Relating to the authority of the board of regents of The Texas A&M University System to construct, acquire, improve, extend, and equip utility systems located on university system property.

89(R) HB 3701 - House Committee Report version - Bill Text

89R24069 CMO-F

By: Dyson, Guillen, Harris, Wilson, Lalani

H.B. No. 3701

Substitute the following for H.B. No. 3701:

By: Wilson

C.S.H.B. No. 3701

A BILL TO BE ENTITLED

AN ACT

relating to the authority of the board of regents of The Texas A&M

University System to construct, acquire, improve, extend, and equip

utility systems located on university system property.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 85.24, Education Code, is amended to

read as follows:

Sec. 85.24. UTILITIES. (a) The board [
from time to time
]

may improve and equip existing [
central
] power plants and may

construct, acquire, improve, and equip steam plants and additions

to
steam plants. For the purposes of this subsection,
[
them, and
]

the board may acquire
property
[
land for these purposes
] for the

institutions under its control[
,
] when the total cost, type of

construction, capacity, and plans and specifications have been

approved by the board. As used in this
section
[
subsection
], "steam

plants" does not include electrical generating facilities, but

"[
central
] power plants" does include electrical generating

facilities.

(b) The board [
from time to time
] may construct, extend, and

improve the water systems
and
[
,
] sewer systems[
, or both,
] for [
any

or
] all institutions under its control[
,
] when the total cost, type

of construction, capacity, and plans and specifications have been

approved by the board.

(c) The board may
provide
[
furnish
] water, sewer, steam,

power, electricity, or any
combination
[
or all
] of those services

from the [
power and steam plant or
] plants and other facilities

located at each institution to [
any or
] all [
dormitories, kitchens

and dining halls, hospitals, student activity buildings,

gymnasiums, athletic buildings and stadiums, the dormitory for

help, laundry, and other
] buildings or facilities that [
may
] have

been or may be constructed at each institution, and may determine

the amount to be charged as a part of the maintenance and operation

expense of those buildings or facilities for the service or

services. The board may allocate the cost of
providing

[
furnishing
] the services to revenue-producing buildings and

facilities and to other buildings and facilities at the

institutions. The board may pledge the net revenues from the

amounts thus received for the services to pay the principal of and

interest on, and to create and maintain the reserve for, the

negotiable revenue bonds issued for the purpose of constructing,

acquiring, improving, extending, or equipping the power and steam

plants, or additions thereto, or other facilities, and may secure

the bonds additionally by pledging rentals, rates, charges, and

fees for the use or availability of all or any property, buildings,

structures, activities, operations, or facilities, of any nature,

which may be fixed and collected from all or any designated part of

the students enrolled in the institution or institutions or from

others in the amounts and in the manner determined and provided by

the board in the resolution authorizing the issuance of the bonds.

(d)

In addition to the authority granted to the board under

Subsections (a) and (b), the board may construct and acquire power

plants, and additions to power plants, located on university system

property in Brazos County and may acquire water systems and sewer

systems located on university system property in Brazos County.

SECTION 2. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.