HB 3701

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
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
(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
(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
and steam plants, and additions to power and steam plants, located
on university system property in Brazos County and may acquire
water systems and sewer systems located on university system
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.