all the members elected to each house, as
 3-4     provided by Section 39, Article III, Texas Constitution.  If this
 3-5     Act does not receive the vote necessary for immediate effect, this
 3-6     Act takes effect September 1, 2001.