SRC-VRA S.B. 1420 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1420
By: Janek/Ellis, Rodney
Finance
3/24/2003
As Filed


DIGEST AND PURPOSE 


On June 9, 2001 The University of Texas Health Science Center at Houston
suffered devastating 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.  As proposed, S.B. 1420 authorizes the
issuance of $30 million in revenue bonds to rebuild research and academic
space at The University of Texas Health Science Center. 

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 system wide revenue
financing program and secured as provided by that program in aggregate
principal amounts not to exceed $30million.  

(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 ponds, 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.  Effective date: upon passage or September 1, 2003.