1-1     By:  Duncan, Truan                                    S.B. No. 1878
 1-2           (In the Senate - Filed April 20, 1999; April 21, 1999, read
 1-3     first time and referred to Committee on Finance; May 6, 1999,
 1-4     reported adversely, with favorable Committee Substitute by the
 1-5     following vote:  Yeas 10, Nays 0; May 6, 1999, sent to printer.)
 1-6     COMMITTEE SUBSTITUTE FOR S.B. No. 1878                  By:  Duncan
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the allocation of certain constitutional funds to
1-10     certain institutions of higher education.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Subsection (a), Section 62.021, Education Code,
1-13     is amended to read as follows:
1-14           (a)  Each fiscal year, an eligible institution is entitled to
1-15     receive an amount allocated in accordance with this section from
1-16     funds appropriated by Article VII, Section 17(a), of the
1-17     Constitution of Texas.  The comptroller of public accounts shall
1-18     distribute funds allocated under this subsection only on
1-19     presentation of a claim and issuance of a warrant in accordance
1-20     with Section 403.071, Government Code.  The comptroller may not
1-21     issue a warrant from any funds allocated under this subsection
1-22     before the delivery of goods or services described in Section 17,
1-23     Article VII, Texas Constitution, except for the payment of
1-24     principal or interest on bonds or notes.  The allocation of funds
1-25     under this subsection is made in accordance with an equitable
1-26     formula consisting of the following elements:  space deficit,
1-27     facilities condition, institutional complexity, separate
1-28     allocations for medical units and the Texas State Technical College
1-29     System, and an additional allocation for Texas Southern University
1-30     for compliance with the Texas Desegregation Plan.  The amounts
1-31     allocated by the formula are as follows:
1-32     $ 5,256,817 [$ 5,572,558]  Texas A&M University--Commerce, [East
1-33                                Texas State University] including an
1-34                                allocation of $1,027,070 to Texas A&M
1-35                                University--Texarkana [East Texas State
1-36                                University at Texarkana];
1-37     $ 8,818,023 [$ 9,468,548]  Lamar University, including an
1-38                                allocation of $743,967 to Lamar
1-39                                University at Orange and an allocation
1-40                                of $2,336,605 to Lamar University at
1-41                                Port Arthur;
1-42     $ 3,007,669 [$ 2,862,203]  Midwestern State University;
1-43     $18,021,033 [$20,217,740]  University of North Texas;
1-44     $ 7,131,692 [$10,174,500]  The University of Texas--Pan American,
1-45                                including an allocation of $1,050,580 to
1-46                                [and] The University of Texas at
1-47                                Brownsville;
1-48     $ 6,633,109 [$ 6,468,273]  Stephen F. Austin State University;
1-49     $ 3,640,000                University of North Texas Health Science
1-50                                Center at Fort Worth;
1-51     $26,132,524 [$23,181,556]  Texas State University System
1-52                                Administration and the following
1-53                                component institutions, including an
1-54                                allocation of $3,887,211 to[:] Angelo
1-55                                State University; an allocation of
1-56                                $5,864,608 to Sam Houston State
1-57                                University; an allocation of $14,479,112
1-58                                to Southwest Texas State University; an
1-59                                allocation of $1,635,271 to Sul Ross
1-60                                State University; and an allocation of
1-61                                $266,322 to Sul Ross State University
1-62                                Rio Grande College [including Uvalde
1-63                                Center];
1-64     $ 7,191,493 [$ 8,199,288]  Texas Southern University (includes
 2-1                                allocation of $1,000,000 for compliance
 2-2                                with Texas Desegregation Plan);
 2-3     $20,961,881 [$16,887,085]  Texas Tech University;
 2-4     $ 7,735,000                Texas Tech University Health Sciences
 2-5                                Center;
 2-6     $ 6,974,897 [$ 6,849,160]  Texas Woman's University;
 2-7     $36,952,989 [$37,726,969]  University of Houston System
 2-8                                Administration and the following
 2-9                                component institutions, including an
2-10                                allocation of $25,986,116 to the[:]
2-11                                University of Houston; an allocation of
2-12                                $1,659,449 to the University of
2-13                                Houston--Victoria; an allocation of
2-14                                $3,853,447 to the University of
2-15                                Houston--Clear Lake; and an allocation
2-16                                of $5,453,977 to the University of
2-17                                Houston--Downtown;
2-18     $12,692,873 [$12,167,120]  The following components of The Texas
2-19                                A&M University System, including an
2-20                                allocation of $3,687,722 to Texas A&M
2-21                                University--Corpus Christi; an
2-22                                allocation of $1,778,155 to Texas A&M
2-23                                International University; an allocation
2-24                                of $3,555,651 to Texas A&M
2-25                                University--Kingsville; and an
2-26                                allocation of $3,671,345 to West Texas
2-27                                A&M University; and
2-28     $ 3,850,000                Texas State Technical College System
2-29                                Administration and the following
2-30                                component campuses, but not its
2-31                                extension centers or programs: Texas
2-32                                State Technical College-Amarillo; Texas
2-33                                State Technical College-Harlingen; Texas
2-34                                State Technical College-Sweetwater;
2-35                                Texas State Technical College--Waco.
2-36           SECTION 2.  Section 62.022, Education Code, is amended to
2-37     read as follows:
2-38           Sec. 62.022.  [ADJUSTMENT OF] ALLOCATION FORMULA.  (a)  Prior
2-39     to the convening of the regular session of the Texas Legislature
2-40     immediately preceding each 10-year period for which Section 17(d),
2-41     Article VII, Texas Constitution, prescribes an allocation of the
2-42     money appropriated by Section 17(a), Article VII, Texas
2-43     Constitution, the coordinating board shall conduct, with the full
2-44     participation of the eligible institutions, a study and present
2-45     recommendations to the Legislative Budget Board and to the Texas
2-46     House and Texas Senate standing committees having jurisdiction over
2-47     legislation related to higher education as to the allocation of the
2-48     money appropriated by Section 17(a) for the following 10-year
2-49     allocation period established by Section 17(d).
2-50           (b)  Prior to the convening of the regular session of the
2-51     Texas Legislature immediately preceding the sixth year of each
2-52     10-year allocation period established by Section 17(d), Article
2-53     VII, Texas Constitution [in 1999], the coordinating board shall
2-54     conduct, with the full participation of the eligible institutions,
2-55     a study and present recommendations to the Legislative Budget Board
2-56     and to the Texas House and Texas Senate standing committees having
2-57     cognizance over legislation related to higher education as to
2-58     whether and, if so, how, the equitable allocation formula
2-59     established for that 10-year period should be adjusted for the last
2-60     five years of the 10-year period [five-year period beginning
2-61     September 1, 2000].  The coordinating board shall include in the
2-62     study a survey of educational and general building quality, if the
2-63     legislature provides funds for the survey.
2-64           (c) [(b)]  The legislature shall approve, modify and approve,
2-65     or reject the recommendations of the coordinating board under
2-66     Subsection (a) or (b).
2-67           (d) [(c)]  If, prior to the first day of the sixth year of a
2-68     10-year allocation period established by Section 17(d), Article
2-69     VII, Texas Constitution [September 1, 2000], the Texas Legislature
 3-1     fails to act on a recommendation for adjustment in the equitable
 3-2     allocation formula, the 10-year allocation provided for in Section
 3-3     62.021(a) shall continue until the end of the 10-year period.
 3-4           (e) [(d)]  No adjustment shall be made in the allocation
 3-5     formula that will prevent payment of both the principal and
 3-6     interest on outstanding bonds and notes sold pursuant to Section
 3-7     17(e), Article VII, Texas Constitution.
 3-8           [(e)  Prior to the convening of the regular session of the
 3-9     Texas Legislature in 2005, the coordinating board shall conduct,
3-10     with the full participation of the eligible institutions, a study
3-11     and present recommendations to the Legislative Budget Board and to
3-12     the Texas House and Texas Senate standing committees having
3-13     cognizance over legislation related to higher education as to the
3-14     allocation of the funds appropriated by Section 17(a), Article VII,
3-15     Texas Constitution, for the 10-year period beginning September 1,
3-16     2005.]
3-17           (f)  A review of the allocation formula conducted by the
3-18     coordinating board under this section shall include:
3-19                 (1)  a comparison of the deferred maintenance needs of
3-20     an institution of higher education and the extent to which the
3-21     constitutionally dedicated funds were used to meet those needs; and
3-22                 (2)  an evaluation of the effectiveness of the
3-23     allocation formula concerning deferred maintenance needs of those
3-24     institutions.
3-25           SECTION 3.  This Act takes effect September 1, 2000.
3-26           SECTION 4.  The importance of this legislation and the
3-27     crowded condition of the calendars in both houses create an
3-28     emergency and an imperative public necessity that the
3-29     constitutional rule requiring bills to be read on three several
3-30     days in each house be suspended, and this rule is hereby suspended.
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