By: Wolens, et al. (Senate Sponsor - Shapiro) H.B. No. 1912
(In the Senate - Received from the House May 6, 2003;
May 8, 2003, read first time and referred to Committee on
Education; May 20, 2003, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 1;
May 20, 2003, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 1912 By: Shapiro
A BILL TO BE ENTITLED
AN ACT
relating to authorizing the issuance of revenue bonds for certain
research facilities of component institutions of The University of
Texas System and exempting the facilities financed by the bonds
from prior approval by the Texas Higher Education Coordinating
Board.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 55, Education Code, is
amended by adding Section 55.17421 to read as follows:
Sec. 55.17421. THE UNIVERSITY OF TEXAS SYSTEM; ADDITIONAL
REVENUE BONDS FOR BIOMEDICAL AND BIOTECHNOLOGY FACILITIES. (a) In
addition to the other authority granted by this subchapter, the
board of regents of The University of Texas System may acquire,
purchase, construct, improve, renovate, enlarge, or equip
property, buildings, structures, or other facilities, including
roads and related infrastructure, for The University of Texas
Southwestern Medical Center at Dallas, to be used primarily to
conduct biomedical research and to be financed by the issuance of
bonds in accordance with this subchapter, including bonds issued in
accordance with a systemwide revenue financing program and secured
as provided by that program, in an aggregate principal amount not to
exceed $56 million.
(b) In addition to the other authority granted by this
subchapter, the board of regents of The University of Texas System
may acquire, purchase, construct, improve, renovate, enlarge, or
equip property, buildings, structures, or other facilities,
including roads and related infrastructure, for The University of
Texas M.D. Anderson Cancer Center, to be used for biotechnology
research and development and to be financed by the issuance of bonds
in accordance with this subchapter, including bonds issued in
accordance with a systemwide revenue financing program and secured
as provided by that program, in an aggregate principal amount not to
exceed $20 million.
(c) In addition to the other authority granted by this
subchapter, the board of regents of The University of Texas System
may acquire, purchase, construct, improve, renovate, enlarge, or
equip property, buildings, structures, or other facilities,
including roads and related infrastructure, for The University of
Texas Medical Branch at Galveston, to be used primarily to conduct
biomedical research, including research related to national
bio-defense, and to be financed by the issuance of bonds in
accordance with this subchapter, including bonds issued in
accordance with a systemwide revenue financing program and secured
as provided by that program, in an aggregate principal amount not to
exceed $30 million.
(d) The board may pledge irrevocably to the payment of the
bonds authorized by this section all or any part of the revenue
funds of an institution, branch, or entity of The University of
Texas System, including student tuition charges. The amount of a
pledge made under this subsection may not be reduced or abrogated
while the bonds for which the pledge is made, or bonds issued to
refund those bonds, are outstanding.
(e) If sufficient funds are not available to the board to
meet its obligations under this section, the board may transfer
funds among institutions, branches, and entities of The University
of Texas System to ensure the most equitable and efficient
allocation of available resources for each institution, branch, or
entity to carry out its duties and purposes.
(f) The board may not issue bonds authorized by this section
at a time that would require the payment of any debt service on the
bonds before September 1, 2004.
SECTION 2. Section 61.0572(e), Education Code, is amended
to read as follows:
(e) Approval of the board is not required to acquire real
property that is financed by bonds issued under Section 55.17(e)(3)
or (4), 55.1713-55.1718, 55.1721-55.1728, [or] 55.174, or
55.17421, except that the board shall review all real property to be
financed by bonds issued under those sections to determine whether
the property meets the standards adopted by the board for cost,
efficiency, and space use. If the property does not meet those
standards, the board shall notify the governor, the lieutenant
governor, the speaker of the house of representatives, and the
Legislative Budget Board.
SECTION 3. Section 61.058(b), Education Code, is amended to
read as follows:
(b) This section does not apply to construction, repair, or
rehabilitation financed by bonds issued under Section 55.17(e)(3)
or (4), 55.1713-55.1718, 55.1721-55.1728, [or] 55.174, or
55.17421, except that the board shall review all construction,
repair, or rehabilitation to be financed by bonds issued under
those sections to determine whether the construction,
rehabilitation, or repair meets the standards adopted by board rule
for cost, efficiency, and space use. If the construction,
rehabilitation, or repair does not meet those standards, the board
shall notify the governor, the lieutenant governor, the speaker of
the house of representatives, and the Legislative Budget Board.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.
* * * * *