H.B. No. 2058
1-1 AN ACT
1-2 relating to bonds issued by certain public institutions of higher
1-3 education in this state.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 55.01, Education Code, is amended by
1-6 adding Subdivision (3) to read as follows:
1-7 (3) "Revenue funds" means the revenues, incomes,
1-8 receipts, rentals, rates, charges, fees, and tuition levied or
1-9 collected by an institution of higher education, including interest
1-10 or other income from those funds.
1-11 SECTION 2. Subchapter A, Chapter 55, Education Code, is
1-12 amended by adding Sections 55.02, 55.03, and 55.04 to read as
1-13 follows:
1-14 Sec. 55.02. SYSTEMWIDE REVENUE FINANCING PROGRAM. (a) The
1-15 governing board of a university system may establish a systemwide
1-16 revenue financing program to provide funds to acquire, purchase,
1-17 construct, improve, renovate, enlarge, or equip property,
1-18 buildings, structures, facilities, roads, or related infrastructure
1-19 at an institution, branch, or entity of the university system.
1-20 (b) The governing board may issue bonds or notes in
1-21 accordance with this chapter for any purpose authorized by law as
1-22 part of the systemwide revenue financing program.
1-23 (c) The governing board may pledge to the payment of any
1-24 bonds or notes issued as part of the systemwide revenue financing
2-1 program all or any part of the revenue funds of an institution,
2-2 branch, or entity of the university system.
2-3 (d) In this section, "university system" has the meaning
2-4 assigned by Section 61.003 of this code.
2-5 Sec. 55.03. MINORITY-OWNED AND WOMEN-OWNED BUSINESSES.
2-6 (a) The board of regents of each institution of higher education
2-7 shall make a good-faith effort to award to minority-owned and
2-8 women-owned businesses:
2-9 (1) contracts relating to the issuance of bonds by the
2-10 board under this chapter in the amount of at least 25 percent of
2-11 the total costs of issuing those bonds; and
2-12 (2) contracts for the items to be financed by bonds
2-13 issued by the board in the amount of at least 25 percent of the
2-14 proceeds of those bonds.
2-15 (b) Not later than October 31 of each academic year, the
2-16 board of regents shall file with the governor and each house of the
2-17 legislature a written report containing the following information
2-18 for the previous academic year for all businesses, minority-owned
2-19 businesses and women-owned businesses, classified by gender and
2-20 minority group status:
2-21 (1) the total number of contracts relating to the
2-22 issuance of bonds by the board under this chapter and to the items
2-23 to be financed by those bonds;
2-24 (2) the total dollar amount the board of regents must
2-25 pay under each contract described by Subdivision (1) of this
2-26 subsection; and
2-27 (3) the total number of businesses submitting bids or
3-1 proposals relating to the issuance of bonds by the board under this
3-2 chapter and to the items to be financed by those bonds.
3-3 (c) In this section:
3-4 (1) "Minority-owned business" means a business entity
3-5 at least 51 percent of which is owned by members of a minority
3-6 group or, in the case of a corporation, at least 51 percent of the
3-7 shares of which are owned by members of a minority group, and that
3-8 is managed and controlled by members of a minority group in its
3-9 daily operations.
3-10 (2) "Minority group" includes:
3-11 (A) African Americans;
3-12 (B) American Indians;
3-13 (C) Asian Americans; and
3-14 (D) Mexican Americans and other Americans of
3-15 Hispanic origin.
3-16 (3) "Women-owned business" means a business entity at
3-17 least 51 percent of which is owned by women or, in the case of a
3-18 corporation, at least 51 percent of the shares of which are owned
3-19 by women, and that is managed and controlled by women in its daily
3-20 operations.
3-21 Sec. 55.04. CUMULATIVE EFFECT. (a) The authority to issue
3-22 bonds under this chapter is cumulative of all other authority to
3-23 issue bonds. The governing board of an institution of higher
3-24 education may issue bonds under that other authority or may issue
3-25 bonds under the authority of this chapter.
3-26 (b) This chapter is sufficient authority for a governing
3-27 board of an institution of higher education to issue bonds under
4-1 this chapter and to perform all other acts and procedures
4-2 authorized by this chapter.
4-3 SECTION 3. Section 55.17(e), Education Code, is amended to
4-4 read as follows:
4-5 (e)(1) The board of regents of Texas Tech University, acting
4-6 separately and independently for and on behalf of Texas Tech
4-7 University and separately and independently for and on behalf of
4-8 the Texas Tech University Health Sciences Center <School of
4-9 Medicine at Lubbock>, is hereby granted full and final authority
4-10 and responsibility to acquire, purchase, construct, improve,
4-11 renovate, enlarge, or <and/or> equip property, buildings,
4-12 structures, <and/or> facilities, roads, or related infrastructure
4-13 for Texas Tech University and the Texas Tech University Health
4-14 Sciences Center <School of Medicine at Lubbock>.
4-15 (2) The board of regents of Texas Tech University,
4-16 acting separately and independently for and on behalf of Texas Tech
4-17 University and separately and independently for and on behalf of
4-18 the Texas Tech University Health Sciences Center <School of
4-19 Medicine at Lubbock>, may pledge irrevocably to the payment of its
4-20 revenue bonds all or any part of the aggregate amount of student
4-21 tuition charges required or authorized by law to be imposed on
4-22 students enrolled at Texas Tech University and/or at the Texas Tech
4-23 University Health Sciences Center <School of Medicine at Lubbock>;
4-24 and the amount of any pledge so made shall never be reduced or
4-25 abrogated while such bonds are outstanding; provided, however, that
4-26 such tuition charges shall not be pledged pursuant to the authority
4-27 granted by this Subsection (e)(2) except to the payment of bonds
5-1 issued in an aggregate principal amount of not to exceed $35
5-2 million for the purpose of providing funds to acquire, purchase,
5-3 construct, improve, renovate, enlarge, or <and/or> equip property,
5-4 buildings, structures, <and> facilities, roads, or related
5-5 infrastructure for the Texas Tech University Health Sciences Center
5-6 <School of Medicine at Lubbock>.
5-7 (3) In addition to the authority granted by Sections
5-8 55.13, 55.14, 55.17, and 55.19 of this code, the board of regents
5-9 of Texas Tech University and the Texas Tech University Health
5-10 Sciences Center may issue bonds in accordance with this subchapter
5-11 and in accordance with a systemwide revenue financing program
5-12 adopted by the board in an additional aggregate principal amount
5-13 not to exceed $25 million to finance the items listed under
5-14 Subdivision (1) of this subsection. The board may pledge
5-15 irrevocably to the payment of those bonds all or any part of the
5-16 revenue funds of Texas Tech University or Texas Tech University
5-17 Health Sciences Center, including student tuition charges required
5-18 or authorized by law to be imposed on students enrolled at Texas
5-19 Tech University or at the Texas Tech University Health Sciences
5-20 Center. The amount of a pledge made under this subdivision may not
5-21 be reduced or abrogated while the bonds for which the pledge is
5-22 made, or bonds issued to refund those bonds, are outstanding.
5-23 SECTION 4. Subchapter B, Chapter 55, Education Code, is
5-24 amended by adding Sections 55.1713-55.1718 to read as follows:
5-25 Sec. 55.1713. THE TEXAS A&M UNIVERSITY SYSTEM. (a) In
5-26 addition to the authority granted by Sections 55.13, 55.14, 55.17,
5-27 55.171, 55.1711, 55.1712, and 55.19 of this code, the board of
6-1 regents of The Texas A&M University System may acquire, purchase,
6-2 construct, improve, renovate, enlarge, or equip property,
6-3 buildings, structures, facilities, roads, or related infrastructure
6-4 for the following institutions to be financed by the issuance of
6-5 bonds in accordance with this subchapter and in accordance with a
6-6 systemwide revenue financing program adopted by the board in
6-7 aggregate principal amounts not to exceed the following amounts:
6-8 (1) Texas A&M University--Corpus Christi, $22 million;
6-9 (2) Texas A&M International University, $36 million;
6-10 and
6-11 (3) Texas A&M University--Kingsville, $17 million.
6-12 (b) The board may pledge irrevocably to the payment of those
6-13 bonds all or any part of the revenue funds of an institution,
6-14 branch, or entity of The Texas A&M University System, including
6-15 student tuition charges required or authorized by law to be imposed
6-16 on students enrolled at an institution, branch, or entity of The
6-17 Texas A&M University System. The amount of a pledge made under
6-18 this subsection may not be reduced or abrogated while the bonds for
6-19 which the pledge is made, or bonds issued to refund those bonds,
6-20 are outstanding.
6-21 (c) If sufficient funds are not available to the board to
6-22 meet its obligations under this section, the board may transfer
6-23 funds among institutions, branches, and entities of The Texas A&M
6-24 University System to ensure the most equitable and efficient
6-25 allocation of available resources for each institution, branch, or
6-26 entity to carry out its constitutional and statutory duties and
6-27 purposes.
7-1 Sec. 55.1714. THE UNIVERSITY OF TEXAS SYSTEM. (a) In
7-2 addition to the authority granted by Sections 55.13, 55.14, 55.17,
7-3 55.172, and 55.19 of this code, the board of regents of The
7-4 University of Texas System may acquire, purchase, construct,
7-5 improve, renovate, enlarge, or equip property, buildings,
7-6 structures, facilities, roads, or related infrastructure for the
7-7 following institutions to be financed by the issuance of bonds in
7-8 accordance with this subchapter, including bonds issued in
7-9 accordance with its systemwide revenue financing program and
7-10 secured as provided by that program, in aggregate principal amounts
7-11 not to exceed the following amounts:
7-12 (1) The University of Texas at Brownsville, $23.5
7-13 million;
7-14 (2) The University of Texas at El Paso, $23 million;
7-15 (3) The University of Texas--Pan American, $26
7-16 million;
7-17 (4) The University of Texas at San Antonio, $63.5
7-18 million;
7-19 (5) The University of Texas Health Science Center at
7-20 San Antonio, $25 million; and
7-21 (6) The University of Texas at Austin, $2 million.
7-22 (b) The board may pledge irrevocably to the payment of those
7-23 bonds all or any part of the revenue funds of an institution,
7-24 branch, or entity of The University of Texas System, including
7-25 student tuition charges required or authorized by law to be imposed
7-26 on students enrolled at an institution, branch, or entity of The
7-27 University of Texas System. The amount of a pledge made under this
8-1 subsection may not be reduced or abrogated while the bonds for
8-2 which the pledge is made, or bonds issued to refund those bonds,
8-3 are outstanding.
8-4 (c) Of the proceeds of bonds issued under this section for
8-5 The University of Texas at San Antonio, $20 million may be used
8-6 only to acquire, purchase, construct, improve, renovate, enlarge,
8-7 or equip a downtown campus for that university. Proceeds of bonds
8-8 issued under this section for The University of Texas at Austin may
8-9 be used only to acquire, purchase, construct, renovate, enlarge, or
8-10 equip the McDonald Observatory.
8-11 (d) If sufficient funds are not available to the board to
8-12 meet its obligations under this section, the board may transfer
8-13 funds among institutions, branches, and entities of The University
8-14 of Texas System to ensure the most equitable and efficient
8-15 allocation of available resources for each institution, branch, or
8-16 entity to carry out its constitutional and statutory duties and
8-17 purposes.
8-18 Sec. 55.1715. THE UNIVERSITY OF HOUSTON SYSTEM. (a) In
8-19 addition to the authority granted by Sections 55.13, 55.14, 55.17,
8-20 55.171, and 55.19 of this code, the board of regents of the
8-21 University of Houston System may acquire, purchase, construct,
8-22 improve, renovate, enlarge, or equip property, buildings,
8-23 structures, facilities, roads, or related infrastructure for the
8-24 University of Houston--Downtown to be financed by the issuance of
8-25 bonds in accordance with this subchapter and in accordance with a
8-26 systemwide revenue financing program adopted by the board in an
8-27 aggregate principal amount not to exceed $22.4 million.
9-1 (b) The board may pledge irrevocably to the payment of those
9-2 bonds all or any part of the revenue funds of an institution,
9-3 branch, or entity of the University of Houston System, including
9-4 student tuition charges required or authorized by law to be imposed
9-5 on students enrolled at an institution, branch, or entity of the
9-6 University of Houston System. The amount of a pledge made under
9-7 this subsection may not be reduced or abrogated while the bonds for
9-8 which the pledge is made, or bonds issued to refund those bonds,
9-9 are outstanding.
9-10 (c) If sufficient funds are not available to the board to
9-11 meet its obligations under this section, the board may transfer
9-12 funds among institutions, branches, and entities of the University
9-13 of Houston System to ensure the most equitable and efficient
9-14 allocation of available resources for each institution, branch, or
9-15 entity to carry out its duties and purposes.
9-16 Sec. 55.1716. TEXAS STATE UNIVERSITY SYSTEM. (a) In
9-17 addition to the authority granted by Sections 55.13, 55.14, 55.17,
9-18 and 55.19 of this code, the board of regents of the Texas State
9-19 University System may acquire, purchase, construct, improve,
9-20 renovate, enlarge, or equip property, buildings, structures,
9-21 facilities, roads, or related infrastructure for an institution,
9-22 branch, or entity of the system to be financed by the issuance of
9-23 bonds in accordance with this subchapter and in accordance with a
9-24 systemwide revenue financing program adopted by the board in the
9-25 aggregate principal amount of $27 million.
9-26 (b) The board may pledge irrevocably to the payment of those
9-27 bonds all or any part of the revenue funds of an institution,
10-1 branch, or entity of the Texas State University System, including
10-2 student tuition charges required or authorized by law to be imposed
10-3 on students enrolled at an institution, branch, or entity of the
10-4 Texas State University System. The amount of a pledge made under
10-5 this subsection may not be reduced or abrogated while the bonds for
10-6 which the pledge is made, or bonds issued to refund those bonds,
10-7 are outstanding.
10-8 (c) If sufficient funds are not available to the board to
10-9 meet its obligations under this section, the board may transfer
10-10 funds among institutions, branches, and entities of the Texas State
10-11 University System to ensure the most equitable and efficient
10-12 allocation of available resources for each institution, branch, or
10-13 entity to carry out its duties and purposes.
10-14 Sec. 55.1717. UNIVERSITY OF NORTH TEXAS AND TEXAS COLLEGE OF
10-15 OSTEOPATHIC MEDICINE. (a) The board of regents of the University
10-16 of North Texas may acquire, purchase, construct, improve, renovate,
10-17 enlarge, or equip property, buildings, structures, facilities,
10-18 roads, or related infrastructure for the University of North Texas
10-19 or the Texas College of Osteopathic Medicine to be financed by the
10-20 issuance of bonds in accordance with this subchapter in the
10-21 aggregate principal amounts not to exceed $25 million for the
10-22 University of North Texas and $10 million for the Texas College of
10-23 Osteopathic Medicine.
10-24 (b) The board may pledge irrevocably to the payment of those
10-25 bonds all or any part of the revenue funds of the University of
10-26 North Texas or the Texas College of Osteopathic Medicine, including
10-27 student tuition charges required or authorized by law to be imposed
11-1 on students enrolled at the University of North Texas or the Texas
11-2 College of Osteopathic Medicine. The amount of a pledge made under
11-3 this subsection may not be reduced or abrogated while the bonds for
11-4 which the pledge is made, or bonds issued to refund those bonds,
11-5 are outstanding.
11-6 (c) If sufficient funds are not available to the board to
11-7 meet its obligations under this section, the board may transfer
11-8 funds between the University of North Texas and the Texas College
11-9 of Osteopathic Medicine to ensure the most equitable and efficient
11-10 allocation of available resources for the University of North Texas
11-11 and the Texas College of Osteopathic Medicine to carry out their
11-12 duties and purposes.
11-13 Sec. 55.1718. TEXAS WOMAN'S UNIVERSITY. (a) The board of
11-14 regents of Texas Woman's University may acquire, purchase,
11-15 construct, improve, renovate, enlarge, or equip property,
11-16 buildings, structures, facilities, roads, or related infrastructure
11-17 for Texas Woman's University to be financed by the issuance of
11-18 bonds in accordance with this subchapter in the aggregate principal
11-19 amount of $5 million.
11-20 (b) The board may pledge irrevocably to the payment of those
11-21 bonds all or any part of the revenue funds of Texas Woman's
11-22 University, including student tuition charges required or
11-23 authorized by law to be imposed on students enrolled at Texas
11-24 Woman's University. The amount of a pledge made under this
11-25 subsection may not be reduced or abrogated while the bonds for
11-26 which the pledge is made, or bonds issued to refund those bonds,
11-27 are outstanding.
12-1 SECTION 5. Section 61.0572, Education Code, is amended by
12-2 adding Subsection (e) to read as follows:
12-3 (e) Approval of the board is not required to acquire real
12-4 property that is financed by bonds issued under Section 55.17(e)(3)
12-5 or 55.1713-55.1718 of this code, except that the board shall review
12-6 all real property to be financed by bonds issued under those
12-7 sections to determine whether the property meets the standards
12-8 adopted by the board for cost, efficiency, and space use. If the
12-9 property does not meet those standards, the board shall notify the
12-10 governor, the lieutenant governor, the speaker of the house of
12-11 representatives, and the Legislative Budget Board.
12-12 SECTION 6. Section 61.058, Education Code, is amended to
12-13 read as follows:
12-14 Sec. 61.058. New Construction and Repair and Rehabilitation
12-15 Projects. (a) Except as provided by Subsection (b) of this
12-16 section, the <The> board shall approve or disapprove all new
12-17 construction and repair and rehabilitation of all buildings and
12-18 facilities at institutions of higher education financed from any
12-19 source provided that:
12-20 (A) the board's consideration and determination shall
12-21 be limited to the purpose for which the new or remodeled buildings
12-22 are to be used to assure conformity with approved space utilization
12-23 standards and the institution's approved programs and role and
12-24 mission if the cost of the project is not more than $600,000, but
12-25 the board may consider cost factors and the financial implications
12-26 of the project to the state if the total cost is in excess of
12-27 $600,000;
13-1 (B) the requirement of approval for new construction
13-2 applies only to projects the total cost of which is in excess of
13-3 $300,000;
13-4 (C) the requirement of approval for major repair and
13-5 rehabilitation of buildings and facilities applies only to a
13-6 project the total cost of which is more than $600,000;
13-7 (D) the requirement of approval or disapproval by the
13-8 board does not apply to any new construction or major repair and
13-9 rehabilitation project that is specifically approved by the
13-10 legislature;
13-11 (E) the requirement of approval by the board does not
13-12 apply to a junior college's construction, repair, or rehabilitation
13-13 financed entirely with funds from a source other than the state,
13-14 including funds from ad valorem tax receipts of the college, gifts,
13-15 grants, and donations to the college, and student fees; and
13-16 (F) the requirement of approval by the board does not
13-17 apply to construction, repair, or rehabilitation of privately owned
13-18 buildings and facilities located on land leased from an institution
13-19 of higher education if the construction, repair, or rehabilitation
13-20 is financed entirely from funds not under the control of the
13-21 institution, and provided further that:
13-22 (i) the buildings and facilities are to be used
13-23 exclusively for auxiliary enterprises; and
13-24 (ii) the buildings and facilities will not
13-25 require appropriations from the legislature for operation,
13-26 maintenance, or repair unless approval by the board has been
13-27 obtained.
14-1 (b) This section does not apply to construction, repair, or
14-2 rehabilitation financed by bonds issued under Section 55.17(e)(3)
14-3 or 55.1713-55.1718 of this code, except that the board shall review
14-4 all construction, repair, or rehabilitation to be financed by bonds
14-5 issued under those sections to determine whether the construction,
14-6 rehabilitation, or repair meets the standards adopted by board rule
14-7 for cost, efficiency, and space use. If the construction,
14-8 rehabilitation, or repair does not meet those standards, the board
14-9 shall notify the governor, the lieutenant governor, the speaker of
14-10 the house of representatives, and the Legislative Budget Board.
14-11 SECTION 7. Section 55.03, Education Code, as added by this
14-12 Act, applies only to contracts relating to bonds that are issued on
14-13 or after the effective date of this Act.
14-14 SECTION 8. In addition to the amounts pledged for repayment
14-15 of bonds as provided by Sections 55.17(e)(3) and 55.1713-55.1718,
14-16 Education Code, as added by this Act, the difference between the
14-17 amounts that would have been appropriated by S.B. No. 5, 73rd
14-18 Legislature, Regular Session, 1993, as introduced, and the amounts
14-19 actually appropriated by S.B. No. 5, Acts of the 73rd Legislature,
14-20 Regular Session, 1993, that is attributable to Section 61.059(l),
14-21 Education Code, as added by S.B. No. 380, 73rd Legislature, Regular
14-22 Session, 1993, is dedicated for the fiscal biennium beginning
14-23 September 1, 1993, for the purpose of repaying those bonds. If
14-24 S.B. No. 380 does not become law, this section has no effect.
14-25 SECTION 9. This Act takes effect September 1, 1993.
14-26 SECTION 10. The importance of this legislation and the
14-27 crowded condition of the calendars in both houses create an
15-1 emergency and an imperative public necessity that the
15-2 constitutional rule requiring bills to be read on three several
15-3 days in each house be suspended, and this rule is hereby suspended.