Amend CSHB 42 (house committee report) by striking all below the enacting clause and substituting the following:

SECTION 1.  (a)  This section takes effect only if the constitutional amendment proposed by the 89th Legislature, Regular Session, 2025, providing for the creation of funds to support the capital needs of educational programs offered by the Texas State Technical College System is approved by the voters.

(b)  Section 62.021, Education Code, is amended by amending Subsection (a) and adding Subsections (a-1) and (a-2) to read as follows:

(a)  In each state fiscal year beginning with the state fiscal year ending August 31, 2027 [2021], an eligible institution is entitled to receive an amount allocated in accordance with this section from the funds appropriated for that year by Section 17(a), Article VII, Texas Constitution.  The comptroller shall distribute funds allocated under this subsection only on presentation of a claim and issuance of a warrant in accordance with Section 403.071, Government Code.  An eligible institution may not present a claim to be paid from any funds allocated under this subsection before the delivery of goods or services described in Section 17, Article VII, Texas Constitution, except for the payment of principal or interest on bonds or notes or for a payment for a book or other published library material as authorized by Section 2155.386, Government Code.  The allocation of funds under this subsection is made in accordance with an equitable formula consisting of the following elements: space deficit, facilities condition, and institutional complexity[, and a separate allocation for the Texas State Technical College System].  The annual amounts allocated by the formula are as follows:

(1)  to the following component institutions of the University of North Texas System:

(A)  $103,401,605 [$38,473,304] to the University of North Texas and its branch campus the University of North Texas at Frisco, allocated as determined by the board of regents of the system;

(B)  $33,295,551 [$15,581,837] to the University of North Texas Health Science Center at Fort Worth; and

(C)  $10,176,145 [$3,455,644] to the University of North Texas at Dallas;

(2)  to the following component institutions of the Texas State University System:

(A)  $32,210,235 [$13,537,649] to Lamar University;

(B)  $11,501,946 [$2,630,158] to the Lamar Institute of Technology;

(C)  $7,645,173 [$1,533,301] to Lamar State College--Orange;

(D)  $9,856,421 [$2,283,992] to Lamar State College--Port Arthur;

(E)  $36,218,217 [$18,787,013] to Sam Houston State University;

(F)  $10,819,040 to Sam Houston State University College of Osteopathic Medicine;

(G)  $91,594,285 [$38,741,061] to Texas State University;

(H)  $6,284,289 [(G) $2,216,640] to Sul Ross State University; and

(I)  $3,407,790 [(H)   $487,157] to Sul Ross State University-Rio Grande College;

(3)  $19,354,930 [$12,072,906] to Texas Southern University;

(4)  to the following component institutions of the Texas Tech University System:

(A)  $131,225,583 [$51,379,461] to Texas Tech University;

(B)  $44,977,109 [$22,305,642] to Texas Tech University Health Sciences Center and its branch campuses Texas Tech University Health Sciences Center at Abilene and Texas Tech University Health Sciences Center at Dallas, allocated as determined by the board of regents of the system;

(C)  $15,582,526 [$6,997,943] to Angelo State University;

(D)  $17,155,861 [$5,725,243] to Texas Tech University Health Sciences Center--El Paso; and

(E)  $10,352,117 [$5,082,034] to Midwestern State University;

(5)  $30,610,326 [$14,993,229] to the component institutions of the Texas Woman's University System, allocated as determined by the board of regents of the system;

(6)  to the following component institutions of the University of Houston System:

(A)  $112,236,829 [$56,158,685] to the University of Houston;

(B)  $8,397,495 [$3,649,703] to the University of Houston--Victoria;

(C)  $14,968,216 [$7,959,137] to the University of Houston--Clear Lake; [and]

(D)  $21,881,515 [$11,155,034] to the University of Houston--Downtown; and

(7)  to the following component institutions of The Texas A&M University System:

(A)  $25,075,189 [$11,825,139] to Texas A&M University--Corpus Christi;

(B)  $17,666,749 [$7,687,534] to Texas A&M International University;

(C)  $15,563,520 [$9,125,307] to Texas A&M University--Kingsville;

(D)  $17,341,425 [$7,671,155] to West Texas A&M University;

(E)  $19,768,680 [$11,459,464] to East Texas A&M University [University--Commerce]; and

(F)  $6,335,816 [$2,112,129] to Texas A&M University--Texarkana[; and

[(8)     $8,662,500 to the Texas State Technical College System Administration and the following component campuses, but not its extension centers or programs:

[(A)     Texas State Technical College-Harlingen;

[(B)     Texas State Technical College--Marshall;

[(C)     Texas State Technical College--West Texas;

[(D)     Texas State Technical College--Waco;

[(E)     Texas State Technical College--Fort Bend; and

[(F)     Texas State Technical College--North Texas].

(D)  $16,975,295 to West Texas A&M University;

SECTION 2.  (a)  This section takes effect only if the constitutional amendment proposed by the 89th Legislature, Regular Session, 2025, providing for the creation of funds to support the capital needs of educational programs offered by the Texas State Technical College System is not approved by the voters.

(b)  Section 62.021(a), Education Code, is amended to read as follows:

(a)  In each state fiscal year beginning with the state fiscal year ending August 31, 2026 [2021], an eligible institution is entitled to receive an amount allocated in accordance with this section from the funds appropriated for that year by Section 17(a), Article VII, Texas Constitution.  The comptroller shall distribute funds allocated under this subsection only on presentation of a claim and issuance of a warrant in accordance with Section 403.071, Government Code.  An eligible institution may not present a claim to be paid from any funds allocated under this subsection before the delivery of goods or services described in Section 17, Article VII, Texas Constitution, except for the payment of principal or interest on bonds or notes or for a payment for a book or other published library material as authorized by Section 2155.386, Government Code.  The allocation of funds under this subsection is made in accordance with an equitable formula consisting of the following elements: space deficit, facilities condition, institutional complexity, and a separate allocation for the Texas State Technical College System.  The annual amounts allocated by the formula are as follows:

(1)  to the following component institutions of the University of North Texas System:

(A)  $101,017,531 [$38,473,304] to the University of North Texas and its branch campus the University of North Texas at Frisco, allocated as determined by the board of regents of the system;

(B)  $32,573,987 [$15,581,837] to the University of North Texas Health Science Center at Fort Worth; and

(C)  $9,987,632 [$3,455,644] to the University of North Texas at Dallas;

(2)  to the following component institutions of the Texas State University System:

(A)  $31,475,992 [$13,537,649] to Lamar University;

(B)  $11,281,002 [$2,630,158] to the Lamar Institute of Technology;

(C)  $7,515,016 [$1,533,301] to Lamar State College--Orange;

(D)  $9,675,280 [$2,283,992] to Lamar State College--Port Arthur;

(E)  $35,383,153 [$18,787,013] to Sam Houston State University;

(F)  $10,615,704 to Sam Houston State University College of Osteopathic Medicine;

(G)  $89,482,446 [$38,741,061] to Texas State University;

(H)  $6,185,508 [(G) $2,216,640] to Sul Ross State University; and

(I)  $3,375,332 [(H)   $487,157] to Sul Ross State University-Rio Grande College;

(3)  $18,943,400 [$12,072,906] to Texas Southern University;

(4)  to the following component institutions of the Texas Tech University System:

(A)  $128,199,988 [$51,379,461] to Texas Tech University;

(B)  $43,986,210 [$22,305,642] to Texas Tech University Health Sciences Center and its branch campuses Texas Tech University Health Sciences Center at Abilene and Texas Tech University Health Sciences Center at Dallas, allocated as determined by the board of regents of the system;

(C)  $15,250,267 [$6,997,943] to Angelo State University;

(D)  $16,806,421 [$5,725,243] to Texas Tech University Health Sciences Center--El Paso; and

(E)  $10,159,546 [$5,082,034] to Midwestern State University;

(5)  $29,920,254 [$14,993,229] to the component institutions of the Texas Woman's University System, allocated as determined by the board of regents of the system;

(6)  to the following component institutions of the University of Houston System:

(A)  $109,649,047 [$56,158,685] to the University of Houston;

(B)  $8,249,991 [$3,649,703] to the University of Houston--Victoria;

(C)  $14,659,572 [$7,959,137] to the University of Houston--Clear Lake; [and]

(D)  $21,396,280 [$11,155,034] to the University of Houston--Downtown; and

(7)  to the following component institutions of The Texas A&M University System:

(A)  $24,523,894 [$11,825,139] to Texas A&M University--Corpus Christi;

(B)  $17,294,100 [$7,687,534] to Texas A&M International University;

(C)  $15,245,069 [$9,125,307] to Texas A&M University--Kingsville;

(D)  $16,975,295 [$7,671,155] to West Texas A&M University;

(E)  $19,335,200 [$11,459,464] to East Texas A&M University [University--Commerce]; and

(F)  $6,235,848 [$2,112,129] to Texas A&M University--Texarkana; and

(8)  $19,642,738 [$8,662,500] to the Texas State Technical College System Administration and the following component campuses, but not its extension centers or programs:

(A)  Texas State Technical College-Harlingen;

(B)  Texas State Technical College--Marshall;

(C)  Texas State Technical College--West Texas;

(D)  Texas State Technical College--Waco;

(E)  Texas State Technical College--Fort Bend County; [and]

(F)  Texas State Technical College--North Texas; and

(G)  Texas State Technical College--East Williamson County.

SECTION 3.  Section 62.021, Education Code, is amended by adding Subsection (c-1) to read as follows:

SECTION 4.  Section 62.024, Education Code, is amended to read as follows:

Sec. 62.024.  AMOUNT OF ALLOCATION INCREASED.  In accordance with Section 17(a), Article VII, Texas Constitution, for each state fiscal year beginning with the state fiscal year ending August 31, 2026 [2017], the amount of the annual constitutional appropriation under that subsection is increased to $892,851,716 [$393.75 million].  [Before the state fiscal year ending August 31, 2017, the amount of the annual constitutional appropriation under that subsection is $262.5 million.]

SECTION 5.  Section 62.027(c), Education Code, is amended to read as follows:

(c)  The increase provided by the amendment to Section 62.024 enacted by the 89th [84th] Legislature, Regular Session, 2025 [2015], in the amount of the appropriation made under Section 17(a), Article VII, Texas Constitution, for each state fiscal year beginning with the state fiscal year ending August 31, 2026 [2017], constitutes the increase in accordance with Section 17(a) that the legislature considers appropriate for the five-year period beginning September 1, 2025 [2015].

SECTION 6.  Section 62.021(e-2), Education Code, is repealed.

SECTION 7.  The amounts allocated under Section 62.021, Education Code, as amended by this Act, apply to each state fiscal year beginning with the state fiscal year beginning September 1, 2025.

SECTION 8.  Contingent on the passage and becoming law of SB 2361 or similar legislation of the 89th Legislature, Regular Session, 2025, relating to the transfer of the University of Houston--Victoria to The Texas A&M University System, the amounts allocated to the University of Houston--Victoria under Section 62.021, Education Code, as amended by this Act, are allocated to the university as transferred to The Texas A&M University System.

SECTION 9.  (a)  Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2025.

(b)  Sections 4 and 5 of this Act take effect as provided by Subsection (a) of this section only if this Act is approved by a vote of two-thirds of the membership of each house of the legislature as required by Section 17(a), Article VII, Texas Constitution.