1-1 By: Junell, et al. H.B. No. 2058
1-2 (Senate Sponsor - Truan, Montford)
1-3 (In the Senate - Received from the House April 21, 1993;
1-4 April 21, 1993, read first time and referred to Committee on
1-5 Finance; May 6, 1993, reported adversely, with favorable Committee
1-6 Substitute by the following vote: Yeas 13, Nays 0; May 6, 1993,
1-7 sent to printer.)
1-8 COMMITTEE VOTE
1-9 Yea Nay PNV Absent
1-10 Montford x
1-11 Turner x
1-12 Armbrister x
1-13 Barrientos x
1-14 Bivins x
1-15 Ellis x
1-16 Haley x
1-17 Moncrief x
1-18 Parker x
1-19 Ratliff x
1-20 Sims x
1-21 Truan x
1-22 Zaffirini x
1-23 COMMITTEE SUBSTITUTE FOR H.B. No. 2058 By: Truan, Montford
1-24 A BILL TO BE ENTITLED
1-25 AN ACT
1-26 relating to bonds issued by certain public institutions of higher
1-27 education in this state.
1-28 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-29 SECTION 1. Section 55.01, Education Code, is amended by
1-30 adding Subdivision (3) to read as follows:
1-31 (3) "Revenue funds" means the revenues, incomes,
1-32 receipts, rentals, rates, charges, fees, and tuition levied or
1-33 collected by an institution of higher education, including interest
1-34 or other income from those funds.
1-35 SECTION 2. Subchapter A, Chapter 55, Education Code, is
1-36 amended by adding Sections 55.02, 55.03, and 55.04 to read as
1-37 follows:
1-38 Sec. 55.02. SYSTEMWIDE REVENUE FINANCING PROGRAM. (a) The
1-39 governing board of a university system may establish a systemwide
1-40 revenue financing program to provide funds to acquire, purchase,
1-41 construct, improve, renovate, enlarge, or equip property,
1-42 buildings, structures, facilities, roads, or related infrastructure
1-43 at an institution, branch, or entity of the university system.
1-44 (b) The governing board may issue bonds or notes in
1-45 accordance with this chapter for any purpose authorized by law as
1-46 part of the systemwide revenue financing program.
1-47 (c) The governing board may pledge to the payment of any
1-48 bonds or notes issued as part of the systemwide revenue financing
1-49 program all or any part of the revenue funds of an institution,
1-50 branch, or entity of the university system.
1-51 (d) In this section, "university system" has the meaning
1-52 assigned by Section 61.003 of this code.
1-53 Sec. 55.03. MINORITY-OWNED AND WOMEN-OWNED BUSINESSES.
1-54 (a) The board of regents of each institution of higher education
1-55 shall make a good-faith effort to award to minority-owned and
1-56 women-owned businesses:
1-57 (1) contracts relating to the issuance of bonds by the
1-58 board under this chapter in the amount of at least 25 percent of
1-59 the total costs of issuing those bonds; and
1-60 (2) contracts for the items to be financed by bonds
1-61 issued by the board in the amount of at least 25 percent of the
1-62 proceeds of those bonds.
1-63 (b) Not later than October 31 of each academic year, the
1-64 board of regents shall file with the governor and each house of the
1-65 legislature a written report containing the following information
1-66 for the previous academic year for all businesses, minority-owned
1-67 businesses and women-owned businesses, classified by gender and
1-68 minority group status:
2-1 (1) the total number of contracts relating to the
2-2 issuance of bonds by the board under this chapter and to the items
2-3 to be financed by those bonds;
2-4 (2) the total dollar amount the board of regents must
2-5 pay under each contract described by Subdivision (1) of this
2-6 subsection; and
2-7 (3) the total number of businesses submitting bids or
2-8 proposals relating to the issuance of bonds by the board under this
2-9 chapter and to the items to be financed by those bonds.
2-10 (c) In this section:
2-11 (1) "Minority-owned business" means a business entity
2-12 at least 51 percent of which is owned by members of a minority
2-13 group or, in the case of a corporation, at least 51 percent of the
2-14 shares of which are owned by members of a minority group, and that
2-15 is managed and controlled by members of a minority group in its
2-16 daily operations.
2-17 (2) "Minority group" includes:
2-18 (A) African Americans;
2-19 (B) American Indians;
2-20 (C) Asian Americans; and
2-21 (D) Mexican Americans and other Americans of
2-22 Hispanic origin.
2-23 (3) "Women-owned business" means a business entity at
2-24 least 51 percent of which is owned by women or, in the case of a
2-25 corporation, at least 51 percent of the shares of which are owned
2-26 by women, and that is managed and controlled by women in its daily
2-27 operations.
2-28 Sec. 55.04. CUMULATIVE EFFECT. (a) The authority to issue
2-29 bonds under this chapter is cumulative of all other authority to
2-30 issue bonds. The governing board of an institution of higher
2-31 education may issue bonds under that other authority or may issue
2-32 bonds under the authority of this chapter.
2-33 (b) This chapter is sufficient authority for a governing
2-34 board of an institution of higher education to issue bonds under
2-35 this chapter and to perform all other acts and procedures
2-36 authorized by this chapter.
2-37 SECTION 3. Section 55.17(e), Education Code, is amended to
2-38 read as follows:
2-39 (e)(1) The board of regents of Texas Tech University, acting
2-40 separately and independently for and on behalf of Texas Tech
2-41 University and separately and independently for and on behalf of
2-42 the Texas Tech University Health Sciences Center <School of
2-43 Medicine at Lubbock>, is hereby granted full and final authority
2-44 and responsibility to acquire, purchase, construct, improve,
2-45 renovate, enlarge, or <and/or> equip property, buildings,
2-46 structures, <and/or> facilities, roads, or related infrastructure
2-47 for Texas Tech University and the Texas Tech University Health
2-48 Sciences Center <School of Medicine at Lubbock>.
2-49 (2) The board of regents of Texas Tech University,
2-50 acting separately and independently for and on behalf of Texas Tech
2-51 University and separately and independently for and on behalf of
2-52 the Texas Tech University Health Sciences Center <School of
2-53 Medicine at Lubbock>, may pledge irrevocably to the payment of its
2-54 revenue bonds all or any part of the aggregate amount of student
2-55 tuition charges required or authorized by law to be imposed on
2-56 students enrolled at Texas Tech University and/or at the Texas Tech
2-57 University Health Sciences Center <School of Medicine at Lubbock>;
2-58 and the amount of any pledge so made shall never be reduced or
2-59 abrogated while such bonds are outstanding; provided, however, that
2-60 such tuition charges shall not be pledged pursuant to the authority
2-61 granted by this Subsection (e)(2) except to the payment of bonds
2-62 issued in an aggregate principal amount of not to exceed $35
2-63 million for the purpose of providing funds to acquire, purchase,
2-64 construct, improve, renovate, enlarge, or <and/or> equip property,
2-65 buildings, structures, <and> facilities, roads, or related
2-66 infrastructure for the Texas Tech University Health Sciences Center
2-67 <School of Medicine at Lubbock>.
2-68 (3) In addition to the authority granted by Sections
2-69 55.13, 55.14, 55.17, and 55.19 of this code, the board of regents
2-70 of Texas Tech University and the Texas Tech University Health
3-1 Sciences Center may issue bonds in accordance with this subchapter
3-2 and in accordance with a systemwide revenue financing program
3-3 adopted by the board in an additional aggregate principal amount
3-4 not to exceed $25 million to finance the items listed under
3-5 Subdivision (1) of this subsection. The board may pledge
3-6 irrevocably to the payment of those bonds all or any part of the
3-7 revenue funds of Texas Tech University or Texas Tech University
3-8 Health Sciences Center, including student tuition charges required
3-9 or authorized by law to be imposed on students enrolled at Texas
3-10 Tech University or at the Texas Tech University Health Sciences
3-11 Center. The amount of a pledge made under this subdivision may not
3-12 be reduced or abrogated while the bonds for which the pledge is
3-13 made, or bonds issued to refund those bonds, are outstanding.
3-14 SECTION 4. Subchapter B, Chapter 55, Education Code, is
3-15 amended by adding Sections 55.1713-55.1718 to read as follows:
3-16 Sec. 55.1713. THE TEXAS A&M UNIVERSITY SYSTEM. (a) In
3-17 addition to the authority granted by Sections 55.13, 55.14, 55.17,
3-18 55.171, 55.1711, 55.1712, and 55.19 of this code, the board of
3-19 regents of The Texas A&M University System may acquire, purchase,
3-20 construct, improve, renovate, enlarge, or equip property,
3-21 buildings, structures, facilities, roads, or related infrastructure
3-22 for the following institutions to be financed by the issuance of
3-23 bonds in accordance with this subchapter and in accordance with a
3-24 systemwide revenue financing program adopted by the board in
3-25 aggregate principal amounts not to exceed the following amounts:
3-26 (1) Texas A&M University--Corpus Christi, $22 million;
3-27 (2) Texas A&M International University, $36 million;
3-28 and
3-29 (3) Texas A&M University--Kingsville, $17 million.
3-30 (b) The board may pledge irrevocably to the payment of those
3-31 bonds all or any part of the revenue funds of an institution,
3-32 branch, or entity of The Texas A&M University System, including
3-33 student tuition charges required or authorized by law to be imposed
3-34 on students enrolled at an institution, branch, or entity of The
3-35 Texas A&M University System. The amount of a pledge made under
3-36 this subsection may not be reduced or abrogated while the bonds for
3-37 which the pledge is made, or bonds issued to refund those bonds,
3-38 are outstanding.
3-39 (c) If sufficient funds are not available to the board to
3-40 meet its obligations under this section, the board may transfer
3-41 funds among institutions, branches, and entities of The Texas A&M
3-42 University System to ensure the most equitable and efficient
3-43 allocation of available resources for each institution, branch, or
3-44 entity to carry out its constitutional and statutory duties and
3-45 purposes.
3-46 Sec. 55.1714. THE UNIVERSITY OF TEXAS SYSTEM. (a) In
3-47 addition to the authority granted by Sections 55.13, 55.14, 55.17,
3-48 55.172, and 55.19 of this code, the board of regents of The
3-49 University of Texas System may acquire, purchase, construct,
3-50 improve, renovate, enlarge, or equip property, buildings,
3-51 structures, facilities, roads, or related infrastructure for the
3-52 following institutions to be financed by the issuance of bonds in
3-53 accordance with this subchapter, including bonds issued in
3-54 accordance with its systemwide revenue financing program and
3-55 secured as provided by that program, in aggregate principal amounts
3-56 not to exceed the following amounts:
3-57 (1) The University of Texas at Brownsville, $23.5
3-58 million;
3-59 (2) The University of Texas at El Paso, $23 million;
3-60 (3) The University of Texas--Pan American, $26
3-61 million;
3-62 (4) The University of Texas at San Antonio, $63.5
3-63 million;
3-64 (5) The University of Texas Health Science Center at
3-65 San Antonio, $25 million; and
3-66 (6) The University of Texas at Austin, $10 million.
3-67 (b) The board may pledge irrevocably to the payment of those
3-68 bonds all or any part of the revenue funds of an institution,
3-69 branch, or entity of The University of Texas System, including
3-70 student tuition charges required or authorized by law to be imposed
4-1 on students enrolled at an institution, branch, or entity of The
4-2 University of Texas System. The amount of a pledge made under this
4-3 subsection may not be reduced or abrogated while the bonds for
4-4 which the pledge is made, or bonds issued to refund those bonds,
4-5 are outstanding.
4-6 (c) Of the proceeds of bonds issued under this section for
4-7 The University of Texas at San Antonio, $20 million may be used
4-8 only to acquire, purchase, construct, improve, renovate, enlarge,
4-9 or equip a downtown campus for that university. Proceeds of bonds
4-10 issued under this section for The University of Texas at Austin may
4-11 be used only to acquire, purchase, construct, renovate, enlarge, or
4-12 equip the McDonald Observatory or the law school advocacy center.
4-13 (d) If sufficient funds are not available to the board to
4-14 meet its obligations under this section, the board may transfer
4-15 funds among institutions, branches, and entities of The University
4-16 of Texas System to ensure the most equitable and efficient
4-17 allocation of available resources for each institution, branch, or
4-18 entity to carry out its constitutional and statutory duties and
4-19 purposes.
4-20 Sec. 55.1715. THE UNIVERSITY OF HOUSTON SYSTEM. (a) In
4-21 addition to the authority granted by Sections 55.13, 55.14, 55.17,
4-22 55.171, and 55.19 of this code, the board of regents of the
4-23 University of Houston System may acquire, purchase, construct,
4-24 improve, renovate, enlarge, or equip property, buildings,
4-25 structures, facilities, roads, or related infrastructure for the
4-26 University of Houston--Downtown to be financed by the issuance of
4-27 bonds in accordance with this subchapter and in accordance with a
4-28 systemwide revenue financing program adopted by the board in an
4-29 aggregate principal amount not to exceed $22.4 million.
4-30 (b) The board may pledge irrevocably to the payment of those
4-31 bonds all or any part of the revenue funds of an institution,
4-32 branch, or entity of the University of Houston System, including
4-33 student tuition charges required or authorized by law to be imposed
4-34 on students enrolled at an institution, branch, or entity of the
4-35 University of Houston System. The amount of a pledge made under
4-36 this subsection may not be reduced or abrogated while the bonds for
4-37 which the pledge is made, or bonds issued to refund those bonds,
4-38 are outstanding.
4-39 (c) If sufficient funds are not available to the board to
4-40 meet its obligations under this section, the board may transfer
4-41 funds among institutions, branches, and entities of the University
4-42 of Houston System to ensure the most equitable and efficient
4-43 allocation of available resources for each institution, branch, or
4-44 entity to carry out its duties and purposes.
4-45 Sec. 55.1716. TEXAS STATE UNIVERSITY SYSTEM. (a) In
4-46 addition to the authority granted by Sections 55.13, 55.14, 55.17,
4-47 and 55.19 of this code, the board of regents of the Texas State
4-48 University System may acquire, purchase, construct, improve,
4-49 renovate, enlarge, or equip property, buildings, structures,
4-50 facilities, roads, or related infrastructure for an institution,
4-51 branch, or entity of the system to be financed by the issuance of
4-52 bonds in accordance with this subchapter and in accordance with a
4-53 systemwide revenue financing program adopted by the board in the
4-54 aggregate principal amount of $22 million.
4-55 (b) The board may pledge irrevocably to the payment of those
4-56 bonds all or any part of the revenue funds of an institution,
4-57 branch, or entity of the Texas State University System, including
4-58 student tuition charges required or authorized by law to be imposed
4-59 on students enrolled at an institution, branch, or entity of the
4-60 Texas State University System. The amount of a pledge made under
4-61 this subsection may not be reduced or abrogated while the bonds for
4-62 which the pledge is made, or bonds issued to refund those bonds,
4-63 are outstanding.
4-64 (c) If sufficient funds are not available to the board to
4-65 meet its obligations under this section, the board may transfer
4-66 funds among institutions, branches, and entities of the Texas State
4-67 University System to ensure the most equitable and efficient
4-68 allocation of available resources for each institution, branch, or
4-69 entity to carry out its duties and purposes.
4-70 Sec. 55.1717. UNIVERSITY OF NORTH TEXAS AND TEXAS COLLEGE OF
5-1 OSTEOPATHIC MEDICINE. (a) The board of regents of the University
5-2 of North Texas may acquire, purchase, construct, improve, renovate,
5-3 enlarge, or equip property, buildings, structures, facilities,
5-4 roads, or related infrastructure for the University of North Texas
5-5 or the Texas College of Osteopathic Medicine to be financed by the
5-6 issuance of bonds in accordance with this subchapter in the
5-7 aggregate principal amounts not to exceed $25 million for the
5-8 University of North Texas and $10 million for the Texas College of
5-9 Osteopathic Medicine.
5-10 (b) The board may pledge irrevocably to the payment of those
5-11 bonds all or any part of the revenue funds of the University of
5-12 North Texas or the Texas College of Osteopathic Medicine, including
5-13 student tuition charges required or authorized by law to be imposed
5-14 on students enrolled at the University of North Texas or the Texas
5-15 College of Osteopathic Medicine. The amount of a pledge made under
5-16 this subsection may not be reduced or abrogated while the bonds for
5-17 which the pledge is made, or bonds issued to refund those bonds,
5-18 are outstanding.
5-19 (c) If sufficient funds are not available to the board to
5-20 meet its obligations under this section, the board may transfer
5-21 funds between the University of North Texas and the Texas College
5-22 of Osteopathic Medicine to ensure the most equitable and efficient
5-23 allocation of available resources for the University of North Texas
5-24 and the Texas College of Osteopathic Medicine to carry out their
5-25 duties and purposes.
5-26 Sec. 55.1718. TEXAS WOMAN'S UNIVERSITY. (a) The board of
5-27 regents of Texas Woman's University may acquire, purchase,
5-28 construct, improve, renovate, enlarge, or equip property,
5-29 buildings, structures, facilities, roads, or related infrastructure
5-30 for Texas Woman's University to be financed by the issuance of
5-31 bonds in accordance with this subchapter in the aggregate principal
5-32 amount of $5 million.
5-33 (b) The board may pledge irrevocably to the payment of those
5-34 bonds all or any part of the revenue funds of Texas Woman's
5-35 University, including student tuition charges required or
5-36 authorized by law to be imposed on students enrolled at Texas
5-37 Woman's University. The amount of a pledge made under this
5-38 subsection may not be reduced or abrogated while the bonds for
5-39 which the pledge is made, or bonds issued to refund those bonds,
5-40 are outstanding.
5-41 SECTION 5. Section 61.0572, Education Code, is amended by
5-42 adding Subsection (e) to read as follows:
5-43 (e) Approval of the board is not required to acquire real
5-44 property that is financed by bonds issued under Section 55.17(e)(3)
5-45 or 55.1713-55.1718 of this code.
5-46 SECTION 6. Section 61.058, Education Code, is amended to
5-47 read as follows:
5-48 Sec. 61.058. New Construction and Repair and Rehabilitation
5-49 Projects. (a) Except as provided by Subsection (b) of this
5-50 section, the <The> board shall approve or disapprove all new
5-51 construction and repair and rehabilitation of all buildings and
5-52 facilities at institutions of higher education financed from any
5-53 source provided that:
5-54 (A) the board's consideration and determination shall
5-55 be limited to the purpose for which the new or remodeled buildings
5-56 are to be used to assure conformity with approved space utilization
5-57 standards and the institution's approved programs and role and
5-58 mission if the cost of the project is not more than $600,000, but
5-59 the board may consider cost factors and the financial implications
5-60 of the project to the state if the total cost is in excess of
5-61 $600,000;
5-62 (B) the requirement of approval for new construction
5-63 applies only to projects the total cost of which is in excess of
5-64 $300,000;
5-65 (C) the requirement of approval for major repair and
5-66 rehabilitation of buildings and facilities applies only to a
5-67 project the total cost of which is more than $600,000;
5-68 (D) the requirement of approval or disapproval by the
5-69 board does not apply to any new construction or major repair and
5-70 rehabilitation project that is specifically approved by the
6-1 legislature;
6-2 (E) the requirement of approval by the board does not
6-3 apply to a junior college's construction, repair, or rehabilitation
6-4 financed entirely with funds from a source other than the state,
6-5 including funds from ad valorem tax receipts of the college, gifts,
6-6 grants, and donations to the college, and student fees; and
6-7 (F) the requirement of approval by the board does not
6-8 apply to construction, repair, or rehabilitation of privately owned
6-9 buildings and facilities located on land leased from an institution
6-10 of higher education if the construction, repair, or rehabilitation
6-11 is financed entirely from funds not under the control of the
6-12 institution, and provided further that:
6-13 (i) the buildings and facilities are to be used
6-14 exclusively for auxiliary enterprises; and
6-15 (ii) the buildings and facilities will not
6-16 require appropriations from the legislature for operation,
6-17 maintenance, or repair unless approval by the board has been
6-18 obtained.
6-19 (b) This section does not apply to construction, repair, or
6-20 rehabilitation financed by bonds issued under Section 55.17(e)(3)
6-21 or 55.1713 through 55.1718 of this code.
6-22 SECTION 7. Section 55.03, Education Code, as added by this
6-23 Act, applies only to contracts relating to bonds that are issued on
6-24 or after the effective date of this Act.
6-25 SECTION 8. This Act takes effect September 1, 1993.
6-26 SECTION 9. The importance of this legislation and the
6-27 crowded condition of the calendars in both houses create an
6-28 emergency and an imperative public necessity that the
6-29 constitutional rule requiring bills to be read on three several
6-30 days in each house be suspended, and this rule is hereby suspended.
6-31 * * * * *
6-32 Austin,
6-33 Texas
6-34 May 6, 1993
6-35 Hon. Bob Bullock
6-36 President of the Senate
6-37 Sir:
6-38 We, your Committee on Finance to which was referred H.B. No. 2058,
6-39 have had the same under consideration, and I am instructed to
6-40 report it back to the Senate with the recommendation that it do not
6-41 pass, but that the Committee Substitute adopted in lieu thereof do
6-42 pass and be printed.
6-43 Montford,
6-44 Chairman
6-45 * * * * *
6-46 WITNESSES
6-47 No witnesses appeared on H.B. No. 2058.