Office of House Bill AnalysisH.B. 658
By: Junell
Higher Education


Under current law, the governing board of an institution of higher
education 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.  Texas A&M International University and the University of
Houston-Clear Lake may need more funds to finance these types of projects.
House Bill 658 authorizes the board of regents for each university to issue
additional bonds to fund infrastructure projects at those institutions. 


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. 


House Bill 658 amends the Education Code to authorize the board of regents
of The Texas A&M University System and the board of regents of the
University of Houston System to finance the acquisition, purchase,
construction, improvement, renovation, enlargement, or equipping of certain
infrastructure at Texas A&M International University and the University of
Houston-Clear Lake, respectively, by the issuance of bonds.  The bonds are
to be issued in accordance with stipulated guidelines in an aggregate
principal amount not to exceed $100,000.  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 a board does not have sufficient funds available to meet
its obligations under these provisions, the bill authorizes the board to
transfer funds among entities of its university system to ensure equitable
and efficient resource allocation. 


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