By: Junell H.B. No. 2058
73R6665 SOS-D
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 may acquire, purchase, construct, improve, enlarge, or equip
1-9 property, buildings, structures, facilities, roads, or
1-10 infrastructure for Texas A&M University--Corpus Christi. The board
1-11 may finance those items through the issuance of bonds in accordance
1-12 with this subchapter and in accordance with its systemwide revenue
1-13 financing program. The board may pledge irrevocably to the payment
1-14 of those bonds all or any part of the aggregate amount of student
1-15 tuition charges required or authorized by law to be imposed on
1-16 students enrolled at Texas A&M University--Corpus Christi or at
1-17 another component of The Texas A&M University System. The amount
1-18 of a pledge made under this subsection may not be reduced or
1-19 abrogated while the bonds for which the pledge is made, or bonds
1-20 issued to refund those bonds, are outstanding. Bonds issued under
1-21 this subsection may not be issued in an aggregate principal amount
1-22 exceeding $6.4 million.
1-23 SECTION 2. Section 55.1712, Education Code, is amended to
1-24 read as follows:
2-1 Sec. 55.1712. TEXAS A&M INTERNATIONAL <LAREDO STATE>
2-2 UNIVERSITY. (a) The board of regents of The Texas A&M University
2-3 System may acquire, purchase, construct, improve, enlarge, and
2-4 equip property, buildings, structures, facilities, roads, and
2-5 related infrastructure for Texas A&M International <Laredo State>
2-6 University.
2-7 <(b)> The board may finance those items <listed under
2-8 Subsection (a) of this section> through the issuance of bonds under
2-9 this subchapter and in accordance with its existing system-wide
2-10 revenue financing program. The board may pledge irrevocably to the
2-11 payment of those bonds all or any part of the aggregate amount of
2-12 student tuition charges required or authorized by law to be imposed
2-13 on students enrolled at Texas A&M International <Laredo State>
2-14 University. The amount of a pledge made under this subsection may
2-15 not be reduced or abrogated while the bonds for which the pledge is
2-16 made, or bonds issued to refund those bonds, are outstanding.
2-17 <(c)> Bonds issued under this subsection <section> may not
2-18 be issued in an aggregate principal amount exceeding $30 million.
2-19 (b) The board of regents of The Texas A&M University System
2-20 may acquire, purchase, construct, improve, enlarge, or equip
2-21 property, buildings, structures, facilities, roads, or
2-22 infrastructure for Texas A&M International University. The board
2-23 may finance those items through the issuance of bonds in accordance
2-24 with this subchapter and in accordance with its systemwide revenue
2-25 financing program. The board may pledge irrevocably to the payment
2-26 of those bonds all or any part of the aggregate amount of student
2-27 tuition charges required or authorized by law to be imposed on
3-1 students enrolled at Texas A&M International University or at
3-2 another component of The Texas A&M University System. The amount
3-3 of a pledge made under this subsection may not be reduced or
3-4 abrogated while the bonds for which the pledge is made, or bonds
3-5 issued to refund those bonds, are outstanding. Bonds issued under
3-6 this subsection may not be issued in an aggregate principal amount
3-7 exceeding $10 million.
3-8 SECTION 3. Subchapter B, Chapter 55, Education Code, is
3-9 amended by adding Sections 55.1713-55.1715 to read as follows:
3-10 Sec. 55.1713. TEXAS A&M UNIVERSITY--KINGSVILLE. (a) The
3-11 board of regents of The Texas A&M University System may acquire,
3-12 purchase, construct, improve, enlarge, or equip property,
3-13 buildings, structures, facilities, roads, or infrastructure for
3-14 Texas A&M University--Kingsville.
3-15 (b) The board may finance those items listed under
3-16 Subsection (a) of this section through the issuance of bonds in
3-17 accordance with this subchapter and in accordance with its
3-18 systemwide revenue financing program. The board may pledge
3-19 irrevocably to the payment of those bonds all or any part of the
3-20 aggregate amount of student tuition charges required or authorized
3-21 by law to be imposed on students enrolled at Texas A&M
3-22 University--Kingsville or at another component of The Texas A&M
3-23 University System. The amount of a pledge made under this
3-24 subsection may not be reduced or abrogated while the bonds for
3-25 which the pledge is made, or bonds issued to refund those bonds,
3-26 are outstanding.
3-27 (c) Bonds issued under this section may not be issued in an
4-1 aggregate principal amount exceeding $3.5 million.
4-2 Sec. 55.1714. THE UNIVERSITY OF TEXAS AT BROWNSVILLE. (a)
4-3 The board of regents of The University of Texas System may acquire,
4-4 purchase, construct, improve, enlarge, or equip property,
4-5 buildings, structures, facilities, roads, or infrastructure for The
4-6 University of Texas at Brownsville.
4-7 (b) The board may finance those items listed under
4-8 Subsection (a) of this section through the issuance of bonds in
4-9 accordance with this subchapter and in accordance with its
4-10 systemwide revenue financing program. The board may pledge
4-11 irrevocably to the payment of those bonds all or any part of the
4-12 aggregate amount of student tuition charges required or authorized
4-13 by law to be imposed on students enrolled at The University of
4-14 Texas at Brownsville or at another component of The University of
4-15 Texas System. The amount of a pledge made under this subsection
4-16 may not be reduced or abrogated while the bonds for which the
4-17 pledge is made, or bonds issued to refund those bonds, are
4-18 outstanding.
4-19 (c) Bonds issued under this section may not be issued in an
4-20 aggregate principal amount exceeding $12 million.
4-21 Sec. 55.1715. SUL ROSS STATE UNIVERSITY. (a) The board of
4-22 regents of the Texas State University System may acquire, purchase,
4-23 construct, improve, enlarge, or equip property, buildings,
4-24 structures, facilities, roads, or infrastructure for Sul Ross State
4-25 University.
4-26 (b) The board may finance those items listed under
4-27 Subsection (a) of this section through the issuance of bonds in
5-1 accordance with this subchapter. The board may pledge irrevocably
5-2 to the payment of those bonds all or any part of the aggregate
5-3 amount of student tuition charges required or authorized by law to
5-4 be imposed on students enrolled at Sul Ross State University or at
5-5 another component of the Texas State University System. The amount
5-6 of a pledge made under this subsection may not be reduced or
5-7 abrogated while the bonds for which the pledge is made, or bonds
5-8 issued to refund those bonds, are outstanding.
5-9 (c) Bonds issued under this section may not be issued in an
5-10 aggregate principal amount exceeding $3 million.
5-11 SECTION 4. Section 55.172, Education Code, is amended by
5-12 adding Subsection (a-1) to read as follows:
5-13 (a-1) The board of regents of The University of Texas System
5-14 may acquire, purchase, construct, improve, enlarge, or equip
5-15 property, buildings, structures, facilities, roads, or
5-16 infrastructure for The University of Texas--Pan American. The
5-17 board may finance those items through the issuance of bonds in
5-18 accordance with this subchapter and in accordance with its
5-19 systemwide revenue financing program. The board may pledge
5-20 irrevocably to the payment of those bonds all or any part of the
5-21 aggregate amount of student tuition charges required or authorized
5-22 by law to be imposed on students enrolled at The University of
5-23 Texas--Pan American or at another component of The University of
5-24 Texas System. The amount of a pledge made under this subsection
5-25 may not be reduced or abrogated while the bonds for which the
5-26 pledge is made, or bonds issued to refund those bonds, are
5-27 outstanding. Bonds issued under this subsection may not be issued
6-1 in an aggregate principal amount exceeding $12.5 million.
6-2 SECTION 5. Section 55.19, Education Code, is amended to read
6-3 as follows:
6-4 Sec. 55.19. Refunding Bonds. (a) Except as provided by
6-5 Subsection (b) of this section, any <Any> bonds or notes at any
6-6 time issued by a board may be refunded or otherwise refinanced by
6-7 the issuance by the board of refunding bonds for such purpose,
6-8 under such terms, conditions, and details as may be determined by
6-9 resolution of the board. All pertinent and appropriate provisions
6-10 of this subchapter shall be applicable to such refunding bonds, and
6-11 they shall be issued in the manner provided herein for other bonds
6-12 authorized under this subchapter; provided that such refunding
6-13 bonds may be sold and delivered in amounts necessary to pay the
6-14 principal, interest, and redemption premium, if any, of bonds or
6-15 notes to be funded or refunded, at maturity or on any redemption
6-16 date. Also, such refunding bonds may be issued to be exchanged for
6-17 the bonds or notes being refunded thereby. In the latter case, the
6-18 Comptroller of Public Accounts of the State of Texas shall register
6-19 the refunding bonds and deliver the same to the holder or holders
6-20 of the bonds or notes being refunded thereby, in accordance with
6-21 the provisions of the resolution authorizing the refunding bonds;
6-22 and any such exchange may be made in one delivery, or in several
6-23 installment deliveries. Except as provided by Subsection (b) of
6-24 this section, bonds <Bonds> issued at any time by a board also may
6-25 be refunded in the manner provided by any other applicable law.
6-26 (b) A bond issued under Sections 55.1711(c), 55.1712(b),
6-27 55.1713-55.1715, and 55.172(a-1) of this code may not be refunded,
7-1 refinanced, or exchanged if the term of the instrument for which
7-2 the bond is refunded, refinanced, or exchanged exceeds the
7-3 remainder of the term of the original bond.
7-4 SECTION 6. Section 61.058, Education Code, is amended to
7-5 read as follows:
7-6 Sec. 61.058. New Construction and Repair and Rehabilitation
7-7 Projects. (a) The board, in accordance with Subsection (b) of
7-8 this section, shall approve or disapprove all new construction and
7-9 repair and rehabilitation of all buildings and facilities at
7-10 institutions of higher education financed from any source provided
7-11 that:
7-12 (A) the board's consideration and determination shall
7-13 be limited to the purpose for which the new or remodeled buildings
7-14 are to be used to assure conformity with approved space utilization
7-15 standards and the institution's approved programs and role and
7-16 mission if the cost of the project is not more than $600,000, but
7-17 the board may consider cost factors and the financial implications
7-18 of the project to the state if the total cost is in excess of
7-19 $600,000;
7-20 (B) the requirement of approval for new construction
7-21 applies only to projects the total cost of which is in excess of
7-22 $300,000;
7-23 (C) the requirement of approval for major repair and
7-24 rehabilitation of buildings and facilities applies only to a
7-25 project the total cost of which is more than $600,000;
7-26 (D) the requirement of approval or disapproval by the
7-27 board does not apply to any new construction or major repair and
8-1 rehabilitation project that is specifically approved by the
8-2 legislature;
8-3 (E) the requirement of approval by the board does not
8-4 apply to a junior college's construction, repair, or rehabilitation
8-5 financed entirely with funds from a source other than the state,
8-6 including funds from ad valorem tax receipts of the college, gifts,
8-7 grants, and donations to the college, and student fees; and
8-8 (F) the requirement of approval by the board does not
8-9 apply to construction, repair, or rehabilitation of privately owned
8-10 buildings and facilities located on land leased from an institution
8-11 of higher education if the construction, repair, or rehabilitation
8-12 is financed entirely from funds not under the control of the
8-13 institution, and provided further that:
8-14 (i) the buildings and facilities are to be used
8-15 exclusively for auxiliary enterprises; and
8-16 (ii) the buildings and facilities will not
8-17 require appropriations from the legislature for operation,
8-18 maintenance, or repair unless approval by the board has been
8-19 obtained.
8-20 (b) The board shall make the approval or disapproval under
8-21 Subsection (a) of this section not later than the 100th day after
8-22 the date the board receives from an institution of higher education
8-23 a written request for approval that describes the new construction
8-24 or the repair and rehabilitation for which approval is sought. If
8-25 the board does not make an approval or disapproval under this
8-26 section during the 100-day period, the new construction or the
8-27 repair and rehabilitation for which approval is sought is
9-1 considered approved and may not be later disapproved. If the board
9-2 disapproves the new construction or the repair and rehabilitation
9-3 for which approval is sought, the board must provide written
9-4 reasons for the disapproval to the president of the institution of
9-5 higher education, the governor, the lieutenant governor, the
9-6 speaker of the house of representatives, and the Legislative Budget
9-7 Board.
9-8 SECTION 7. Subchapter B, Chapter 65, Education Code, is
9-9 amended by adding Sections 65.26-65.28 to read as follows:
9-10 Sec. 65.26. THE UNIVERSITY OF TEXAS AT EL PASO. (a) The
9-11 board of regents of The University of Texas System may acquire,
9-12 purchase, construct, improve, enlarge, or equip property,
9-13 buildings, structures, facilities, roads, or infrastructure for The
9-14 University of Texas at El Paso.
9-15 (b) The board shall finance those items listed under
9-16 Subsection (a) of this section through bonds or notes in an
9-17 aggregate principal amount of $7.9 million issued pursuant to
9-18 Article VII, Section 18, of the Texas Constitution and in
9-19 accordance with its systemwide revenue financing program.
9-20 Sec. 65.27. THE UNIVERSITY OF TEXAS AT SAN ANTONIO. (a)
9-21 The board of regents of The University of Texas System may acquire,
9-22 purchase, construct, improve, enlarge, or equip a campus, property,
9-23 buildings, structures, facilities, roads, or infrastructure, for
9-24 The University of Texas at San Antonio.
9-25 (b) The board shall finance those items listed under
9-26 Subsection (a) of this section through bonds or notes in an
9-27 aggregate principal amount of $26.5 million issued pursuant to
10-1 Article VII, Section 18, of the Texas Constitution and in
10-2 accordance with its systemwide revenue financing program.
10-3 Sec. 65.28. THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT
10-4 SAN ANTONIO. (a) The board of regents of The University of Texas
10-5 System may acquire, purchase, construct, improve, enlarge, and
10-6 equip property, buildings, structures, facilities, roads, and
10-7 infrastructure for The University of Texas Health Science Center at
10-8 San Antonio.
10-9 (b) The board shall finance those items listed under
10-10 Subsection (a) of this section through bonds or notes in an
10-11 aggregate principal amount of $12.5 million issued pursuant to
10-12 Article VII, Section 18, of the Texas Constitution and in
10-13 accordance with its systemwide revenue financing program.
10-14 SECTION 8. Section 66.22, Education Code, is amended to read
10-15 as follows:
10-16 Sec. 66.22. Refunding Bonds and Notes. (a) Except as
10-17 provided by Subsection (b) of this section, any <Any> bonds or
10-18 notes issued pursuant to the constitutional provisions described in
10-19 Section 66.21 of this code, or issued pursuant to this subchapter,
10-20 may be refunded by the governing board which issued the bonds or
10-21 notes, upon such terms and conditions, including interest rates and
10-22 maturities, as may be determined by that board, provided that such
10-23 terms and conditions shall not be inconsistent with the applicable
10-24 constitutional provisions. Any such bonds or notes may be so
10-25 refunded by the issuance of refunding bonds or notes, either to be
10-26 exchanged for the bonds or notes being refunded and cancelled, or
10-27 to be sold, with the proceeds to be used for the redemption and
11-1 cancellation of the bonds or notes being refunded.
11-2 (b) A bond or note issued under Sections 65.26-65.28 of this
11-3 code may not be refunded or exchanged if the term of the instrument
11-4 for which the bond or note is refunded or exchanged exceeds the
11-5 remainder of the term of the original bond or note.
11-6 SECTION 9. Section 61.058, Education Code, as amended by
11-7 this Act, applies only to a written request from an institution of
11-8 higher education for approval of new construction or repair and
11-9 rehabilitation that is received by the Texas Higher Education
11-10 Coordinating Board on or after the effective date of this Act.
11-11 SECTION 10. This Act takes effect September 1, 1993.
11-12 SECTION 11. The importance of this legislation and the
11-13 crowded condition of the calendars in both houses create an
11-14 emergency and an imperative public necessity that the
11-15 constitutional rule requiring bills to be read on three several
11-16 days in each house be suspended, and this rule is hereby suspended.