SRC-TJG H.B. 1941 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1941
78R8198 KSD-DBy: Woolley (Bivins)
Finance
5/20/2003
Engrossed


DIGEST AND PURPOSE 

Currently, the board of regents cannot issue revenue bonds for The
University of Texas Health Science Center at Houston for recovery from
Tropical Storm Allison.  H.B. 1941 authorizes the issuance of revenue
bonds for The University of Texas Health Science Center at Houston for
recovery from Tropical Storm Allison and exempts the property and projects
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 55.1742, as follows: 

Sec. 55.1742.  THE UNIVERSITY OF TEXAS SYSTEM; 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, facilities, roads, or related
infrastructure for The University of Texas Health Science Center at
Houston for recovery from the damage caused by Tropical Strom Allison, 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 $34.9 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 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. 

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

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

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