Honorable Geanie Morrison, Chair, House Committee on Higher Education
John S. O'Brien, Deputy Director, Legislative Budget Board
HB2105 by Branch (Relating to authorizing the issuance of revenue bonds for The University of Texas Southwestern Medical Center at Dallas.), As Introduced
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GENERAL REVENUE FUND
The bill would authorize The University of Texas System to issue additional revenue bonds in an amount not to exceed $42,000,000. The debt service payments would be $7,323,502 in each year of the 2006-07 biennium. The board of regents of The University of Texas System would acquire, purchase, construct, improve, renovate, enlarge, or equip property, buildings, structures, or other facilities, including roads and related infrastructure for The University of Texas Southwestern Medical Center at Dallas, to be used primarily to conduct biomedical research and to be financed with the proceeds of the bonds authorized in the subchapter.
While the Act does not specify issuance of tuition revenue bonds, Tuition Revenue Bonds are assumed to be issued in accordance with The University of Texas System revenue financing program.
Although tuition income is pledged against the bonds, historically the Legislature has appropriated General Revenue to reimburse institutions for the tuition used to pay the debt service. This note assumes the Legislature would continue this policy.
Finally, this Act takes immediate effect if it receives a vote of two-thirds of all the members elected to both the House and the Senate as provided by Section 39, Article III,
347 Public Finance Authority, 352 Bond Review Board, 720 The University of Texas System Administration, 781 Higher Education Coordinating Board
JOB, CT, RT, MM