By:  Morrison, et al. (Senate Sponsor - Ogden)                    H.B. No. 2329
	(In the Senate - Received from the House May 16, 2005; 
May 17, 2005, read first time and referred to Committee on Finance; 
May 21, 2005, reported adversely, with favorable Committee 
Substitute by the following vote:  Yeas 11, Nays 0; May 21, 2005, 
sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 2329                                   By:  Ogden


A BILL TO BE ENTITLED

AN ACT


relating to authorizing the issuance of revenue bonds or other 
obligations to fund capital projects at public institutions of 
higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 55, Education Code, is 
amended by adding Sections 55.1751 to read as follows:
	Sec. 55.1751.  THE TEXAS A&M UNIVERSITY SYSTEM; ADDITIONAL 
BONDS.  (a)  In addition to the other authority granted by this 
subchapter, the board of regents of The Texas A&M University System 
may acquire, purchase, construct, improve, renovate, enlarge, or 
equip facilities, including roads and related infrastructure, for 
projects to be financed through the issuance of bonds in accordance 
with this subchapter and in accordance with a systemwide revenue 
financing program adopted by the board for the following 
institutions not to exceed the following aggregate principal 
amounts for the projects specified as follows:
		(1)  Texas A&M University -- Kingsville:                           
			(A)  $50 million for System Center -- San Antonio 
for educational-related facilities at the location proposed for 
Texas A&M University -- San Antonio; and
		(2)  Texas A&M University -- Texarkana, $45 million for 
educational and support facilities.
	(b)  The board may pledge irrevocably to the payment of bonds 
authorized by this section all or any part of the revenue funds of 
an institution, branch, or entity of The Texas A&M University 
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.
	(c)  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 Texas A&M 
University 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.
	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, 55.1735(a(1), 55.174, 
55.1742, 55.1743, [or] 55.1744, or 55.1751, 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, 55.174, 55.1742, 
55.1743, [or] 55.1744, or 55.1751, 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, 2005.



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