By Junell, et al. H.B. No. 2058
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to bonds issued by certain public institutions of higher
1-3 education.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 55.1711, Education Code, is amended by
1-6 adding Subsection (c) to read as follows:
1-7 (c) The board of regents of The Texas A&M University System
1-8 shall, as applicable, acquire, purchase, construct, improve,
1-9 enlarge, equip, or renovate the school of education/early childhood
1-10 center, furnishings and equipment, the faculty/student support
1-11 service building, and library automation at Texas A&M
1-12 University--Corpus Christi. The board shall finance those items
1-13 through the issuance of bonds in accordance with this subchapter
1-14 and in accordance with its systemwide revenue financing program.
1-15 The board shall pledge irrevocably to the payment of those bonds
1-16 all or any part of the aggregate amount of student tuition charges
1-17 required or authorized by law to be imposed on students enrolled at
1-18 Texas A&M University--Corpus Christi or at another component of The
1-19 Texas A&M University System. The amount of a pledge made under
1-20 this subsection may not be reduced or abrogated while the bonds for
1-21 which the pledge is made, or bonds issued to refund those bonds,
1-22 are outstanding. Bonds issued under this subsection may not be
1-23 issued in an aggregate principal amount exceeding $12.855 million.
1-24 SECTION 2. Section 55.1712, Education Code, is amended to
2-1 read as follows:
2-2 Sec. 55.1712. TEXAS A&M INTERNATIONAL <LAREDO STATE>
2-3 UNIVERSITY. (a) The board of regents of The Texas A&M University
2-4 System may acquire, purchase, construct, improve, enlarge, and
2-5 equip property, buildings, structures, facilities, roads, and
2-6 related infrastructure for Texas A&M International <Laredo State>
2-7 University.
2-8 <(b)> The board may finance those items <listed under
2-9 Subsection (a) of this section> through the issuance of bonds under
2-10 this subchapter and in accordance with its existing system-wide
2-11 revenue financing program. The board may pledge irrevocably to the
2-12 payment of those bonds all or any part of the aggregate amount of
2-13 student tuition charges required or authorized by law to be imposed
2-14 on students enrolled at Texas A&M International <Laredo State>
2-15 University. The amount of a pledge made under this subsection may
2-16 not be reduced or abrogated while the bonds for which the pledge is
2-17 made, or bonds issued to refund those bonds, are outstanding.
2-18 <(c)> Bonds issued under this subsection <section> may not
2-19 be issued in an aggregate principal amount exceeding $30 million.
2-20 (b) The board of regents of The Texas A&M University System
2-21 shall, as applicable, acquire, purchase, construct, improve,
2-22 enlarge, equip, or renovate the academic building and furnishings
2-23 and equipment at Texas A&M International University. The board
2-24 shall finance those items through the issuance of bonds in
2-25 accordance with this subchapter and in accordance with its
2-26 system-wide revenue financing program. The board shall pledge
2-27 irrevocably to the payment of those bonds all or any part of the
3-1 aggregate amount of student tuition charges required or authorized
3-2 by law to be imposed on students enrolled at Texas A&M
3-3 International University or at another component of The Texas A&M
3-4 University System. The amount of a pledge made under this
3-5 subsection may not be reduced or abrogated while the bonds for
3-6 which the pledge is made, or bonds issued to refund those bonds,
3-7 are outstanding. Bonds issued under this subsection may not be
3-8 issued in an aggregate principal amount exceeding $19.75 million.
3-9 SECTION 3. Subchapter B, Chapter 55, Education Code, is
3-10 amended by adding Sections 55.1713-55.1715 to read as follows:
3-11 Sec. 55.1713. TEXAS A&M UNIVERSITY--KINGSVILLE. (a) The
3-12 board of regents of The Texas A&M University System shall, as
3-13 applicable, acquire, purchase, construct, improve, enlarge, equip,
3-14 or renovate the chemistry hall, Sam Fore Hall, street improvements,
3-15 the physical education center, the administration building in
3-16 Weslaco, and farm improvements at Texas A&M University--Kingsville.
3-17 (b) The board shall finance those items listed under
3-18 Subsection (a) of this section through the issuance of bonds in
3-19 accordance with this subchapter and in accordance with its
3-20 systemwide revenue financing program. The board shall pledge
3-21 irrevocably to the payment of those bonds all or any part of the
3-22 aggregate amount of student tuition charges required or authorized
3-23 by law to be imposed on students enrolled at Texas A&M
3-24 University--Kingsville or at another component of The Texas A&M
3-25 University System. The amount of a pledge made under this
3-26 subsection may not be reduced or abrogated while the bonds for
3-27 which the pledge is made, or bonds issued to refund those bonds,
4-1 are outstanding.
4-2 (c) Bonds issued under this section may not be issued in an
4-3 aggregate principal amount exceeding $6.973 million.
4-4 Sec. 55.1714. THE UNIVERSITY OF TEXAS AT BROWNSVILLE. (a)
4-5 The board of regents of The University of Texas System shall, as
4-6 applicable, acquire, purchase, construct, improve, enlarge, equip,
4-7 or renovate the science and technology building at The University
4-8 of Texas at Brownsville.
4-9 (b) The board shall finance the item listed under Subsection
4-10 (a) of this section through the issuance of bonds in accordance
4-11 with this subchapter and in accordance with its systemwide revenue
4-12 financing program. The board shall pledge irrevocably to the
4-13 payment of those bonds all or any part of the aggregate amount of
4-14 student tuition charges required or authorized by law to be imposed
4-15 on students enrolled at The University of Texas at Brownsville or
4-16 at another component of The University of Texas System. The amount
4-17 of a pledge made under this subsection may not be reduced or
4-18 abrogated while the bonds for which the pledge is made, or bonds
4-19 issued to refund those bonds, are outstanding.
4-20 (c) Bonds issued under this section may not be issued in an
4-21 aggregate principal amount exceeding $23.1 million.
4-22 Sec. 55.1715. SUL ROSS STATE UNIVERSITY. (a) The board of
4-23 regents of the Texas State University System shall renovate
4-24 Lawrence Hall at Sul Ross State University.
4-25 (b) The board shall finance the item listed under Subsection
4-26 (a) of this section through the issuance of bonds in accordance
4-27 with this subchapter. The board shall pledge irrevocably to the
5-1 payment of those bonds all or any part of the aggregate amount of
5-2 student tuition charges required or authorized by law to be imposed
5-3 on students enrolled at Sul Ross State University or at another
5-4 component of the Texas State University System. The amount of a
5-5 pledge made under this subsection may not be reduced or abrogated
5-6 while the bonds for which the pledge is made, or bonds issued to
5-7 refund those bonds, are outstanding.
5-8 (c) Bonds issued under this section may not be issued in an
5-9 aggregate principal amount exceeding $3 million.
5-10 SECTION 4. Section 55.172, Education Code, is amended by
5-11 adding Subsection (a-1) to read as follows:
5-12 (a-1) The board of regents of The University of Texas System
5-13 shall, as applicable, acquire, purchase, construct, improve,
5-14 enlarge, equip, or renovate the engineering building at The
5-15 University of Texas--Pan American. The board shall finance the
5-16 item through the issuance of bonds in accordance with this
5-17 subchapter and in accordance with its systemwide revenue financing
5-18 program. The board shall pledge irrevocably to the payment of
5-19 those bonds all or any part of the aggregate amount of student
5-20 tuition charges required or authorized by law to be imposed on
5-21 students enrolled at The University of Texas--Pan American or at
5-22 another component of The University of Texas System. The amount of
5-23 a pledge made under this subsection may not be reduced or abrogated
5-24 while the bonds for which the pledge is made, or bonds issued to
5-25 refund those bonds, are outstanding. Bonds issued under this
5-26 subsection may not be issued in an aggregate principal amount
5-27 exceeding $25.8 million.
6-1 SECTION 5. Section 55.19, Education Code, is amended to read
6-2 as follows:
6-3 Sec. 55.19. Refunding Bonds. (a) Except as provided by
6-4 Subsection (b) of this section, any <Any> bonds or notes at any
6-5 time issued by a board may be refunded or otherwise refinanced by
6-6 the issuance by the board of refunding bonds for such purpose,
6-7 under such terms, conditions, and details as may be determined by
6-8 resolution of the board. All pertinent and appropriate provisions
6-9 of this subchapter shall be applicable to such refunding bonds, and
6-10 they shall be issued in the manner provided herein for other bonds
6-11 authorized under this subchapter; provided that such refunding
6-12 bonds may be sold and delivered in amounts necessary to pay the
6-13 principal, interest, and redemption premium, if any, of bonds or
6-14 notes to be funded or refunded, at maturity or on any redemption
6-15 date. Also, such refunding bonds may be issued to be exchanged for
6-16 the bonds or notes being refunded thereby. In the latter case, the
6-17 Comptroller of Public Accounts of the State of Texas shall register
6-18 the refunding bonds and deliver the same to the holder or holders
6-19 of the bonds or notes being refunded thereby, in accordance with
6-20 the provisions of the resolution authorizing the refunding bonds;
6-21 and any such exchange may be made in one delivery, or in several
6-22 installment deliveries. Except as provided by Subsection (b) of
6-23 this section, bonds <Bonds> issued at any time by a board also may
6-24 be refunded in the manner provided by any other applicable law.
6-25 (b) A bond issued under Sections 55.1711(c), 55.1712(b),
6-26 55.1713-55.1715, and 55.172(a-1) of this code may not be refunded,
6-27 refinanced, or exchanged if the term of the instrument for which
7-1 the bond is refunded, refinanced, or exchanged exceeds the
7-2 remainder of the term of the original bond.
7-3 SECTION 6. Section 61.058, Education Code, is amended to
7-4 read as follows:
7-5 Sec. 61.058. New Construction and Repair and Rehabilitation
7-6 Projects. (a) The board, in accordance with Subsection (b) of
7-7 this section, shall approve or disapprove all new construction and
7-8 repair and rehabilitation of all buildings and facilities at
7-9 institutions of higher education financed from any source provided
7-10 that:
7-11 (A) the board's consideration and determination shall
7-12 be limited to the purpose for which the new or remodeled buildings
7-13 are to be used to assure conformity with approved space utilization
7-14 standards and the institution's approved programs and role and
7-15 mission if the cost of the project is not more than $600,000, but
7-16 the board may consider cost factors and the financial implications
7-17 of the project to the state if the total cost is in excess of
7-18 $600,000;
7-19 (B) the requirement of approval for new construction
7-20 applies only to projects the total cost of which is in excess of
7-21 $300,000;
7-22 (C) the requirement of approval for major repair and
7-23 rehabilitation of buildings and facilities applies only to a
7-24 project the total cost of which is more than $600,000;
7-25 (D) the requirement of approval or disapproval by the
7-26 board does not apply to any new construction or major repair and
7-27 rehabilitation project that is specifically approved by the
8-1 legislature;
8-2 (E) the requirement of approval by the board does not
8-3 apply to a junior college's construction, repair, or rehabilitation
8-4 financed entirely with funds from a source other than the state,
8-5 including funds from ad valorem tax receipts of the college, gifts,
8-6 grants, and donations to the college, and student fees; and
8-7 (F) the requirement of approval by the board does not
8-8 apply to construction, repair, or rehabilitation of privately owned
8-9 buildings and facilities located on land leased from an institution
8-10 of higher education if the construction, repair, or rehabilitation
8-11 is financed entirely from funds not under the control of the
8-12 institution, and provided further that:
8-13 (i) the buildings and facilities are to be used
8-14 exclusively for auxiliary enterprises; and
8-15 (ii) the buildings and facilities will not
8-16 require appropriations from the legislature for operation,
8-17 maintenance, or repair unless approval by the board has been
8-18 obtained.
8-19 (b) The board shall make the approval or disapproval under
8-20 Subsection (a) of this section not later than the 100th day after
8-21 the date the board receives from an institution of higher education
8-22 a written request for approval that describes the new construction
8-23 or the repair and rehabilitation for which approval is sought. If
8-24 the board does not make an approval or disapproval under this
8-25 section during the 100-day period, the new construction or the
8-26 repair and rehabilitation for which approval is sought is
8-27 considered approved and may not be later disapproved. If the board
9-1 disapproves the new construction or the repair and rehabilitation
9-2 for which approval is sought, the board must provide written
9-3 reasons for the disapproval to the president of the institution of
9-4 higher education, the governor, the lieutenant governor, the
9-5 speaker of the house of representatives, and the Legislative Budget
9-6 Board.
9-7 SECTION 7. Subchapter B, Chapter 65, Education Code, is
9-8 amended by adding Sections 65.26-65.28 to read as follows:
9-9 Sec. 65.26. THE UNIVERSITY OF TEXAS AT EL PASO. (a) The
9-10 board of regents of The University of Texas System shall, as
9-11 applicable, acquire, purchase, construct, improve, enlarge, equip,
9-12 or renovate the liberal arts/science, classroom, and office
9-13 buildings at The University of Texas at El Paso.
9-14 (b) The board shall finance those items listed under
9-15 Subsection (a) of this section through bonds or notes in an
9-16 aggregate principal amount of $22.9 million issued pursuant to
9-17 Article VII, Section 18, of the Texas Constitution and in
9-18 accordance with its systemwide revenue financing program.
9-19 Sec. 65.27. THE UNIVERSITY OF TEXAS AT SAN ANTONIO. (a)
9-20 The board of regents of The University of Texas System shall, as
9-21 applicable, acquire, purchase, construct, improve, enlarge, equip,
9-22 or renovate a downtown campus and an academic building at The
9-23 University of Texas at San Antonio.
9-24 (b) The board shall finance those items listed under
9-25 Subsection (a) of this section through bonds or notes in an
9-26 aggregate principal amount of $36.5 million issued pursuant to
9-27 Article VII, Section 18, of the Texas Constitution and in
10-1 accordance with its systemwide revenue financing program.
10-2 Sec. 65.28. THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT
10-3 SAN ANTONIO. (a) The board of regents of The University of Texas
10-4 System shall, as applicable, acquire, purchase, construct, improve,
10-5 enlarge, equip, or renovate the health sciences building at The
10-6 University of Texas Health Science Center at San Antonio.
10-7 (b) The board shall finance the item listed under Subsection
10-8 (a) of this section through bonds or notes in an aggregate
10-9 principal amount of $25 million issued pursuant to Article VII,
10-10 Section 18, of the Texas Constitution and in accordance with its
10-11 systemwide revenue financing program.
10-12 SECTION 8. Section 66.22, Education Code, is amended to read
10-13 as follows:
10-14 Sec. 66.22. Refunding Bonds and Notes. (a) Except as
10-15 provided by Subsection (b) of this section, any <Any> bonds or
10-16 notes issued pursuant to the constitutional provisions described in
10-17 Section 66.21 of this code, or issued pursuant to this subchapter,
10-18 may be refunded by the governing board which issued the bonds or
10-19 notes, upon such terms and conditions, including interest rates and
10-20 maturities, as may be determined by that board, provided that such
10-21 terms and conditions shall not be inconsistent with the applicable
10-22 constitutional provisions. Any such bonds or notes may be so
10-23 refunded by the issuance of refunding bonds or notes, either to be
10-24 exchanged for the bonds or notes being refunded and cancelled, or
10-25 to be sold, with the proceeds to be used for the redemption and
10-26 cancellation of the bonds or notes being refunded.
10-27 (b) A bond or note issued under Sections 65.26-65.28 of this
11-1 code may not be refunded or exchanged if the term of the instrument
11-2 for which the bond or note is refunded or exchanged exceeds the
11-3 remainder of the term of the original bond or note.
11-4 SECTION 9. In addition to the amounts pledged for repayment
11-5 of bonds as provided by Sections 55.1711(c), 55.1712(b),
11-6 55.1713-55.1715, and 55.172(a-1), Education Code, as added by this
11-7 Act, the difference between the amounts that would have been
11-8 appropriated by S.B. No. 5, 73rd Legislature, Regular Session,
11-9 1993, as introduced, and the amounts actually appropriated by S.B.
11-10 No. 5, Acts of the 73rd Legislature, Regular Session, 1993, that is
11-11 attributable to Section 61.059(l), Education Code, as added by S.B.
11-12 No. 380, 73rd Legislature, Regular Session, 1993, is dedicated for
11-13 the fiscal biennium beginning September 1, 1993, for the purpose of
11-14 repaying those bonds. If S.B. No. 380 does not become law, this
11-15 section has no effect.
11-16 SECTION 10. Section 61.058, Education Code, as amended by
11-17 this Act, applies only to a written request from an institution of
11-18 higher education for approval of new construction or repair and
11-19 rehabilitation that is received by the Texas Higher Education
11-20 Coordinating Board on or after the effective date of this Act.
11-21 SECTION 11. This Act takes effect September 1, 1993.
11-22 SECTION 12. The importance of this legislation and the
11-23 crowded condition of the calendars in both houses create an
11-24 emergency and an imperative public necessity that the
11-25 constitutional rule requiring bills to be read on three several
11-26 days in each house be suspended, and this rule is hereby suspended.