1-1 By: Junell (Senate Sponsor - Montford) H.B. No. 2462
1-2 (In the Senate - Received from the House May 4, 1995;
1-3 May 5, 1995, read first time and referred to Committee on Finance;
1-4 May 18, 1995, reported favorably by the following vote: Yeas 13,
1-5 Nays 0; May 18, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the allocation of certain funds to certain institutions
1-9 of higher education.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 62.003, Education Code, is amended by
1-12 adding Subdivision (3) to read as follows:
1-13 (3) "Coordinating board" means the Texas Higher
1-14 Education Coordinating Board.
1-15 SECTION 2. Sections 62.021(a) and (b), Education Code, are
1-16 amended to read as follows:
1-17 (a) Each fiscal year, an eligible institution is entitled to
1-18 receive an amount allocated in accordance with this section from
1-19 funds appropriated by Article VII, Section 17(a), of the
1-20 Constitution of Texas. The comptroller of public accounts shall
1-21 distribute funds allocated under this subsection only on
1-22 presentation of a claim and issuance of a warrant in accordance
1-23 with Section 403.071, Government Code. The comptroller may not
1-24 issue a warrant from any funds allocated under this subsection
1-25 before the delivery of goods or services described in Section 17,
1-26 Article VII, Texas Constitution, except for the payment of
1-27 principal or interest on bonds or notes. The allocation of funds
1-28 under this subsection is made in accordance with an equitable
1-29 formula consisting of the following elements: space deficit,
1-30 facilities condition, institutional complexity, separate
1-31 allocations <allocation> for medical units and the Texas State
1-32 Technical College System, and an additional allocation for Texas
1-33 Southern University for compliance with the Texas Desegregation
1-34 Plan. The amounts allocated by the <such> formula are as follows:
1-35 $ 5,572,558 <$ 2,971,685> East Texas State University including
1-36 East Texas State University at
1-37 Texarkana;
1-38 $ 9,468,548 <$ 7,125,680> Lamar University including Lamar
1-39 University at Orange and Lamar
1-40 University at Port Arthur;
1-41 $ 2,862,203 <$ 1,645,885> Midwestern State University;
1-42 $20,217,740 <$11,444,067> University of North Texas;
1-43 $10,174,500 <$ 3,196,287> The University of Texas--Pan American
1-44 and The University of Texas at
1-45 Brownsville;
1-46 $ 6,468,273 <$ 5,152,124> Stephen F. Austin State University;
1-47 $ 3,640,000 <$ 2,166,667> University of North Texas Health
1-48 Science Center at Fort Worth;
1-49 $23,181,556 <$19,724,411> Texas State University System
1-50 Administration and the following
1-51 component institutions: Angelo
1-52 State University; Sam Houston State
1-53 University; Southwest Texas State
1-54 University; Sul Ross State
1-55 University including Uvalde <Study>
1-56 Center;
1-57 $ 8,199,288 <$ 6,596,436> Texas Southern University (includes
1-58 allocation of $1,000,000
1-59 <$2,700,000> for compliance with
1-60 Texas Desegregation Plan);
1-61 $16,887,085 <$10,538,296> Texas Tech University;
1-62 $ 7,735,000 <$ 4,333,333> Texas Tech University Health Sciences
1-63 Center;
1-64 $ 6,849,160 <$ 3,583,869> Texas Woman's University;
1-65 $37,726,969 <$15,799,996> University of Houston System
1-66 Administration and the following
1-67 component institutions: University
1-68 of Houston; University of
2-1 Houston--Victoria; University of
2-2 Houston--Clear Lake; University of
2-3 Houston--Downtown;
2-4 $12,167,120 <$ 3,636,316> Texas A&M University--Corpus Christi
2-5 <Corpus Christi State University>;
2-6 Texas A&M International University;
2-7 Texas A&M University--Kingsville
2-8 <Texas A&I University>; West Texas
2-9 A&M University; and
2-10 <$ 2,084,948> <West Texas State University.>
2-11 $ 3,850,000 Texas State Technical College System
2-12 Administration and the following
2-13 component campuses, but not its
2-14 extension centers or programs: Texas
2-15 State Technical College-Amarillo;
2-16 Texas State Technical College-
2-17 Harlingen; Texas State Technical
2-18 College-Sweetwater; Texas State
2-19 Technical College--Waco.
2-20 (b) Each governing board participating in the distribution
2-21 of funds as described in this section may expend the <such> funds
2-22 without limitation, and as the <such> governing board may decide in
2-23 its sole discretion, for any and all purposes described in Article
2-24 VII, Section 17, of the Constitution of Texas; provided, however,
2-25 that for new construction, major repair and rehabilitation
2-26 projects, and land acquisition projects, those <such> funds may
2-27 not be expended without the prior approval of the legislature or
2-28 the approval, review, or endorsement, as applicable, of the
2-29 coordinating board <Texas Higher Education Coordinating Board>; and
2-30 provided further that review and approval of major repair and
2-31 rehabilitation shall apply only to projects in excess of $600,000<;
2-32 and provided further that any land acquisition project proposed for
2-33 coordinating board endorsement within three months of a legislative
2-34 session shall be automatically referred to the legislature for
2-35 consideration>.
2-36 SECTION 3. Section 62.022, Education Code, is amended to
2-37 read as follows:
2-38 Sec. 62.022. ADJUSTMENT OF ALLOCATION FORMULA. (a) Prior
2-39 to the convening of the regular session of the Texas Legislature in
2-40 1999 <1989>, the coordinating board shall <Coordinating Board,
2-41 Texas College and University System, will> conduct, with the full
2-42 participation of the eligible institutions, a study and present
2-43 recommendations to the Legislative Budget Board and to the Texas
2-44 House and Texas Senate standing committees having cognizance over
2-45 legislation related to higher education as to whether and, if so,
2-46 how, the equitable allocation formula should be adjusted for the
2-47 five-year period beginning September 1, 2000 <1990>. The
2-48 coordinating board shall include in the study a survey of
2-49 educational and general building quality, if the legislature
2-50 provides funds for the survey.
2-51 (b) The legislature shall approve, modify and approve, or
2-52 reject the recommendations of the coordinating board.
2-53 (c) If, prior to September 1, 2000 <1990>, the Texas
2-54 Legislature fails <has failed> to act on a recommendation for
2-55 adjustment in the equitable allocation formula, the 10-year
2-56 allocation provided for in Section 62.021(a) <Subsection (a) of
2-57 Section 62.021 of this code> shall continue until the end of the
2-58 10-year period.
2-59 (d) No adjustment shall be made in the allocation formula
2-60 that will prevent payment of both the principal and interest on
2-61 outstanding bonds and notes sold pursuant to Section 17(e), Article
2-62 VII, Texas Constitution.
2-63 (e) Prior to the convening of the regular session of the
2-64 Texas Legislature in 2005 <1995>, the coordinating board shall
2-65 <Coordinating Board, Texas College and University System, will>
2-66 conduct, with the full participation of the eligible institutions,
2-67 a study and present recommendations to the Legislative Budget Board
2-68 and to the Texas House and Texas Senate standing committees having
2-69 cognizance over legislation related to higher education as to the
2-70 allocation of the funds appropriated by Section 17(a), Article VII,
3-1 Texas Constitution, for the 10-year period beginning September 1,
3-2 2005 <1995>.
3-3 (f) A review of the allocation formula conducted by the
3-4 coordinating board under this section <after September 1, 1989,>
3-5 shall include:
3-6 (1) a comparison of the deferred maintenance needs of
3-7 an institution of higher education and the extent to which the
3-8 constitutionally dedicated funds were used to meet those needs; and
3-9 (2) an evaluation of the effectiveness of the
3-10 allocation formula concerning deferred maintenance needs of those
3-11 institutions.
3-12 SECTION 4. Subchapter B, Chapter 62, Education Code, is
3-13 amended by adding Section 62.027 to read as follows:
3-14 Sec. 62.027. EFFECT OF LEGISLATION. (a) The constitutional
3-15 amendment proposed by S.J.R. No. 13, 73rd Legislature, Regular
3-16 Session, 1993, and approved by the voters at an election held on
3-17 November 2, 1993, amended Section 17(a), Article VII, Texas
3-18 Constitution, to permit the legislature by two-thirds vote of the
3-19 membership of each house to increase the amount of the
3-20 appropriation made under that section for each five-year period.
3-21 (b) Chapter 537, Acts of the 73rd Legislature, Regular
3-22 Session, 1993, added Section 62.024 to this subchapter in order to
3-23 increase the amount of the appropriation made under Section 17(a),
3-24 Article VII, Texas Constitution.
3-25 (c) The increase provided by Section 62.024 in the amount of
3-26 the appropriation made under Section 17(a), Article VII, Texas
3-27 Constitution, is valid and effective beginning September 1, 1995.
3-28 SECTION 5. The amounts allocated under Section 62.021,
3-29 Education Code, as amended by this Act, apply to each state fiscal
3-30 year beginning with the state fiscal year beginning September 1,
3-31 1995.
3-32 SECTION 6. The importance of this legislation and the
3-33 crowded condition of the calendars in both houses create an
3-34 emergency and an imperative public necessity that the
3-35 constitutional rule requiring bills to be read on three several
3-36 days in each house be suspended, and this rule is hereby suspended,
3-37 and that this Act take effect and be in force from and after its
3-38 passage, and it is so enacted.
3-39 * * * * *