1-1 By: Rudd, Duncan (Senate Sponsor - Montford) H.B. No. 1207 1-2 (In the Senate - Received from the House May 10, 1993; 1-3 May 11, 1993, read first time and referred to Committee on Finance; 1-4 May 13, 1993, reported favorably by the following vote: Yeas 12, 1-5 Nays 0; May 13, 1993, sent to printer.) 1-6 COMMITTEE VOTE 1-7 Yea Nay PNV Absent 1-8 Montford x 1-9 Turner x 1-10 Armbrister x 1-11 Barrientos x 1-12 Bivins x 1-13 Ellis x 1-14 Haley x 1-15 Moncrief x 1-16 Parker x 1-17 Ratliff x 1-18 Sims x 1-19 Truan x 1-20 Zaffirini x 1-21 A BILL TO BE ENTITLED 1-22 AN ACT 1-23 relating to the creation of the higher education fund and to 1-24 increasing the amount of certain constitutionally dedicated funds 1-25 for certain public institutions of higher education. 1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-27 SECTION 1. Subchapter B, Chapter 62, Education Code, is 1-28 amended by adding Sections 62.024, 62.025, and 62.026 to read as 1-29 follows: 1-30 Sec. 62.024. AMOUNT OF ALLOCATION INCREASED. In accordance 1-31 with Article VII, Section 17(a), of the Texas Constitution, the 1-32 amount of the annual constitutional appropriation under that 1-33 subsection is increased to $175 million. 1-34 Sec. 62.025. DEPOSIT OF $50 MILLION. (a) Not later than 1-35 November 1 of each state fiscal year, the comptroller shall deposit 1-36 the first $50 million that comes to the state at the beginning of 1-37 each state fiscal year and that is not dedicated by other law to 1-38 the credit of the higher education fund. 1-39 (b) The comptroller may adopt rules to administer this 1-40 section. 1-41 (c) The deposit required by this section expires on 1-42 September 1 after the date the comptroller certifies that the value 1-43 of the higher education fund is $2 billion. 1-44 Sec. 62.026. HIGHER EDUCATION FUND. (a) The higher 1-45 education fund is a fund outside the state treasury in the custody 1-46 of the state treasurer. 1-47 (b) The fund consists of the $50 million deposited in the 1-48 fund each state fiscal year under Section 62.025 of this code and 1-49 interest, dividends, and other income earned from the investment of 1-50 the fund. 1-51 (c) Distributions from the fund may be used only for the 1-52 purposes provided by Article VII, Section 17(a), of the Texas 1-53 Constitution. 1-54 (d) The state treasurer shall administer the fund and invest 1-55 the fund in the same manner as the permanent university fund. 1-56 (e) The state treasurer may accept gifts or grants from any 1-57 public or private source for the fund. 1-58 (f) The state treasurer may deduct a reasonable amount for 1-59 administrative expenses from the interest, dividends, and other 1-60 income earned from the investment of the fund. The amount deducted 1-61 shall be deposited to the credit of the general revenue fund. 1-62 (g) The comptroller shall certify the date on which the 1-63 value of the fund is $2 billion and publish that certification in 1-64 the Texas Register. 1-65 (h) Beginning with the first state fiscal year that begins 1-66 on or after the date the comptroller certifies that the value of 1-67 the higher education fund is $2 billion, the state treasurer, not 1-68 later than November 1 of each fiscal year, shall distribute in 2-1 accordance with Article VII, Section 17(i), of the Texas 2-2 Constitution the interest, dividends, and other income earned from 2-3 the investment of the fund, less the amount of administrative 2-4 expenses deducted under Subsection (f) of this section, to the 2-5 eligible institutions in accordance with the allocation formula 2-6 under Section 62.021(a) of this code. 2-7 SECTION 2. This Act takes effect September 1, 1995. 2-8 SECTION 3. The importance of this legislation and the 2-9 crowded condition of the calendars in both houses create an 2-10 emergency and an imperative public necessity that the 2-11 constitutional rule requiring bills to be read on three several 2-12 days in each house be suspended, and this rule is hereby suspended. 2-13 * * * * * 2-14 Austin, 2-15 Texas 2-16 May 13, 1993 2-17 Hon. Bob Bullock 2-18 President of the Senate 2-19 Sir: 2-20 We, your Committee on Finance to which was referred H.B. No. 1207, 2-21 have had the same under consideration, and I am instructed to 2-22 report it back to the Senate with the recommendation that it do 2-23 pass and be printed. 2-24 Montford, 2-25 Chairman 2-26 * * * * * 2-27 WITNESSES 2-28 No witnesses appeared on H.B. No. 1207.