1-1 By: Montford S.B. No. 1397
1-2 (In the Senate - Filed April 21, 1993; April 21, 1993, read
1-3 first time and referred to Committee on Finance; May 3, 1993,
1-4 reported favorably by the following vote: Yeas 12, Nays 0;
1-5 May 3, 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 certain constitutionally dedicated funds for certain
1-24 public institutions of higher education and to the creation,
1-25 composition, and financing of the higher education fund; making an
1-26 appropriation.
1-27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-28 SECTION 1. Subchapter B, Chapter 62, Education Code, is
1-29 amended by adding Sections 62.024, 62.025, and 62.026 to read as
1-30 follows:
1-31 Sec. 62.024. AMOUNT OF APPROPRIATION INCREASED. (a) In
1-32 accordance with Article VII, Section 17(a), of the Texas
1-33 Constitution, the amount of the annual constitutional appropriation
1-34 under that subsection is increased to $225 million.
1-35 (b) This section expires on September 1 after the date the
1-36 comptroller certifies that the value of the higher education fund
1-37 is $2 billion.
1-38 Sec. 62.025. TRANSFER OF PART OF APPROPRIATION. (a) Not
1-39 later than November 1 of each state fiscal year, the comptroller
1-40 shall deposit $50 million of the annual constitutional
1-41 appropriation under Article VII, Section 17(a), of the Texas
1-42 Constitution to the credit of the higher education fund.
1-43 (b) The comptroller may adopt rules to administer this
1-44 section.
1-45 (c) The transfer required by this section expires on
1-46 September 1 after the date the comptroller certifies that the value
1-47 of the higher education fund is $2 billion.
1-48 Sec. 62.026. HIGHER EDUCATION FUND. (a) The higher
1-49 education fund is a fund outside the state treasury in the custody
1-50 of the state treasurer.
1-51 (b) The fund consists of the $50 million transferred to the
1-52 fund each state fiscal year under Section 62.025 of this code and
1-53 interest, dividends, and other income earned from the investment of
1-54 the fund.
1-55 (c) Distributions from the fund may be used only for the
1-56 purposes provided by Article VII, Section 17(a), of the Texas
1-57 Constitution.
1-58 (d) The state treasurer shall administer the fund and invest
1-59 the fund in the same manner as the permanent university fund.
1-60 (e) The state treasurer may deduct a reasonable amount for
1-61 administrative expenses from the interest, dividends, and other
1-62 income earned from the investment of the fund. The amount deducted
1-63 shall be deposited to the credit of the general revenue fund.
1-64 (f) The comptroller shall certify the date on which the
1-65 value of the fund is $2 billion and publish that certification in
1-66 the Texas Register.
1-67 (g) Beginning with the first state fiscal year that begins
1-68 on or after the date the comptroller certifies that the value of
2-1 the higher education fund is $2 billion, the state treasurer, not
2-2 later than November 1 of each fiscal year, shall distribute in
2-3 accordance with Article VII, Section 17(i), of the Texas
2-4 Constitution the interest, dividends, and other income earned from
2-5 the investment of the fund, less the amount of administrative
2-6 expenses deducted under Subsection (e) of this section, to the
2-7 eligible institutions in accordance with the allocation formula
2-8 under Section 62.021(a) of this code.
2-9 SECTION 2. This Act takes effect September 1, 1995.
2-10 SECTION 3. The importance of this legislation and the
2-11 crowded condition of the calendars in both houses create an
2-12 emergency and an imperative public necessity that the
2-13 constitutional rule requiring bills to be read on three several
2-14 days in each house be suspended, and this rule is hereby suspended.
2-15 * * * * *
2-16 Austin,
2-17 Texas
2-18 May 3, 1993
2-19 Hon. Bob Bullock
2-20 President of the Senate
2-21 Sir:
2-22 We, your Committee on Finance to which was referred S.B. No. 1397,
2-23 have had the same under consideration, and I am instructed to
2-24 report it back to the Senate with the recommendation that it do
2-25 pass and be printed.
2-26 Montford,
2-27 Chairman
2-28 * * * * *
2-29 WITNESSES
2-30 FOR AGAINST ON
2-31 ___________________________________________________________________
2-32 Name: Dr. Dan Angel x
2-33 Representing: Stephen F. Austin State Un.
2-34 City: Nacogdoches
2-35 -------------------------------------------------------------------
2-36 Name: Bill Nance x x
2-37 Representing: Southwest Tx. State Un.
2-38 City: San Marcos
2-39 -------------------------------------------------------------------
2-40 Name: Louis J. Rodriguez x
2-41 Representing: Public Un. Presidents & Chanc
2-42 City: Wichita Falls
2-43 -------------------------------------------------------------------