SRC-JXG S.B. 1878 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1878
76R11404 CAG-DBy: Duncan
Finance
5/3/1999
As Filed


DIGEST 

The Higher Education Assistance Fund (HEAF) was created to aid 26
institutions of higher education not eligible for aid from the Permanent
University Fund (PUF). In November ,1993, Texas voters approved a
constitutional amendment adding the Texas State Technical College System
(TSTC) and its campuses, but not its extension centers or programs, to the
list of institutions that receive HEAF funds. The annual allocation to TSTC
could not exceed 2.2 percent of the annual HEAF appropriations. The
constitutional amendment also permits the legislature to increase the
amount of HEAF appropriations for each five-year period, beginning
September 1, 2000 and expand the use of HEAF funds to include certain
improvements. S.B. 1878 would allocate certain constitutional funds to
certain Texas institutions of higher education. 

PURPOSE

As proposed, S.B. 1878 allocates certain constitutional funds to certain
Texas institutions of higher education. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 62.021(a), Education Code, to set forth the
amounts allocated to certain Texas institutions of higher education.  

SECTION 2. Amends Section 62.022, Education Code, as follows:

Sec. 62.022. New heading: ALLOCATION FORMULA.  Requires the coordinating
board to conduct, with the full participation of the eligible institutions,
a study and present recommendations to the Legislative Budget Board (LBB)
and to the Texas House and Texas Senate standing committees (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), 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. Requires the coordinating board to
conduct a study to present recommendation to LBB and to the committees
having cognizance over legislation related to higher education as to
whether the equitable allocation formula established for that 10-year
period should be adjusted for the last five years of the 10-year period,
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. Requires the
legislature to approve, modify and approve, or reject the recommendations
of the coordinating board under Subsections (a) or (b). Requires the
10-year allocation provided for in Section 62.021(a), to continue until the
end of the 10-year period, 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, the Texas Legislature  fails to act on a recommendation
for adjustment in the equitable allocation formula. Deletes text regarding
1999 and the five year period beginning September 1, 2000. Deletes text
regarding the coordinating board conducting a study over the allocation of
funds. Makes conforming changes. 

SECTION 2. Emergency clause.
           Effective date: upon passage.