SRC-VRA S.B. 1755 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1755
By: Jackson
Finance
4/14/2003
As Filed


DIGEST AND PURPOSE 

As proposed, S.B. 1755 authorizes The University of Texas System Board of
Regents to issue up to $57 million in tuition revenue bonds to be used as
the local match for federal funding to build a National Biocontainment
Laboratory on the campus of The University of Texas Medical Branch at
Galveston.   

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 Subchapter B, Chapter 55, Education Code, by adding
Section 55.17421, as follows: 

Sec.  55.17421.  THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON;
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, or other
facilities, including roads and related infrastructure, for The University
of Texas Medical Branch at Galveston, to be used primarily to conduct
biomedical research including research related to national biodefense and
to be financed by the issuance of bonds in accordance with this
subchapter, including bonds issued in accordance with a systemwide revenue
financing program and secured as provided by that program in an aggregate
principal amount not to exceed $57 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.  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 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.