By: Montford S.B. No. 1397 A BILL TO BE ENTITLED AN ACT 1-1 relating to certain constitutionally dedicated funds for certain 1-2 public institutions of higher education and to the creation, 1-3 composition, and financing of the higher education fund; making an 1-4 appropriation. 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 APPROPRIATION INCREASED. (a) In 1-10 accordance with Article VII, Section 17(a), of the Texas 1-11 Constitution, the amount of the annual constitutional appropriation 1-12 under that subsection is increased to $225 million. 1-13 (b) This section expires on September 1 after the date the 1-14 comptroller certifies that the value of the higher education fund 1-15 is $2 billion. 1-16 Sec. 62.025. TRANSFER OF PART OF APPROPRIATION. (a) Not 1-17 later than November 1 of each state fiscal year, the comptroller 1-18 shall deposit $50 million of the annual constitutional 1-19 appropriation under Article VII, Section 17(a), of the Texas 1-20 Constitution to the credit of the higher education fund. 1-21 (b) The comptroller may adopt rules to administer this 1-22 section. 1-23 (c) The transfer required by this section expires on 1-24 September 1 after the date the comptroller certifies that the value 2-1 of the higher education fund is $2 billion. 2-2 Sec. 62.026. HIGHER EDUCATION FUND. (a) The higher 2-3 education fund is a fund outside the state treasury in the custody 2-4 of the state treasurer. 2-5 (b) The fund consists of the $50 million transferred to the 2-6 fund each state fiscal year under Section 62.025 of this code and 2-7 interest, dividends, and other income earned from the investment of 2-8 the fund. 2-9 (c) Distributions from the fund may be used only for the 2-10 purposes provided by Article VII, Section 17(a), of the Texas 2-11 Constitution. 2-12 (d) The state treasurer shall administer the fund and invest 2-13 the fund in the same manner as the permanent university fund. 2-14 (e) The state treasurer may deduct a reasonable amount for 2-15 administrative expenses from the interest, dividends, and other 2-16 income earned from the investment of the fund. The amount deducted 2-17 shall be deposited to the credit of the general revenue fund. 2-18 (f) The comptroller shall certify the date on which the 2-19 value of the fund is $2 billion and publish that certification in 2-20 the Texas Register. 2-21 (g) Beginning with the first state fiscal year that begins 2-22 on or after the date the comptroller certifies that the value of 2-23 the higher education fund is $2 billion, the state treasurer, not 2-24 later than November 1 of each fiscal year, shall distribute in 2-25 accordance with Article VII, Section 17(i), of the Texas 2-26 Constitution the interest, dividends, and other income earned from 2-27 the investment of the fund, less the amount of administrative 3-1 expenses deducted under Subsection (e) of this section, to the 3-2 eligible institutions in accordance with the allocation formula 3-3 under Section 62.021(a) of this code. 3-4 SECTION 2. This Act takes effect September 1, 1995. 3-5 SECTION 3. The importance of this legislation and the 3-6 crowded condition of the calendars in both houses create an 3-7 emergency and an imperative public necessity that the 3-8 constitutional rule requiring bills to be read on three several 3-9 days in each house be suspended, and this rule is hereby suspended.