By: Duncan H.J.R. No. 104
73R2173 SOS-D
A JOINT RESOLUTION
1-1 proposing a constitutional amendment to reallocate certain
1-2 constitutionally dedicated funding for public institutions of
1-3 higher education.
1-4 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article VII, Section 18, of the Texas
1-6 Constitution is amended by adding Subsection (b-1) and amending
1-7 Subsections (b)-(f) to read as follows:
1-8 (b-1) The board of regents of each institution of higher
1-9 education or state system entitled to the dedicated funding under
1-10 Section 17 of this article may issue bonds and notes not to exceed
1-11 a percentage, to be set on an equitable basis by the legislature or
1-12 a state agency designated by the legislature, of the value of the
1-13 investments and other assets of the permanent university fund,
1-14 exclusive of real estate, at the time of the issuance of those
1-15 bonds and notes, and may pledge all or any part of its interest in
1-16 the available university fund, to be set on an equitable basis by
1-17 the legislature or a state agency designated by the legislature,
1-18 for acquiring land either with or without permanent improvements,
1-19 major repair and rehabilitation of buildings and other permanent
1-20 improvements, acquiring capital equipment and library books and
1-21 library materials, and refunding bonds or notes issued under this
1-22 subsection at or for the institution, system, or component of the
1-23 system. The total amount of bonds and notes issued under this
1-24 subsection may not exceed an amount equal to 10 percent of the cost
2-1 value of the investments and other assets of the permanent
2-2 university fund, exclusive of real estate, at the time of the
2-3 issuance of those bonds and notes. Before a bond or note may be
2-4 issued under this subsection, the comptroller of public accounts
2-5 must determine that the issuance of the bond or note will not
2-6 impair the repayment of the principal of or interest on any of the
2-7 bonds or notes issued under this section. The combined interests
2-8 in the available university fund of institutions of higher
2-9 education and state systems entitled to the dedicated funding under
2-10 Section 17 of this article may not exceed one-third of the
2-11 available university fund.
2-12 (b) The Board of Regents of The University of Texas System
2-13 may issue bonds and notes not to exceed a total amount of 10 <20>
2-14 percent of the cost value of investments and other assets of the
2-15 permanent university fund (exclusive of real estate) at the time of
2-16 issuance thereof, and may pledge all or any part of its
2-17 <two-thirds> interest in the available university fund to secure
2-18 the payment of the principal and interest of those bonds and notes,
2-19 for the purpose of acquiring land either with or without permanent
2-20 improvements, constructing and equipping buildings or other
2-21 permanent improvements, major repair and rehabilitation of
2-22 buildings and other permanent improvements, acquiring capital
2-23 equipment and library books and library materials, and refunding
2-24 bonds or notes issued under this section or prior law, at or for
2-25 The University of Texas System administration and the following
2-26 component institutions of the system:
2-27 (1) The University of Texas at Arlington;
3-1 (2) The University of Texas at Austin;
3-2 (3) The University of Texas at Dallas;
3-3 (4) The University of Texas at El Paso;
3-4 (5) The University of Texas of the Permian Basin;
3-5 (6) The University of Texas at San Antonio;
3-6 (7) The University of Texas at Tyler;
3-7 (8) The University of Texas Health Science Center at
3-8 Dallas;
3-9 (9) The University of Texas Medical Branch at
3-10 Galveston;
3-11 (10) The University of Texas Health Science Center at
3-12 Houston;
3-13 (11) The University of Texas Health Science Center at
3-14 San Antonio;
3-15 (12) The University of Texas System Cancer Center;
3-16 (13) The University of Texas Health Center at Tyler;
3-17 and
3-18 (14) The University of Texas Institute of Texan
3-19 Cultures at San Antonio.
3-20 (c) Pursuant to a two-thirds vote of the membership of each
3-21 house of the legislature, institutions of higher education may be
3-22 created at a later date <as a part of The University of Texas
3-23 System or The Texas A&M University System by general law,> and,
3-24 when created, as provided by general law, such an institution shall
3-25 be entitled to participate in the funding provided by this section
3-26 <for the system in which it is created. An institution that is
3-27 entitled to participate in dedicated funding provided by Article
4-1 VII, Section 17, of this constitution may not be entitled to
4-2 participate in the funding provided by this section>.
4-3 (d) The proceeds of the bonds or notes issued under
4-4 Subsection (a), <or> (b), or (b-1) of this section may not be used
4-5 for the purpose of constructing, equipping, repairing, or
4-6 rehabilitating buildings or other permanent improvements that are
4-7 to be used for student housing, intercollegiate athletics, or
4-8 auxiliary enterprises.
4-9 (e) The available university fund consists of the dividends,
4-10 interest and other income from the permanent university fund (less
4-11 administrative expenses) including the net income attributable to
4-12 the surface of permanent university fund land. Out of one-third of
4-13 the available university fund, there shall be appropriated an
4-14 annual sum sufficient to pay the principal and interest due on the
4-15 bonds and notes issued by the Board of Regents of The Texas A&M
4-16 University System under this section and prior law, and the
4-17 remainder of that one-third of the available university fund shall
4-18 be appropriated to the Board of Regents of The Texas A&M University
4-19 System which shall have the authority and duty in turn to
4-20 appropriate an equitable portion of the same for the support and
4-21 maintenance of The Texas A&M University System administration,
4-22 Texas A&M University, and Prairie View A&M University. The Board
4-23 of Regents of The Texas A&M University System, in making just and
4-24 equitable appropriations to Texas A&M University and Prairie View
4-25 A&M University, shall exercise its discretion with due regard to
4-26 such criteria as the board may deem appropriate from year to year<,
4-27 taking into account all amounts appropriated from Subsection (f) of
5-1 this section>. Out of one-third <the other two-thirds> of the
5-2 available university fund there shall be appropriated an annual sum
5-3 sufficient to pay the principal and interest due on the bonds and
5-4 notes issued by the Board of Regents of The University of Texas
5-5 System under this section and prior law, and the remainder of such
5-6 one-third <two-thirds> of the available university fund, shall be
5-7 appropriated for the support and maintenance of The University of
5-8 Texas at Austin and The University of Texas System administration.
5-9 Out of the remaining one-third of the available university fund
5-10 there shall be appropriated an annual sum sufficient to pay the
5-11 principal and interest due on the bonds and notes issued by the
5-12 board of regents of each institution of higher education or state
5-13 system entitled to the dedicated funding under Section 17 of this
5-14 article, and the remainder of that one-third of the available
5-15 university fund shall be appropriated for the support and
5-16 maintenance of those institutions, systems, and components of those
5-17 systems.
5-18 (f) The board of regents of an institution of higher
5-19 education or a state system that is authorized to issue bonds or
5-20 notes under this section shall provide to the comptroller of public
5-21 accounts any information requested by the comptroller that relates
5-22 to any bonds or notes issued by the board <It is provided, however,
5-23 that, for 10 years beginning upon the adoption of this amendment,
5-24 before any other allocation is made of The University of Texas
5-25 System's two-thirds share of the available university fund,
5-26 remaining after payment of principal and interest on its bonds and
5-27 notes issued under this section and prior law, $6 million per year
6-1 shall be appropriated out of that share to the Board of Regents of
6-2 The Texas A&M University System for said board's use in making
6-3 appropriations to Prairie View A&M University. This subsection
6-4 expires and is deleted from this constitution 10 years from the
6-5 adoption of this amendment>.
6-6 SECTION 2. Article VII, Section 17, of the Texas
6-7 Constitution is amended by amending Subsection (c) and adding
6-8 Subsection (m) to read as follows:
6-9 (c) Pursuant to a two-thirds vote of the membership of each
6-10 house of the legislature, institutions of higher education may be
6-11 created at a later date by general law, and, when created, such an
6-12 institution shall be entitled to participate in the funding
6-13 provided by this section if it is not created as a part of The
6-14 University of Texas System or The Texas A&M University System. <An
6-15 institution that is entitled to participate in dedicated funding
6-16 provided by Article VII, Section 18, of this constitution may not
6-17 be entitled to participate in the funding provided by this
6-18 section.>
6-19 (m) The procedures under this section for adjusting the
6-20 amount and the allocation of the dedicated funding under this
6-21 section do not apply to funds that:
6-22 (1) are received by the agencies and institutions of
6-23 higher education listed under Subsection (b) of this section; and
6-24 (2) dedicated under Section 18 of this article.
6-25 SECTION 3. This proposed constitutional amendment shall be
6-26 submitted to the voters at an election to be held on November 2,
6-27 1993. The ballot shall be printed to provide for voting for or
7-1 against the proposition: "The constitutional amendment relating to
7-2 reallocating certain constitutionally dedicated funding among all
7-3 public institutions of higher education."