SRC-TAG C.S.H.B. 1912 78(R)    BILL ANALYSIS



Senate Research Center        C.S.H.B. 1912
78R16632 JSA-D         By: Wolens (Shapiro)
5/18/2003
       5-18-2003
        Committee Report (Substituted)

DIGEST AND PURPOSE 

Currently, additional tuition revenue bonds are not authorized to be
issued to The University of Texas Southwestern Medical Center at Dallas.
C.S.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 SYSTEM; ADDITIONAL REVENUE BONDS
FOR BIOMEDICAL AND BIOTECHNOLOGY FACILITIES.  (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, 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
M.D. Anderson Cancer center, to be used for biotechnology research and
development and to be financed by the issuance of bonds in accordance with
this subchapter, including bond issued in accordance with a systemwide
revenue financing program and secured as provided by that program, in an
aggregate principal amount not to exceed $20 million. 

(c)  Authorizes, 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 Medical
Branch at Galveston, to be used primarily to conduct biomedical research,
including research related to national bio-defense, 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 aggregated principal amount not to
exceed $30 million. 

 (d) Authorizes the board to pledge irrevocably to the payment of the
bonds authorized by this section 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. 

(e) 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. 

(f) Prohibits the board from issuing bonds authorized by section 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.