79R3443 JRJ-F

By:  Guillen                                                      H.B. No. 1523



A BILL TO BE ENTITLED

AN ACT

relating to authorizing the issuance of revenue bonds for The 
University of Texas--Pan American South Texas College 
Multi-Institution Teaching Center for certain purposes and 
exempting the property and projects 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 55.17521 to read as follows:
	Sec. 55.17521.  THE UNIVERSITY OF TEXAS SYSTEM; ADDITIONAL 
BONDS.  (a)  In addition to the other authority granted under 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--Pan American 
South Texas College Multi-Institution Teaching Center to address 
the need for facilities in the Rio Grande Valley high growth 
corridor, 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 $7.5 
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, 55.1735(a)(1), 55.174, 
55.1742, 55.1743, [or] 55.1744, or 55.17521, 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, 55.174, 55.1742, 
55.1743, [or] 55.1744, or 55.17521, 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, 2005.