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               AN ACT
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            relating to the amount and allocation of the annual constitutional  | 
         
         
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            appropriation to certain agencies and institutions of higher  | 
         
         
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            education and to the permissible uses of that money. | 
         
         
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                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
         
         
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                   SECTION 1.  Section 62.021, Education Code, is amended by  | 
         
         
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            amending Subsection (a) and adding Subsection (c-1) to read as  | 
         
         
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            follows: | 
         
         
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                   (a)  In each state fiscal year beginning with the state  | 
         
         
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            fiscal year ending August 31, 2026 [2021], an eligible institution  | 
         
         
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            is entitled to receive an amount allocated in accordance with this  | 
         
         
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            section from the funds appropriated for that year by Section 17(a),  | 
         
         
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            Article VII, Texas Constitution.  The comptroller shall distribute  | 
         
         
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            funds allocated under this subsection only on presentation of a  | 
         
         
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            claim and issuance of a warrant in accordance with Section 403.071,  | 
         
         
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            Government Code.  An eligible institution may not present a claim  | 
         
         
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            to be paid from any funds allocated under this subsection before the  | 
         
         
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            delivery of goods or services described in Section 17, Article VII,  | 
         
         
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            Texas Constitution, except for the payment of principal or interest  | 
         
         
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            on bonds or notes or for a payment for a book or other published  | 
         
         
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            library material as authorized by Section 2155.386, Government  | 
         
         
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            Code.  The allocation of funds under this subsection is made in  | 
         
         
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            accordance with an equitable formula consisting of the following  | 
         
         
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            elements: space deficit, facilities condition, institutional  | 
         
         
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            complexity, and a separate allocation for the Texas State Technical  | 
         
         
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            College System.  The annual amounts allocated by the formula are as  | 
         
         
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            follows: | 
         
         
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                         (1)  to the following component institutions of the  | 
         
         
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            University of North Texas System: | 
         
         
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                               (A)  $65,142,741 [$38,473,304] to the University  | 
         
         
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            of North Texas and its branch campus the University of North Texas  | 
         
         
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            at Frisco, allocated as determined by the board of regents of the  | 
         
         
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            system; | 
         
         
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                               (B)  $21,716,116 [$15,581,837] to the University  | 
         
         
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            of North Texas Health Science Center at Fort Worth; and | 
         
         
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                               (C)  $7,150,950 [$3,455,644] to the University of  | 
         
         
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            North Texas at Dallas; | 
         
         
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                         (2)  to the following component institutions of the  | 
         
         
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            Texas State University System: | 
         
         
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                               (A)  $20,427,341 [$13,537,649] to Lamar  | 
         
         
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            University; | 
         
         
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                               (B)  $7,956,305 [$2,630,158] to the Lamar  | 
         
         
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            Institute of Technology; | 
         
         
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                               (C)  $5,556,444 [$1,533,301] to Lamar State  | 
         
         
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            College--Orange; | 
         
         
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                               (D)  $6,949,525 [$2,283,992] to Lamar State  | 
         
         
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            College--Port Arthur; | 
         
         
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                               (E)  $22,817,382 [$18,787,013] to Sam Houston  | 
         
         
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            State University; | 
         
         
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                               (F)  $7,555,972 to Sam Houston State University  | 
         
         
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            College of Osteopathic Medicine; | 
         
         
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                               (G)  $57,704,160 [$38,741,061] to Texas State  | 
         
         
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            University; | 
         
         
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                               (H)  $4,699,091 [(G) $2,216,640] to Sul Ross State  | 
         
         
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            University; and | 
         
         
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                               (I)  $2,886,904 [(H) $487,157] to Sul Ross State  | 
         
         
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            University-Rio Grande College; | 
         
         
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                         (3)  $12,750,829 [$12,072,906] to Texas Southern  | 
         
         
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            University; | 
         
         
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                         (4)  to the following component institutions of the  | 
         
         
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            Texas Tech University System: | 
         
         
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                               (A)  $82,671,774 [$51,379,461] to Texas Tech  | 
         
         
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            University; | 
         
         
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                               (B)  $29,075,466 [$22,305,642] to Texas Tech  | 
         
         
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            University Health Sciences Center and its branch campuses Texas  | 
         
         
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            Tech University Health Sciences Center at Abilene and Texas Tech  | 
         
         
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            University Health Sciences Center at Dallas, allocated as  | 
         
         
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            determined by the board of regents of the system; | 
         
         
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                               (C)  $10,250,544 [$6,997,943] to Angelo State  | 
         
         
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            University; | 
         
         
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                               (D)  $11,548,153 [$5,725,243] to Texas Tech  | 
         
         
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            University Health Sciences Center--El Paso; and | 
         
         
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                               (E)  $7,261,812 [$5,082,034] to Midwestern State  | 
         
         
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            University; | 
         
         
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                         (5)  $19,536,274 [$14,993,229] to the component  | 
         
         
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            institutions of the Texas Woman's University System, allocated as  | 
         
         
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            determined by the board of regents of the system; | 
         
         
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                         (6)  to the following component institutions of the  | 
         
         
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            University of Houston System: | 
         
         
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                               (A)  $70,708,909 [$56,158,685] to the University  | 
         
         
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            of Houston; | 
         
         
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                               (B)  $6,030,405 [$3,649,703] to the University of  | 
         
         
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            Houston--Victoria; | 
         
         
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                               (C)  $10,015,183 [$7,959,137] to the University  | 
         
         
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            of Houston--Clear Lake; [and] | 
         
         
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                               (D)  $14,094,619 [$11,155,034] to the University  | 
         
         
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            of Houston--Downtown; and | 
         
         
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                               (E)  $5,746,678 to the University of Houston  | 
         
         
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            College of Medicine; | 
         
         
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                         (7)  to the following component institutions of The  | 
         
         
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            Texas A&M University System: | 
         
         
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                               (A)  $16,228,184 [$11,825,139] to Texas A&M  | 
         
         
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            University--Corpus Christi; | 
         
         
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                               (B)  $11,686,588 [$7,687,534] to Texas A&M  | 
         
         
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            International University; | 
         
         
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                               (C)  $10,453,123 [$9,125,307] to Texas A&M  | 
         
         
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            University--Kingsville; | 
         
         
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                               (D)  $11,465,897 [$7,671,155] to West Texas A&M  | 
         
         
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            University; | 
         
         
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                               (E)  $12,812,330 [$11,459,464] to East Texas A&M  | 
         
         
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            University [University--Commerce]; and | 
         
         
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                               (F)  $4,731,552 [$2,112,129] to Texas A&M  | 
         
         
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            University--Texarkana; and | 
         
         
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                         (8)  $12,993,750 [$8,662,500] to the Texas State  | 
         
         
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            Technical College System Administration and the following  | 
         
         
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            component campuses, but not its extension centers or programs: | 
         
         
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                               (A)  Texas State Technical College, a collective  | 
         
         
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            unit in Nolan, Taylor, Brown, and Stephens Counties; | 
         
         
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                               (B)  Texas State Technical College--Harrison  | 
         
         
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            County [College-Harlingen]; | 
         
         
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                               (C) [(B)]  Texas State Technical  | 
         
         
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            College--McLennan County [College--Marshall]; | 
         
         
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                               (D) [(C)]  Texas State Technical College, a  | 
         
         
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            collective unit of one or more locations in Ellis County | 
         
         
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            [College--West Texas]; | 
         
         
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                               (E) [(D)]  Texas State Technical College, a  | 
         
         
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            collective unit in Comal and Guadalupe Counties [College--Waco]; | 
         
         
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                               (F) [(E)]  Texas State Technical College--Fort  | 
         
         
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            Bend County; [and] | 
         
         
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                               (G) [(F)]  Texas State Technical College--Denton  | 
         
         
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            County; | 
         
         
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                               (H)  Texas State Technical College, a collective  | 
         
         
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            unit of one or more locations in East Williamson County; and | 
         
         
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                               (I)  Texas State Technical College in Cameron  | 
         
         
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            County [College--North Texas]. | 
         
         
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                   (c-1)  Each governing board participating in the  | 
         
         
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            distribution of funds as described in this section may in its sole  | 
         
         
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            discretion use the funds to pay the principal and interest of bonds  | 
         
         
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            that were issued under Chapter 55 and the proceeds of which were  | 
         
         
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            spent for a purpose described in Section 17(a), Article VII, Texas  | 
         
         
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            Constitution. | 
         
         
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                   SECTION 2.  Section 62.024, Education Code, is amended to  | 
         
         
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            read as follows: | 
         
         
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                   Sec. 62.024.  AMOUNT OF ALLOCATION INCREASED.  In  | 
         
         
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            accordance with Section 17(a), Article VII, Texas Constitution, for  | 
         
         
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            each state fiscal year beginning with the state fiscal year ending  | 
         
         
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            August 31, 2026 [2017], the amount of the annual constitutional  | 
         
         
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            appropriation under that subsection is increased to $590,625,000 | 
         
         
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            [$393.75 million].  [Before the state fiscal year ending August 31,  | 
         
         
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            2017, the amount of the annual constitutional appropriation under  | 
         
         
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            that subsection is $262.5 million.] | 
         
         
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                   SECTION 3.  Section 62.027(c), Education Code, is amended to  | 
         
         
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            read as follows: | 
         
         
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                   (c)  The increase provided by the amendment to Section 62.024  | 
         
         
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            enacted by the 89th [84th] Legislature, Regular Session, 2025 | 
         
         
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            [2015], in the amount of the appropriation made under Section  | 
         
         
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            17(a), Article VII, Texas Constitution, for each state fiscal year  | 
         
         
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            beginning with the state fiscal year ending August 31, 2026 [2017],  | 
         
         
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            constitutes the increase in accordance with Section 17(a) that the  | 
         
         
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            legislature considers appropriate for the five-year period  | 
         
         
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            beginning September 1, 2025 [2015]. | 
         
         
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                   SECTION 4.  Section 62.021(e-2), Education Code, is  | 
         
         
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            repealed. | 
         
         
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                   SECTION 5.  The amounts allocated under Section 62.021,  | 
         
         
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            Education Code, as amended by this Act, apply to each state fiscal  | 
         
         
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            year beginning with the state fiscal year beginning September 1,  | 
         
         
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            2025. | 
         
         
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                   SECTION 6.  Contingent on the passage and becoming law of  | 
         
         
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            S.B. 2361 or similar legislation of the 89th Legislature, Regular  | 
         
         
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            Session, 2025, relating to the transfer of the University of  | 
         
         
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            Houston--Victoria to The Texas A&M University System, the amounts  | 
         
         
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            allocated to the University of Houston--Victoria under Section  | 
         
         
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            62.021, Education Code, as amended by this Act, are allocated to the  | 
         
         
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            university as transferred to The Texas A&M University System. | 
         
         
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                   SECTION 7.  (a)  Except as provided by Subsection (b) of this  | 
         
         
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            section, this Act takes effect September 1, 2025. | 
         
         
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                   (b)  Sections 2 and 3 of this Act take effect as provided by  | 
         
         
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            Subsection (a) of this section only if this Act is approved by a  | 
         
         
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            vote of two-thirds of the membership of each house of the  | 
         
         
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            legislature as required by Section 17(a), Article VII, Texas  | 
         
         
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            Constitution. | 
         
         
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            ______________________________ | 
            ______________________________ | 
         
         
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               President of the Senate | 
            Speaker of the House      | 
         
         
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                   I certify that H.B. No. 42 was passed by the House on May 6,  | 
         
         
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            2025, by the following vote:  Yeas 141, Nays 6, 2 present, not  | 
         
         
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            voting; and that the House concurred in Senate amendments to H.B.  | 
         
         
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            No. 42 on May 29, 2025, by the following vote:  Yeas 111, Nays 15, 2  | 
         
         
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            present, not voting. | 
         
         
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            ______________________________ | 
         
         
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            Chief Clerk of the House    | 
         
         
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                   I certify that H.B. No. 42 was passed by the Senate, with  | 
         
         
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            amendments, on May 27, 2025, by the following vote:  Yeas 30, Nays  | 
         
         
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            1. | 
         
         
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            ______________________________ | 
         
         
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            Secretary of the Senate    | 
         
         
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            APPROVED: __________________ | 
         
         
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                            Date        | 
         
         
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                     __________________ | 
         
         
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                          Governor        |