SRC-TAG S.B. 1216 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1216
By: Janek/Ellis, Rodney
Education
4/11/2003
As Filed


DIGEST AND PURPOSE 

The University of Texas M. D. Anderson Cancer Center (UTMDACC) needs new
facilities to house research programs in molecular pathology, molecular
therapeutics, gastrointestinal medicine, nutrition, and gastrointestinal
medical oncology, as well as a conference center and cafeteria for use by
the entire research park.  UTMDACC seeks partial support (56 percent) of
this facility through revenue bonds, while the other 44 percent will be
financed from institutional revenue bonds and hospital revenues.   As
proposed, S.B. 1216 grants The University of Texas M. D. Anderson cancer
Center the authority to issue revenue bonds for biotechnology research and
development facilities. 

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
55.17521, as follows: 

Sec.  55.17521.  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
take certain actions regarding related infrastructure for The University
of Texas  M. D. Anderson Cancer Center for biotechnology research and
development facilities, 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 $48.0 million.  

(b)  Authorizes the board to pledge irrevocably to the payment of 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.  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
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 provide that the
approval of the board is not required to acquire real property that is
financed by bonds issued under Section 55.17(e)(3) or (4) or Sections
55.1713-55.174, rather than 55.1713-55.1718, 55.1721, 55.1728 or 55.174,
or  Section 55.17521, except that the board shall review all real property
to be financed by bonds issued under those sections to determine whether
the property meets the standards  adopted by the board for cost,
efficiency, and space use. 

SECTION 3.  Amends Section 61.058(b), Education Code, to make conforming
changes. 

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