By Montford                                           S.B. No. 1285
       74R6841 JSA-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the allocation of certain funds to certain institutions
    1-3  of higher education.
    1-5        SECTION 1.  Section 62.003, Education Code, is amended by
    1-6  adding Subdivision (3) to read as follows:
    1-7              (3)  "Coordinating board" means the Texas Higher
    1-8  Education Coordinating Board.
    1-9        SECTION 2.  Sections 62.021(a) and (b), Education Code, are
   1-10  amended to read as follows:
   1-11        (a)  Each fiscal year, an eligible institution is entitled to
   1-12  receive an amount allocated in accordance with this section from
   1-13  funds appropriated by Article VII, Section 17(a), of the
   1-14  Constitution of Texas.  The comptroller of public accounts shall
   1-15  distribute funds allocated under this subsection only on
   1-16  presentation of a claim and issuance of a warrant in accordance
   1-17  with Section 403.071, Government Code.  The comptroller may not
   1-18  issue a warrant from any funds allocated under this subsection
   1-19  before the delivery of goods or services described in Section 17,
   1-20  Article VII, Texas Constitution, except for the payment of
   1-21  principal or interest on bonds or notes.  The allocation of funds
   1-22  under this subsection is made in accordance with an equitable
   1-23  formula consisting of the following elements:  space deficit,
   1-24  facilities condition, institutional complexity, separate
    2-1  allocations <allocation> for medical units and the Texas State
    2-2  Technical College System, and an additional allocation for Texas
    2-3  Southern University for compliance with the Texas Desegregation
    2-4  Plan.  The amounts allocated by the <such> formula are as follows:
    2-5  $ 5,572,558 <$ 2,971,685>    East Texas State University including
    2-6                                 East Texas State University at
    2-7                                 Texarkana;
    2-8  $ 9,468,548 <$ 7,125,680>    Lamar University including Lamar
    2-9                                 University at Orange and Lamar
   2-10                                 University at Port Arthur;
   2-11  $ 2,862,203 <$ 1,645,885>    Midwestern State University;
   2-12  $20,217,740 <$11,444,067>    University of North Texas;
   2-13  $10,174,500 <$ 3,196,287>    The University of Texas--Pan American
   2-14                                 and The University of Texas at
   2-15                                 Brownsville;
   2-16  $ 6,468,273 <$ 5,152,124>    Stephen F. Austin State University;
   2-17  $ 3,640,000 <$ 2,166,667>    University of North Texas Health
   2-18                                 Science Center at Fort Worth;
   2-19  $23,181,556 <$19,724,411>    Texas State University System
   2-20                                 Administration and the following
   2-21                                 component institutions:   Angelo
   2-22                                 State University; Sam Houston State
   2-23                                 University; Southwest Texas State
   2-24                                 University; Sul Ross State
   2-25                                 University including Uvalde <Study>
   2-26                                 Center;
   2-27  $ 8,199,288 <$ 6,596,436>    Texas Southern University (includes
    3-1                                 allocation of $1,000,000
    3-2                                 <$2,700,000> for compliance with
    3-3                                 Texas Desegregation Plan);
    3-4  $16,887,085 <$10,538,296>    Texas Tech University;
    3-5  $ 7,735,000 <$ 4,333,333>    Texas Tech University Health Sciences
    3-6                                 Center;
    3-7  $ 6,849,160 <$ 3,583,869>    Texas Woman's University;
    3-8  $37,726,969 <$15,799,996>    University of Houston  System
    3-9                                 Administration and the following
   3-10                                 component institutions:  University
   3-11                                 of Houston; University of
   3-12                                 Houston--Victoria; University of
   3-13                                 Houston--Clear Lake; University of
   3-14                                 Houston--Downtown;
   3-15  $12,167,120 <$ 3,636,316>    Texas A&M University--Corpus Christi
   3-16                                 <Corpus Christi State University>;
   3-17                                 Texas A&M International University;
   3-18                                 Texas A&M University--Kingsville
   3-19                                 <Texas A&I University>; West Texas
   3-20                                 A&M University; and
   3-21               <$ 2,084,948>     <West Texas State University.>
   3-22  $ 3,850,000                  Texas State Technical College System
   3-23                                 Administration and the following
   3-24                                 component campuses, but not its
   3-25                                 extension centers or programs: Texas
   3-26                                 State Technical College-Amarillo;
   3-27                                 Texas State Technical College-
    4-1                                 Harlingen; Texas State Technical
    4-2                                 College-Sweetwater; Texas State
    4-3                                 Technical College--Waco.
    4-4        (b)  Each governing board participating in the distribution
    4-5  of funds as described in this section may expend the <such> funds
    4-6  without limitation, and as the <such> governing board may decide in
    4-7  its sole discretion, for any and all purposes described in Article
    4-8  VII, Section 17, of the Constitution of Texas; provided, however,
    4-9  that for new construction, major repair and rehabilitation
   4-10  projects, and land acquisition projects, those  <such> funds may
   4-11  not be expended without the prior approval of the legislature or
   4-12  the approval, review, or endorsement, as applicable, of the
   4-13  coordinating board <Texas Higher Education Coordinating Board>; and
   4-14  provided further that review and approval of major repair and
   4-15  rehabilitation shall apply only to projects in excess of $600,000<;
   4-16  and provided further that any land acquisition project proposed for
   4-17  coordinating board endorsement within three months of a legislative
   4-18  session shall be automatically referred to the legislature for
   4-19  consideration>.
   4-20        SECTION 3.  Section 62.022, Education Code, is amended to
   4-21  read as follows:
   4-22        Sec. 62.022.  ADJUSTMENT OF ALLOCATION FORMULA.  (a)  Prior
   4-23  to the convening of the regular session of the Texas Legislature in
   4-24  1999 <1989>, the coordinating board shall <Coordinating Board,
   4-25  Texas College and University System, will> conduct, with the full
   4-26  participation of the eligible institutions, a study and present
   4-27  recommendations to the Legislative Budget Board and to the Texas
    5-1  House and Texas Senate standing committees having cognizance over
    5-2  legislation related to higher education as to whether and, if so,
    5-3  how, the equitable allocation formula should be adjusted for the
    5-4  five-year period beginning September 1, 2000 <1990>.  The
    5-5  coordinating board shall include in the study a survey of
    5-6  educational and general building quality, if the legislature
    5-7  provides funds for the survey.
    5-8        (b)  The legislature shall approve, modify and approve, or
    5-9  reject the recommendations of the coordinating board.
   5-10        (c)  If, prior to  September 1, 2000 <1990>, the Texas
   5-11  Legislature fails <has failed> to act on a recommendation for
   5-12  adjustment in the equitable allocation formula, the 10-year
   5-13  allocation provided for in Section 62.021(a) <Subsection (a) of
   5-14  Section 62.021 of this code> shall continue until the end of the
   5-15  10-year period.
   5-16        (d)  No adjustment shall be made in the allocation formula
   5-17  that will prevent payment of both the principal and interest on
   5-18  outstanding bonds and notes sold pursuant to Section 17(e), Article
   5-19  VII, Texas Constitution.
   5-20        (e)  Prior to the convening of the regular session of the
   5-21  Texas Legislature in 2005 <1995>, the coordinating board shall
   5-22  <Coordinating Board, Texas College and University System, will>
   5-23  conduct, with the full participation of the eligible institutions,
   5-24  a study and present recommendations to the Legislative Budget Board
   5-25  and to the Texas House and Texas Senate standing committees having
   5-26  cognizance over legislation related to higher education as to the
   5-27  allocation of the funds appropriated by Section 17(a), Article VII,
    6-1  Texas Constitution, for the 10-year period beginning September 1,
    6-2  2005 <1995>.
    6-3        (f)  A review of the allocation formula conducted by the
    6-4  coordinating board under this section <after September 1, 1989,>
    6-5  shall include:
    6-6              (1)  a comparison of the deferred maintenance needs of
    6-7  an institution of higher education and the extent to which the
    6-8  constitutionally dedicated funds were used to meet those needs; and
    6-9              (2)  an evaluation of the effectiveness of the
   6-10  allocation formula concerning deferred maintenance needs of those
   6-11  institutions.
   6-12        SECTION 4.  Subchapter B, Chapter 62, Education Code, is
   6-13  amended by adding Section 62.027 to read as follows:
   6-14        Sec. 62.027.  EFFECT OF LEGISLATION.  (a)  The constitutional
   6-15  amendment proposed by S.J.R. No. 13, 73rd Legislature, Regular
   6-16  Session, 1993, and approved by the voters at an election held on
   6-17  November 2, 1993, amended Section 17(a), Article VII, Texas
   6-18  Constitution, to permit the legislature by two-thirds vote of the
   6-19  membership of each house to increase the amount of the
   6-20  appropriation made under that section for each five-year period.
   6-21        (b)  Chapter 537, Acts of the 73rd Legislature, Regular
   6-22  Session, 1993, added Section 62.024 to this subchapter in order to
   6-23  increase the amount of the appropriation made under  Section 17(a),
   6-24  Article VII, Texas Constitution.
   6-25        (c)  The increase provided by Section 62.024 in the amount of
   6-26  the appropriation made under Section 17(a), Article VII, Texas
   6-27  Constitution, is valid and effective beginning September 1, 1995.
    7-1        SECTION 5.  The amounts allocated under Section 62.021,
    7-2  Education Code, as amended by this Act, apply to each state fiscal
    7-3  year beginning with the state fiscal year beginning September 1,
    7-4  1995.
    7-5        SECTION 6.  The importance of this legislation and the
    7-6  crowded condition of the calendars in both houses create an
    7-7  emergency and an imperative public necessity that the
    7-8  constitutional rule requiring bills to be read on three several
    7-9  days in each house be suspended, and this rule is hereby suspended,
   7-10  and that this Act take effect and be in force from and after its
   7-11  passage, and it is so enacted.