Bill Text: TX SB16 | 2011 | 82nd Legislature 1st Special | Introduced
Bill Title: Relating to authorizing the issuance of revenue bonds to fund capital projects at public institutions of higher education.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-05-31 - Filed [SB16 Detail]
Download: Texas-2011-SB16-Introduced.html
| By: Zaffirini | S.B. No. 16 | |
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| 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. | ||
