BILL ANALYSIS

C.S.H.B. 1530

By: Murphy

Higher Education

Committee Report (Substituted)

BACKGROUND AND PURPOSE

There have been calls to provide university systems in Texas with greater flexibility to undertake capital projects on the campuses of their institutions. It has been noted that providing these systems the authority to acquire and improve certain facilities for projects to be financed through the issuance of bonds and system-wide revenue financing programs would help offer the flexibility needed to build new facilities, update existing projects, and ensure Texas is on track to meet the higher education needs of its students. C.S.H.B. 1530 seeks to address this issue by providing for the issuance of revenue bonds to fund capital projects at public institutions of higher education in Texas.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 1530 amends the Education Code to authorize the boards of regents of the following public institutions of higher education to acquire, purchase, construct, improve, renovate, enlarge, or equip property and facilities for specified capital projects to be financed through the issuance of bonds and the institution's system-wide revenue financing program, if applicable:

·         The Texas A&M University System, excluding Texas A&M University--Central Texas, Texas A&M International University, Texas A&M University--Texarkana, and West Texas A&M University;

·         The University of Texas System;

·         the University of Houston System, excluding the University of Houston--Victoria;

·         the Texas State University System, excluding Lamar University, Sul Ross State University, and Sul Ross State University Rio Grande College;

·         the University of North Texas System;

·         Texas Woman's University;

·         Midwestern State University;

·         Stephen F. Austin State University;

·         the Texas Tech University System;

·         Texas Southern University; and

·         the Texas State Technical College System, excluding Texas State Technical College‑‑Waco.

The bill sets out, for each institution, the specified projects that may be financed by the bonds and the maximum aggregate principal amounts that may be financed for each project.

C.S.H.B. 1530 provides for the authority of each applicable board of regents to pledge revenue funds to the payment of the bonds and provides for the transfer of funds among each system's institutions, branches, and entities if sufficient funds are not available to meet the board's obligations under the bill's provisions.    

EFFECTIVE DATE

September 1, 2021.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.H.B. 1530 may differ from the original in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The original provided the maximum aggregate principal amounts that may be financed by the bonds for each project authorized under the bill's provisions, whereas the substitute revises those amounts and further specifies the projects for which the bonds may be used.

The substitute does not provide aggregate principal amounts for the following institutions, which were present in the original:

·         Texas A&M University--Central Texas;

·         Texas A&M International University;

·         Texas A&M University--Texarkana;

·         West Texas A&M University;

·         the University of Houston--Victoria;

·         Lamar University;

·         Sul Ross State University;

·         Sul Ross State University Rio Grande College; and

·         Texas State Technical College--Waco.