By Junell H.B. No. 1768
76R4303 CAG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the allocation and use of constitutional funds
1-3 established to support institutions of higher education.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 62.003(1), Education Code, is amended to
1-6 read as follows:
1-7 (1) "Eligible institution" means [the eligible
1-8 agencies and institutions of higher education listed in Article
1-9 VII, Section 17(b), of the Constitution of Texas, and] any
1-10 institution or agency of higher education that is [later made]
1-11 eligible to participate in the disbursement of funds pursuant to
1-12 Section 17(a), Article VII, Texas [Section 17(c), of the]
1-13 Constitution [of Texas].
1-14 SECTION 2. Section 62.021(a), Education Code, is amended to
1-15 read as follows:
1-16 (a) Each fiscal year, an eligible institution is entitled to
1-17 receive an amount allocated in accordance with this section from
1-18 funds appropriated by Section 17(a), Article VII, Texas [Section
1-19 17(a), of the] Constitution [of Texas]. The legislature shall
1-20 determine the allocation in the General Appropriations Act. The
1-21 comptroller [of public accounts] shall distribute the funds
1-22 allocated by the legislature [under this subsection] only on
1-23 presentation of a claim and issuance of a warrant in accordance
1-24 with Section 403.071, Government Code. The comptroller may not
2-1 issue a warrant from any funds allocated under this subsection
2-2 before the delivery of goods or services described in Section 17,
2-3 Article VII, Texas Constitution, except for the payment of
2-4 principal or interest on bonds or notes. [The allocation of funds
2-5 under this subsection is made in accordance with an equitable
2-6 formula consisting of the following elements: space deficit,
2-7 facilities condition, institutional complexity, separate
2-8 allocations for medical units and the Texas State Technical College
2-9 System, and an additional allocation for Texas Southern University
2-10 for compliance with the Texas Desegregation Plan. The amounts
2-11 allocated by the formula are as follows:]
2-12 [$ 5,572,558 East Texas State University including
2-13 East Texas State University at Texarkana;]
2-14 [$ 9,468,548 Lamar University including Lamar
2-15 University at Orange and Lamar University at Port Arthur;]
2-16 [$ 2,862,203 Midwestern State University;]
2-17 [$20,217,740 University of North Texas;]
2-18 [$10,174,500 The University of Texas--Pan American and
2-19 The University of Texas at Brownsville;]
2-20 [$ 6,468,273 Stephen F. Austin State University;]
2-21 [$ 3,640,000 University of North Texas Health Science
2-22 Center at Fort Worth;]
2-23 [$23,181,556 Texas State University System
2-24 Administration and the following component institutions: Angelo
2-25 State University; Sam Houston State University; Southwest Texas
2-26 State University; Sul Ross State University including Uvalde
2-27 Center;]
3-1 [$ 8,199,288 Texas Southern University (includes
3-2 allocation of $1,000,000 for compliance with Texas Desegregation
3-3 Plan);]
3-4 [$16,887,085 Texas Tech University;]
3-5 [$ 7,735,000 Texas Tech University Health Sciences
3-6 Center;]
3-7 [$ 6,849,160 Texas Woman's University;]
3-8 [$37,726,969 University of Houston System
3-9 Administration and the following component institutions: University
3-10 of Houston; University of Houston--Victoria; University of
3-11 Houston--Clear Lake; University of Houston--Downtown;]
3-12 [$12,167,120 Texas A & M University--Corpus Christi;
3-13 Texas A & M International University; Texas A & M
3-14 University--Kingsville; West Texas A & M University; and]
3-15 [$ 3,850,000 Texas State Technical College System
3-16 Administration and the following component campuses, but not its
3-17 extension centers or programs: Texas State Technical
3-18 College-Amarillo; Texas State Technical College-Harlingen; Texas
3-19 State Technical College-Sweetwater; Texas State Technical
3-20 College--Waco.]
3-21 SECTION 3. Section 62.022, Education Code, is amended to
3-22 read as follows:
3-23 Sec. 62.022. ADJUSTMENT OF ALLOCATION FORMULA. (a) Not
3-24 later than November 1 of each even-numbered year, the coordinating
3-25 board shall report to the governor and the Legislative Budget Board
3-26 on updated enrollment and other information that the coordinating
3-27 board determines may be useful or that is requested by the governor
4-1 or the Legislative Budget Board to assist in the development of any
4-2 allocation method or formula for funds allocated under this
4-3 chapter.
4-4 (b) The Legislative Budget Board may request [Prior to the
4-5 convening of the regular session of the Texas Legislature in 1999,]
4-6 the coordinating board to [shall] conduct, with the full
4-7 participation of the eligible institutions, a study and to present
4-8 recommendations relating to the allocation of funds under this
4-9 chapter to the Legislative Budget Board and to the Texas House and
4-10 Texas Senate standing committees having cognizance over legislation
4-11 related to higher education [as to whether and, if so, how, the
4-12 equitable allocation formula should be adjusted for the five-year
4-13 period beginning September 1, 2000. The coordinating board shall
4-14 include in the study a survey of educational and general building
4-15 quality, if the legislature provides funds for the survey].
4-16 (c) [(b)] The legislature, in determining the method of or
4-17 formula for the allocation of funds under Section 62.021(a), may
4-18 [shall] approve, modify and approve, or reject the recommendations
4-19 of the coordinating board or the Legislative Budget Board.
4-20 [(c) If, prior to September 1, 2000, the Texas Legislature
4-21 fails to act on a recommendation for adjustment in the equitable
4-22 allocation formula, the 10-year allocation provided for in Section
4-23 62.021(a) shall continue until the end of the 10-year period.]
4-24 (d) An [No] adjustment [shall be] made in the allocation may
4-25 not [formula that will] prevent payment of [both] the principal of
4-26 or [and] interest on outstanding bonds and notes sold pursuant to
4-27 Section 17 [17(e)], Article VII, Texas Constitution.
5-1 [(e) Prior to the convening of the regular session of the
5-2 Texas Legislature in 2005, the coordinating board shall conduct,
5-3 with the full participation of the eligible institutions, a study
5-4 and present recommendations to the Legislative Budget Board and to
5-5 the Texas House and Texas Senate standing committees having
5-6 cognizance over legislation related to higher education as to the
5-7 allocation of the funds appropriated by Section 17(a), Article VII,
5-8 Texas Constitution, for the 10-year period beginning September 1,
5-9 2005.]
5-10 [(f) A review of the allocation formula conducted by the
5-11 coordinating board under this section shall include:]
5-12 [(1) a comparison of the deferred maintenance needs of
5-13 an institution of higher education and the extent to which the
5-14 constitutionally dedicated funds were used to meet those needs; and]
5-15 [(2) an evaluation of the effectiveness of the
5-16 allocation formula concerning deferred maintenance needs of those
5-17 institutions.]
5-18 SECTION 4. Section 62.026(h), Education Code, is amended to
5-19 read as follows:
5-20 (h) Beginning with the first state fiscal year that begins
5-21 on or after the date the comptroller certifies that the value of
5-22 the higher education fund is $2 billion, the comptroller, not later
5-23 than November 1 of each fiscal year, shall distribute in accordance
5-24 with Section 17(e), Article VII, [Section 17(i), of the] Texas
5-25 Constitution, the [interest, dividends, and other] income earned
5-26 from the investment of the fund, less the amount of administrative
5-27 expenses deducted under Subsection (f) of this section, to the
6-1 eligible institutions in accordance with the allocation provided by
6-2 the General Appropriations Act and adopted [formula] under Section
6-3 62.021(a) [of this code].
6-4 SECTION 5. Sections 62.021(d), 62.021(e), 62.024, and
6-5 62.027, Education Code, are repealed.
6-6 SECTION 6. This Act takes effect September 1, 2000, but only
6-7 if the constitutional amendment revising the provisions for funding
6-8 capital improvements and acquisitions by institutions of higher
6-9 education proposed by the 76th Legislature, Regular Session, 1999,
6-10 is approved by the voters. If that amendment is not approved by
6-11 the voters, this Act has no effect.
6-12 SECTION 7. A change in law made by this Act does not impair
6-13 any obligation created by the issuance of bonds or notes in
6-14 accordance with Section 17, Article VII, Texas Constitution, before
6-15 January 1, 2000, and all outstanding bonds and notes validly issued
6-16 under those sections remain valid, enforceable, and binding and
6-17 shall be paid in full, both principal and interest, in accordance
6-18 with their terms and from the sources pledged to the payment of the
6-19 bonds. The changes made by this Act relating to the allocation of
6-20 the funds do not affect the pledges made in connection with bonds
6-21 or notes.
6-22 SECTION 8. The importance of this legislation and the
6-23 crowded condition of the calendars in both houses create an
6-24 emergency and an imperative public necessity that the
6-25 constitutional rule requiring bills to be read on three several
6-26 days in each house be suspended, and this rule is hereby suspended.