BILL ANALYSIS

Senate Research Center                                                                                              C.S.H.B. 2329

                                                                                                                        By: Morrison (Ogden)

Finance

5/21/2005

Committee Report (Substituted)

AUTHOR'S/SPONSOR'S STATEMENT OF INTENT

C.S.H.B. 2329 provides for the issuance of revenue bonds for institutions in The Texas A&M University System.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter B, Chapter 55, Education Code, by adding Section 55.1751, as follows:

Sec. 55.1751.  THE TEXAS A&M UNIVERSITY SYSTEM;  ADDITIONAL BONDS.  (a) Authorizes the board of regents (board) of The Texas A&M University System (Texas A&M System), in addition to the other authority granted by this subchapter, to acquire, purchase, construct, improve, renovate, enlarge, or equip facilities, including roads and related infrastructure, for projects to be financed through the issuance of bonds in accordance with this subchapter, and in accordance with a systemwide revenue financing program adopted by the board for certain enumerated institutions not to exceed certain aggregate principal amounts for the projects specified.

(b) Authorizes the board to pledge irrevocably to the payment of the bonds authorized by this section all or any part of the revenue funds of an institution, branch, or entity of the Texas A&M System, including student tuition charges.  Prohibits the amount of a pledge made under this subsection from being reduced or abrogated while the bonds for which the pledge is made, or bonds issued to refund those bonds, are outstanding.

(c) Authorizes the board, if sufficient funds are not available to meet its obligations under this section, to transfer funds among institutions, branches, and entities of the Texas A&M 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.  Amends Section 61.0572(e), Education Code, to provide that approval of the board is not required to acquire real property that is financed by bonds issued under Section 55.1751, Education Code, with certain exceptions.

SECTION 3.  Amends Section 61.058(b), Education Code, to make a conforming change.

SECTION 4.  Effective date: upon passage or September 1, 2005.