78R6368 KSD-D

By:  Davis of Harris                                              H.B. No. 3350



A BILL TO BE ENTITLED

AN ACT

relating to authorizing the issuance of revenue bonds for the 
University of Houston System.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.   Subchapter B, Chapter 55, Education Code, is 
amended by adding Section 55.1743 to read as follows:
	Sec. 55.1743.  THE UNIVERSITY OF HOUSTON SYSTEM.  (a)  In 
addition to the other authority granted by this subchapter, the 
board of regents of the University of Houston System may acquire, 
purchase, construct, improve, renovate, enlarge, or equip 
property, buildings, structures, facilities, roads, or related 
infrastructure for the University of Houston System, including the 
individual campuses of the system, to be financed by the issuance of 
bonds in accordance with this subchapter and in accordance with a 
systemwide revenue financing program adopted by the board in an 
aggregate principal amount not to exceed $25 million.
	(b)  The board may pledge irrevocably to the payment of those 
bonds all or any part of the revenue funds of an institution, 
branch, or entity of the University of Houston 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 Houston 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.   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.