By: Montford S.B. No. 1397 73R9118 SOS-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to certain constitutionally dedicated funds for certain 1-3 public institutions of higher education and to the creation, 1-4 composition, and financing of the higher education fund; making an 1-5 appropriation. 1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-7 SECTION 1. Subchapter B, Chapter 62, Education Code, is 1-8 amended by adding Sections 62.024, 62.025, and 62.026 to read as 1-9 follows: 1-10 Sec. 62.024. AMOUNT OF APPROPRIATION INCREASED. (a) In 1-11 accordance with Article VII, Section 17(a), of the Texas 1-12 Constitution, the amount of the annual constitutional appropriation 1-13 under that subsection is increased to $225 million. 1-14 (b) This section expires on September 1 after the date the 1-15 comptroller certifies that the value of the higher education fund 1-16 is $2 billion. 1-17 Sec. 62.025. TRANSFER OF PART OF APPROPRIATION. (a) Not 1-18 later than November 1 of each state fiscal year, the comptroller 1-19 shall deposit $50 million of the annual constitutional 1-20 appropriation under Article VII, Section 17(a), of the Texas 1-21 Constitution to the credit of the higher education fund. 1-22 (b) The comptroller may adopt rules to administer this 1-23 section. 1-24 (c) The transfer required by this section expires on 2-1 September 1 after the date the comptroller certifies that the value 2-2 of the higher education fund is $2 billion. 2-3 Sec. 62.026. HIGHER EDUCATION FUND. (a) The higher 2-4 education fund is a fund outside the state treasury in the custody 2-5 of the state treasurer. 2-6 (b) The fund consists of the $50 million transferred to the 2-7 fund each state fiscal year under Section 62.025 of this code and 2-8 interest, dividends, and other income earned from the investment of 2-9 the fund. 2-10 (c) Distributions from the fund may be used only for the 2-11 purposes provided by Article VII, Section 17(a), of the Texas 2-12 Constitution. 2-13 (d) The state treasurer shall administer the fund and invest 2-14 the fund in the same manner as the permanent university fund. 2-15 (e) The state treasurer may deduct a reasonable amount for 2-16 administrative expenses from the interest, dividends, and other 2-17 income earned from the investment of the fund. The amount deducted 2-18 shall be deposited to the credit of the general revenue fund. 2-19 (f) The comptroller shall certify the date on which the 2-20 value of the fund is $2 billion and publish that certification in 2-21 the Texas Register. 2-22 (g) Beginning with the first state fiscal year that begins 2-23 on or after the date the comptroller certifies that the value of 2-24 the higher education fund is $2 billion, the state treasurer, not 2-25 later than November 1 of each fiscal year, shall distribute in 2-26 accordance with Article VII, Section 17(i), of the Texas 2-27 Constitution the interest, dividends, and other income earned from 3-1 the investment of the fund, less the amount of administrative 3-2 expenses deducted under Subsection (e) of this section, to the 3-3 eligible institutions in accordance with the allocation formula 3-4 under Section 62.021(a) of this code. 3-5 SECTION 2. This Act takes effect September 1, 1995. 3-6 SECTION 3. The importance of this legislation and the 3-7 crowded condition of the calendars in both houses create an 3-8 emergency and an imperative public necessity that the 3-9 constitutional rule requiring bills to be read on three several 3-10 days in each house be suspended, and this rule is hereby suspended.