SRC-MWN H.B. 3699 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 3699
By: Ritter (Bernsen)
Education
5/8/2001
Engrossed


DIGEST AND PURPOSE 

The Texas Constitution sets forth the allocation of constitutionally
appropriated funds under the equitable allocation formula to institutions
of higher education (institution) for specified expenditures, but does not
specify whether an institution is authorized to transfer funds among
different member institutions. While some institutions have transferred
these allocated funds to different member institutions, such as Lamar
University transferring funds to the Lamar Institute of Technology, there
is still confusion on whether an institution is specifically authorized to
transfer these allocated funds. H.B. 3699 specifies that an institution
that is entitled to allocated funds under the equitable allocation formula
is authorized to transfer the allocated funds to other eligible member
institutions.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 62.021(a), Education Code, as amended by Chapter
1363(2), Chapter 1467(1.03), and Chapter 1508(1), Acts of the 76th
Legislature, Regular Session, 1999, to provide that the amounts allocated
by the formula are of certain amounts. 

SECTION 2. Amends Section 62.021(b), Education Code, to authorize each
governing board participating in the distribution of funds as described in
this section to expend the funds without limitation either at the specified
institution or subject to board authorized transfer at other eligible
member institutions, and as the governing board to decide in its sole
discretion, for any and all purposes described in Article VII, Section 17,
of the Constitution of Texas, provided however, that for new construction,
major repair and rehabilitation projects, and land acquisition projects,
those funds are prohibited from being expended without the prior approval
of the legislature or the approval, review, or endorsement, as applicable,
of the coordinating board, and provided further that review and approval of
major repair and rehabilitation is required to apply only to projects in
excess $600,000. 

SECTION 3. Amends Section 96.703, Education Code, as follows:

Sec. 96.703. LAMAR INSTITUTE OF TECHNOLOGY. (c) Authorizes the board, for
Lamar Institute of Technology, to expend funds allocated to Lamar
University under Chapter 62 for any of the purposes listed in Section 17,
Article VII, Texas Constitution, in the same manner and under the same
circumstances as expenditures for those purposes for other separate
degree-granting  institutions. 

SECTION 4. Effective date: upon passage or September 1, 2001.