By:  Duncan                                           S.J.R. No. 45
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
 1-1                           SENATE JOINT RESOLUTION
 1-2     proposing a constitutional amendment relating to the allocation of
 1-3     the constitutional appropriation to certain institutions of higher
 1-4     education not entitled to participate in funding from the available
 1-5     university fund.
 1-6           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.  Section 17, Article VII, Texas Constitution, is
 1-8     amended by amending Subsection (d) and adding Subsection (d-2) to
 1-9     read as follows:
1-10           (d)  In the year 1985 and every 10 years thereafter, the
1-11     legislature or an agency designated by the legislature no later
1-12     than August 31 of such year shall allocate by equitable formula the
1-13     annual appropriations made under Subsection (a) of this section to
1-14     the governing boards of eligible agencies and institutions of
1-15     higher education.  The legislature shall review, or provide for a
1-16     review[,] of, the allocation formula at the end of the fifth year
1-17     of each 10-year allocation period.  At that time adjustments may be
1-18     made in the allocation formula.  Notwithstanding Subsection (e) of
1-19     this section, an adjustment in the allocation formula is not
1-20     invalid even though under the adjusted allocation more than 50
1-21     percent of the money allocated to a governing board must be used to
1-22     pay the principal and interest of outstanding bonds or notes, but
 2-1     no adjustment may be made that will prevent the payment of
 2-2     outstanding bonds and notes, both principal and interest[, may be
 2-3     made].
 2-4           (d-2)  The allocation adjustments made under Subsection (d)
 2-5     of this section by Section 1.03, Chapter 1467, Acts of the 76th
 2-6     Legislature, Regular Session, 1999, are validated.  This subsection
 2-7     expires January 1, 2006.
 2-8           SECTION 2.  This proposed constitutional amendment shall be
 2-9     submitted to the voters at an election to be held November 6, 2001.
2-10     The ballot shall be printed to permit voting for or against the
2-11     proposition:  "The constitutional amendment to clarify the
2-12     authority of the legislature to adjust the allocation of money
2-13     appropriated by the constitution to certain institutions of higher
2-14     education for capital improvements and related purposes."