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A JOINT RESOLUTION
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proposing a constitutional amendment providing for the creation of |
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funds to support the capital needs of educational programs offered |
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by the Texas State Technical College System and certain component |
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institutions of the Texas State University System and repealing the |
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limitation on the allocation to the Texas State Technical College |
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System and its campuses of the annual appropriation of certain |
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constitutionally dedicated funding for public institutions of |
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higher education. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Article VII, Texas Constitution, is amended by |
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adding Section 21 to read as follows: |
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Sec. 21. (a) In this section: |
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(1) "Available fund" means the available instruction |
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in manufacturing and technical workforce operations fund. |
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(2) "Permanent fund" means the permanent instruction |
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in manufacturing and technical workforce operations fund. |
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(b) The permanent instruction in manufacturing and |
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technical workforce operations fund and the available instruction |
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in manufacturing and technical workforce operations fund are |
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established as special funds in the state treasury outside the |
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general revenue fund to be administered as provided by this section |
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without further appropriation for the purpose of providing a |
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dedicated source of funding for capital projects and equipment |
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purchases related to educational programs offered by the Texas |
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State Technical College System and component institutions of the |
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Texas State University System described by Subsection (k) of this |
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section. |
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(c) The permanent fund consists of: |
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(1) money appropriated, credited, transferred, or |
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deposited to the credit of the fund by this section or as authorized |
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by other law; |
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(2) any interest or other earnings attributable to the |
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investment of money in the fund; and |
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(3) gifts, grants, and donations made to the fund. |
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(d) The available fund consists of: |
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(1) money distributed to the fund from the permanent |
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fund as provided by this section; |
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(2) money appropriated, credited, transferred, or |
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deposited to the credit of the fund by this section or as authorized |
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by other law; |
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(3) any interest or other earnings attributable to the |
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investment of money in the fund; and |
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(4) gifts, grants, and donations made to the fund. |
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(e) The comptroller of public accounts, the board of regents |
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of the Texas State Technical College System, or the board of regents |
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of the Texas State University System may establish accounts in the |
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available fund as necessary to administer the fund or pay for |
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projects authorized under this section. |
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(f) The comptroller of public accounts shall hold, manage, |
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and invest the permanent fund. In managing the assets of the fund, |
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the comptroller may acquire, exchange, sell, supervise, manage, or |
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retain any kind of investment that a prudent investor, exercising |
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reasonable care, skill, and caution, would acquire or retain in |
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light of the purposes, terms, distribution needs, and other |
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circumstances of the fund, taking into consideration the investment |
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of all the assets of the fund rather than a single investment. The |
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expenses of managing the investments of the fund shall be paid from |
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the fund. |
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(g) Money may not be appropriated or transferred from the |
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permanent fund or the available fund except as provided by this |
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section. |
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(h) The comptroller of public accounts shall determine the |
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amount available for distribution from the permanent fund to the |
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available fund for each fiscal year. The amount available for |
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distribution: |
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(1) must be determined in a manner intended to: |
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(A) provide the available fund with a stable and |
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predictable stream of annual distributions; and |
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(B) preserve over a rolling 10-year period the |
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purchasing power of the permanent fund; and |
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(2) may not exceed 5.5 percent of the fair market value |
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of the investment assets of the permanent fund, as determined by the |
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comptroller. |
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(i) For each state fiscal year, on request of the board of |
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regents of the Texas State Technical College System or the board of |
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regents of the Texas State University System, the comptroller of |
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public accounts shall distribute an amount that does not exceed the |
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amount determined under Subsection (h) of this section from the |
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permanent fund to the available fund for purposes of this section. |
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(j) Out of the distribution from the permanent fund to the |
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available fund under Subsection (i) of this section, two-thirds is |
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appropriated to the board of regents of the Texas State Technical |
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College System and, subject to Subsection (k) of this section, |
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one-third is appropriated to the board of regents of the Texas State |
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University System for: |
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(1) acquiring land, either with or without permanent |
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improvements; |
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(2) constructing and equipping buildings or other |
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permanent improvements; |
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(3) major repair and rehabilitation of buildings and |
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other permanent improvements; |
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(4) acquiring capital equipment, including |
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instructional equipment, virtual reality or augmented reality |
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equipment, heavy industrial equipment, and vehicles; |
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(5) acquiring library books and materials, including |
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digital or electronic library books and materials; |
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(6) payment of the principal and interest due on the |
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bonds and notes issued by the respective board of regents to finance |
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permanent improvements as authorized by other law; and |
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(7) any other purpose authorized by general law. |
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(k) The board of regents of the Texas State University |
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System may use money appropriated under Subsection (j) of this |
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section only for the benefit of: |
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(1) the Lamar Institute of Technology; |
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(2) Lamar State College--Orange; |
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(3) Lamar State College--Port Arthur; or |
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(4) pursuant to a majority vote of the legislature, an |
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institution of higher education created as a part of or added to the |
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system on or after January 1, 2026. |
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(l) Notwithstanding any other provision of this section, |
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money appropriated from the available fund under this section may |
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not be used for the purpose of constructing, equipping, repairing, |
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or rehabilitating buildings or other permanent improvements that |
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are to be used for intercollegiate athletics or auxiliary |
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enterprises. |
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(m) An institution, other than a component institution of |
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the Texas State Technical College System or a component institution |
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of the Texas State University System described by Subsection (k) of |
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this section, that is entitled to participate in dedicated funding |
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provided by Section 17 or 18 of this article may not be entitled to |
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participate in the funding provided by this section. |
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(n) This section does not impair any obligation created by |
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the issuance of bonds or notes in accordance with prior law, |
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including bonds or notes issued under Section 17 of this article, |
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and all outstanding bonds and notes shall be paid in full, both |
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principal and interest, in accordance with their terms. If this |
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section conflicts with any other provision of this constitution, |
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this section prevails. |
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(o) Money appropriated under Subsection (j) of this section |
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that is not spent during the state fiscal year for which the |
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appropriation is made is retained by the Texas State Technical |
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College System or the Texas State University System, as applicable, |
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and may be spent in a subsequent state fiscal year for a purpose for |
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which the appropriation was made. |
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(o-1) On January 1, 2026, the amount of $1,500,000,000 is |
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appropriated from the general revenue fund to the comptroller of |
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public accounts for the purpose of immediate deposit to the credit |
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of the permanent fund. This subsection expires December 31, 2026. |
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(p) For purposes of Section 22, Article VIII, of this |
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constitution: |
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(1) money in the permanent fund and the available fund |
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is dedicated by this constitution; and |
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(2) an appropriation of state tax revenues for the |
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purpose of depositing money to the credit of the permanent fund or |
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the available fund is treated as if it were an appropriation of |
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revenues dedicated by this constitution. |
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(q) If a board of regents of a higher education system, |
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higher education system, institution of higher education, or state |
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office referenced in this section is merged with another entity or |
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dissolved or otherwise eliminated by law, the rights, privileges, |
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benefits, entitlements, funding, duties, and obligations assigned |
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to that board of regents, system, institution, or state office by |
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this section pass to its successor in function. |
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SECTION 2. Section 17(j), Article VII, Texas Constitution, |
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is amended to read as follows: |
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(j) The state systems and institutions of higher education |
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designated in this section may not receive any additional funds |
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from the general revenue of the state, other than money |
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appropriated under Section 21 of this article, for acquiring land |
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with or without permanent improvements, for constructing or |
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equipping buildings or other permanent improvements, or for major |
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repair and rehabilitation of buildings or other permanent |
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improvements except that: |
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(1) in the case of fire or natural disaster the |
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legislature may appropriate from the general revenue an amount |
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sufficient to replace the uninsured loss of any building or other |
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permanent improvement; and |
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(2) the legislature, by two-thirds vote of each house, |
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may, in cases of demonstrated need, which need must be clearly |
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expressed in the body of the act, appropriate additional general |
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revenue funds for acquiring land with or without permanent |
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improvements, for constructing or equipping buildings or other |
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permanent improvements, or for major repair and rehabilitation of |
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buildings or other permanent improvements. |
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This subsection does not apply to legislative appropriations |
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made prior to the adoption of this amendment. |
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SECTION 3. Section 18(c), Article VII, Texas Constitution, |
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is amended to read as follows: |
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(c) Pursuant to a two-thirds vote of the membership of each |
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house of the legislature, institutions of higher education may be |
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created at a later date as a part of The University of Texas System |
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or The Texas A&M University System by general law, and, when |
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created, such an institution shall be entitled to participate in |
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the funding provided by this section for the system in which it is |
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created. An institution that is entitled to participate in |
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dedicated funding provided by [Article VII,] Section 17 or 21[,] of |
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this article [constitution] may not be entitled to participate in |
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the funding provided by this section. |
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SECTION 4. Section 17(d-1), Article VII, Texas |
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Constitution, is repealed. |
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SECTION 5. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 4, 2025. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment providing for the |
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creation of the permanent instruction in manufacturing and |
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technical workforce operations fund and the available instruction |
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in manufacturing and technical workforce operations fund to support |
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the capital needs of educational programs offered by the Texas |
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State Technical College System and certain component institutions |
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of the Texas State University System and repealing the limitation |
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on the allocation to the Texas State Technical College System and |
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its campuses of the annual appropriation of certain |
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constitutionally dedicated funding for public institutions of |
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higher education." |