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.