S.J.R. No. 13
                                SENATE JOINT RESOLUTION
    1-1  proposing a constitutional amendment relating to the amount and
    1-2  expenditure of certain constitutionally dedicated funding for
    1-3  public institutions of higher education.
    1-4        BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Article VII, Section 17(a), of the Texas
    1-6  Constitution is amended to read as follows:
    1-7        (a)  In the fiscal year beginning September 1, 1985, and each
    1-8  fiscal year thereafter, there is hereby appropriated out of the
    1-9  first money coming into the state treasury not otherwise
   1-10  appropriated by the constitution $100 million to be used by
   1-11  eligible agencies and institutions of higher education for the
   1-12  purpose of acquiring land either with or without permanent
   1-13  improvements, constructing and equipping buildings or other
   1-14  permanent improvements, major repair or rehabilitation of buildings
   1-15  or other permanent improvements, <and> acquisition of capital
   1-16  equipment, library books and library materials, and paying for
   1-17  acquiring, constructing, or equipping or for major repair or
   1-18  rehabilitation of buildings, facilities, other permanent
   1-19  improvements, or capital equipment used jointly for educational and
   1-20  general activities and for auxiliary enterprises to the extent of
   1-21  their use for educational and general activities.  For the
   1-22  five-year period that begins on September 1, 2000, and for each
   1-23  five-year period that begins after that period, the legislature,
   1-24  during a <During the> regular session <of the legislature> that is
    2-1  nearest, but preceding, a five-year period, <the beginning of each
    2-2  fifth fiscal year dating from September 1, 1985, the legislature>
    2-3  may by two-thirds vote of the membership of each house increase
    2-4  <adjust> the amount of the constitutional appropriation for the
    2-5  five-year period <ensuing five years> but may not adjust the
    2-6  appropriation in such a way as to impair any obligation created by
    2-7  the issuance of bonds or notes in accordance with this section.
    2-8        SECTION 2.  Article VII, Section 17(b), of the Texas
    2-9  Constitution is amended to read as follows:
   2-10        (b)  The funds appropriated under Subsection (a) of this
   2-11  section shall be for the use of the following eligible agencies and
   2-12  institutions of higher education (even though their names may be
   2-13  changed):
   2-14              (1)  East Texas State University including East Texas
   2-15  State University at Texarkana;
   2-16              (2)  Lamar University including Lamar University at
   2-17  Orange and Lamar University at Port Arthur;
   2-18              (3)  Midwestern State University;
   2-19              (4)  University of North Texas <State University>;
   2-20              (5)  The University of Texas--Pan American <University>
   2-21  including The <Pan American> University of Texas at Brownsville;
   2-22              (6)  Stephen F. Austin State University;
   2-23              (7)  Texas College of Osteopathic Medicine;
   2-24              (8)  Texas State University System Administration and
   2-25  the following component institutions:
   2-26                    (9)  Angelo State University;
   2-27                    (10)  Sam Houston State University;
    3-1                    (11)  Southwest Texas State University;
    3-2                    (12)  Sul Ross State University including Uvalde
    3-3  Study Center;
    3-4              (13)  Texas Southern University;
    3-5              (14)  Texas Tech University;
    3-6              (15)  Texas Tech University Health Sciences Center;
    3-7              (16)  Texas Woman's University;
    3-8              (17)  University of Houston System Administration and
    3-9  the following component institutions:
   3-10                    (18)  University of Houston<--University Park>;
   3-11                    (19)  University of Houston--Victoria;
   3-12                    (20)  University of Houston--Clear Lake;
   3-13                    (21)  University of Houston--Downtown;
   3-14              (22)  Texas A&M University--Corpus Christi; <University
   3-15  System of South Texas System Administration and the following
   3-16  component institutions:>
   3-17              (23)  Texas A&M International <Corpus Christi State>
   3-18  University;
   3-19              (24)  <Laredo State University;>
   3-20              <(25)>  Texas A&M <A&I> University--Kingsville; <and>
   3-21              (25) <(26)>  West Texas A&M <State> University; and
   3-22              (26)  Texas State Technical College System and its
   3-23  campuses, but not its extension centers or programs.
   3-24        SECTION 3.  Article VII, Section 17, of the Texas
   3-25  Constitution is amended by adding Subsection (d-1) to read as
   3-26  follows:
   3-27        (d-1)  Notwithstanding Subsection (d) of this section, the
    4-1  allocation of the annual appropriation to Texas State Technical
    4-2  College System and its campuses may not exceed 2.2 percent of the
    4-3  total appropriation each fiscal year.
    4-4        SECTION 4.  Article VII, Sections 17(e), (f), and (g), of the
    4-5  Texas Constitution are amended to read as follows:
    4-6        (e)  Each governing board authorized to participate in the
    4-7  distribution of money under this section is authorized to expend
    4-8  all money distributed to it for any of the purposes enumerated in
    4-9  Subsection (a).  In addition, <unless a single bonding agency is
   4-10  designated as hereinafter provided,> such governing board may issue
   4-11  bonds and notes for the purposes of refunding bonds or notes issued
   4-12  under this section or prior law, acquiring land either with or
   4-13  without permanent improvements, constructing and equipping
   4-14  buildings or other permanent improvements, acquiring capital
   4-15  equipment, library books, and library materials, paying for
   4-16  acquiring, constructing, or equipping or for major repair or
   4-17  rehabilitation of buildings, facilities, other permanent
   4-18  improvements, or capital equipment used jointly for educational and
   4-19  general activities and for auxiliary enterprises to the extent of
   4-20  their use for educational and general activities, and for major
   4-21  repair and rehabilitation of buildings or other permanent
   4-22  improvements, and may pledge up to 50 percent of the money
   4-23  allocated to such governing board pursuant to this section to
   4-24  secure the payment of the principal and interest of such bonds or
   4-25  notes.  Proceeds from the issuance of bonds or notes under this
   4-26  subsection shall be maintained in a local depository selected by
   4-27  the governing board issuing the bonds or notes.  The bonds and
    5-1  notes issued under this subsection shall be payable solely out of
    5-2  the money appropriated by this section and shall mature serially or
    5-3  otherwise in not more than 10 years from their respective dates.
    5-4  All bonds issued under this section shall be sold only through
    5-5  competitive bidding and are subject to approval by the attorney
    5-6  general.  Bonds approved by the attorney general shall be
    5-7  incontestable.  The permanent university fund may be invested in
    5-8  the bonds and notes issued under this section.  <In lieu of the
    5-9  authority granted to each governing board herein, the legislature
   5-10  by general law may designate a single agency to issue bonds and
   5-11  notes authorized under this section and transfer to that agency the
   5-12  authority to collect and pledge money to the payment of such bonds
   5-13  and notes for the purposes, to the extent, and subject to the
   5-14  restrictions of this section.  Provided, that such agency shall be
   5-15  authorized to issue such bonds and notes for the benefit of an
   5-16  eligible institution and pledge money collected hereunder only as
   5-17  directed by the governing board of each eligible institution.>
   5-18        (f)  The funds appropriated by this section may not be used
   5-19  for the purpose of constructing, equipping, repairing, or
   5-20  rehabilitating buildings or other permanent improvements that are
   5-21  to be used only for student housing, intercollegiate athletics, or
   5-22  auxiliary enterprises.
   5-23        (g)  The <Except for that portion of the allocated funds that
   5-24  may be required to be transferred to a single bonding agency, if
   5-25  one is created, the> comptroller of public accounts shall make
   5-26  annual transfers of the funds allocated pursuant to Subsection (d)
   5-27  directly to the governing boards of the eligible institutions.
    6-1        SECTION 5.  The following temporary provision is added to the
    6-2  Texas Constitution:
    6-3        TEMPORARY PROVISION.  (a)  This temporary provision applies
    6-4  to the constitutional amendment proposed by S.J.R. No. 13, 73rd
    6-5  Legislature, Regular Session, 1993, and expires September 2, 1995.
    6-6        (b)  Section 2 of the constitutional amendment takes effect
    6-7  September 1, 1995.
    6-8        SECTION 6.  This proposed constitutional amendment shall be
    6-9  submitted to the voters at an election to be held November 2, 1993.
   6-10  The ballot shall be printed to provide for voting for or against
   6-11  the proposition:  "The constitutional amendment relating to the
   6-12  amount and expenditure of certain constitutionally dedicated
   6-13  funding for public institutions of higher education."