1-1     By:  Junell, et al. (Senate Sponsor - Ratliff)        H.B. No. 1235

 1-2           (In the Senate - Received from the House March 26, 1997;

 1-3     April 2, 1997, read first time and referred to Committee on

 1-4     Finance; May 5, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 12, Nays 0; May 5, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 1235                 By:  Ratliff

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to authorizing the issuance of revenue bonds for certain

1-11     public institutions of higher education.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Section 55.17(e), Education Code, is amended by

1-14     adding Subdivision (4) to read as follows:

1-15                 (4)  In addition to the other authority granted by this

1-16     subchapter, the board of regents of Texas Tech University and the

1-17     Texas Tech University Health Sciences Center may issue bonds in

1-18     accordance with this subchapter and in accordance with a systemwide

1-19     revenue financing program adopted by the board to finance the items

1-20     listed under Subdivision (1) of this subsection in an additional

1-21     aggregate principal amount for Texas Tech University not to exceed

1-22     $66 million, and in an additional aggregate principal amount for

1-23     the Texas Tech University Health Sciences Center not to exceed

1-24     $51.2 million.  The board may pledge irrevocably to the payment of

1-25     those bonds all or any part of the revenue funds of Texas Tech

1-26     University or the Texas Tech University Health Sciences Center,

1-27     including student tuition charges required or authorized by law to

1-28     be imposed on students enrolled at Texas Tech University or at the

1-29     Texas Tech University Health Sciences Center.  The amount of a

1-30     pledge made under this subdivision may not be reduced or abrogated

1-31     while the bonds for which the pledge is made, or bonds issued to

1-32     refund those bonds, are outstanding.

1-33           SECTION 2.  Subchapter B, Chapter 55, Education Code, is

1-34     amended by adding Sections 55.1721, 55.1722, 55.1723, 55.1724,

1-35     55.1725, 55.1726, 55.1727, and 55.1728 to read as follows:

1-36           Sec. 55.1721.  THE TEXAS A&M UNIVERSITY SYSTEM.  (a)  In

1-37     addition to the other authority granted by this subchapter, the

1-38     board of regents of The Texas A&M University System may acquire,

1-39     purchase, construct, improve, renovate, enlarge, or equip property,

1-40     buildings, structures, facilities, roads, or related infrastructure

1-41     for the following institutions to be financed by the issuance of

1-42     bonds in accordance with this subchapter and in accordance with a

1-43     systemwide revenue financing program adopted by the board in

1-44     aggregate principal amounts not to exceed the following amounts:

1-45                 (1)  Prairie View A&M University, $28 million;

1-46                 (2)  Tarleton State University, $28 million;

1-47                 (3)  Texas A&M University, $70 million;

1-48                 (4)  Texas A&M University Health Science Center, $15

1-49     million;

1-50                 (5)  Texas A&M University at Galveston, $2 million;

1-51                 (6)  Texas A&M University--Commerce, $19.16 million;

1-52                 (7)  Texas A&M University--Corpus Christi, $30 million;

1-53                 (8)  Texas A&M International University, $70 million;

1-54                 (9)  Texas A&M University--Kingsville, $17.5 million;

1-55                 (10)  Texas A&M University--Texarkana, $5 million;

1-56                 (11)  West Texas A&M University, $23 million; and

1-57                 (12)  the Baylor College of Dentistry, $5.45 million.

1-58           (b)  The board may pledge irrevocably to the payment of those

1-59     bonds all or any part of the revenue funds of an institution,

1-60     branch, or entity of The Texas A&M University System, including

1-61     student tuition charges required or authorized by law to be imposed

1-62     on students enrolled at an institution, branch, or entity of The

1-63     Texas A&M University System.  The amount of a pledge made under

1-64     this subsection may not be reduced or abrogated while the bonds for

 2-1     which the pledge is made, or bonds issued to refund those bonds,

 2-2     are outstanding.

 2-3           (c)  If sufficient funds are not available to the board to

 2-4     meet its obligations under this section, the board may transfer

 2-5     funds among institutions, branches, and entities of The Texas A&M

 2-6     University System to ensure the most equitable and efficient

 2-7     allocation of available resources for each institution, branch, or

 2-8     entity to carry out its constitutional and statutory duties and

 2-9     purposes.

2-10           Sec. 55.1722.  THE UNIVERSITY OF TEXAS SYSTEM.  (a)  In

2-11     addition to the other authority granted by this subchapter, the

2-12     board of regents of The University of Texas System may acquire,

2-13     purchase, construct, improve, renovate, enlarge, or equip property,

2-14     buildings, structures, facilities, roads, or related infrastructure

2-15     for the following institutions to be financed by the issuance of

2-16     bonds in accordance with this subchapter, including bonds issued in

2-17     accordance with its systemwide revenue financing program and

2-18     secured as provided by that program in aggregate principal amounts

2-19     not to exceed the following amounts:

2-20                 (1)  The University of Texas at Arlington, $40.7

2-21     million;

2-22                 (2)  The University of Texas at Austin, $70 million;

2-23                 (3)  The University of Texas at Brownsville, $50

2-24     million;

2-25                 (4)  The University of Texas at Dallas, $12.4 million;

2-26                 (5)  The University of Texas at El Paso, $20 million;

2-27                 (6)  The University of Texas--Pan American, $42.08

2-28     million;

2-29                 (7)  The University of Texas of the Permian Basin,

2-30     $37.2 million;

2-31                 (8)  The University of Texas at San Antonio, $104.7

2-32     million;

2-33                 (9)  The University of Texas at Tyler, $12.7 million;

2-34                 (10)  The University of Texas at Tyler,

2-35     Nursing-Palestine Extension, $500,000;

2-36                 (11)  The University of Texas Southwestern Medical

2-37     Center at Dallas, $20 million;

2-38                 (12)  The University of Texas Medical Branch at

2-39     Galveston, $27 million;

2-40                 (13)  The University of Texas Health Science Center at

2-41     Houston, $60 million;

2-42                 (14)  The University of Texas Health Science Center at

2-43     San Antonio, $50 million; and

2-44                 (15)  the Lower Rio Grande Valley Academic Health

2-45     Center, $41 million, if that institution is established.

2-46           (b)  The board may pledge irrevocably to the payment of those

2-47     bonds all or any part of the revenue funds of an institution,

2-48     branch, or entity of The University of Texas System, including

2-49     student tuition charges required or authorized by law to be imposed

2-50     on students enrolled at an institution, branch, or entity of The

2-51     University of Texas System.  The amount of a pledge made under this

2-52     subsection may not be reduced or abrogated while the bonds for

2-53     which the pledge is made, or bonds issued to refund those bonds,

2-54     are outstanding.

2-55           (c)  If sufficient funds are not available to the board to

2-56     meet its obligations under this section, the board may transfer

2-57     funds among institutions, branches, and entities of The University

2-58     of Texas System to ensure the most equitable and efficient

2-59     allocation of available resources for each institution, branch, or

2-60     entity to carry out its constitutional and statutory duties and

2-61     purposes.

2-62           Sec. 55.1723.  THE UNIVERSITY OF HOUSTON SYSTEM.  (a)  In

2-63     addition to the other authority granted by this subchapter, the

2-64     board of regents of the University of Houston System may acquire,

2-65     purchase, construct, improve, renovate, enlarge, or equip property,

2-66     buildings, structures, facilities, roads, or related infrastructure

2-67     for the following institutions to be financed by the issuance of

2-68     bonds in accordance with this subchapter and in accordance with a

2-69     systemwide revenue financing program adopted by the board in an

 3-1     aggregate principal amount not to exceed the following amounts:

 3-2                 (1)  the University of Houston, $80 million;

 3-3                 (2)  the University of Houston--Downtown, $28.8

 3-4     million;

 3-5                 (3)  the University of Houston--Clear Lake, $17

 3-6     million; and

 3-7                 (4)  the University of Houston--Victoria, $11.1

 3-8     million.

 3-9           (b)  The board may pledge irrevocably to the payment of those

3-10     bonds all or any part of the revenue funds of an institution,

3-11     branch, or entity of the University of Houston System, including

3-12     student tuition charges required or authorized by law to be imposed

3-13     on students enrolled at an institution, branch, or entity of the

3-14     University of Houston System.  The amount of a pledge made under

3-15     this subsection may not be reduced or abrogated while the bonds for

3-16     which the pledge is made, or bonds issued to refund those bonds,

3-17     are outstanding.

3-18           (c)  If sufficient funds are not available to the board to

3-19     meet its obligations under this section, the board may transfer

3-20     funds among institutions, branches, and entities of the University

3-21     of Houston System to ensure the most equitable and efficient

3-22     allocation of available resources for each institution, branch, or

3-23     entity to carry out its duties and purposes.

3-24           Sec. 55.1724.  TEXAS STATE UNIVERSITY SYSTEM.  (a)  In

3-25     addition to the other authority granted by this subchapter, the

3-26     board of regents of the Texas State University System may acquire,

3-27     purchase, construct, improve, renovate, enlarge, or equip property,

3-28     buildings, structures, facilities, roads, or related infrastructure

3-29     for the following institutions to be financed by the issuance of

3-30     bonds in accordance with this subchapter and in accordance with a

3-31     systemwide revenue financing program adopted by the board in

3-32     aggregate principal amounts not to exceed the following:

3-33                 (1)  Angelo State University, $24.06 million;

3-34                 (2)  Lamar University--Beaumont, $11.4 million;

3-35                 (3)  Lamar University Institute of Technology, $2.75

3-36     million;

3-37                 (4)  Lamar University--Orange, $5.5 million;

3-38                 (5)  Lamar University--Port Arthur, $3.16 million;

3-39                 (6)  Sam Houston State University, $8.97 million;

3-40                 (7)  Southwest Texas State University, $21.7 million;

3-41     and

3-42                 (8)  Sul Ross State University, $19.69 million.

3-43           (b)  The board may pledge irrevocably to the payment of those

3-44     bonds all or any part of the revenue funds of an institution,

3-45     branch, or entity of the Texas State University System, including

3-46     student tuition charges required or authorized by law to be imposed

3-47     on students enrolled at an institution, branch, or entity of the

3-48     Texas State University System.  The amount of a pledge made under

3-49     this subsection may not be reduced or abrogated while the bonds for

3-50     which the pledge is made, or bonds issued to refund those bonds,

3-51     are outstanding.

3-52           (c)  If sufficient funds are not available to the board to

3-53     meet its obligations under this section, the board may transfer

3-54     funds among institutions, branches, and entities of the Texas State

3-55     University System to ensure the most equitable and efficient

3-56     allocation of available resources for each institution, branch, or

3-57     entity to carry out its duties and purposes.

3-58           Sec. 55.1725.  UNIVERSITY OF NORTH TEXAS AND UNIVERSITY OF

3-59     NORTH TEXAS HEALTH SCIENCE CENTER AT FORT WORTH.  (a)  The board of

3-60     regents of the University of North Texas may acquire, purchase,

3-61     construct, improve, renovate, enlarge, or equip property,

3-62     buildings, structures, facilities, roads, or related infrastructure

3-63     for the University of North Texas or the University of North Texas

3-64     Health Science Center at Fort Worth to be financed by the issuance

3-65     of bonds in accordance with this subchapter in the aggregate

3-66     principal amounts not to exceed $24 million for the University of

3-67     North Texas and $23 million for the University of North Texas

3-68     Health Science Center at Fort Worth.

3-69           (b)  The board may pledge irrevocably to the payment of those

 4-1     bonds all or any part of the revenue funds of the University of

 4-2     North Texas or the University of North Texas Health Science Center

 4-3     at Fort Worth, including student tuition charges required or

 4-4     authorized by law to be imposed on students enrolled at the

 4-5     University of North Texas or the University of North Texas Health

 4-6     Science Center at Fort Worth.  The amount of a pledge made under

 4-7     this subsection may not be reduced or abrogated while the bonds for

 4-8     which the pledge is made, or bonds issued to refund those bonds,

 4-9     are outstanding.

4-10           (c)  If sufficient funds are not available to the board to

4-11     meet its obligations under this section, the board may transfer

4-12     funds between the University of North Texas and the University of

4-13     North Texas Health Science Center at Fort Worth to ensure the most

4-14     equitable and efficient allocation of available resources for the

4-15     University of North Texas and the University of North Texas Health

4-16     Science Center at Fort Worth to carry out their duties and

4-17     purposes.

4-18           Sec. 55.1726.  TEXAS WOMAN'S UNIVERSITY.  (a)  The board of

4-19     regents of Texas Woman's University may acquire, purchase,

4-20     construct, improve, renovate, enlarge, or equip property,

4-21     buildings, structures, facilities, roads, or related infrastructure

4-22     for Texas Woman's University to be financed by the issuance of

4-23     bonds in accordance with this subchapter in the aggregate principal

4-24     amount not to exceed $10.1 million.

4-25           (b)  The board may pledge irrevocably to the payment of those

4-26     bonds all or any part of the revenue funds of Texas Woman's

4-27     University, including student tuition charges required or

4-28     authorized by law to be imposed on students enrolled at Texas

4-29     Woman's University.  The amount of a pledge made under this

4-30     subsection may not be reduced or abrogated while the bonds for

4-31     which the pledge is made, or bonds issued to refund those bonds,

4-32     are outstanding.

4-33           Sec. 55.1727.  MIDWESTERN STATE UNIVERSITY.  (a)  The board

4-34     of regents of Midwestern State University may acquire, purchase,

4-35     construct, improve, renovate, enlarge, or equip property,

4-36     buildings, structures, facilities, roads, or related infrastructure

4-37     for Midwestern State University to be financed by the issuance of

4-38     bonds in accordance with this subchapter in the aggregate principal

4-39     amount not to exceed $17.5 million.

4-40           (b)  The board may pledge irrevocably to the payment of those

4-41     bonds all or any part of the revenue funds of Midwestern State

4-42     University, including student tuition charges required or

4-43     authorized by law to be imposed on students enrolled at Midwestern

4-44     State University.  The amount of a pledge made under this

4-45     subsection may not be reduced or abrogated while the bonds for

4-46     which the pledge is made, or bonds issued to refund those bonds,

4-47     are outstanding.

4-48           Sec. 55.1728.  STEPHEN F. AUSTIN STATE UNIVERSITY.  (a)  The

4-49     board of regents of Stephen F. Austin State University may acquire,

4-50     purchase, construct, improve, renovate, enlarge, or equip property,

4-51     buildings, structures, facilities, roads, or related infrastructure

4-52     for Stephen F. Austin State University to be financed by the

4-53     issuance of bonds in accordance with this subchapter in the

4-54     aggregate principal amount not to exceed $37 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 Stephen F. Austin

4-57     State University, including student tuition charges required or

4-58     authorized by law to be imposed on students enrolled at Stephen F.

4-59     Austin State University.  The amount of a pledge made under this

4-60     subsection may not be reduced or abrogated while the bonds for

4-61     which the pledge is made, or bonds issued to refund those bonds,

4-62     are outstanding.

4-63           SECTION 3.  Subchapter B, Chapter 55, Education Code, is

4-64     amended by adding Section 55.174 to read as follows:

4-65           Sec. 55.174.  TEXAS SOUTHERN UNIVERSITY.  (a)  In addition to

4-66     other authority granted by this subchapter, the board of regents of

4-67     Texas Southern University may acquire, purchase, construct,

4-68     improve, renovate, enlarge, or equip property, buildings,

4-69     structures, facilities, roads, or related infrastructure for Texas

 5-1     Southern University to be financed by the issuance of bonds in

 5-2     accordance with this subchapter and in accordance with a revenue

 5-3     financing program adopted by the board in an aggregate principal

 5-4     amount not to exceed $55 million.

 5-5           (b)  The board may pledge irrevocably to the payment of those

 5-6     bonds all or any part of the revenue funds of Texas Southern

 5-7     University, including student tuition charges required or

 5-8     authorized by law to be imposed on students enrolled at the

 5-9     university.  The amount of a pledge made under this subsection may

5-10     not be reduced or abrogated while the bonds for which the pledge is

5-11     made, or bonds issued to refund those bonds, are outstanding.

5-12           SECTION 4.  Section 61.0572(e), Education Code, is amended to

5-13     read as follows:

5-14           (e)  Approval of the board is not required to acquire real

5-15     property that is financed by bonds issued under Section 55.17(e)(3)

5-16     or (4), [or] 55.1713-55.1718, 55.1721-55.1728, or 55.174 [of this

5-17     code], except that the board shall review all real property to be

5-18     financed by bonds issued under those sections to determine whether

5-19     the property meets the standards adopted by the board for cost,

5-20     efficiency, and space use.  If the property does not meet those

5-21     standards, the board shall notify the governor, the lieutenant

5-22     governor, the speaker of the house of representatives, and the

5-23     Legislative Budget Board.

5-24           SECTION 5.  Section 61.058(b), Education Code, is amended to

5-25     read as follows:

5-26           (b)  This section does not apply to construction, repair, or

5-27     rehabilitation financed by bonds issued under Section 55.17(e)(3)

5-28     or (4), [or] 55.1713-55.1718, 55.1721-55.1728, or 55.174 [of this

5-29     code], except that the board shall review all construction, repair,

5-30     or rehabilitation to be financed by bonds issued under those

5-31     sections to determine whether the construction, rehabilitation, or

5-32     repair meets the standards adopted by board rule for cost,

5-33     efficiency, and space use.  If the construction, rehabilitation, or

5-34     repair does not meet those standards, the board shall notify the

5-35     governor, the lieutenant governor, the speaker of the house of

5-36     representatives, and the Legislative Budget Board.

5-37           SECTION 6.  The importance of this legislation and the

5-38     crowded condition of the calendars in both houses create an

5-39     emergency and an imperative public necessity that the

5-40     constitutional rule requiring bills to be read on three several

5-41     days in each house be suspended, and this rule is hereby suspended,

5-42     and that this Act take effect and be in force from and after its

5-43     passage, and it is so enacted.

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