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."