H.B. No. 1207 1-1 AN ACT 1-2 relating to the creation of the higher education fund and to 1-3 increasing the amount of certain constitutionally dedicated funds 1-4 for certain public institutions of higher education. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter B, Chapter 62, Education Code, is 1-7 amended by adding Sections 62.024, 62.025, and 62.026 to read as 1-8 follows: 1-9 Sec. 62.024. AMOUNT OF ALLOCATION INCREASED. In accordance 1-10 with Article VII, Section 17(a), of the Texas Constitution, the 1-11 amount of the annual constitutional appropriation under that 1-12 subsection is increased to $175 million. 1-13 Sec. 62.025. DEPOSIT OF $50 MILLION. (a) Not later than 1-14 November 1 of each state fiscal year, the comptroller shall deposit 1-15 the first $50 million that comes to the state at the beginning of 1-16 each state fiscal year and that is not dedicated by other law to 1-17 the credit of the higher education fund. 1-18 (b) The comptroller may adopt rules to administer this 1-19 section. 1-20 (c) The deposit required by this section expires on 1-21 September 1 after the date the comptroller certifies that the value 1-22 of the higher education fund is $2 billion. 1-23 Sec. 62.026. HIGHER EDUCATION FUND. (a) The higher 1-24 education fund is a fund outside the state treasury in the custody 2-1 of the state treasurer. 2-2 (b) The fund consists of the $50 million deposited in the 2-3 fund each state fiscal year under Section 62.025 of this code and 2-4 interest, dividends, and other income earned from the investment of 2-5 the fund. 2-6 (c) Distributions from the fund may be used only for the 2-7 purposes provided by Article VII, Section 17(a), of the Texas 2-8 Constitution. 2-9 (d) The state treasurer shall administer the fund and invest 2-10 the fund in the same manner as the permanent university fund. 2-11 (e) The state treasurer may accept gifts or grants from any 2-12 public or private source for the fund. 2-13 (f) The state treasurer may deduct a reasonable amount for 2-14 administrative expenses from the interest, dividends, and other 2-15 income earned from the investment of the fund. The amount deducted 2-16 shall be deposited to the credit of the general revenue fund. 2-17 (g) The comptroller shall certify the date on which the 2-18 value of the fund is $2 billion and publish that certification in 2-19 the Texas Register. 2-20 (h) Beginning with the first state fiscal year that begins 2-21 on or after the date the comptroller certifies that the value of 2-22 the higher education fund is $2 billion, the state treasurer, not 2-23 later than November 1 of each fiscal year, shall distribute in 2-24 accordance with Article VII, Section 17(i), of the Texas 2-25 Constitution the interest, dividends, and other income earned from 2-26 the investment of the fund, less the amount of administrative 2-27 expenses deducted under Subsection (f) of this section, to the 3-1 eligible institutions in accordance with the allocation formula 3-2 under Section 62.021(a) of this code. 3-3 SECTION 2. This Act takes effect September 1, 1995. 3-4 SECTION 3. The importance of this legislation and the 3-5 crowded condition of the calendars in both houses create an 3-6 emergency and an imperative public necessity that the 3-7 constitutional rule requiring bills to be read on three several 3-8 days in each house be suspended, and this rule is hereby suspended.