83R2533 KEL-D
By: Otto H.B. No. 2002
A BILL TO BE ENTITLED
AN ACT
relating to a limit on state reimbursement to public institutions
of higher education for debt service on tuition revenue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 55, Education Code, is
amended by adding Section 55.185 to read as follows:
Sec. 55.185. LIMIT ON STATE REIMBURSEMENT FOR DEBT SERVICE.
(a) In this section, "institution of higher education" has the
meaning assigned by Section 61.003.
(b) The legislature may not appropriate undedicated general
revenue to reimburse institutions of higher education for the
payment of debt service on tuition revenue bonds authorized under
this subchapter in any state fiscal year in a total amount that
exceeds 1.25 percent of an amount equal to the average of the amount
of general revenue fund revenues, excluding revenues
constitutionally dedicated for purposes other than payment of state
debt, for each of the three preceding state fiscal years.
(c) The limit provided by this section applies to
appropriations made to reimburse debt service on all tuition
revenue bonds, including previously authorized but unissued bonds.
(d) The Bond Review Board shall compute the limit provided
by Subsection (b). The Legislative Budget Board shall provide the
Bond Review Board with expenditure and appropriations information
on debt service reimbursements for tuition revenue bonds. The Bond
Review Board shall estimate debt service reimbursements for
previously authorized but unissued bonds using any standard
assumptions considered appropriate by the Bond Review Board and may
tailor those assumptions to each institution of higher education
based on the most recent credit ratings and typical issuing
practices of that institution.
SECTION 2. The change in law made by this Act applies
beginning with appropriations for the state fiscal biennium
beginning September 1, 2013.
SECTION 3. This Act takes effect September 1, 2013.