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A BILL TO BE ENTITLED
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AN ACT
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relating to a limit on state reimbursement to public institutions |
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of higher education for debt service on tuition revenue bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 55, Education Code, is |
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amended by adding Section 55.185 to read as follows: |
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Sec. 55.185. LIMIT ON STATE REIMBURSEMENT FOR DEBT SERVICE. |
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(a) In this section, "institution of higher education" has the |
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meaning assigned by Section 61.003. |
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(b) The legislature may not appropriate undedicated general |
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revenue to reimburse institutions of higher education for the |
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payment of debt service on tuition revenue bonds authorized under |
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this subchapter in any state fiscal year in a total amount that |
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exceeds 1.25 percent of an amount equal to the average of the amount |
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of general revenue fund revenues, excluding revenues |
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constitutionally dedicated for purposes other than payment of state |
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debt, for each of the three preceding state fiscal years. |
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(c) The limit provided by this section applies to |
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appropriations made to reimburse debt service on all tuition |
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revenue bonds, including previously authorized but unissued bonds. |
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(d) The Bond Review Board shall compute the limit provided |
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by Subsection (b). The Legislative Budget Board shall provide the |
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Bond Review Board with expenditure and appropriations information |
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on debt service reimbursements for tuition revenue bonds. The Bond |
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Review Board shall estimate debt service reimbursements for |
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previously authorized but unissued bonds using any standard |
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assumptions considered appropriate by the Bond Review Board and may |
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tailor those assumptions to each institution of higher education |
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based on the most recent credit ratings and typical issuing |
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practices of that institution. |
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SECTION 2. The change in law made by this Act applies |
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beginning with appropriations for the state fiscal biennium |
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beginning September 1, 2013. |
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SECTION 3. This Act takes effect September 1, 2013. |