H.B. 3351 78(R)    BILL ANALYSIS


H.B. 3351
By: Davis, John
Higher Education
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

On June 9, 2001, just days after the adjournment of the 77th Legislature,
the University of Texas Health Science Center at Houston Medical School
complex suffered devastating and catastrophic damages as a result of
Tropical Storm Allison.  Over 10 million gallons of water poured into
basement and ground floor research and academic space, killing thousands
of research animals and destroying expensive research equipment.
Determined to "build out of harm's way" in the event another storm of this
magnitude should ever come our way, means that a significant portion of
this damaged space will not be reclaimed, leaving the medical school
complex with lost basic science research space equaling approximately
75,000 gross square feet.   

This bill proposes to authorize the issuance of $30 million in tuition
revenue bonds for the purpose of building new space to recapture research
space and the infrastructure to support it - mechanical, electrical,
air-handling systems - lost as a result of Tropical Storm Allison.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

HB 3351 amends Subchapter B, Chapter 55, Education Code, by adding Section
55.17321 to provide that the board of regents of The University of Texas
System may 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 the replacement of research and academic facilities lost in
Tropical Storm Allison, to be financed by the issuance of bonds in
accordance with this subchapter, including bonds issued in accordance with
its systemwide revenue financing program and secured as provided by that
program in aggregate principal amounts not to exceed $30 million. 
 

HB 3351 provides that the board may 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 required or authorized by law to
be imposed on students enrolled at an institution, branch, or entity of
The University of Texas System. The amount of a pledge made under this
subsection may not be reduced or abrogated while the bonds for which the
pledge is made, or bonds issued to refund those bonds, are outstanding.
The bill provides that if sufficient funds are not available to the board
to meet its obligations under this section, the board may 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
constitutional and statutory duties and purposes. 

HB 3351 amends Subsection (e), Section 61.0572, Education Code, to provide
that approval of the board is not required to acquire real  
property that is financed by bonds issued under Section Sections
55.1713-55.174 

 HB 3351 amends Subsection (b), Section 61.058, Education Code, to provide
that this section does not apply to construction, repair, or
rehabilitation financed by bonds issued under Section Sections
55.1713-55.174. 


EFFECTIVE DATE

This Act takes effect immediately if it receives a vote of two-thirds of
all the members elected to each house, as provided by Section 39, Article
III, Texas Constitution.  If this Act does not receive the vote necessary
for immediate effect, this Act takes effect September 1, 2003.