78R8198 KSD-D

By:  Woolley                                                      H.B. No. 1941



A BILL TO BE ENTITLED

AN ACT

relating to authorizing the issuance of revenue bonds for The 
University of Texas Health Science Center at Houston for recovery 
from Tropical Storm Allison and exempting the property and projects 
financed by the bonds from prior approval by the Texas Higher 
Education Coordinating Board.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.   Subchapter B, Chapter 55, Education Code, is 
amended by adding Section 55.1742 to read as follows:
	Sec. 55.1742.  THE UNIVERSITY OF TEXAS SYSTEM; ADDITIONAL 
REVENUE BONDS.  (a)  In addition to the other authority granted by 
this subchapter, the board of regents of The University of Texas 
System may 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 a systemwide revenue financing program and secured 
as provided by that program in an aggregate principal amount not to 
exceed $34.9 million.
	(b)  The board may 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.  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)  If sufficient funds are not available to the board to 
meet its obligations under this section, the board may 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.  Section 61.0572(e), Education Code, is amended 
to read as follows:
	(e)  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), 55.1713-55.1718, 55.1721-55.1728, [or] 55.174, or 55.1742,
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.  If the property does not meet those 
standards, the board shall notify the governor, the lieutenant 
governor, the speaker of the house of representatives, and the 
Legislative Budget Board.
	SECTION 3.  Section 61.058(b), Education Code, is amended to 
read as follows:
	(b)  This section does not apply to construction, repair, or 
rehabilitation financed by bonds issued under Section 55.17(e)(3) 
or (4), 55.1713-55.1718, 55.1721-55.1728, [or] 55.174, or 55.1742,
except that the board shall review all construction, repair, or 
rehabilitation to be financed by bonds issued under those sections 
to determine whether the construction, rehabilitation, or repair 
meets the standards adopted by board rule for cost, efficiency, and 
space use.  If the construction, rehabilitation, or repair does not 
meet those standards, the board shall notify the governor, the 
lieutenant governor, the speaker of the house of representatives, 
and the Legislative Budget Board.
	SECTION 4.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.