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.