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.