SRC-AMY H.B. 1912 78(R)    BILL ANALYSIS


Senate Research CenterH.B. 1912
By: Wolens (Shapiro)
Education
5-14-2003
Engrossed

DIGEST AND PURPOSE 

Currently, additional tuition revenue bonds are not authorized to be
issued to The University of Texas Southwestern Medical Center at Dallas.
H.B. 1912 authorizes additional tuition revenue bonds for
biomedical/biotech research buildings at UT Southwestern Medical Center.
This bill also exempts facilities financed by the bonds from prior
approval by the Texas Higher Education Coordinating Board. 

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 Subchapter B, Chapter 55, Education Code, by adding
Section 55.17421, as follows: 

Sec. 55.17421.  THE UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTER AT
DALLAS; ADDITIONAL REVENUE 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 acquire, purchase, construct, improve,
renovate, enlarge, or equip property, buildings, structures, or other
facilities, including roads and related infrastructure, for The University
of Texas Southwestern Medical Center at Dallas, to be used primarily to
conduct biomedical research and to be financed by the issuance of bonds in
accordance with this subchapter, including bonds issued in accordance with
a systemwide revenue financing program and secured as provided by that
program in an aggregate principal amount not to exceed $56 million. 

(b) Authorizes the board to pledge irrevocably to the payment of the bonds
authorized by Subsection (a) 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) Prohibits the board from issuing bonds authorized by Subsection (a) at
a time that would require the payment of any debt service on the bonds
before September 1, 2004. 

SECTION 2.  Amends Section 61.0572(e), Education Code, to include a
reference to Section 55.17421 and to make a nonsubstantive change. 

SECTION 3.  Amends Section 61.058(b), Education Code, to make conforming
and  nonsubstantive changes. 

SECTION 4.  Effective date: upon passage or September 1, 2003.