By Duncan, et al.                                     S.B. No. 1878
         76R11404 CAG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the allocation of certain constitutional funds to
 1-3     certain institutions of higher education.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 62.021(a), Education Code, is amended to
 1-6     read as follows:
 1-7           (a)  Each fiscal year, an eligible institution is entitled to
 1-8     receive an amount allocated in accordance with this section from
 1-9     funds appropriated by Article VII, Section 17(a), of the
1-10     Constitution of Texas.  The comptroller of public accounts shall
1-11     distribute funds allocated under this subsection only on
1-12     presentation of a claim and issuance of a warrant in accordance
1-13     with Section 403.071, Government Code.  The comptroller may not
1-14     issue a warrant from any funds allocated under this subsection
1-15     before the delivery of goods or services described in Section 17,
1-16     Article VII, Texas Constitution, except for the payment of
1-17     principal or interest on bonds or notes.  The allocation of funds
1-18     under this subsection is made in accordance with an equitable
1-19     formula consisting of the following elements:  space deficit,
1-20     facilities condition, institutional complexity, separate
1-21     allocations for medical units and the Texas State Technical College
1-22     System, and an additional allocation for Texas Southern University
1-23     for compliance with the Texas Desegregation Plan.  The amounts
1-24     allocated by the formula are as follows:
 2-1     $ 5,224,956 [$ 5,572,558]  Texas A&M University--Commerce, [East
 2-2                                Texas State University] including an
 2-3                                allocation of $1,018,166 to Texas A&M
 2-4                                University--Texarkana [East Texas State
 2-5                                University at Texarkana];
 2-6     $ 8,897,209 [$ 9,468,548]  Lamar University, including an
 2-7                                allocation of $884,109 to Lamar
 2-8                                University at Orange and an allocation
 2-9                                of $2,312,751 to Lamar University at
2-10                                Port Arthur;
2-11     $ 2,988,406 [$ 2,862,203]  Midwestern State University;
2-12     $18,195,966 [$20,217,740]  University of North Texas;
2-13     $ 9,157,050 [$10,174,500]  The University of Texas--Pan American,
2-14                                including an allocation of $1,405,313 to
2-15                                [and] The University of Texas at
2-16                                Brownsville;
2-17     $ 6,593,103 [$ 6,468,273]  Stephen F. Austin State University;
2-18     $ 3,640,000                University of North Texas Health Science
2-19                                Center at Fort Worth;
2-20     $25,950,268 [$23,181,556]  Texas State University System
2-21                                Administration and the following
2-22                                component institutions, including an
2-23                                allocation of $3,858,511 to [:] Angelo
2-24                                State University; an allocation of
2-25                                $5,834,361 to Sam Houston State
2-26                                University; an allocation of $14,365,918
2-27                                to Southwest Texas State University; an
 3-1                                allocation of $1,625,156 to Sul Ross
 3-2                                State University; and an allocation of
 3-3                                $266,322 to Sul Ross State
 3-4                                University-Rio Grande College [including
 3-5                                Uvalde Center];
 3-6     $ 7,789,324 [$ 8,199,288]  Texas Southern University (includes
 3-7                                allocation of $1,000,000 for compliance
 3-8                                with Texas Desegregation Plan);
 3-9     $21,909,971 [$16,887,085]  Texas Tech University;
3-10     $ 7,735,000                Texas Tech University Health Sciences
3-11                                Center;
3-12     $ 6,939,633 [$ 6,849,160]  Texas Woman's University;
3-13     $37,621,009 [$37,726,969]  University of Houston System
3-14                                Administration and the following
3-15                                component institutions, including an
3-16                                allocation of $25,798,083 to the[:]
3-17                                University of Houston; an allocation of
3-18                                $1,644,128 to the University of
3-19                                Houston--Victoria; an allocation of
3-20                                $4,779,274 to the University of
3-21                                Houston--Clear Lake; and an allocation
3-22                                of $5,399,524 to the University of
3-23                                Houston--Downtown;
3-24     $12,808,779 [$12,167,120]  The following components of The Texas
3-25                                A&M University System, including an
3-26                                allocation of $3,662,651 to Texas A&M
3-27                                University--Corpus Christi; an
 4-1                                allocation of $1,963,495 to Texas A&M
 4-2                                International University; an allocation
 4-3                                of $3,534,783 to Texas A&M
 4-4                                University--Kingsville; and an
 4-5                                allocation of $3,647,850 to West Texas
 4-6                                A&M University; and
 4-7     $ 3,850,000                Texas State Technical College System
 4-8                                Administration and the following
 4-9                                component campuses, but not its
4-10                                extension centers or programs: Texas
4-11                                State Technical College-Amarillo; Texas
4-12                                State Technical College-Harlingen; Texas
4-13                                State Technical College-Sweetwater;
4-14                                Texas State Technical College--Waco.
4-15           SECTION 2.  Section 62.022, Education Code, is amended to
4-16     read as follows:
4-17           Sec. 62.022.  [ADJUSTMENT OF] ALLOCATION FORMULA.  (a)  Prior
4-18     to the convening of the regular session of the Texas Legislature
4-19     immediately preceding each 10-year period for which Section 17(d),
4-20     Article VII, Texas Constitution, prescribes an allocation of the
4-21     money appropriated by Section 17(a), Article VII, Texas
4-22     Constitution, the coordinating board shall conduct, with the full
4-23     participation of the eligible institutions, a study and present
4-24     recommendations to the Legislative Budget Board and to the Texas
4-25     House and Texas Senate standing committees having jurisdiction over
4-26     legislation related to higher education as to the allocation of the
4-27     money appropriated by Section 17(a) for the following 10-year
 5-1     allocation period established by Section 17(d).
 5-2           (b)  Prior to the convening of the regular session of the
 5-3     Texas Legislature immediately preceding the sixth year of each
 5-4     10-year allocation period established by Section 17(d), Article
 5-5     VII, Texas Constitution [in 1999], the coordinating board shall
 5-6     conduct, with the full participation of the eligible institutions,
 5-7     a study and present recommendations to the Legislative Budget Board
 5-8     and to the Texas House and Texas Senate standing committees having
 5-9     cognizance over legislation related to higher education as to
5-10     whether and, if so, how, the equitable allocation formula
5-11     established for that 10-year period should be adjusted for the last
5-12     five years of the 10-year period [five-year period beginning
5-13     September 1, 2000]. The coordinating board shall include in the
5-14     study a survey of educational and general building quality, if the
5-15     legislature provides funds for the survey.
5-16           (c) [(b)]  The legislature shall approve, modify and approve,
5-17     or reject the recommendations of the coordinating board under
5-18     Subsection (a) or (b).
5-19           (d) [(c)]  If, prior to the first day of the sixth year of a
5-20     10-year allocation period established by Section 17(d), Article
5-21     VII, Texas Constitution [September 1, 2000], the Texas Legislature
5-22     fails to act on a recommendation for adjustment in the equitable
5-23     allocation formula, the 10-year allocation provided for in Section
5-24     62.021(a) shall continue until the end of the 10-year period.
5-25           (e) [(d)]  No adjustment shall be made in the allocation
5-26     formula that will prevent payment of both the principal and
5-27     interest on outstanding bonds and notes sold pursuant to Section
 6-1     17(e), Article VII, Texas Constitution.
 6-2           [(e)  Prior to the convening of the regular session of the
 6-3     Texas Legislature in 2005, the coordinating board shall conduct,
 6-4     with the full participation of the eligible institutions, a study
 6-5     and present recommendations to the Legislative Budget Board and to
 6-6     the Texas House and Texas Senate standing committees having
 6-7     cognizance over legislation related to higher education as to the
 6-8     allocation of the funds appropriated by Section 17(a), Article VII,
 6-9     Texas Constitution, for the 10-year period beginning September 1,
6-10     2005.]
6-11           (f)  A review of the allocation formula conducted by the
6-12     coordinating board under this section shall include:
6-13                 (1)  a comparison of the deferred maintenance needs of
6-14     an institution of higher education and the extent to which the
6-15     constitutionally dedicated funds were used to meet those needs; and
6-16                 (2)  an evaluation of the effectiveness of the
6-17     allocation formula concerning deferred maintenance needs of those
6-18     institutions.
6-19           SECTION 3.  The importance of this legislation and the
6-20     crowded condition of the calendars in both houses create an
6-21     emergency and an imperative public necessity that the
6-22     constitutional rule requiring bills to be read on three several
6-23     days in each house be suspended, and this rule is hereby suspended,
6-24     and that this Act take effect and be in force from and after its
6-25     passage, and it is so enacted.