By Maxey                                               H.B. No. 538

         75R2882 GCH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the distribution of general revenue appropriations to

 1-3     certain institutions of higher education.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter A, Chapter 51, Education Code, is

 1-6     amended by adding Section 51.010 to read as follows:

 1-7           Sec. 51.010.  DISTRIBUTION OF GENERAL REVENUE APPROPRIATIONS.

 1-8     (a)  Except as provided by Subsections (b) and (c), the comptroller

 1-9     shall distribute appropriations made by the legislature to an

1-10     institution of higher education, other than an appropriation of

1-11     money credited to a separate account for the institution under

1-12     Section 51.008(b), in equal monthly installments on the first

1-13     business day of each month.

1-14           (b)  If the comptroller determines that an institution of

1-15     higher education has an unusual need for an appropriation subject

1-16     to distribution under Subsection (a), the comptroller may

1-17     distribute all or part of a monthly installment early.

1-18           (c)  This section does not apply to an appropriation to a

1-19     public junior or community college.

1-20           (d)  In this section:

1-21                 (1)  "Institution of higher education," except to the

1-22     extent limited by Subsection (c), has the meaning assigned by

1-23     Section 61.003.

1-24                 (2)  "Public junior or community college" has the

 2-1     meaning assigned "public junior college" by Section 61.003.

 2-2           SECTION 2.  This Act takes effect September 1, 1997.

 2-3           SECTION 3.  The importance of this legislation and the

 2-4     crowded condition of the calendars in both houses create an

 2-5     emergency and an imperative public necessity that the

 2-6     constitutional rule requiring bills to be read on three several

 2-7     days in each house be suspended, and this rule is hereby suspended.

 2-8                          COMMITTEE AMENDMENT NO. 1

 2-9           On page 1, line 9 strike the word distribute and add the

2-10     words make available.

2-11           On page 1, line 12 strike the words in equal monthly

2-12     installments on the first and strike line 13.  Add the following

2-13     language beginning on line 12 after the words 51.008(b):

2-14                 (1)  24% of the yearly entitlement of the institution

2-15     shall be available in two installments - up to 12% in September and

2-16     up to the remainder of the 24% in October; and

2-17                 (2)  76% of the yearly entitlement plus any remaining

2-18     unused entitlement from September and October shall be available in

2-19     eight installments of up to 9.5% plus any entitlement balances from

2-20     prior months for each month from November through June.

2-21           On page 1, line 17 strike the word distribute and add the

2-22     words make available.

2-23           On page 2, line 2 add the following Section and renumber the

2-24     sections thereafter:

2-25     Nothing in this Act shall be construed as authorizing a lump sum

2-26     payment or distribution to institutions of higher education except

2-27     for public junior or community colleges.

 3-1                                                                 Cuellar