By:  Duncan                                           H.B. No. 2251
       73R2827 SOS-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to reallocating the constitutionally dedicated funding for
    1-3  public institutions of higher education.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 66.03, Education Code, is amended by
    1-6  amending Subsections (b) and (c) and adding Subsection (d) to read
    1-7  as follows:
    1-8        (b)  The board of regents of The University of Texas System
    1-9  shall expend as much of the available university fund as is
   1-10  appropriated by the legislature for the administration of the
   1-11  university lands and of the permanent university fund, the expenses
   1-12  to be apportioned among <between> the institutions of higher
   1-13  education and state <two> systems that are entitled to the
   1-14  dedicated funding under Article VII, Section 18, of the Texas
   1-15  Constitution in proportion to their receipts of available
   1-16  university funds under the terms of this section.
   1-17        (c)  The board of directors of The Texas A&M University
   1-18  System shall expend one-third of all the available university fund
   1-19  received from the permanent university fund <arising from the
   1-20  1,000,000 acres of land appropriated by the constitution and the
   1-21  land appropriated by the Act of 1883, except income from grazing
   1-22  leases on university lands> (less its proportion of expenses of
   1-23  administration <and excluding any expenses of administration from
   1-24  grazing leases>); and the board of regents of The University of
    2-1  Texas System shall expend one-third <the balance> of the available
    2-2  fund<, including all the income from grazing leases on university
    2-3  lands> (less its proportion of expenses of administration).
    2-4        (d)  During each fiscal year, the Texas Higher Education
    2-5  Coordinating Board shall allocate, on an equitable basis, one-third
    2-6  of the available university fund among the HEAF institutions.  The
    2-7  board of regents of those institutions are entitled to spend the
    2-8  share of the available university fund allocated under this
    2-9  subsection, less the proportion of administrative   expenses
   2-10  apportioned under Subsection (b) of this section.  In this
   2-11  subsection, "HEAF institution" means:
   2-12              (1)  Texas State University System, including its
   2-13  components;
   2-14              (2)  University of Houston System, including its
   2-15  components;
   2-16              (3)  Lamar University System, including its components;
   2-17              (4)  East Texas State University and East Texas State
   2-18  University at Texarkana;
   2-19              (5)  Midwestern State University;
   2-20              (6)  University of North Texas;
   2-21              (7)  Texas College of Osteopathic Medicine;
   2-22              (8)  Stephen F. Austin State University;
   2-23              (9)  Texas Southern University;
   2-24              (10)  Texas Tech University, including its medical
   2-25  component; and
   2-26              (11)  Texas Woman's University.
   2-27        SECTION 2.  Subchapter B, Chapter 66, Education Code, is
    3-1  amended by adding Section 66.215 to read as follows:
    3-2        Sec. 66.215.  BONDS OR NOTES ISSUED BY CERTAIN INSTITUTIONS.
    3-3  (a)  The HEAF institutions are entitled to issue bonds and notes
    3-4  under Article VII, Section 18(b-1), of the Texas Constitution in
    3-5  accordance with the procedure under this section.
    3-6        (b)  Before a board of regents of a HEAF institution may
    3-7  issue bonds or notes under this section, the Texas Higher Education
    3-8  Coordinating Board shall determine the amount of bonds and notes
    3-9  that the board may issue.  That amount must be a portion, allocated
   3-10  on an equitable basis, of an amount equal to 10 percent of the cost
   3-11  value of the investments and other assets of the permanent
   3-12  university fund, exclusive of real estate, as of the time the board
   3-13  proposes to issue the bonds or notes.
   3-14        (c)  In this section, "HEAF institution" has the meaning
   3-15  assigned by Section 66.03(d) of this code.
   3-16        SECTION 3.  Subchapter B, Chapter 62, Education Code, is
   3-17  amended by adding Section 62.024 to read as follows:
   3-18        Sec. 62.024.  APPLICABILITY.  This subchapter does not apply
   3-19  to the dedicated funding under Article VII, Section 18, of the
   3-20  Texas Constitution.
   3-21        SECTION 4.  This Act takes effect on the date on which the
   3-22  constitutional amendment proposed by the 73rd Legislature, Regular
   3-23  Session, 1993, relating to reallocating the constitutionally
   3-24  dedicated funding for certain public institutions of higher
   3-25  education, is approved by the voters.  If that proposed
   3-26  constitutional amendment is not approved by the voters, this Act
   3-27  has no effect.
    4-1        SECTION 5.  The importance of this legislation and the
    4-2  crowded condition of the calendars in both houses create an
    4-3  emergency and an imperative public necessity that the
    4-4  constitutional rule requiring bills to be read on three several
    4-5  days in each house be suspended, and this rule is hereby suspended.