By Montford                                            S.B. No. 407
       74R2390 JSA-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to certain distribution of state money to school districts
    1-3  and public institutions of higher education.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Sections 16.260(b), (c), and (d), Education Code,
    1-6  are amended to read as follows:
    1-7        (b)  Payments from the foundation school fund to each
    1-8  category 1 school district shall be made as follows:
    1-9              (1)  15 <21> percent of the yearly entitlement of the
   1-10  district shall be paid in an installment <two equal installments>
   1-11  to be made on or before the 25th day of September <and October> of
   1-12  a fiscal year;
   1-13              (2)  80 <57> percent of the yearly entitlement of the
   1-14  district shall be paid in eight <six> equal installments to be made
   1-15  on or before the 25th day of October, November, December, January,
   1-16  <February,> March, May, June, and July; and
   1-17              (3)  five <22> percent of the yearly entitlement of the
   1-18  district shall be paid in an installment <two equal installments>
   1-19  to be made on or before the 25th day of February <April and May>.
   1-20        (c)  Payments from the foundation school fund to each
   1-21  category 2 school district shall be made as follows:
   1-22              (1)  22 <21> percent of the yearly entitlement of the
   1-23  district shall be paid in an installment <two equal installments>
   1-24  to be made on or before the 25th day of September <and October> of
    2-1  a fiscal year;
    2-2              (2)  18 <38> percent of the yearly entitlement of the
    2-3  district shall be paid in an installment <four equal installments>
    2-4  to be made on or before the 25th day of October <November,
    2-5  December, March, and July>;
    2-6              (3)  9.5 <seven> percent of the yearly entitlement of
    2-7  the district shall be paid in an installment <two equal
    2-8  installments> to be made on or before the 25th day of November
    2-9  <January and February>;
   2-10              (4)  7.5 <22> percent of the yearly entitlement of the
   2-11  district shall be paid in an installment <two equal installments>
   2-12  to be made on or before the 25th day of April <and May>; <and>
   2-13              (5)  five <12> percent of the yearly entitlement of the
   2-14  district shall be paid in an installment <two equal installments>
   2-15  to be made on or before the 25th day of May <June and August>;
   2-16              (6)  10 percent of the yearly entitlement of the
   2-17  district shall be paid in an installment to be made on or before
   2-18  the 25th day of June;
   2-19              (7)  13 percent of the yearly entitlement of the
   2-20  district shall be paid in an installment to be made on or before
   2-21  the 25th day of July; and
   2-22              (8)  15 percent of the yearly entitlement of the
   2-23  district shall be paid in an installment to be made on or before
   2-24  the 25th day of August.
   2-25        (d)  Payments from the foundation school fund to each
   2-26  category 3 school district shall be made as follows:
   2-27              (1)  45 <21> percent of the yearly entitlement of the
    3-1  district shall be paid in an installment <two equal installments>
    3-2  to be made on or before the 25th day of September <and October> of
    3-3  a fiscal year;
    3-4              (2)  35 <57> percent of the yearly entitlement of the
    3-5  district shall be paid in an installment <six equal installments>
    3-6  to be made on or before the 25th day of October <November,
    3-7  December, March, June, July, and August>; and
    3-8              (3)  20 <22> percent of the yearly entitlement of the
    3-9  district shall be paid in an installment <two equal installments>
   3-10  to be made on or before the 25th day of August <April and May>.
   3-11        SECTION 2.  Section 403.0935, Government Code, is amended to
   3-12  read as follows:
   3-13        Sec. 403.0935.  DISTRIBUTION OF <Account for> Certain General
   3-14  Revenue Appropriations to Certain Institutions of Higher Education.
   3-15  (a)  This section applies only to general revenue appropriations to
   3-16  institutions of higher education that are not the appropriations
   3-17  made under Article VII, Section 17, of the Texas Constitution.
   3-18        (b)  The higher education appropriations account is a special
   3-19  account in the general revenue fund.  Sections 403.094 and 403.095,
   3-20  Government Code, do not apply to the higher education
   3-21  appropriations account.
   3-22        (c)  The comptroller shall retain the appropriations to each
   3-23  institution of higher education in the general revenue fund until
   3-24  the appropriations are transferred to the higher education
   3-25  appropriations account in accordance with this section.
   3-26        (d)  In each calendar month of a fiscal year, the comptroller
   3-27  shall transfer from the general revenue fund to the higher
    4-1  education appropriations account an amount equal to one-twelfth of
    4-2  the total appropriations to higher education for the fiscal year.
    4-3  The comptroller shall make the transfers so that an amount equal to
    4-4  one-twelfth of the total appropriations for the fiscal year to
    4-5  which each institution of higher education is entitled is available
    4-6  to the institution before the last day of each month, except that
    4-7  the comptroller shall make the transfer for September so that an
    4-8  amount equal to one-twelfth of the total appropriations for the
    4-9  fiscal year to which each institution of higher education is
   4-10  entitled is available to the institution on September 1.
   4-11        (d-1)  Notwithstanding any other law, on September 1, 1994,
   4-12  the comptroller, as a ministerial duty, shall:
   4-13              (1)  transfer from the general revenue fund to the
   4-14  higher education appropriations account an amount equal to 43/48
   4-15  of the total appropriations to institutions of higher education for
   4-16  the fiscal year beginning September 1, 1994; and
   4-17              (2)  make available to each institution of higher
   4-18  education an amount equal to 43/48  of the total appropriations for
   4-19  that fiscal year to which the institution is entitled.
   4-20        (d-2) <(e)>  Notwithstanding any other law, on September 1,
   4-21  1995, the comptroller shall make available from the general revenue
   4-22  fund to each institution of higher education an amount equal to
   4-23  5/48  of the total appropriations to the institution for the fiscal
   4-24  year beginning September 1, 1994.
   4-25        (e)  The comptroller may transfer to an institution of higher
   4-26  education a portion of the total appropriations for a fiscal year
   4-27  to which the institution is entitled before the time at which the
    5-1  money would become available to the institution under Subsection
    5-2  (d) if the comptroller determines that the institution needs the
    5-3  money to cover a temporary shortfall in cash reserves, to make
    5-4  required payments in a timely manner, or for any other reasonable
    5-5  purpose.   The comptroller shall deduct the amount of an early
    5-6  transfer made under this subsection from the amount of one or more
    5-7  subsequent transfers to the higher education appropriations account
    5-8  to be made available to the institution receiving the early
    5-9  transfer.  A decision of the comptroller under this subsection is
   5-10  final and not subject to judicial review.
   5-11        (f)  In this section, "institution of higher education" means
   5-12  an institution of higher education, as defined by Section 61.003,
   5-13  Education Code, other than a public junior college or public
   5-14  technical institute, as those terms are defined by that section,
   5-15  and other than hospital operations at The University of Texas M. D.
   5-16  Anderson Cancer Center, The University of Texas Medical Branch
   5-17  Hospital, and The University of Texas Health Center at Tyler.
   5-18        (g)  Subsections (d-1) and (d-2) and this subsection expire
   5-19  <This section expires> October 1, 1995.
   5-20        SECTION 3.  This Act takes effect September 1, 1995.
   5-21        SECTION 4.  The importance of this legislation and the
   5-22  crowded condition of the calendars in both houses create an
   5-23  emergency and an imperative public necessity that the
   5-24  constitutional rule requiring bills to be read on three several
   5-25  days in each house be suspended, and this rule is hereby suspended.