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.