1-1 By: Bivins S.B. No. 1907
1-2 (In the Senate - Filed March 24, 1997; March 25, 1997, read
1-3 first time and referred to Committee on Finance; April 4, 1997,
1-4 rereferred to Committee on Education; April 21, 1997, reported
1-5 adversely, with favorable Committee Substitute by the following
1-6 vote: Yeas 10, Nays 0; April 21, 1997, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1907 By: Bivins
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to tuition and fees charged by public institutions of
1-11 higher education, including the redesignation of certain fees as
1-12 tuition.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 ARTICLE 1. TUITION AND FEES
1-15 SECTION 1.01. Section 54.004, Education Code, is amended to
1-16 read as follows:
1-17 Sec. 54.004. Retention and Use of Funds. (a) Except as
1-18 provided by Subsection (b), all [All] tuition, local funds, and
1-19 fees collected by an institution of higher education shall be
1-20 retained and expended by the institution and accounted for annually
1-21 as provided in the general appropriations act.
1-22 (b) Amounts collected by an institution of higher education
1-23 from the portion of resident tuition charged in excess of the
1-24 minimum resident tuition rate established by Section 54.051(c) and
1-25 amounts collected from the portion of nonresident tuition charged
1-26 in excess of the basic nonresident tuition rate established by
1-27 Section 54.051(d) are institutional funds as defined by Section
1-28 51.009 and shall be accounted for as designated funds. These funds
1-29 may be used for any lawful purpose and shall not be accounted for
1-30 in a general appropriations act in such a way as to reduce the
1-31 general revenue appropriation to a particular institution.
1-32 SECTION 1.02. Section 54.008, Education Code, is amended by
1-33 amending Subsections (a), (e), and (f) and adding Subsections (g),
1-34 (h), and (i) to read as follows:
1-35 (a) [The tuition rates provided by Subchapter B of this
1-36 chapter are minimum rates.] Except as otherwise provided by this
1-37 section [Subsection (e)], the governing board of each institution
1-38 of higher education shall set tuition for resident students
1-39 enrolled in graduate programs for that institution at a rate that
1-40 is at least equal to the minimum rate [that] prescribed by
1-41 Subchapter B [of this chapter], but that is not more than 1.5 times
1-42 [twice] the maximum rate prescribed by Subchapter B [of this
1-43 chapter]. Between the maximum and minimum rates allowed by this
1-44 subsection, the board may set the differential tuition among
1-45 graduate programs offered by the [an] institution [of higher
1-46 education].
1-47 (e) The governing board of an institution of higher
1-48 education shall set tuition for a resident student enrolled in an
1-49 optometry program or a law school at the institution at a rate that
1-50 is at least equal to the minimum rate prescribed by Subchapter B
1-51 [of this chapter] but not more than two [three] times the maximum
1-52 rate prescribed by Subchapter B [of this chapter].
1-53 (f) The governing board of an institution of higher
1-54 education shall set tuition for a resident student enrolled in an
1-55 undergraduate or graduate pharmacy program at the institution at a
1-56 rate that is at least equal to the minimum rate prescribed by
1-57 Subchapter B [of this chapter] but not more than 1.5 times [twice]
1-58 the maximum rate prescribed by Subchapter B [of this chapter].
1-59 (g) The governing board of an institution of higher
1-60 education may waive all or part of the tuition charged to a
1-61 graduate or undergraduate student that is in excess of the minimum
1-62 tuition rates prescribed by Subchapter B if it finds that the
1-63 payment of such tuition would cause an undue economic hardship on
1-64 the student.
2-1 (h) A board shall hold a public hearing before it may
2-2 increase resident tuition rates above the minimum rates established
2-3 by Subchapter B.
2-4 (i) The governing board of an institution of higher
2-5 education shall set tuition for nonresident students enrolled in
2-6 graduate or pharmacy programs for that institution at a rate at
2-7 least equal to the rate prescribed by Section 54.051 for a
2-8 nonresident student at a general academic teaching institution but
2-9 that is not more than twice the rate prescribed by that section.
2-10 The board may set a differential tuition rate among graduate
2-11 programs offered by the institution.
2-12 SECTION 1.03. Subsection (c), Section 51.009, Education
2-13 Code, is amended to read as follows:
2-14 (c) Each of the following shall be accounted for as
2-15 educational and general funds: net tuition other than tuition
2-16 classified as institutional funds by Section 54.004(b), special
2-17 course fees charged under Sections 54.051(e) and (l), [Education
2-18 Code,] lab fees, student teaching fees, hospital and clinic fees,
2-19 organized activity fees, proceeds from the sale of educational and
2-20 general equipment, and indirect cost recovery fees.
2-21 SECTION 1.04. Subsection (i), Section 54.051, Education
2-22 Code, is amended to read as follows:
2-23 (i) Tuition for a resident student registered at a law
2-24 school is $100 [$75] per semester credit hour. [Tuition for a
2-25 nonresident student registered at a law school is $200 per semester
2-26 credit hour.]
2-27 SECTION 1.05. Section 54.0512, Education Code, is amended to
2-28 read as follows:
2-29 Sec. 54.0512. Interim Tuition Rates. (a) Notwithstanding
2-30 Section 54.051 [of this code], tuition for the applicable academic
2-31 years is as provided by this section.
2-32 (b) Tuition for a resident student at a general academic
2-33 teaching institution is [the greater of $120 for each semester or
2-34 12-week summer session and $60 for each six-week summer term or]:
2-35 (1) [for the 1994-1995 academic year, $28 per semester
2-36 credit hour;]
2-37 [(2) for the 1995-1996 academic year, $30 per semester
2-38 credit hour;]
2-39 [(3) for the 1996-1997 academic year, $32 per semester
2-40 credit hour;]
2-41 [(4)] for the 1997-1998 academic year, an amount per
2-42 semester credit hour established by the governing board of the
2-43 institution, which may not be less than $34 per semester credit
2-44 hour or more than $68 per semester credit hour;
2-45 (2) [(5)] for the 1998-1999 academic year, an amount
2-46 per semester credit hour established by the governing board of the
2-47 institution, which may not be less than $36 per semester credit
2-48 hour or more than $72 per semester credit hour;
2-49 (3) [(6)] for the 1999-2000 academic year, an amount
2-50 per semester credit hour established by the governing board of the
2-51 institution, which may not be less than $38 per semester credit
2-52 hour or more than $76 per semester credit hour; and
2-53 (4) [(7)] for the 2000-2001 academic year, an amount
2-54 per semester credit hour established by the governing board of the
2-55 institution, which may not be less than $40 per semester credit
2-56 hour or more than $80 per semester credit hour.
2-57 (c) [Tuition for a nonresident student at a general academic
2-58 teaching institution for the 1985-1986 and 1986-1987 academic years
2-59 is $120 per semester credit hour.]
2-60 [(d) Tuition for a resident student enrolled in a program
2-61 leading to an M.D. or D.O. degree is:]
2-62 [(1) for the 1985-1986 academic year, $1,219;]
2-63 [(2) for the 1986-1987 academic year, $2,400;]
2-64 [(3) for the 1987-1988 academic year, $3,600; and]
2-65 [(4) for the 1988-1989 academic year, $4,800.]
2-66 [(e) Tuition for a resident student enrolled in a program
2-67 leading to a D.D.S. degree is:]
2-68 [(1) for the 1985-1986 academic year, $900;]
2-69 [(2) for the 1986-1987 academic year, $1,600;]
3-1 [(3) for the 1987-1988 academic year, $2,500; and]
3-2 [(4) for the 1988-1989 academic year, $3,500.]
3-3 [(f) Tuition for a resident student enrolled in a program
3-4 leading to a D.V.M. degree is:]
3-5 [(1) for the 1985-1986 academic year, $800;]
3-6 [(2) for the 1986-1987 academic year, $1,200;]
3-7 [(3) for the 1987-1988 academic year, $2,400; and]
3-8 [(4) for the 1988-1989 academic year, $3,600.]
3-9 [(g) Tuition for a resident student registered at a law
3-10 school is:]
3-11 [(1) for the 1985-1986 academic year, $24 per semester
3-12 credit hour;]
3-13 [(2) for the 1986-1987 academic year, $36 per semester
3-14 credit hour; and]
3-15 [(3) for the 1987-1988 academic year, $48 per semester
3-16 credit hour.]
3-17 [(h)] Tuition for academic years not specifically covered by
3-18 this section is at the rates provided by Section 54.051 [of this
3-19 code]. This section expires January 1, 2002.
3-20 SECTION 1.06. Subsections (c) and (d), Section 54.051,
3-21 Education Code, are amended to read as follows:
3-22 (c) Unless a different rate is specified by this section,
3-23 tuition for a resident student at a general academic teaching
3-24 institution for the 2001-2002 academic year and thereafter is an
3-25 amount per semester credit hour established by the governing board
3-26 of the institution, which may not be less than [the greater of:]
3-27 [(1) $120 for each semester or 12-week summer session
3-28 and $60 for each six-week summer term; or]
3-29 [(2)] $40 per semester credit hour or more than $80
3-30 per semester credit hour.
3-31 (d) Unless a different rate is specified by this section,
3-32 tuition for a nonresident student at a general academic teaching
3-33 institution or medical and dental unit is a basic nonresident
3-34 tuition rate in an amount per semester credit hour equal to the
3-35 average of the nonresident undergraduate tuition charged per
3-36 semester credit hour to a resident of this state at a public state
3-37 university in each of the five most populous states other than this
3-38 state, as computed by the coordinating board under this subsection,
3-39 plus an additional amount set by the governing board of the
3-40 institution not to exceed $40 per semester credit hour. The
3-41 coordinating board shall set the basic nonresident tuition rate
3-42 provided by this subsection for each academic year and report that
3-43 rate to each appropriate institution not later than January 1 of
3-44 the calendar year in which the academic year begins, or as soon
3-45 after that January 1 as practicable. In computing the basic
3-46 nonresident tuition rate, the coordinating board shall use the
3-47 nonresident tuition rates for the other states in effect for the
3-48 academic year in progress when the board makes the computation.
3-49 SECTION 1.07. Subchapter D, Chapter 54, Education Code, is
3-50 amended by adding Sections 54.214 and 54.215 to read as follows:
3-51 Sec. 54.214. ADJUSTMENTS TO TUITION AND FEES TO REFLECT
3-52 EXEMPTIONS. (a) If a student at an institution of higher
3-53 education receives an exemption or waiver from the payment of all
3-54 or part of tuition and fees prescribed or authorized by this title,
3-55 the institution shall make the appropriate adjustments to the
3-56 student's charges for tuition and fees not later than the third
3-57 business day after the date on which the enrollment of the
3-58 institution for the semester or term is determined for general
3-59 administrative purposes.
3-60 (b) If a student is granted an exemption or waiver based on
3-61 exceptional hardship after an institution has made the adjustment
3-62 described in Subsection (a), the student may be given a prorated
3-63 refund of tuition and fees.
3-64 Sec. 54.215. DISTANCE LEARNING OR OFF-CAMPUS COURSES. The
3-65 governing board of an institution of higher education may waive a
3-66 fee which it is authorized to charge if the board determines that:
3-67 (1) a student is enrolled only in distance learning
3-68 courses or other off-campus courses of the institution;
3-69 (2) the student cannot reasonably be expected to use
4-1 the activities, services, or facilities on which the fee is based;
4-2 and
4-3 (3) the waiver of the fee will not materially impair
4-4 the ability of the institution either to service any debt on which
4-5 the fee is based or to offer or operate the particular activity,
4-6 service, or facility supported by the fee.
4-7 SECTION 1.08. Section 55.01, Education Code, is amended by
4-8 amending Subdivision (3) and adding Subdivision (4) to read as
4-9 follows:
4-10 (3) "Revenue funds" means the revenues, incomes,
4-11 receipts, rentals, rates, charges, fees, money, and tuition levied
4-12 or collected from any source by an institution of higher education,
4-13 including interest or other income from those funds.
4-14 (4) "Bonds" means bonds, notes, or credit agreements a
4-15 board is authorized to enter into either by this title or by other
4-16 laws.
4-17 SECTION 1.09. Section 55.16, Education Code, is amended to
4-18 read as follows:
4-19 Sec. 55.16. BOARD RESPONSIBILITY [RENTALS, RATES, CHARGES,
4-20 AND FEES]. (a) Each board shall be authorized to fix and collect
4-21 rentals, rates, and charges[, and fees] from students and others
4-22 for the occupancy, services, use, and/or availability of all or any
4-23 of its property, buildings, structures, activities, operations, or
4-24 other facilities, in such amounts and in such manner as may be
4-25 determined by the board. If [; provided, however, that all student
4-26 use fees shall be fixed and collected in proportion to the number
4-27 of semester credit hours for which a student registers, and shall
4-28 not exceed the amount permitted by Subsection (b), except that
4-29 those schools charging more than $6 per semester hour as of May 1,
4-30 1975, shall not exceed the amount being charged as of that date.
4-31 The board may waive all or any part of any such student use fees in
4-32 the case of any student for whom the payment of such student use
4-33 fee would cause an undue economic hardship, except that the number
4-34 of such students for whom such waivers are granted shall not exceed
4-35 5% of the total enrollment; and further provided that nothing in
4-36 this section shall affect, limit, or impair any pledge, covenant,
4-37 or option made or reserved by the board with respect to any revenue
4-38 bonds outstanding as of the 1975 amendment to this section, issued
4-39 by the board pursuant to this chapter; and provided that hereafter
4-40 if] bonds have been or are issued pursuant to [Section 55.17 of]
4-41 this title [code], or secured or to be secured by a pledge of part
4-42 or all of the board's revenue funds [a limited or unlimited use
4-43 fee], and if, at the time of authorizing the issuance of the bonds,
4-44 (1) the estimated maximum amount per semester hour of such pledged
4-45 revenue funds [use fee] (based on then current enrollment and
4-46 conditions) during any future semester necessary to provide for the
4-47 payment of the principal of and interest on the bonds when due,
4-48 together with (2) the aggregate amount of all such pledged revenue
4-49 funds [use fees] which were levied on a semester hour basis for the
4-50 then current semester to pay the principal of and interest on all
4-51 previously issued bonds, do not exceed the amount permitted by this
4-52 title [Subsection (b)], then any necessary fees, tuition, rentals,
4-53 rates, or other charges constituting revenue funds [such limited or
4-54 unlimited use fee] shall be levied and collected when and to the
4-55 extent required by the resolution authorizing the issuance of the
4-56 bonds in any amount required to provide revenue funds sufficient
4-57 for the payment of the principal of and interest on the bonds,
4-58 regardless of any other provision or limitation provided by this
4-59 title [of this section or the limitations contained herein].
4-60 (b) [A board may not charge rentals, rates, charges, and
4-61 fees under this section in a total amount per semester credit hour
4-62 that exceeds the tuition rate per semester credit hour for a
4-63 resident student at a general academic teaching institution under
4-64 Subchapter B, Chapter 54, for the academic year in which the
4-65 rentals, rates, charges, and fees are charged.] A board is not
4-66 required to charge students enrolled in different degree programs
4-67 at the institution the same rentals, rates, charges, and fees under
4-68 this section.
4-69 [(c) A board that charges a rental, rate, charge, or fee
5-1 under this section may use the revenue for any purpose at the
5-2 institution at which the revenue is collected, subject to the laws
5-3 governing the institution and the board. This subsection does not
5-4 decrease the authority of a board of regents to enter into pledges
5-5 or covenants with respect to bonds, notes, or other obligations
5-6 under law existing before the effective date of this subsection.]
5-7 [(d) Before a board increases a rental, rate, charge, or fee
5-8 collected under this section at an institution under the direction,
5-9 management, and control of the board, the board or, if the board
5-10 directs, the chief executive officer of the institution must hold a
5-11 public hearing at the institution on the increase.]
5-12 SECTION 1.10. Subsections (a) and (b), Section 56.033,
5-13 Education Code, are amended to read as follows:
5-14 (a) The governing boards of institutions of higher education
5-15 and the Texas State Technical College System shall cause to be set
5-16 aside:
5-17 (1) [for the 1991-1992 academic year,] not less than
5-18 eight and one-half [nine] percent nor more than 15 percent out of
5-19 each resident student's tuition charge under Section 54.051 of this
5-20 code as provided by the General Appropriations Act for the
5-21 applicable academic year;
5-22 (2) [for the 1992-1993 academic year and each
5-23 subsequent academic year, not less than 15 percent nor more than 20
5-24 percent out of each resident student's tuition charge under Section
5-25 54.051 of this code as provided by the General Appropriations Act
5-26 for the applicable academic year; in specifying the percentage to
5-27 be set aside for the 1991-1992 and 1992-1993 academic years, the
5-28 legislature shall consider the recommendations of the Select
5-29 Committee on Higher Education established by H.C.R. No. 105, Acts
5-30 of the 69th Legislature, Regular Session, 1985;]
5-31 [(3)] three percent out of each nonresident student's
5-32 tuition charge under Section 54.051 of this code;
5-33 (3) [(4)] six percent out of each resident student's
5-34 hourly tuition charge, and $1.50 out of each nonresident student's
5-35 hourly tuition charge, for academic courses at public community and
5-36 junior colleges; and
5-37 (4) [(5)] six percent of hourly tuition charges for
5-38 vocational-technical courses at public community and junior
5-39 colleges.
5-40 (b) Of the funds set aside under this section by an
5-41 institution, not less than 95 [90] percent shall be used for Texas
5-42 Public Educational Grants and not more than five [10] percent shall
5-43 be used for emergency loans under Subchapter D of this chapter.
5-44 SECTION 1.11. Subsection (d), Section 55.17, Education Code,
5-45 is repealed.
5-46 ARTICLE 2. CONFORMING AMENDMENTS
5-47 SECTION 2.01. Subsection (a), Section 55.13, Education Code,
5-48 is amended to read as follows:
5-49 (a) For the purpose of providing funds to acquire, purchase,
5-50 construct, improve, enlarge, and/or equip any property, buildings,
5-51 structures, activities, services, operations, or other facilities,
5-52 for and on behalf of its institution or institutions, or any branch
5-53 or branches thereof, each board may issue its revenue bonds from
5-54 time to time and in one or more issue or series, to be payable from
5-55 and secured by liens on and pledges of all or any part of any of
5-56 the revenue funds [revenues, income, or receipts] of the board and
5-57 its institution or institutions, or any branch or branches of any
5-58 of its institutions [thereof, including, without limitation, any
5-59 rentals, rates, charges, fees, or other resources, in the manner
5-60 provided by this subchapter].
5-61 SECTION 2.02. Subsections (a), (b), and (c), Section 55.17,
5-62 Education Code, are amended to read as follows:
5-63 (a) Each board may pledge all or any part of its revenue
5-64 funds [revenues, income, or receipts from such rentals, rates,
5-65 charges, and/or fees, or other resources] to the payment of the
5-66 bonds, including the payment of principal, interest, and any other
5-67 amounts required or permitted in connection with the bonds. The
5-68 pledged revenue funds [rentals, rates, charges, and/or fees] shall
5-69 be fixed and collected in amounts that will be at least
6-1 sufficient[, together with any other pledged resources,] to provide
6-2 for all payments of principal, interest, and any other amounts
6-3 required in connection with the bonds and, to the extent required
6-4 by the resolution authorizing the issuance of the bonds, to provide
6-5 for the payment of expenses in connection with the bonds and for
6-6 the payment of operation, maintenance, and other expenses in
6-7 connection with the aforesaid property, buildings, structures,
6-8 activities, services, operations, or other facilities.
6-9 (b) Each board may establish and enforce parietal rules for
6-10 students and others, and enter into agreements regarding occupancy,
6-11 use, and availability of facilities, and the amounts and collection
6-12 of pledged revenue funds [revenues, income, receipts, rentals,
6-13 rates, charges, fees, or other resources,] that will assure making
6-14 all the required payments and deposits.
6-15 (c) Tuition, rentals, rates, and other charges of an
6-16 institution of higher education authorized by this title [Fees for
6-17 the use by or availability to the students of all or any property,
6-18 buildings, structures, activities, services, operations, or other
6-19 facilities,] may be pledged to the payment of the bonds[,] and
6-20 shall be fixed and collected from all or any designated part of the
6-21 students enrolled in the institution or institutions, or any branch
6-22 or branches thereof, in the amounts and in the manner as determined
6-23 and provided by the board in the resolution authorizing the
6-24 issuance of the bonds; and said tuition, rentals, rates, and other
6-25 charges [fees] may be collected in the full amounts required or
6-26 permitted herein, without regard to actual use, availability, or
6-27 existence of any facility, commencing at any time designated by the
6-28 board. [Said fees may be fixed and collected for the use or
6-29 availability of any specifically described property, buildings,
6-30 structures, activities, services, operations, or other facilities;
6-31 or said fees may be fixed and collected as general fees for the
6-32 general use or availability of the institution or institutions, or
6-33 any branch or branches thereof.] Such tuition, rentals, rates, and
6-34 other charges [specific and/or general fees] may be fixed and
6-35 collected, and pledged to the payment of any issue or series of
6-36 bonds issued by the board, in the full amounts required or
6-37 permitted herein, in addition to, and regardless of the existence
6-38 of, any other specific or general fees at the institution or
6-39 institutions, or any branch or branches thereof; provided that each
6-40 board may restrict its power to pledge such additional tuition,
6-41 rentals, rates, or other charges [specific or general fees] in any
6-42 manner that may be provided in any resolution authorizing the
6-43 issuance of bonds, and provided that no such additional tuition,
6-44 rentals, rates, or other charges [specific fees] shall be pledged
6-45 if prohibited by any resolution which authorized the issuance of
6-46 any then outstanding bonds.
6-47 SECTION 2.03. Section 55.24, Education Code, is amended to
6-48 read as follows:
6-49 Sec. 55.24. Pledges Under Previous Laws to Remain in Effect.
6-50 (a) Where any revenues, income, receipts, or other resources of
6-51 any board have been pledged to the payment of principal of and
6-52 interest on any bonds or notes issued and delivered pursuant to any
6-53 other law, the repeal of such law by virtue of the enactment of
6-54 Title 3 of this code shall not affect any such pledge or any
6-55 covenants with respect to such bonds or notes, or any bonds issued
6-56 to refund same, and all such pledges and covenants shall remain in
6-57 full force and effect in accordance with the terms and provisions
6-58 thereof.
6-59 (b) Where all or any part of the revenue funds of any board
6-60 have been pledged to the payment of the principal of and interest
6-61 on any bonds or notes or any other obligation issued or entered
6-62 into and delivered pursuant to any provision of this title or any
6-63 other law, the repeal or amendment of any provision of this title
6-64 shall not affect any such pledge or any convenants with respect to
6-65 such bonds, notes, or obligations or any bonds or notes issued to
6-66 refund same, and all such pledges and covenants shall remain in
6-67 full force and effect in accordance with the terms and provisions
6-68 thereof.
6-69 (c) In furtherance of the provisions of Subsection (b) and
7-1 in recognition that certain boards have outstanding bonds, notes,
7-2 and other obligations secured by various liens on the tuition or a
7-3 portion of the tuition charged and collected at certain
7-4 institutions and that the provisions of Chapter 54 would make it
7-5 difficult or impossible to identify and secure that portion of the
7-6 revised tuition charges pledged to the payment of such bonds,
7-7 notes, and obligations, net tuition, as defined in Section
7-8 51.009(c) and classified as educational and general funds by such
7-9 provision, shall be set aside and utilized first to satisfy the
7-10 obligations of each board secured by tuition in the order of
7-11 priority of the liens on such funds. It is further provided for
7-12 the benefit of the owners of such bonds and notes and the counter
7-13 parties to such obligations of the boards that the charges per
7-14 semester credit hour or for each semester or summer session, as the
7-15 case may be, for tuition constituting the educational and general
7-16 funds portion of tuition shall never be less than the amount
7-17 charged for the 1996-1997 academic year.
7-18 SECTION 2.04. Chapter 55, Education Code, is amended by
7-19 adding Section 55.25 to read as follows:
7-20 Sec. 55.25. APPLICABILITY OF OTHER LAW; CONFLICTS. Chapter
7-21 656, Acts of the 68th Legislature, Regular Session, 1983 (Article
7-22 717q, Vernon's Texas Civil Statutes), Chapter 3, Acts of the 61st
7-23 Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
7-24 Civil Statutes), the Bond Procedures Act of 1981 (Article 717k-6,
7-25 Vernon's Texas Civil Statutes), and Chapter 53, Acts of the 70th
7-26 Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's
7-27 Texas Civil Statutes) apply to all bonds issued pursuant to this
7-28 chapter; provided, however, that in the event of any conflict
7-29 between such laws and this chapter, the provisions of this chapter
7-30 prevail.
7-31 ARTICLE 3. VALIDATION, SAVINGS, AND TRANSITIONAL PROVISIONS;
7-32 EFFECTIVE DATE; EMERGENCY
7-33 SECTION 3.01. (a) All revenue bonds heretofore approved by
7-34 the attorney general and registered by the comptroller, or
7-35 authorized by proceedings approved by the attorney general, which
7-36 were issued, sold, and delivered or entered into by any board, and
7-37 which are payable from or secured by a pledge of any revenues,
7-38 income, receipts, or other resources of such board, are hereby
7-39 validated in all respects, together with all proceedings
7-40 authorizing the issuance thereof, and said bonds and proceedings
7-41 are and shall be valid and binding obligations in accordance with
7-42 their terms and conditions for all purposes, as though they had
7-43 been duly and legally issued or entered into and authorized
7-44 originally.
7-45 (b) Nothing in this Act limits or impairs any pledge or
7-46 covenant made by the governing board of an institution of higher
7-47 education with respect to any bond or note issued before the
7-48 effective date of this Act.
7-49 (c) The provisions of Subsection (b), Section 55.24,
7-50 Education Code, as added by Section 2.03 of this Act, regarding the
7-51 effect of an amendment or a repeal on a pledge or covenant made by
7-52 the governing board of an institution of higher education, apply to
7-53 any such amendment or repeal made by this Act.
7-54 (d) Any funds to be set aside by an institution of higher
7-55 education pursuant to Section 56.033, Education Code, that are an
7-56 increase over the amount of such funds that were set aside in the
7-57 1996-1997 academic year, and that result from an increase in the
7-58 amount of tuition charged by the institution because of amendments
7-59 and modifications in law made by this Act, are to be set aside
7-60 subject only to the obligation of the governing board of the
7-61 institution to comply with covenants made with respect to bonds
7-62 issued pursuant to law.
7-63 SECTION 3.02. (a) This Act takes effect August 1, 1997, if
7-64 this Act may take effect on that date under Section 39, Article
7-65 III, Texas Constitution. Otherwise, this Act takes effect
7-66 September 1, 1997.
7-67 (b) The change in law made by this Act applies beginning
7-68 with tuition and fees charged for the 1997 fall semester.
7-69 SECTION 3.03. The importance of this legislation and the
8-1 crowded condition of the calendars in both houses create an
8-2 emergency and an imperative public necessity that the
8-3 constitutional rule requiring bills to be read on three several
8-4 days in each house be suspended, and this rule is hereby suspended,
8-5 and that this Act take effect and be in force according to its
8-6 terms, and it is so enacted.
8-7 * * * * *