Office of House Bill AnalysisC.S.H.B. 658
By: Junell
Higher Education
Committee Report (Substituted)


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. 


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. 


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

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). 


September 1, 2001.


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).