SRC-VRA S.B. 609 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 609
By: Janek/ Ellis, Rodney
Finance
2/27/2003
As Filed


DIGEST AND PURPOSE 

In June 2001, when Tropical Storm Allison hit Houston, it severely damaged
The University of Texas Health Science Center at Houston (UTHSC).  It will
cost $160 million to return UTHSC to its previous state, bring it up to
fire and safety codes, and help prevent future flood-related catastrophes.
Of this $160 million, it is estimated that insurance will provide $56.9
million and the Federal Emergency Management Agency will provide $62.2
million.  Six million dollars has been received from the National
Institutes of Health to replace the vivarium for laboratory animals that
was destroyed with the rising waters leaving a gap of $34.9 million
unfunded.  As proposed, S.B. 609 grants The University of Texas System the
authority to issue revenue bonds for UTHSC 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.  Amends Chapter 55B, Education Code, by adding Section
55.17321, as follows: 
 
Sec. 55.17321.  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 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 $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 required or authorized by law to be
imposed on students enrolled at an institution, branch, or entity of The
University of Texas System.  Provides that 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. 
 
(c)  Authorizes the board to transfer funds, if sufficient funds are not
available to the board to meet its obligations under this section, 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. 

SECTION 2.  Amends, Section 61.0572(e), Education Code, to make a
conforming change. 
 
SECTION 3.  Amends, Section 61.058(b), Education Code, to make a
conforming change 

SECTION 4.  (a)  Effective date:  upon passage or September 1, 2003.
  
            (b)  Provides that  if this Act does not receive the vote
necessary for immediate effect,                the debt service on bonds
authorized by Section 1 of this Act may not come due
before September 1, 2005.