HBA-AMW, LJP H.B. 963 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 963
By: Dunnam
Higher Education
2/25/2001
Introduced



BACKGROUND AND PURPOSE 

The Higher Education Assistance Fund (HEAF) was created to provide funds
for public universities outside of The University of Texas and The Texas
A&M University systems to acquire land, construct, equip, repair, or
rehabilitate buildings, and acquire capital equipment, library books, and
library materials.  A constitutional amendment passed in 1993 placed the
Texas State Technical College System (system) under HEAF assistance
funding.  Currently, the system is trying to convert old military
facilities into technical education facilities.  An additional mechanism
for funding capital investments may help the system to complete the
conversion of these facilities.  House Bill 963 authorizes the issuance of
bonds by the system to finance the acquisition, purchase, construction,
improvement, renovation, enlargement, or equipment of these facilities. 

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

House Bill 963 amends the Education Code to authorize the board of regents
of the Texas State Technical College System (board) to finance the
acquisition, purchase, construction, improvement, renovation, enlargement,
or equipment of specified structures or infrastructure for the Texas State
Technical College System (system) by the issuance of bonds, in accordance
with the guidelines for revenue bonds and facilities, in an aggregate
principal amount not to exceed $22 million. The bill authorizes the board
to pledge to pay the bonds with all or any part of the revenue funds of any
entity of the system.  Once committed, the amount of a pledge may not be
changed while the bonds, or bonds issued to refund those bonds, are
outstanding. If the board does not have sufficient funds available to meet
its obligations under these provisions, the board is authorized to transfer
funds among entities of the system to ensure equitable and efficient
resource allocation. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.