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.