By:  Jackson                                                      S.B. No. 1755


A BILL TO BE ENTITLED

AN ACT

relating to authorizing the issuance of revenue bonds for The 
University of Texas Medical Branch at Galveston to finance 
biomedical research facilities and exempting the facilities 
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 55.17421 to read as follows:
	Sec. 55.17421.  THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT 
GALVESTON; 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, 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 bio-defense 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)  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 
55.17421, 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 
55.17421, 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.