By:  Barrientos                                                   S.B. No. 1512


A BILL TO BE ENTITLED

AN ACT

relating to the issuance of tuition revenue bonds by The University 
of Texas System for The University of Texas at Austin.
	SECTION 1.  Chapter 55, Education Code, is amended by adding 
Section 55.175, to read as follows:
	Sec. 55.175.  THE UNIVERSITY OF TEXAS SYSTEM.  (a)  In 
addition to the authority granted by other sections of this 
chapter, 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 at Austin 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 an 
aggregate principal amount not to exceed $80,000,000, and to be 
used for campus fire and life safety upgrades and the Experimental 
Science Building.
	(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 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.  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.