HBA-LJP C.S.H.B. 658 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 658 By: Junell Higher Education 4/8/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Under current law, the governing board of an institution of higher education (institution) is authorized to issue bonds or notes to acquire, purchase, construct, improve, renovate, enlarge, or equip property, buildings, structures, facilities, roads, and other infrastructure related to the institution. Certain systems and institutions may need more funds to finance these types of projects. C.S.H.B. 658 authorizes the board of regents for certain universities and university systems to issue additional bonds to fund infrastructure projects at the specified institutions. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.H.B. 658 amends the Education Code to authorize the board of regents of The Texas A&M University System, The University of Texas System, the University of Houston System, the Texas State University System, the University of North Texas System, Texas Woman's University, Midwestern State University, Stephen F. Austin State University, the Texas Tech University System, Texas Southern University, and the Texas State Technical College System to issue bonds for specified institutions and entities to finance the acquisition, purchase, construction, improvement, renovation, enlargement, or equipping of certain infrastructure with these bonds in accordance with stipulated guidelines in an aggregate principal amount not to exceed the amount specified for each project. Each board is authorized to pledge irrevocably to pay the bonds with all or any part of the revenue funds of any entity of their respective university systems. The bill prohibits the reduction or abrogation of the amount of a pledge made under these provisions while the bonds or bonds issued to refund those bonds are outstanding. If the board of a university system does not have sufficient funds available to meet its obligations under these provisions and the bond was issued for an entity of the system, the bill authorizes a board to transfer funds among entities of its university system to ensure equitable and efficient resource allocation. The bill authorizes the use of any proceeds of bonds that are for one or more specified projects at an institution that is not required for the specified project for the renovation of existing structures and facilities at the institution. The bill also prohibits the issuance of bonds for certain facilities at Prairie View A&M University and Texas Southern University before March 1, 2003 (Secs. 55.1731 and 55.17391). EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 658 modifies the original to authorize additional university systems and universities to issue additional bonds, and specifies the projects that the bonds finance and the maximum aggregate principal amount for the financing of each project. The original bill only authorized the issuance of bonds for projects at Texas A&M International University and the University of Houston-Clear Lake. The substitute also prohibits the issuance of bonds for certain facilities at Prairie View A&M University and Texas Southern University before March 1, 2003 (Secs. 55.1731 and 55.17391).