By:  Davis of Harris, Edwards, Wong, Woolley                      H.B. No. 3351



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 the 
replacement of research and academic facilities lost in Tropical 
Storm Allison.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 55, Education Code, is 
amended by adding Section 55.17321 to read as follows:
	Sec. 55.17321.  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 the replacement of research and 
academic facilities lost in Tropical Storm Allison, 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 $30 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 required or 
authorized by law to be imposed on students enrolled at an 
institution, branch, or entity of The University of Texas System.  
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 constitutional and statutory duties and 
purposes.
	SECTION 2.  Subsection (e), Section 61.0572, 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) or Sections 55.1713-55.174[, 55.1713-55.1718, 
55.1721-55.1728, or 55.174], 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.  Subsection (b), Section 61.058, 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) or Sections 55.1713-55.174[, 55.1713-55.1718, 
55.1721-55.1728, or 55.174], 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.