1-1 By: Montford, et al. S.B. No. 618
1-2 (In the Senate - Filed March 4, 1993; March 4, 1993, read
1-3 first time and referred to Committee on Finance; March 17, 1993,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 13, Nays 0; March 17, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Montford x
1-9 Turner x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Ellis x
1-14 Haley x
1-15 Moncrief x
1-16 Parker x
1-17 Ratliff x
1-18 Sims x
1-19 Truan x
1-20 Zaffirini x
1-21 COMMITTEE SUBSTITUTE FOR S.B. No. 618 By: Montford
1-22 A BILL TO BE ENTITLED
1-23 AN ACT
1-24 relating to bonds issued by certain public institutions of higher
1-25 education in this state.
1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 SECTION 1. Section 55.01, Education Code, is amended by
1-28 adding Subdivision (3) to read as follows:
1-29 (3) "Revenue funds" means the revenues, incomes,
1-30 receipts, rentals, rates, charges, fees, and tuition levied or
1-31 collected by an institution of higher education, including interest
1-32 or other income from those funds.
1-33 SECTION 2. Subchapter A, Chapter 55, Education Code, is
1-34 amended by adding Sections 55.02, 55.03, and 55.04 to read as
1-35 follows:
1-36 Sec. 55.02. SYSTEMWIDE REVENUE FINANCING PROGRAM. (a) The
1-37 governing board of a university system may establish a systemwide
1-38 revenue financing program to provide funds to acquire, purchase,
1-39 construct, improve, renovate, enlarge, or equip property,
1-40 buildings, structures, facilities, roads, or related infrastructure
1-41 at an institution, branch, or entity of the university system.
1-42 (b) The governing board may issue bonds or notes in
1-43 accordance with this chapter for any purpose authorized by law as
1-44 part of the systemwide revenue financing program.
1-45 (c) The governing board may pledge to the payment of any
1-46 bonds or notes issued as part of the systemwide revenue financing
1-47 program all or any part of the revenue funds of an institution,
1-48 branch, or entity of the university system.
1-49 (d) In this section, "university system" has the meaning
1-50 assigned by Section 61.003 of this code.
1-51 Sec. 55.03. MINORITY-OWNED BUSINESSES. (a) The board of
1-52 regents of each institution of higher education shall make a
1-53 good-faith effort to award to minority-owned businesses:
1-54 (1) contracts relating to the issuance of bonds by the
1-55 board under this chapter in the amount of at least 20 percent of
1-56 the total costs of issuing those bonds; and
1-57 (2) contracts for the items to be financed by bonds
1-58 issued by the board under this chapter in the amount of at least 20
1-59 percent of the proceeds of those bonds.
1-60 (b) Not later than October 31 of each academic year, each
1-61 board of regents shall file a written report with the governor and
1-62 each house of the legislature containing the following information
1-63 for the previous academic year for minority-owned businesses, by
1-64 minority group, and for all businesses:
1-65 (1) the total number of contracts relating to the
1-66 issuance of bonds by the board under this chapter and to the items
1-67 to be financed by those bonds;
1-68 (2) the total dollar amount the board of regents must
2-1 pay under each contract described by Subdivision (1) of this
2-2 subsection; and
2-3 (3) the total number of businesses submitting bids or
2-4 proposals relating to the issuance of bonds by the board under this
2-5 chapter and to the items to be financed by those bonds.
2-6 (c) In this section:
2-7 (1) "Minority-owned business" means a business entity
2-8 at least 51 percent of which is owned by members of a minority
2-9 group or, in the case of a corporation, at least 51 percent of the
2-10 shares of which are owned by members of a minority group, and that
2-11 is managed and controlled by members of a minority group in its
2-12 daily operations.
2-13 (2) "Minority group" includes:
2-14 (A) African Americans;
2-15 (B) American Indians;
2-16 (C) Asian Americans; and
2-17 (D) Mexican Americans and other Americans of
2-18 Hispanic origin.
2-19 Sec. 55.04. CUMULATIVE EFFECT. (a) The authority to issue
2-20 bonds under this chapter is cumulative of all other authority to
2-21 issue bonds. The governing board of an institution of higher
2-22 education may issue bonds under that other authority or may issue
2-23 bonds under the authority of this chapter.
2-24 (b) This chapter is sufficient authority for a governing
2-25 board of an institution of higher education to issue bonds under
2-26 this chapter and to perform all other acts and procedures
2-27 authorized by this chapter.
2-28 SECTION 3. Subsection (e), Section 55.17, Education Code, is
2-29 amended to read as follows:
2-30 (e)(1) The board of regents of Texas Tech University, acting
2-31 separately and independently for and on behalf of Texas Tech
2-32 University and separately and independently for and on behalf of
2-33 the Texas Tech University Health Sciences Center <School of
2-34 Medicine at Lubbock>, is hereby granted full and final authority
2-35 and responsibility to acquire, purchase, construct, improve,
2-36 renovate, enlarge, or <and/or> equip property, buildings,
2-37 structures, <and/or> facilities, roads, or related infrastructure
2-38 for Texas Tech University and the Texas Tech University Health
2-39 Sciences Center <School of Medicine at Lubbock>.
2-40 (2) The board of regents of Texas Tech University,
2-41 acting separately and independently for and on behalf of Texas Tech
2-42 University and separately and independently for and on behalf of
2-43 the Texas Tech University Health Sciences Center <School of
2-44 Medicine at Lubbock>, may pledge irrevocably to the payment of its
2-45 revenue bonds all or any part of the aggregate amount of student
2-46 tuition charges required or authorized by law to be imposed on
2-47 students enrolled at Texas Tech University and/or at the Texas Tech
2-48 University Health Sciences Center <School of Medicine at Lubbock>;
2-49 and the amount of any pledge so made shall never be reduced or
2-50 abrogated while such bonds are outstanding; provided, however, that
2-51 such tuition charges shall not be pledged pursuant to the authority
2-52 granted by this Subsection (e)(2) except to the payment of bonds
2-53 issued in an aggregate principal amount of not to exceed $35
2-54 million for the purpose of providing funds to acquire, purchase,
2-55 construct, improve, renovate, enlarge, or <and/or> equip property,
2-56 buildings, structures, <and> facilities, roads, or related
2-57 infrastructure for the Texas Tech University Health Sciences Center
2-58 <School of Medicine at Lubbock>.
2-59 (3) In addition to the authority granted by Sections
2-60 55.13, 55.14, 55.17, and 55.19 of this code, the board of regents
2-61 of Texas Tech University and the Texas Tech University Health
2-62 Sciences Center may issue bonds in accordance with this subchapter
2-63 and in accordance with a systemwide revenue financing program
2-64 adopted by the board in an additional aggregate principal amount
2-65 not to exceed $25 million to finance the items listed under
2-66 Subdivision (1) of this subsection. The board may pledge
2-67 irrevocably to the payment of those bonds all or any part of the
2-68 revenue funds of Texas Tech University or Texas Tech University
2-69 Health Sciences Center, including student tuition charges required
2-70 or authorized by law to be imposed on students enrolled at Texas
3-1 Tech University or at the Texas Tech University Health Sciences
3-2 Center. The amount of a pledge made under this subdivision may not
3-3 be reduced or abrogated while the bonds for which the pledge is
3-4 made or bonds issued to refund those bonds are outstanding.
3-5 SECTION 4. Subchapter B, Chapter 55, Education Code, is
3-6 amended by adding Sections 55.1713 through 55.1718 to read as
3-7 follows:
3-8 Sec. 55.1713. THE TEXAS A&M UNIVERSITY SYSTEM. (a) In
3-9 addition to the authority granted by Sections 55.13, 55.14, 55.17,
3-10 55.171, 55.1711, 55.1712, and 55.19 of this code, the board of
3-11 regents of The Texas A&M University System may acquire, purchase,
3-12 construct, improve, renovate, enlarge, or equip property,
3-13 buildings, structures, facilities, roads, or related infrastructure
3-14 for the following institutions to be financed by the issuance of
3-15 bonds in accordance with this subchapter and in accordance with a
3-16 systemwide revenue financing program adopted by the board in
3-17 aggregate principal amounts not to exceed the following amounts:
3-18 (1) Texas A&M University--Corpus Christi, $22 million;
3-19 (2) Texas A&M International University, $36 million;
3-20 and
3-21 (3) Texas A&M University--Kingsville, $17 million.
3-22 (b) The board may pledge irrevocably to the payment of those
3-23 bonds all or any part of the revenue funds of an institution,
3-24 branch, or entity of The Texas A&M University System, including
3-25 student tuition charges required or authorized by law to be imposed
3-26 on students enrolled at an institution, branch, or entity of The
3-27 Texas A&M University System. The amount of a pledge made under
3-28 this subsection may not be reduced or abrogated while the bonds for
3-29 which the pledge is made or bonds issued to refund those bonds are
3-30 outstanding.
3-31 (c) If sufficient funds are not available to the board to
3-32 meet its obligations under this section, the board may transfer
3-33 funds among institutions, branches, and entities of The Texas A&M
3-34 University System to ensure the most equitable and efficient
3-35 allocation of available resources for each institution, branch, or
3-36 entity to carry out its constitutional and statutory duties and
3-37 purposes.
3-38 Sec. 55.1714. THE UNIVERSITY OF TEXAS SYSTEM. (a) In
3-39 addition to the authority granted by Sections 55.13, 55.14, 55.17,
3-40 55.172, and 55.19 of this code, the board of regents of The
3-41 University of Texas System may acquire, purchase, construct,
3-42 improve, renovate, enlarge, or equip property, buildings,
3-43 structures, facilities, roads, or related infrastructure for the
3-44 following institutions to be financed by the issuance of bonds in
3-45 accordance with this subchapter, including bonds issued in
3-46 accordance with its systemwide revenue financing program and
3-47 secured as provided by that program, in aggregate principal amounts
3-48 not to exceed the following amounts:
3-49 (1) The University of Texas at Brownsville, $23.5
3-50 million;
3-51 (2) The University of Texas at El Paso, $23 million;
3-52 (3) The University of Texas--Pan American, $26
3-53 million;
3-54 (4) The University of Texas at San Antonio, $63.5
3-55 million;
3-56 (5) The University of Texas Health Science Center at
3-57 San Antonio, $25 million; and
3-58 (6) The University of Texas at Austin, $10 million.
3-59 (b) The board may pledge irrevocably to the payment of those
3-60 bonds all or any part of the revenue funds of an institution,
3-61 branch, or entity of The University of Texas System, including
3-62 student tuition charges required or authorized by law to be imposed
3-63 on students enrolled at an institution, branch, or entity of The
3-64 University of Texas System. The amount of a pledge made under this
3-65 subsection may not be reduced or abrogated while the bonds for
3-66 which the pledge is made or bonds issued to refund those bonds are
3-67 outstanding.
3-68 (c) Of the proceeds of bonds issued under this section for
3-69 The University of Texas at San Antonio, $20 million may be used
3-70 only to acquire, purchase, construct, improve, renovate, enlarge,
4-1 or equip a downtown campus for that university. Proceeds of bonds
4-2 issued under this section for The University of Texas at Austin may
4-3 be used only to acquire, purchase, construct, renovate, enlarge, or
4-4 equip the McDonald Observatory or the law school advocacy center.
4-5 (d) If sufficient funds are not available to the board to
4-6 meet its obligations under this section, the board may transfer
4-7 funds among institutions, branches, and entities of The University
4-8 of Texas System to ensure the most equitable and efficient
4-9 allocation of available resources for each institution, branch, or
4-10 entity to carry out its constitutional and statutory duties and
4-11 purposes.
4-12 Sec. 55.1715. THE UNIVERSITY OF HOUSTON SYSTEM. (a) In
4-13 addition to the authority granted by Sections 55.13, 55.14, 55.17,
4-14 55.171, and 55.19 of this code, the board of regents of the
4-15 University of Houston System may acquire, purchase, construct,
4-16 improve, renovate, enlarge, or equip property, buildings,
4-17 structures, facilities, roads, or related infrastructure for the
4-18 University of Houston--Downtown to be financed by the issuance of
4-19 bonds in accordance with this subchapter and in accordance with a
4-20 systemwide revenue financing program adopted by the board in an
4-21 aggregate principal amount not to exceed $22.4 million.
4-22 (b) The board may pledge irrevocably to the payment of those
4-23 bonds all or any part of the revenue funds of an institution,
4-24 branch, or entity of the University of Houston System, including
4-25 student tuition charges required or authorized by law to be imposed
4-26 on students enrolled at an institution, branch, or entity of the
4-27 University of Houston System. The amount of a pledge made under
4-28 this subsection may not be reduced or abrogated while the bonds for
4-29 which the pledge is made or bonds issued to refund those bonds are
4-30 outstanding.
4-31 (c) If sufficient funds are not available to the board to
4-32 meet its obligations under this section, the board may transfer
4-33 funds among institutions, branches, and entities of the University
4-34 of Houston System to ensure the most equitable and efficient
4-35 allocation of available resources for each institution, branch, or
4-36 entity to carry out its duties and purposes.
4-37 Sec. 55.1716. TEXAS STATE UNIVERSITY SYSTEM. (a) In
4-38 addition to the authority granted by Sections 55.13, 55.14, 55.17,
4-39 and 55.19 of this code, the Board of Regents of the Texas State
4-40 University System may acquire, purchase, construct, improve,
4-41 renovate, enlarge, or equip property, buildings, structures,
4-42 facilities, roads, or related infrastructure for an institution,
4-43 branch, or entity of the system to be financed by the issuance of
4-44 bonds in accordance with this subchapter and in accordance with a
4-45 systemwide revenue financing program adopted by the board in the
4-46 aggregate principal amount of $22 million.
4-47 (b) The board may pledge irrevocably to the payment of those
4-48 bonds all or any part of the revenue funds of an institution,
4-49 branch, or entity of the Texas State University System, including
4-50 student tuition charges required or authorized by law to be imposed
4-51 on students enrolled at an institution, branch, or entity of the
4-52 Texas State University System. The amount of a pledge made under
4-53 this subsection may not be reduced or abrogated while the bonds for
4-54 which the pledge is made or bonds issued to refund those bonds are
4-55 outstanding.
4-56 (c) If sufficient funds are not available to the board to
4-57 meet its obligations under this section, the board may transfer
4-58 funds among institutions, branches, and entities of the Texas State
4-59 University System to ensure the most equitable and efficient
4-60 allocation of available resources for each institution, branch, or
4-61 entity to carry out its duties and purposes.
4-62 Sec. 55.1717. UNIVERSITY OF NORTH TEXAS AND TEXAS COLLEGE OF
4-63 OSTEOPATHIC MEDICINE. (a) The board of regents of the University
4-64 of North Texas may acquire, purchase, construct, improve, renovate,
4-65 enlarge, or equip property, buildings, structures, facilities,
4-66 roads, or related infrastructure for the University of North Texas
4-67 or the Texas College of Osteopathic Medicine to be financed by the
4-68 issuance of bonds in accordance with this subchapter in the
4-69 aggregate principal amounts not to exceed $25 million for the
4-70 University of North Texas and $10 million for the Texas College of
5-1 Osteopathic Medicine.
5-2 (b) The board may pledge irrevocably to the payment of those
5-3 bonds all or any part of the revenue funds of the University of
5-4 North Texas or the Texas College of Osteopathic Medicine, including
5-5 student tuition charges required or authorized by law to be imposed
5-6 on students enrolled at the University of North Texas or the Texas
5-7 College of Osteopathic Medicine. The amount of a pledge made under
5-8 this subsection may not be reduced or abrogated while the bonds for
5-9 which the pledge is made or bonds issued to refund those bonds are
5-10 outstanding.
5-11 (c) If sufficient funds are not available to the board to
5-12 meet its obligations under this section, the board may transfer
5-13 funds between the University of North Texas and the Texas College
5-14 of Osteopathic Medicine to ensure the most equitable and efficient
5-15 allocation of available resources for the University of North Texas
5-16 and the Texas College of Osteopathic Medicine to carry out their
5-17 duties and purposes.
5-18 Sec. 55.1718. TEXAS WOMAN'S UNIVERSITY. (a) The board of
5-19 regents of Texas Woman's University may acquire, purchase,
5-20 construct, improve, renovate, enlarge, or equip property,
5-21 buildings, structures, facilities, roads, or related infrastructure
5-22 for Texas Woman's University to be financed by the issuance of
5-23 bonds in accordance with this subchapter in the aggregate principal
5-24 amount of $5 million.
5-25 (b) The board may pledge irrevocably to the payment of those
5-26 bonds all or any part of the revenue funds of Texas Woman's
5-27 University, including student tuition charges required or
5-28 authorized by law to be imposed on students enrolled at Texas
5-29 Woman's University. The amount of a pledge made under this
5-30 subsection may not be reduced or abrogated while the bonds for
5-31 which the pledge is made or bonds issued to refund those bonds are
5-32 outstanding.
5-33 SECTION 5. Section 61.0572, Education Code, is amended by
5-34 adding Subsection (e) to read as follows:
5-35 (e) Approval of the board is not required to acquire real
5-36 property that is financed by bonds issued under Section 55.17(e)(3)
5-37 or 55.1713 through 55.1718 of this code.
5-38 SECTION 6. Section 61.058, Education Code, is amended to
5-39 read as follows:
5-40 Sec. 61.058. New Construction and Repair and Rehabilitation
5-41 Projects. (a) Except as provided by Subsection (b) of this
5-42 section, the <The> board shall approve or disapprove all new
5-43 construction and repair and rehabilitation of all buildings and
5-44 facilities at institutions of higher education financed from any
5-45 source provided that:
5-46 (A) the board's consideration and determination shall
5-47 be limited to the purpose for which the new or remodeled buildings
5-48 are to be used to assure conformity with approved space utilization
5-49 standards and the institution's approved programs and role and
5-50 mission if the cost of the project is not more than $600,000, but
5-51 the board may consider cost factors and the financial implications
5-52 of the project to the state if the total cost is in excess of
5-53 $600,000;
5-54 (B) the requirement of approval for new construction
5-55 applies only to projects the total cost of which is in excess of
5-56 $300,000;
5-57 (C) the requirement of approval for major repair and
5-58 rehabilitation of buildings and facilities applies only to a
5-59 project the total cost of which is more than $600,000;
5-60 (D) the requirement of approval or disapproval by the
5-61 board does not apply to any new construction or major repair and
5-62 rehabilitation project that is specifically approved by the
5-63 legislature;
5-64 (E) the requirement of approval by the board does not
5-65 apply to a junior college's construction, repair, or rehabilitation
5-66 financed entirely with funds from a source other than the state,
5-67 including funds from ad valorem tax receipts of the college, gifts,
5-68 grants, and donations to the college, and student fees; and
5-69 (F) the requirement of approval by the board does not
5-70 apply to construction, repair, or rehabilitation of privately owned
6-1 buildings and facilities located on land leased from an institution
6-2 of higher education if the construction, repair, or rehabilitation
6-3 is financed entirely from funds not under the control of the
6-4 institution, and provided further that:
6-5 (i) the buildings and facilities are to be used
6-6 exclusively for auxiliary enterprises; and
6-7 (ii) the buildings and facilities will not
6-8 require appropriations from the legislature for operation,
6-9 maintenance, or repair unless approval by the board has been
6-10 obtained.
6-11 (b) This section does not apply to construction, repair, or
6-12 rehabilitation financed by bonds issued under Section 55.17(e)(3)
6-13 or 55.1713 through 55.1718 of this code.
6-14 SECTION 7. Section 55.03, Education Code, as added by this
6-15 Act, applies only to contracts relating to bonds that are issued on
6-16 or after the effective date of this Act.
6-17 SECTION 8. This Act takes effect September 1, 1993.
6-18 SECTION 9. The importance of this legislation and the
6-19 crowded condition of the calendars in both houses create an
6-20 emergency and an imperative public necessity that the
6-21 constitutional rule requiring bills to be read on three several
6-22 days in each house be suspended, and this rule is hereby suspended.
6-23 * * * * *
6-24 Austin,
6-25 Texas
6-26 March 17, 1993
6-27 Hon. Bob Bullock
6-28 President of the Senate
6-29 Sir:
6-30 We, your Committee on Finance to which was referred S.B. No. 618,
6-31 have had the same under consideration, and I am instructed to
6-32 report it back to the Senate with the recommendation that it do not
6-33 pass, but that the Committee Substitute adopted in lieu thereof do
6-34 pass and be printed.
6-35 Montford,
6-36 Chairman
6-37 * * * * *
6-38 WITNESSES
6-39 FOR AGAINST ON
6-40 ___________________________________________________________________
6-41 Name: Dan Burck, Exec Vice Chancellor x
6-42 Representing: Univ. of Texas System
6-43 City: Austin
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