By: Zaffirini S.B. No. 16
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to authorizing the issuance of revenue bonds 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 Section 55.135 to read as follows:
         Sec. 55.135.  PROJECT APPROVED BY COMMISSIONER OF HIGHER
  EDUCATION; ADDITIONAL BONDS.  (a)  In addition to the other
  authority granted by this subchapter and contingent on action by
  the commissioner of higher education under Subsection (e), the
  governing board of an institution of higher education may acquire,
  purchase, construct, improve, renovate, enlarge, or equip
  facilities, including roads and related infrastructure, for
  projects selected by the commissioner under Subsection (e), to be
  financed through the issuance of bonds in accordance with this
  subchapter or any applicable systemwide revenue financing program,
  in an aggregate principal amount not to exceed $100 million for any
  project.
         (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 under the control and management
  of the governing board, 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 under the control
  and management of the governing board to ensure the most equitable
  and efficient allocation of available resources for each
  institution, branch, or entity to carry out its duties and
  purposes.
         (d)  General revenue may not be appropriated for the purpose
  of reimbursing the applicable institution or system for debt
  service on bonds authorized by this section for any state fiscal
  year earlier than the state fiscal year beginning September 1,
  2015.
         (e)  A governing board may issue bonds authorized by this
  section only if the commissioner of higher education makes the
  findings required by this subsection.  The commissioner may select
  a project to be financed with bonds authorized by this section if
  the commissioner finds that:
               (1)  the project has funding support equal to at least
  two-thirds of the project's estimated completed cost from private
  philanthropic sources or from other funds available to the
  applicable institution;
               (2)  the project is nominated for funding under this
  section by the governing board;
               (3)  the project has been recommended by the Texas
  Higher Education Coordinating Board in the coordinating board's
  evaluation of proposed bonding projects; and
               (4)  the institution will comply with Subsection (f).
         (f)  An institution issuing bonds under this section shall
  pay at least 20 percent of the debt service on those bonds from
  funds other than appropriations of undedicated general revenue.
         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 55.135, 
  55.17(e)(3) or (4), 55.1713-55.1718, 55.1721-55.1728,
  55.1735(a)(1), 55.174, 55.1742, 55.1743, 55.1744,
  55.1751-55.17592, 55.1768, 55.1771, or 55.17721, 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 55.135, 
  55.17(e)(3) or (4), 55.1713-55.1718, 55.1721-55.1728, 55.174,
  55.1742, 55.1743, 55.1744, 55.1751-55.17592, 55.1768, 55.1771, or
  55.17721, 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.