HBA-KMH H.B. 1641 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1641 By: Coleman Higher Education 3/4/1999 Introduced BACKGROUND AND PURPOSE The City of Houston has offered to sell an existing building in the Texs Medical Center to the University of Houston. H.B 1641 grants authorization to the board of regents of the University of Houston System to issue bonds in an aggregate principal amount not to exceed $20 million for a range of uses relating to the maintenance and development of the University of Houston System. This bill also authorizes a transfer of sufficient funds as necessary throughout the system to meet obligations incurred for this purpose. 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. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter B, Chapter 55, Education Code, by adding Section 55.1731, as follows: Sec. 55.1731. THE UNIVERSITY OF HOUSTON SYSTEM. (a) Authorizes the board of regents of the University of Houston System (board) to acquire, purchase, construct, improve, renovate, enlarge, or equip property, buildings, structures, facilities, roads, or related infrastructure for the University of Houston (university) to be financed by the issuance of bonds in accordance with this subchapter and in accordance with a systemwide revenue financing program adopted by the board in an aggregate principal amount not to exceed $20 million. (b) Authorizes the board to pledge irrevocably to the payment of those bonds all or any part of the revenue funds of an institution, branch, or entity of the University of Houston System (system), including student tuition charges required or authorized by law to be imposed on students enrolled at an institution, branch, or entity of the system. Prohibits the amount pledged 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 to transfer funds among institutions, branches, and entities of the system, if sufficient funds are not available to the board to meet its obligations under this section. SECTION 2. Emergency clause.