84R15366 KEL-D

By: Muñoz, Jr. H.J.R. No. 136

A JOINT RESOLUTION

proposing a constitutional amendment to establish a permanent endowment to support the construction, acquisition, improvement, and equipping of buildings, facilities, and other improvements at public junior and community colleges.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Article VII, Texas Constitution, is amended by adding Section 21 to read as follows:

Sec. 21. (a) There is established the permanent public community college fund for the purpose of providing a dedicated, independent, and equitable source of funding to support the construction, acquisition, improvement, and equipping of buildings, facilities, and other improvements at public junior and community colleges.

(b) The fund consists of money transferred or deposited to the credit of the fund and any interest or other return on the investment assets of the fund. The legislature may dedicate state revenue to the credit of the fund.

(c) The legislature shall provide for administration of the fund, which shall be invested in the manner and according to the standards provided for investment of the permanent university fund. The expenses of managing the investments of the fund shall be paid from the fund.

(d) In each state fiscal biennium, the legislature may appropriate as provided by Subsection (f) of this section all or a portion of the total return on all investment assets of the fund to carry out the purposes for which the fund is established.

(e) The legislature shall allocate the amounts appropriated under this section, or shall provide for an allocation of those amounts, to eligible junior college districts to carry out the purposes of the fund. The money shall be allocated based on an equitable formula established by the legislature or by an agency designated by the legislature.

(f) The portion of the total return on investment assets of the fund that is available for appropriation in a state fiscal biennium under this section is the portion determined by the legislature, or an agency designated by the legislature, as necessary to provide as nearly as practicable a stable and predictable stream of annual distributions to eligible junior college districts and to maintain over time the purchasing power of fund investment assets. The amount appropriated from the fund in any fiscal year may not exceed an amount equal to seven percent of the average net fair market value of the investment assets of the fund, as determined by law.

(g) The legislature shall establish criteria by which a junior college district may become eligible to receive a portion of the distributions from the fund. A junior college district that becomes eligible to receive a portion of the distributions from the fund in a state fiscal biennium remains eligible to receive additional distributions from the fund in any subsequent state fiscal biennium.

(h) A junior college district may use distributions from the fund only for the construction, acquisition, improvement, and equipping of buildings, facilities, and other improvements at public junior college and community college campuses operated by the districts, including to pay the principal and interest on bonds or other obligations issued for that purpose.

SECTION 2. Section 49-g, Article III, Texas Constitution, is amended by adding Subsection (p) to read as follows:

(p) Notwithstanding the other provisions of this section, on the first day of each state fiscal year, the comptroller shall transfer from the economic stabilization fund to the permanent public community college fund established under Section 21, Article VII, of this constitution an amount equal to 10 percent of the total amount of funds deposited into the economic stabilization fund in the preceding state fiscal year.

SECTION 3. Section 18, Article VII, Texas Constitution, is amended by adding Subsection (k) to read as follows:

(k) Notwithstanding the other provisions of this section, in each state fiscal year, before any other amounts are distributed under those provisions from the available university fund, the Board of Regents of The University of Texas System shall transfer from the available university fund to the permanent public community college fund established under Section 21 of this article an amount equal to one percent of the amount distributed from the permanent university fund to the available university fund in that fiscal year. This subsection expires when the comptroller of public accounts certifies to the governor and the Board of Regents of The University of Texas System that the balance of the permanent public community college fund is sufficient to provide annual distributions to adequately fund the construction, acquisition, improvement, and equipping of buildings, facilities, and other improvements at public junior and community colleges.

SECTION 4. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 3, 2015. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment to establish a permanent endowment to support the construction, acquisition, improvement, and equipping of buildings, facilities, and other improvements at public junior and community colleges."