SRC-TJG S.B. 362 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 362
By: Ellis, Rodney
Finance
3/17/2003
As Filed


DIGEST AND PURPOSE 

As a result of Tropical Storm Allison in 2001, 90 percent of the
University of Houston's buildings were damaged.  Insurance and funds from
the Federal Emergency Management Agency will cover approximately 78
percent of the cost of recovery, but the university had to borrow
approximately $25,000,000 from Higher Education Assistance Funds and
university reserves dedicated to other institutional priorities in order
to recover from the storm.  As proposed, S.B. 362 authorizes the issuance
of revenue bonds for the University of Houston for recovery from Tropical
Storm Allison. 

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.  Adds Sections 55.17393(a), (b), and (c), [code not noted in
bill as drafted], as follows: 

(a) Authorizes the board of regents of the University of Houston (board),
in addition to the other authority granted by this subchapter, to take
certain actions regarding property, buildings, structures, facilities,
roads, or related infrastructure for the University of Houston to be
financed by the issuance of bonds in accordance with this subchapter and
in accordance with a systemwide revenue financing program adopted by the
board in an aggregate principal amount not to exceed $25 million. 

(b) Authorizes the board to pledge irrevocably to the payment of those
bonds all or any part of the revenue funds of an institution, branch, or
entity of the University of Houston System, including certain charges
related to student tuition to be imposed on students enrolled at an
institution, branch, or entity of the University of Houston System.
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
institution, branches, or entities of the University of Houston 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. 

SECTION 2.  Effective date: upon passage or September 1, 2005.