Amend CSHB 3211 (Senate committee printing) by adding the
following appropriately numbered SECTION to the bill and
renumbering the subsequent SECTIONS appropriately:
      SECTION ____.  Section 62.022, Education Code, is amended to
read as follows:
      Sec. 62.022.  <ADJUSTMENT OF> ALLOCATION FORMULA.  (a)  Prior
to the convening of the regular session of the Texas Legislature
immediately preceding each 10-year period for which Section 17(d),
Article VII, Texas Constitution, prescribes an allocation of the
money appropriated by Section 17(a), Article VII, Texas
Constitution, the coordinating board shall conduct, with the full
participation of the eligible institutions, a study and present
recommendations to the Legislative Budget Board and to the Texas
House and Texas Senate standing committees having jurisdiction over
legislation related to higher education as to the allocation of the
money appropriated by Section 17(a) for the following 10-year
allocation period established by Section 17(d).
      (b)  Prior to the convening of the regular session of the
Texas Legislature immediately preceding the sixth year of each
10-year allocation period established by Section 17(d), Article
VII, Texas Constitution <in 1999>, the coordinating board shall
conduct, with the full participation of the eligible institutions,
a study and present recommendations to the Legislative Budget Board
and to the Texas House and Texas Senate standing committees having
cognizance over legislation related to higher education as to
whether and, if so, how, the equitable allocation formula
established for that 10-year period should be adjusted for the last
five years of the 10-year period <five-year period beginning
September 1, 2000>.  The coordinating board shall include in the
study a survey of educational and general building quality, if the
legislature provides funds for the survey.
      (c)<(b)>  The legislature shall approve, modify and approve,
or reject the recommendations of the coordinating board under
Subsection (a) or (b).
      (d)<(c)>  If, prior to the first day of the sixth year of a
10-year allocation period established by Section 17(d), Article
VII, Texas Constitution <September 1, 2000>, the Texas Legislature
fails to act on a recommendation for adjustment in the equitable
allocation formula, the 10-year allocation provided for in Section
62.021(a) shall continue until the end of the 10-year period.
      (e)<(d)>  No adjustment shall be made in the allocation
formula that will prevent payment of both the principal and
interest on outstanding bonds and notes sold pursuant to Section
17(e), Article VII, Texas Constitution.
      <(e)  Prior to the convening of the regular session of the
Texas Legislature in 2005, the coordinating board shall conduct,
with the full participation of the eligible institutions, a study
and present recommendations to the Legislative Budget Board and to
the Texas House and Texas Senate standing committees having
cognizance over legislation related to higher education as to the
allocation of the funds appropriated by Section 17(a), Article VII,
Texas Constitution, for the 10-year period beginning September 1,
2005.>
      (f)  A review of the allocation formula conducted by the
coordinating board under this section shall include:
            (1)  a comparison of the deferred maintenance needs of
an institution of higher education and the extent to which the
constitutionally dedicated funds were used to meet those needs; and
            (2)  an evaluation of the effectiveness of the
allocation formula concerning deferred maintenance needs of those
institutions.