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79S30973 KEL-D
By: Ogden S.J.R. No. 11
A JOINT RESOLUTION
proposing a constitutional amendment providing for the
continuation of the constitutional appropriation of money to
certain higher education entities and for the allocation of income
from the higher education fund to those entities, and extending the
period of maturity for certain bonds and notes issued by those
entities.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 17(b), (e), and (i), Article VII, Texas
Constitution, are amended to read as follows:
(b) The funds appropriated under Subsections [Subsection]
(a) and (i) of this section shall be for the use of the following
eligible agencies and institutions of higher education (even though
their names may be changed):
(1) Texas A&M University--Commerce;
(2) Texas A&M University--Texarkana [East Texas State
University including East Texas State University at Texarkana];
(3) [(2)] Lamar University including Lamar State
College--Orange [University at Orange] and Lamar State
College--Port Arthur [University at Port Arthur];
(4) [(3)] Midwestern State University;
(5) [(4)] University of North Texas;
(6) [(5)] The University of Texas--Pan American;
(7) [including] The University of Texas at
Brownsville;
(8) [(6)] Stephen F. Austin State University;
(9) University of North Texas Health Science Center at
Fort Worth [(7) Texas College of Osteopathic Medicine];
(10) [(8)] Texas State University System
Administration and the following component institutions:
(A) [(9)] Angelo State University;
(B) [(10)] Sam Houston State University;
(C) [(11) Southwest] Texas State University--San
Marcos; and
(D) [(12)] Sul Ross State University including
Sul Ross University Rio Grande College [Uvalde Study Center];
(11) [(13)] Texas Southern University;
(12) [(14)] Texas Tech University;
(13) [(15)] Texas Tech University Health Sciences
Center;
(14) [(16)] Texas Woman's University;
(15) [(17)] University of Houston System
Administration and the following component institutions:
(A) [(18)] University of Houston;
(B) [(19)] University of Houston--Victoria;
(C) [(20)] University of Houston--Clear Lake;
and
(D) [(21)] University of Houston--Downtown;
(16) [(22)] Texas A&M University--Corpus Christi;
(17) [(23)] Texas A&M International University;
(18) [(24)] Texas A&M University--Kingsville;
(19) [(25)] West Texas A&M University; and
(20) [(26)] Texas State Technical College System and
its campuses, but not its extension centers or programs.
(e) Each governing board authorized to participate in the
distribution of money under this section is authorized to expend
all money distributed to it for any of the purposes enumerated in
Subsection (a). In addition, such governing board may issue bonds
and notes for the purposes of refunding bonds or notes issued under
this section or prior law, acquiring land either with or without
permanent improvements, constructing and equipping buildings or
other permanent improvements, acquiring capital equipment, library
books, and library materials, paying for acquiring, constructing,
or equipping or for major repair or rehabilitation of buildings,
facilities, other permanent improvements, or capital equipment
used jointly for educational and general activities and for
auxiliary enterprises to the extent of their use for educational
and general activities, and for major repair and rehabilitation of
buildings or other permanent improvements, and may pledge up to 50
percent of the money allocated to such governing board pursuant to
this section to secure the payment of the principal and interest of
such bonds or notes. Proceeds from the issuance of bonds or notes
under this subsection shall be maintained in a local depository
selected by the governing board issuing the bonds or notes. The
bonds and notes issued under this subsection shall be payable
solely out of the money appropriated by this section and shall
mature serially or otherwise in not more than 20 [10] years from
their respective dates. All bonds issued under this section shall
be sold only through competitive bidding and are subject to
approval by the attorney general. Bonds approved by the attorney
general shall be incontestable. The permanent university fund may
be invested in the bonds and notes issued under this section.
(i) The legislature by general law may dedicate portions of
the state's revenues to the creation of a dedicated fund ("the
higher education fund") for the purposes expressed in Subsection
(a) of this section. The legislature shall provide for
administration of the fund, which shall be invested in the manner
provided for investment of the permanent university fund. The
income from the investment of the higher education fund shall be
credited to the higher education fund until such time as the fund
totals $2 billion. The principal of the higher education fund shall
never be expended. [At the beginning of the fiscal year after the
fund reaches $2 billion, as certified by the comptroller of public
accounts, the dedication of general revenue funds provided for in
Subsection (a) of this section shall cease.] At the beginning of
each [the] fiscal year after the fund reaches $2 billion, [and each
year thereafter,] 10 percent of the interest, dividends, and other
income accruing from the investments of the higher education fund
during the previous fiscal year shall be deposited to the credit of
the fund and become part of the principal of the fund, and out of the
remainder of the annual income from the investment of the principal
of the fund there shall be appropriated an annual sum sufficient to
pay the principal and interest due on the bonds and notes issued
under this section and the balance of the income shall be allocated
and[,] distributed by equitable formula as provided by general
law[,] and may be expended only for the same purposes as provided
for the appropriations made under Subsection (a).
SECTION 2. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 7, 2006.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment providing for the
continuation of the constitutional appropriation of money to
certain higher education entities and for the allocation of income
from the higher education fund to those entities, and extending the
period of maturity for certain bonds and notes issued by those
entities."