BILL ANALYSIS
H.B. 2462
By: Junell
April 18, 1995
Committee Report (Unamended)
BACKGROUND
The Higher Education Assistance Fund (HEAF) was created in 1984 in
Article VII, Section 17, of the Constitution. The fund provides
aid to Texas public universities that are outside the University of
Texas and Texas A&M University systems. Until 1984 UT and A&M
system schools alone had a constitutionally dedicated source of
funding for capital needs: the Permanent University Fund (PUF).
The HEAF was created to provide a similar constitutional fund for
all other state universities. An Advisory Committee, consisting of
representatives from all institutions and systems that are eligible
to receive HEAF revenues, was created in 1983. The Advisory
Committee recommends the formula used to distribute the HEAF funds
to the Commissioner and the Coordinating Board. The annual
appropriation originally set at $100 million will be raised to $175
million in September 1995 with an annual dedication of $50 million
toward establishment of a $2 billion dollar higher education fund
to serve as an endowment for future capital expenditures. The
Texas State Technical College System will also be added to the HEAF
in September of 1995. HEAF funds are used for capital projects and
equipment used jointly for educational and general activities and
for auxiliary enterprises to the extent of their use for
educational and general activities.
PURPOSE
This bill sets out the allotments of the HEAF fund adding the Texas
State Technical College System and an additional set-aside for
Texas Southern University.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 62.003, Education Code, by defining
"Coordinating Board."
SECTION 2. Amends Section 62.021(a) and (b), Education Code, by
setting out the HEAF allotments as follows: (a)
$5,572,558 East Texas State University at Texarkana
$9,468,548 Lamar University including LU at Orange
and LU at Port Arthur
$2,862,203 Midwestern State University
$20,217,740 University of North Texas
$10,174,500 UT--PanAm and UT--Brownsville
$6,468,273 Stephen F. Austin State University
$3,640,000 University of North Texas HSC at Ft. Worth
$23,181,556 Texas State University System
$8,199,288 Texas Southern University (includes
$1,000,000 for compliance with Texas
Desegregation Plan)
$16,887,085 Texas Tech University
$7,735,000 Texas Tech University HSC
$6,849,160 Texas Woman's University
$37,726,969 University of Houston System
$12,167,120 TAMU--Corpus Christi, TAM International U,
TAMU-- Kingsville, West Texas AMU
$3,850,000 Texas State Technical College System
(excluding extension centers or programs)
(b) Removes the requirement that land acquisition projects
proposed for coordinating board endorsement within three
months of the legislative session be automatically referred to
the legislature for consideration. Makes conforming changes.
SECTION 3. Amends Section 62.022, Education Code, to require only
the coordinating board, rather than the coordinating board and
the Texas Colleges and University System,
conduct a study of the five-year period
adjustment of the formulas and present
findings to the legislature. Authorizes
the coordinating board to study the
educational and general building quality,
if the legislature appropriates money to
fund the survey. Requires the
Coordinating Board rather than the
Coordinating Board and the Texas Colleges
and University System to conduct a study
of the ten-year period allocation
beginning in 2005 and present the
findings to the LBB and House and Senate
Standing Committees having cognizance
over legislation related to the HEAF
prior to the Legislative Session in 2005.
Makes conforming changes throughout the
Section.
SECTION 4. Subchapter B, Chapter 62, Education Code, is amended by
adding Section 62.027 as follows:
Sec. 62.027. EFFECT OF LEGISLATION. (a) The constitutional
amendment proposed by HJR 13, 73rd Legislature and ratified by
voters on November 2, 1993, authorized the legislature by a
two-thirds vote of the membership of each house to increase
the amount of the appropriation made under Section 17(a),
Article VII, Texas Constitution for each five-year period.
(b) Chapter 537, Acts of the 73rd Legislature, Regular
Session, 1993, added Section 62.024 to this subchapter in
order to increase the amount of the appropriation made under
Section 17(a), Article VII, Texas Constitution.
(c) The increase provided by Section 62.024 in the amount of
the appropriation made under Section 17(a), Article VII, Texas
Constitution, is valid and effective beginning September 1,
1995.
SECTION 5. The amounts allocated under Section 62.021, Education
Code, as amended by this Act, apply to each state fiscal year
beginning with the state fiscal year
beginning September 1, 1995.
SECTION 6. Emergency clause.
SUMMARY OF COMMITTEE ACTION
H.B. 2462 was taken up in a public hearing on April 5, 1995. The
bill was laid out by Representative Junell. The Chair recognized
Bill Beckham and Don Brown with the Texas Higher Education
Coordinating Board to testify on the bill. The bill was left
pending in Committee. H.B. 2462 was taken up in a public hearing
on April 12, 1995. No witnesses testified on the bill.
Representative Kubiak moved H.B. 2462 be sent to the Committee on
Calendars with the recommendation it do pass. The motion prevailed
with a record vote of 17 ayes, 0 nays, 0 p-n-v, and 10 absent.