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


Senate Research CenterC.S.S.B. 1878
76R14670 CAG-DBy: Duncan
Finance
5/6/1999
Committee Report (Substituted)


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. C.S.S.B. 1878 would allocate certain constitutional funds to
certain Texas institutions of higher education. 

PURPOSE

As proposed, C.S.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 Texas Higher
Education Coordinating Board (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 3. Effective date: September 1, 2000.

SECTION 4. Emergency clause.
           




SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 62.021(a), Education Code, to change the amounts allocated
by the formula to certain Texas institutions of higher education. 
 
SECTION 3.

 Adds the effective date of September 1, 2000.