BILL ANALYSIS H.B. 2462 By: Junell (Montford) Finance 05-19-95 Senate Committee Report (Unamended) BACKGROUND The Higher Education Assistance Fund (fund) was created in 1984. The fund provides aid to Texas public universities that are outside the University of Texas and Texas A&M University systems. An advisory committee was created in 1983. The committee recommends the formula used to distribute the fund to the Texas Higher Education Coordinating Board. The 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 As proposed, H.B. 2462 sets forth the allotments of the Higher Education Assistance 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 grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 62.003, Education Code, by adding Subdivision (3), to define "coordinating board." SECTION 2. Amends Sections 62.021(a) and (b), Education Code, as follows: (a) Provides that the allocation of funds under this subsection is made in accordance with an equitable formula consisting of the following elements: space deficit, facilities condition, institutional complexity, separate allocations for medical units and the Texas State Technical College System, and an additional allocation for Texas Southern University for compliance with the Texas Desegregation Plan. Sets forth the amounts allocated by the formula to certain institutions of higher education. (b) Makes conforming and nonsubstantive changes. SECTION 3. Amends Section 62.022, Education Code, as follows: Sec. 62.022. ADJUSTMENT OF ALLOCATION FORMULA. (a) Provides that the equitable allocation formula should be adjusted for the five-year period beginning September 1, 2000. Requires the coordinating board to include in the study a survey of educational and general building quality, if the legislature provides funds for the survey. Makes conforming changes. (b) Makes no changes. (c) Makes conforming and nonsubstantive changes. (d) Makes no changes. (e) Makes conforming changes. (f) Requires a review of the allocation formula conducted by the coordinating board, rather than after September 1, 1989, to include certain information. SECTION 4. Amends Chapter 62B, Education Code, by adding Section 62.027, as follows: Sec. 62.027. EFFECT OF LEGISLATION. (a) Sets forth the effect of the legislation. (b) Provides that 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) Provides that 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. Provides that 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. Effective date: upon passage.