By Junell                                             H.J.R. No. 58
         76R6399 JSA-D                           
                                 A JOINT RESOLUTION
 1-1     proposing a constitutional amendment revising the provisions for
 1-2     funding capital improvements and acquisitions by institutions of
 1-3     higher education.
 1-4           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Sections 11, 11b, 12, and 18, Article VII, Texas
 1-6     Constitution, are combined and revised as Section 18 of that
 1-7     article and amended to read as follows:
 1-8           Sec. 18  [11].  (a)  The permanent university fund is
 1-9     established for the purpose of creating and maintaining a high
1-10     level of academic  excellence in a limited number of world-class
1-11     research universities in the state and consists of:
1-12                 (1)  the land and other assets included in the fund on
1-13     January 1, 2000;
1-14                 (2)  the proceeds from sale and mineral development of
1-15     land included in the fund; and
1-16                 (3)  the property purchased with the proceeds  [In
1-17     order to enable the Legislature to perform the duties set forth in
1-18     the  foregoing Section, it is hereby declared all lands and other
1-19     property heretofore set apart and appropriated for the
1-20     establishment and maintenance of the University of Texas, together
1-21     with all the proceeds of sales of the same, heretofore made or
1-22     hereafter to be made, and all grants, donations and appropriations
1-23     that may hereafter be made by the State of Texas, or from any other
1-24     source, except donations limited to specific purposes, shall
 2-1     constitute and become a Permanent University Fund.  And the same as
 2-2     realized and received into the Treasury of the State (together with
 2-3     such sums belonging to the Fund, as may now be in the Treasury),
 2-4     shall be invested in bonds of the United States, the State of
 2-5     Texas, or counties of said State, or in School Bonds of
 2-6     municipalities, or in bonds of any city of this State, or in bonds
 2-7     issued under and by virtue of the Federal Farm Loan Act approved by
 2-8     the President of the United States, July 17, 1916, and amendments
 2-9     thereto; and the interest accruing thereon shall be subject to
2-10     appropriation by the Legislature to accomplish the purpose declared
2-11     in the foregoing Section;  provided, that the one-tenth of the
2-12     alternate Section of the lands granted to railroads, reserved by
2-13     the State, which were set apart and appropriated to the
2-14     establishment of the University of Texas, by an Act of the
2-15     Legislature of February 11, 1858, entitled, "An Act to establish
2-16     the University of Texas," shall not be included in, or constitute a
2-17     part of, the Permanent University Fund].
2-18           (b)  The permanent university fund is held in perpetual trust
2-19     for the people of this state and for the use and benefit of the
2-20     institutions described by Subsections (e) and (f) of this section.
2-21     The principal of the fund may not be spent.
2-22           (c)  The [Sec. 11b.  Notwithstanding any other provision of
2-23     this constitution, in managing the assets of the permanent
2-24     university fund,  the] Board of Regents of The University of Texas
2-25     System may sell, lease, exchange, or otherwise manage the assets of
2-26     the fund in the manner prescribed by law and shall invest all
2-27     proceeds.  Subject to general law, the board may acquire, exchange,
 3-1     sell, supervise, manage, or retain, through procedures and subject
 3-2     to restrictions it establishes and in amounts it considers
 3-3     appropriate, any kind of investment, including investments in the
 3-4     Texas growth fund created by Article XVI, Section 70, of this
 3-5     constitution, that persons of ordinary prudence, discretion, and
 3-6     intelligence, exercising the judgment and care under the
 3-7     circumstances then prevailing, acquire or retain for their own
 3-8     account in the management of their affairs, not in regard to
 3-9     speculation but in regard to the permanent disposition of their
3-10     funds, considering the probable income as well as the probable
3-11     safety of their capital.  [This section does not affect the
3-12     custodial responsibilities of the comptroller of public accounts
3-13     for public funds, securities, and other evidences of investment.]
3-14           [Sec. 12.  The land herein set apart to the University fund
3-15     shall be sold under such regulations, at such times, and on such
3-16     terms as may be provided by law; and the Legislature shall provide
3-17     for the prompt collection, at maturity, of all debts due on account
3-18     of University lands, heretofore sold, or that may hereafter be
3-19     sold, and shall in neither event have the power to grant relief to
3-20     the purchasers.]
3-21           [Sec. 18.  (a)  The Board of Regents of The Texas A&M
3-22     University System may issue bonds and notes not to exceed a total
3-23     amount of 10 percent of the cost value of the investments and other
3-24     assets of the permanent university fund (exclusive of real estate)
3-25     at the time of the issuance thereof, and may pledge all or any part
3-26     of its one-third interest in the available university fund to
3-27     secure the payment of the principal and interest of those bonds and
 4-1     notes, for the purpose of acquiring land either with or without
 4-2     permanent improvements, constructing and equipping buildings or
 4-3     other permanent improvements, major repair and rehabilitation of
 4-4     buildings and other permanent improvements, acquiring capital
 4-5     equipment and library books and library materials, and refunding
 4-6     bonds or notes issued under this Section or prior law, at or for
 4-7     The Texas A&M University System administration and the following
 4-8     component institutions of the system:]
 4-9                 [(1)  Texas A&M University, including its medical
4-10     college which the legislature may authorize as a separate medical
4-11     institution;]
4-12                 [(2)  Prairie View A&M University, including its
4-13     nursing school in Houston;]
4-14                 [(3)  Tarleton State University;]
4-15                 [(4)  Texas A&M University at Galveston;]
4-16                 [(5)  Texas Forest Service;]
4-17                 [(6)  Texas Agricultural Experiment Stations;]
4-18                 [(7)  Texas Agricultural Extension Service;]
4-19                 [(8)  Texas Engineering Experiment Stations;]
4-20                 [(9)  Texas Transportation Institute; and]
4-21                 [(10)  Texas Engineering Extension Service.]
4-22           [(b)  The Board of Regents of The University of Texas System
4-23     may issue bonds and notes not to exceed a total amount of 20
4-24     percent of the  cost value of investments and other assets of the
4-25     permanent university fund (exclusive of real estate) at the time of
4-26     issuance thereof, and may pledge all or any part of its two-thirds
4-27     interest in the available university fund to secure the payment of
 5-1     the principal and interest of those bonds and notes, for the
 5-2     purpose of acquiring land either with or without permanent
 5-3     improvements, constructing and equipping buildings or other
 5-4     permanent improvements, major repair and rehabilitation of
 5-5     buildings and other permanent improvements, acquiring capital
 5-6     equipment and library books and library materials, and refunding
 5-7     bonds or notes issued under this section or prior law, at or for
 5-8     The University of Texas System administration and the following
 5-9     component institutions of the system:]
5-10                 [(1)  The University of Texas at Arlington;]
5-11                 [(2)  The University of Texas at Austin;]
5-12                 [(3)  The University of Texas at Dallas;]
5-13                 [(4)  The University of Texas at El Paso;]
5-14                 [(5)  The University of Texas of the Permian Basin;]
5-15                 [(6)  The University of Texas at San Antonio;]
5-16                 [(7)  The University of Texas at Tyler;]
5-17                 [(8)  The University of Texas Health Science Center at
5-18     Dallas;]
5-19                 [(9)  The University of Texas Medical Branch at
5-20     Galveston;]
5-21                 [(10)  The University of Texas Health Science Center at
5-22     Houston;]
5-23                 [(11)  The University of Texas Health Science Center at
5-24     San Antonio;]
5-25                 [(12)  The University of Texas System Cancer Center;]
5-26                 [(13)  The University of Texas Health Center at Tyler;
5-27     and]
 6-1                 [(14)  The University of Texas Institute of Texan
 6-2     Cultures at San Antonio.]
 6-3           [(c)  Pursuant to a two-thirds vote of the membership of each
 6-4     house of the legislature, institutions of higher education may be
 6-5     created at a later date as a part of The University of Texas System
 6-6     or The Texas A&M University System by general law, and, when
 6-7     created, such an institution shall be entitled to participate in
 6-8     the funding provided by this section for the system in which it is
 6-9     created.  An institution that is entitled to participate in
6-10     dedicated funding provided by  Article VII, Section 17, of this
6-11     constitution may not be entitled to participate in the funding
6-12     provided by this section.]
6-13           (d)  [The proceeds of the bonds or notes issued under
6-14     Subsection (a)  or (b) of this section may not be used for the
6-15     purpose of constructing, equipping, repairing, or rehabilitating
6-16     buildings or other permanent improvements that are to be used for
6-17     student housing, intercollegiate athletics, or auxiliary
6-18     enterprises.]
6-19           [(e)]  The available university fund consists of the
6-20     [dividends, interest and other] income from the permanent
6-21     university fund [(]less administrative expenses and less[)
6-22     including] the net income from grazing leases [attributable to the
6-23     surface]  of permanent university fund land.
6-24           (e)  One-third [Out of one-third] of the available university
6-25     fund[, there] shall annually be appropriated [an annual sum
6-26     sufficient to pay the principal and interest due on the bonds and
6-27     notes issued by the Board of Regents of The Texas A&M University
 7-1     System under this section and prior law, and the remainder of that
 7-2     one-third of the available university fund shall be appropriated to
 7-3     the Board of Regents of The Texas A&M University System which shall
 7-4     have the authority and duty in turn to appropriate an equitable
 7-5     portion of the same] for the support and maintenance of The Texas
 7-6     A&M University System administration and for excellence at the
 7-7     following components of the system:
 7-8                 (1)  [,] Texas A&M University at College Station,
 7-9     including the Texas A&M University Health Science Center;
7-10                 (2)  [and] Prairie View A&M University, including its
7-11     nursing school in Houston;
7-12                 (3)  Texas A&M University at Galveston;
7-13                 (4)  Texas Forest Service;
7-14                 (5)  Texas Agricultural Experiment Station;
7-15                 (6)  Texas Agricultural Extension Service;
7-16                 (7)  Texas Engineering Experiment Station;
7-17                 (8)  Texas Engineering Extension Service; and
7-18                 (9)  Texas Transportation Institute.
7-19     [The Board of Regents of The Texas A&M University System, in making
7-20     just and equitable appropriations to Texas A&M University and
7-21     Prairie View A&M University, shall exercise its discretion with due
7-22     regard to such criteria as the board may deem appropriate from year
7-23     to year, taking into account all amounts appropriated from
7-24     Subsection (f) of this section.]
7-25           (f)  The [Out of the] other two-thirds of the available
7-26     university fund [there] shall annually be appropriated [an annual
7-27     sum sufficient to pay the principal and interest due on the bonds
 8-1     and notes issued by the Board of Regents of The University of Texas
 8-2     System under this section and prior law, and the remainder of such
 8-3     two-thirds of the available university fund, shall be appropriated]
 8-4     for the support and maintenance of [The University of Texas at
 8-5     Austin and] The University of Texas System administration and for
 8-6     excellence at the following components of the system:
 8-7                 (1)  The University of Texas at Austin;
 8-8                 (2)  The University of Texas Southwestern Medical
 8-9     Center at Dallas;
8-10                 (3)  The University of Texas Medical Branch at
8-11     Galveston;
8-12                 (4)  The University of Texas Health Science Center at
8-13     Houston;
8-14                 (5)  The University of Texas Health Science Center at
8-15     San Antonio;
8-16                 (6)  The University of Texas M. D. Anderson Cancer
8-17     Center;
8-18                 (7)  The University of Texas Health Center at Tyler;
8-19     and
8-20                 (8)  The University of Texas Institute of Texan
8-21     Cultures at San Antonio.
8-22           (g)  In allocating its share of the available university fund
8-23     among the eligible institutions, the board of regents of each
8-24     university system shall exercise its discretion with due regard to
8-25     the criteria the board considers appropriate from year to year.
8-26           (h)  Subject to general law, the Board of Regents of The
8-27     University of Texas System and the Board of Regents of The Texas
 9-1     A&M University System  may issue bonds and notes, and pledge their
 9-2     respective shares of the available university fund to the payment
 9-3     of the principal of and interest on those bonds and notes, for the
 9-4     purpose of acquiring land either with or without permanent
 9-5     improvements, constructing and equipping buildings and other
 9-6     permanent improvements, funding major repair and rehabilitation of
 9-7     buildings and other permanent improvements, acquiring capital
 9-8     equipment and library books and library materials, and refunding
 9-9     bonds or notes issued under this section.  Bonds and notes issued
9-10     under this subsection shall be for the benefit of the institutions
9-11     described by Subsections (e) and (f) of this section.
9-12           [(g)  The bonds and notes issued under this section shall be
9-13     payable solely out of the available university fund, mature
9-14     serially or otherwise in not more than 30 years from their
9-15     respective dates, and, except for refunding bonds, be sold only
9-16     through competitive bidding.  All of these bonds and notes are
9-17     subject to approval by the attorney general and when so approved
9-18     are incontestable.  The permanent university fund may be invested
9-19     in these bonds and notes.]
9-20           [(h)  To assure efficient use of construction funds and the
9-21     orderly development of physical plants to accommodate the state's
9-22     real need, the legislature may provide for the approval or
9-23     disapproval of all new construction projects at the eligible
9-24     agencies and institutions entitled to participate in the funding
9-25     provided by this section except The University of Texas at Austin,
9-26     Texas A&M University in College Station, and Prairie View A&M
9-27     University.]
 10-1          [(i)  The state systems and institutions of higher education
 10-2    designated in this section may not receive any funds from the
 10-3    general revenue of the state for acquiring land with or without
 10-4    permanent improvements, for constructing or equipping buildings or
 10-5    other permanent improvements, or for major repair and
 10-6    rehabilitation of buildings or other permanent improvements except
 10-7    that:]
 10-8                [(1)  in the case of fire or natural disaster the
 10-9    legislature may appropriate from the general revenue an amount
10-10    sufficient to replace the uninsured loss of any building or other
10-11    permanent improvement; and]
10-12                [(2)  the legislature, by two-thirds vote of each
10-13    house, may, in cases of demonstrated need, which need must be
10-14    clearly expressed in the body of the act, appropriate general
10-15    revenue funds for acquiring land with or without permanent
10-16    improvements, for constructing or equipping buildings or other
10-17    permanent improvements, or for major repair and rehabilitation of
10-18    buildings or other permanent improvements.]
10-19    [This subsection does not apply to legislative appropriations made
10-20    prior to the adoption of this amendment.]
10-21          [(j)  This section is self-enacting on the issuance of the
10-22    governor's proclamation declaring the adoption of this amendment,
10-23    and the state comptroller of public accounts shall do all things
10-24    necessary to effectuate this section.  This section does not impair
10-25    any obligation created by the issuance of bonds or notes in
10-26    accordance with prior law, and all outstanding bonds and notes
10-27    shall be paid in full, both principal and interest, in accordance
 11-1    with their terms, and the changes herein made in the allocation of
 11-2    the available university fund shall not affect the pledges thereof
 11-3    made in connection with such bonds or notes heretofore issued.  If
 11-4    the provisions of this section conflict with any other provision of
 11-5    this constitution, then the provisions of this section shall
 11-6    prevail, notwithstanding any such conflicting provisions.]
 11-7          SECTION 2.  Section 17, Article VII, Texas Constitution, is
 11-8    amended to read as follows:
 11-9          Sec. 17.  (a)  In [the fiscal year beginning September 1,
11-10    1985, and] each fiscal year [thereafter,] there is [hereby]
11-11    appropriated out of the first money coming into the state treasury
11-12    not otherwise appropriated by this [the] constitution $250 [$100]
11-13    million to be allocated as provided by law to the state's [used by
11-14    eligible agencies and] institutions of higher education other than
11-15    an institution that benefits from the permanent university fund
11-16    under Section 18 of this article or a junior college, for the
11-17    purpose of acquiring land either with or without permanent
11-18    improvements, constructing and equipping buildings or other
11-19    permanent improvements, funding major repair or rehabilitation of
11-20    buildings or other permanent improvements, and acquiring
11-21    [acquisition of] capital equipment, library books, and  library
11-22    materials[, and paying for acquiring, constructing, or equipping or
11-23    for major repair or rehabilitation of buildings, facilities, other
11-24    permanent improvements, or capital equipment used jointly for
11-25    educational and general activities and for auxiliary enterprises to
11-26    the extent of their use for educational and general activities].
11-27    The legislature may appropriate additional money for that purpose
 12-1    [For the five-year period that begins on September 1, 2000,  and
 12-2    for each five-year period that begins after that period, the
 12-3    legislature, during a regular session that is nearest, but
 12-4    preceding, a five-year period, may by two-thirds vote of the
 12-5    membership of each house increase the amount of the constitutional
 12-6    appropriation for the five-year period but may not adjust the
 12-7    appropriation in such a way as to impair any obligation created by
 12-8    the issuance of bonds or notes in accordance with this section].
 12-9          (b)  The [funds appropriated under Subsection (a)  of this
12-10    section shall be for the use of the following eligible agencies and
12-11    institutions of higher education (even though their names may be
12-12    changed):]
12-13                [(1)  East Texas State University including East Texas
12-14    State University at Texarkana;]
12-15                [(2)  Lamar University including Lamar University at
12-16    Orange and Lamar University at Port Arthur;]
12-17                [(3)  Midwestern State University;]
12-18                [(4)  University of North Texas;]
12-19                [(5)  The University of Texas--Pan American including
12-20    The University of Texas at Brownsville;]
12-21                [(6)  Stephen F. Austin State University;]
12-22                [(7)  Texas College of Osteopathic Medicine;]
12-23                [(8)  Texas State University System Administration and
12-24    the following component institutions:]
12-25                [(9)  Angelo State University;]
12-26                [(10)  Sam Houston State University;]
12-27                [(11)  Southwest Texas State University;]
 13-1                [(12)  Sul Ross State University including Uvalde Study
 13-2    Center;]
 13-3                [(13)  Texas Southern University;]
 13-4                [(14)  Texas Tech University;]
 13-5                [(15)  Texas Tech University Health Sciences Center;]
 13-6                [(16)  Texas Woman's University;]
 13-7                [(17)  University of Houston System Administration and
 13-8    the following component institutions:]
 13-9                [(18)  University of Houston;]
13-10                [(19)  University of Houston--Victoria;]
13-11                [(20)  University of Houston--Clear Lake;]
13-12                [(21)  University of Houston--Downtown;]
13-13                [(22)  Texas A&M University--Corpus Christi;]
13-14                [(23)  Texas A&M International University;]
13-15                [(24)  Texas A&M University--Kingsville;]
13-16                [(25)  West Texas A&M University; and]
13-17                [(26)  Texas State Technical College System and its
13-18    campuses, but not its extension centers or programs.]
13-19          [(c) Pursuant to a two-thirds vote of the membership of each
13-20    house of the legislature, institutions of higher education may be
13-21    created at a later date by general law, and, when created, such an
13-22    institution shall be entitled to participate in the funding
13-23    provided by this section if it is not created as a part of The
13-24    University of Texas System or The Texas A&M University System.  An
13-25    institution that is entitled to participate in dedicated funding
13-26    provided by Article VII, Section 18, of this constitution may not
13-27    be entitled to participate in the funding provided by this section.]
 14-1          [(d)  In the year 1985 and every 10 years thereafter, the
 14-2    legislature or an agency designated by the legislature no later
 14-3    than August 31 of such year shall allocate by equitable formula the
 14-4    annual appropriations made under Subsection (a)  of this section to
 14-5    the governing boards of eligible agencies and institutions of
 14-6    higher education.  The legislature shall review, or provide for a
 14-7    review, of the allocation formula at the end of the fifth year of
 14-8    each 10-year allocation period.  At that time adjustments may be
 14-9    made in the allocation formula, but no adjustment that will prevent
14-10    the payment of outstanding bonds and notes, both principal and
14-11    interest, may be made.]
14-12          [(d-1)  Notwithstanding Subsection (d) of this section, the
14-13    allocation of the annual appropriation to Texas State Technical
14-14    College System and its campuses may not exceed 2.2 percent of the
14-15    total appropriation each fiscal year.]
14-16          [(e)  Each] governing board of an institution authorized to
14-17    participate in the distribution of money under this section [is
14-18    authorized to expend all money distributed to it for any of the
14-19    purposes enumerated in Subsection (a).  In addition, such governing
14-20    board] may issue negotiable bonds or [and] notes for the benefit of
14-21    the institution payable from the institution's allocations under
14-22    this section.  The aggregate principal amount of the bonds may not
14-23    exceed [purposes of refunding bonds or notes issued under this
14-24    section or prior law, acquiring land either with or without
14-25    permanent improvements, constructing and equipping buildings or
14-26    other permanent improvements, acquiring capital equipment, library
14-27    books, and library materials, paying for acquiring, constructing,
 15-1    or equipping or for major repair or rehabilitation of buildings,
 15-2    facilities, other permanent improvements, or capital equipment used
 15-3    jointly for educational and general activities and for auxiliary
 15-4    enterprises to the extent of their use for educational and general
 15-5    activities, and for major repair and rehabilitation of buildings or
 15-6    other permanent improvements, and may pledge up to] 50 percent of
 15-7    the value of the funds appropriated to the institution under [money
 15-8    allocated to such governing board pursuant to] this section [to
 15-9    secure the payment of the principal and interest of such bonds or
15-10    notes].  The legislature may, by provision in the general
15-11    appropriations bill, adjust the allocation of the funds for the
15-12    ensuing biennium but may not adjust the appropriation in such a way
15-13    as to impair any obligation created by the issuance of bonds or
15-14    notes in accordance with this section.  [Proceeds from the issuance
15-15    of bonds or notes under  this subsection shall be maintained in a
15-16    local depository selected by the governing board issuing the bonds
15-17    or notes.]  The bonds and notes may be used for the purposes
15-18    enumerated in this section [issued under this subsection shall be
15-19    payable solely  out of the money appropriated by this section and
15-20    shall mature serially or otherwise in not more than 10 years from
15-21    their respective dates.  All bonds issued under this section shall
15-22    be sold only through competitive bidding and are subject to
15-23    approval by the attorney general.  Bonds approved by the attorney
15-24    general shall be incontestable.  The permanent university fund may
15-25    be invested in the bonds and notes issued under this section].
15-26          (c)  The legislature by general law may provide for and
15-27    regulate:
 16-1                (1)  the pledge of these funds for bonds or refunding
 16-2    bonds;
 16-3                (2)  the manner of sale and maturities for bonds
 16-4    payable from these funds;
 16-5                (3)  the depository for these funds;
 16-6                (4)  the transfers of these funds by the comptroller to
 16-7    the institutions; and
 16-8                (5)  the incontestability of bonds approved by the
 16-9    attorney general.
16-10          (d) [(f)]  The funds appropriated by this section may not be
16-11    used for the purpose of constructing, equipping, repairing, or
16-12    rehabilitating buildings or other permanent improvements that are
16-13    to be used [only] for student housing, intercollegiate athletics,
16-14    or auxiliary enterprises.
16-15          (e) [(g)  The comptroller of public accounts shall make
16-16    annual transfers of the funds allocated pursuant to Subsection (d)
16-17    directly to the governing boards of the eligible institutions.]
16-18          [(h)  To assure efficient use of construction funds and the
16-19    orderly development of physical plants to accommodate the state's
16-20    real need, the legislature may provide for the approval or
16-21    disapproval of all new construction projects at the eligible
16-22    agencies and institutions entitled to participate in the funding
16-23    provided by this section.]
16-24          [(i)]  The legislature by general law may dedicate portions
16-25    of the state's revenues to the creation of a dedicated fund [("the
16-26    higher education fund")] for the purposes expressed in Subsection
16-27    (a)  of this section.  The principal of the fund may not be spent
 17-1    for any purpose except on affirmative vote of two-thirds of the
 17-2    membership of each house of the legislature.  [The legislature
 17-3    shall provide for administration of the fund, which shall be
 17-4    invested in the manner provided for investment of the permanent
 17-5    university fund.]  The income from the investment of the [higher
 17-6    education] fund shall be credited to the [higher education] fund
 17-7    until [such time as] the fund balance equals [totals] $2 billion.
 17-8    After the balance of [The principal of the higher education fund
 17-9    shall never be expended.  At the beginning of the fiscal year
17-10    after] the fund reaches $2 billion, the income from investment of
17-11    the fund shall be expended for the purposes and in the manner
17-12    described by Subsection (a)  of this section, except that [as
17-13    certified by the comptroller of public accounts, the dedication of
17-14    general revenue funds provided for in Subsection (a)  of this
17-15    section shall cease.  At the beginning of the fiscal year after the
17-16    fund reaches $2 billion, and each year thereafter,] 10 percent of
17-17    the income [interest, dividends, and other income accruing from the
17-18    investments of the higher education fund during the previous fiscal
17-19    year] shall be credited to [deposited and become part of] the
17-20    principal of the fund[, and out of the remainder of the annual
17-21    income from the investment of the principal of the fund there shall
17-22    be appropriated an annual sum sufficient to pay the principal and
17-23    interest due on the bonds and notes issued under this section and
17-24    the balance of the income shall be allocated, distributed, and
17-25    expended as provided for the appropriations made under Subsection
17-26    (a)].  At the beginning of the first fiscal year after the fund
17-27    balance reaches $2 billion, the appropriation required by
 18-1    Subsection (a) shall cease.
 18-2          (f)  An allocation under this section to the Texas State
 18-3    Technical College System and its campuses may not exceed 2.2
 18-4    percent of the total of all allocations in any fiscal year.  [(j)
 18-5    The state systems and  institutions of higher education designated
 18-6    in this section may not receive any additional funds from the
 18-7    general revenue of the state for acquiring land with or without
 18-8    permanent improvements, for constructing or equipping buildings or
 18-9    other permanent improvements, or for major repair and
18-10    rehabilitation of buildings or other permanent improvements except
18-11    that:]
18-12                [(1)  in the case of fire or natural disaster the
18-13    legislature may appropriate from the general revenue an amount
18-14    sufficient to replace the uninsured loss of any building or other
18-15    permanent improvement; and]
18-16                [(2)  the legislature, by two-thirds vote of each
18-17    house, may, in cases of demonstrated need, which need must be
18-18    clearly expressed in the body of the act, appropriate additional
18-19    general revenue funds for acquiring land with or without permanent
18-20    improvements, for constructing or equipping buildings or other
18-21    permanent improvements, or for major repair and rehabilitation of
18-22    buildings or other permanent improvements.]
18-23    [This subsection does not apply to legislative appropriations made
18-24    prior to the adoption of this amendment.]
18-25          [(k)  Without the prior approval of the legislature,
18-26    appropriations under this section may not be expended for acquiring
18-27    land with or without permanent improvements, or for constructing
 19-1    and equipping buildings or other permanent improvements, for a
 19-2    branch of campus or educational center that is not a separate
 19-3    degree-granting institution created by general law.]
 19-4          [(l)  This section is self-enacting upon the issuance of the
 19-5    governor's proclamation declaring the adoption of the amendment,
 19-6    and the state comptroller of public accounts shall do all things
 19-7    necessary to effectuate this section.  This section does not impair
 19-8    any obligation created by the issuance of any bonds and notes in
 19-9    accordance with prior law, and all outstanding bonds and notes
19-10    shall be paid in full, both principal and interest, in accordance
19-11    with their terms.  If the provisions of this section conflict with
19-12    any other provisions of this constitution, then the provisions of
19-13    this section shall prevail, notwithstanding all such conflicting
19-14    provisions.]
19-15          SECTION 3.  The following temporary provision is added to the
19-16    Texas Constitution:
19-17          TEMPORARY PROVISION.  (a)  The amendment of Section 17,
19-18    Article VII, of this constitution adopted in 1999 does not impair
19-19    any obligation created by the issuance of bonds or notes in
19-20    accordance with that section or Section 18 of that article before
19-21    January 1, 2000, and all outstanding bonds and notes validly issued
19-22    under those sections remain valid, enforceable, and binding and
19-23    shall be paid in full, both principal and interest, in accordance
19-24    with their terms and from the sources pledged to the payment of the
19-25    bonds.  The changes made in the allocation of the available
19-26    university fund do not affect the pledges made in connection with
19-27    bonds or notes.  The legislature by general law may provide for
 20-1    implementation of this provision.
 20-2          (b)  In any fiscal year the legislature may reduce the amount
 20-3    of an appropriation made under Section 17, Article VII, of this
 20-4    constitution, by the amount an institution receives in that fiscal
 20-5    year from the available university fund in connection with an
 20-6    obligation issued by or for the institution when the institution
 20-7    was entitled to participate in funding from the available
 20-8    university fund.
 20-9          (c)  On January 1, 2000, the money in the higher education
20-10    fund created under former Section 17(i), Article VII, of this
20-11    constitution, as that section existed on January 1, 1999, is
20-12    transferred to the credit of the fund created under Section 17(a),
20-13    Article VII, of this constitution.
20-14          (d)  The constitutional amendment proposed by the 76th
20-15    Legislature, Regular Session, 1999, to revise the provisions for
20-16    funding capital improvements and acquisitions by state colleges and
20-17    universities, takes effect January 1, 2000.
20-18          (e)  This section expires January 1, 2030.
20-19          SECTION 4.  Section 11a, Article VII, Texas Constitution, is
20-20    repealed.
20-21          SECTION 5.  This proposed constitutional amendment shall be
20-22    submitted to the voters at an election to be held November 2, 1999.
20-23    The ballot shall be printed to permit voting for or against the
20-24    proposition: "The constitutional amendment to revise the provisions
20-25    for funding capital improvements and acquisitions by state colleges
20-26    and universities."