89R24838 KJE-F
 
  By: Wilson, et al. H.B. No. 42
 
  Substitute the following for H.B. No. 42:
 
  By:  Howard C.S.H.B. No. 42
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the amount and allocation of the annual constitutional
  appropriation to certain agencies and institutions of higher
  education and to the permissible uses of that money.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         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)  $92,119,685 [$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)  $28,108,950 [$15,581,837] to the University
  of North Texas Health Science Center at Fort Worth; and
                     (C)  $9,088,243 [$3,455,644] to the University of
  North Texas at Dallas;
               (2)  to the following component institutions of the
  Texas State University System:
                     (A)  $27,789,927 [$13,537,649] to Lamar
  University;
                     (B)  $10,715,169 [$2,630,158] to the Lamar
  Institute of Technology;
                     (C)  $6,430,700 [$1,533,301] to Lamar State
  College--Orange;
                     (D)  $7,552,341 [$2,283,992] to Lamar State
  College--Port Arthur;
                     (E)  $31,983,884 [$18,787,013] to Sam Houston
  State University;
                     (F)  $7,323,033 to Sam Houston State University
  College of Osteopathic Medicine;
                     (G)  $76,560,292 [$38,741,061] to Texas State
  University;
                     (H)  $5,663,606 [(G) $2,216,640] to Sul Ross
  State University; and
                     (I)  $3,293,540 [(H) $487,157] to Sul Ross State
  University-Rio Grande College;
               (3)  $19,416,816 [$12,072,906] to Texas Southern
  University;
               (4)  to the following component institutions of the
  Texas Tech University System:
                     (A)  $114,112,643 [$51,379,461] to Texas Tech
  University;
                     (B)  $40,007,231 [$22,305,642] to Texas Tech
  University Health Sciences Center;
                     (C)  $13,533,380 [$6,997,943] to Angelo State
  University;
                     (D)  $14,047,840 [$5,725,243] to Texas Tech
  University Health Sciences Center--El Paso; and
                     (E)  $9,439,836 [$5,082,034] to Midwestern State
  University;
               (5)  $27,307,881 [$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)  $104,551,313 [$56,158,685] to the University
  of Houston;
                     (B)  $8,075,487 [$3,649,703] to the University of
  Houston--Victoria;
                     (C)  $13,952,505 [$7,959,137] to the University
  of Houston--Clear Lake; [and]
                     (D)  $20,375,683 [$11,155,034] to the University
  of Houston--Downtown; and
                     (E)  $5,894,311 to the University of Houston
  College of Medicine; and
               (7)  to the following component institutions of The
  Texas A&M University System:
                     (A)  $20,929,630 [$11,825,139] to Texas A&M
  University--Corpus Christi;
                     (B)  $15,959,500 [$7,687,534] to Texas A&M
  International University;
                     (C)  $13,801,892 [$9,125,307] to Texas A&M
  University--Kingsville;
                     (D)  $15,713,370 [$7,671,155] to West Texas A&M
  University;
                     (E)  $18,034,440 [$11,459,464] to East Texas A&M
  University [University--Commerce]; and
                     (F)  $5,716,872 [$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].
         (a-1)  In the state fiscal year ending August 31, 2026, 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)  $89,980,939 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)  $27,502,778 to the University of North Texas
  Health Science Center at Fort Worth; and
                     (C)  $8,923,675 to the University of North Texas
  at Dallas;
               (2)  to the following component institutions of the
  Texas State University System:
                     (A)  $27,154,265 to Lamar University;
                     (B)  $10,512,021 to the Lamar Institute of
  Technology;
                     (C)  $6,327,832 to Lamar State College--Orange;
                     (D)  $7,423,432 to Lamar State College--Port
  Arthur;
                     (E)  $31,241,313 to Sam Houston State University;
                     (F)  $7,199,448 to Sam Houston State University
  College of Osteopathic Medicine;
                     (G)  $74,782,789 to Texas State University;
                     (H)  $5,578,548 to Sul Ross State University; and
                     (I)  $3,263,508 to Sul Ross State University-Rio
  Grande College;
               (3)  $19,001,710 to Texas Southern University;
               (4)  to the following component institutions of the
  Texas Tech University System:
                     (A)  $111,463,286 to Texas Tech University;
                     (B)  $39,124,816 to Texas Tech University Health
  Sciences Center;
                     (C)  $13,247,392 to Angelo State University;
                     (D)  $13,768,124 to Texas Tech University Health
  Sciences Center--El Paso; and
                     (E)  $9,266,572 to Midwestern State University;
               (5)  $26,688,793 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)  $102,123,941 to the University of Houston;
                     (B)  $7,934,433 to the University of
  Houston--Victoria;
                     (C)  $13,665,066 to the University of
  Houston--Clear Lake;
                     (D)  $19,920,869 to the University of
  Houston--Downtown; and
                     (E)  $5,803,896 to the University of Houston
  College of Medicine;
               (7)  to the following component institutions of The
  Texas A&M University System:
                     (A)  $20,472,015 to Texas A&M University--Corpus
  Christi;
                     (B)  $15,625,322 to Texas A&M International
  University;
                     (C)  $13,523,079 to Texas A&M
  University--Kingsville;
                     (D)  $15,382,514 to West Texas A&M University; 
                     (E)  $17,642,046 to East Texas A&M University; and
                     (F)  $5,630,578 to Texas A&M
  University--Texarkana; and
               (8)  $17,325,000 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;
                     (F)  Texas State Technical College--North Texas;
  and
                     (G)  Texas State Technical College--East
  Williamson County.
         (a-2)  Subsection (a-1) and this subsection expire September
  1, 2027.
         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)  $89,980,939 [$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)  $27,502,778 [$15,581,837] to the University
  of North Texas Health Science Center at Fort Worth; and
                     (C)  $8,923,675 [$3,455,644] to the University of
  North Texas at Dallas;
               (2)  to the following component institutions of the
  Texas State University System:
                     (A)  $27,154,265 [$13,537,649] to Lamar
  University;
                     (B)  $10,512,021 [$2,630,158] to the Lamar
  Institute of Technology;
                     (C)  $6,327,832 [$1,533,301] to Lamar State
  College--Orange;
                     (D)  $7,423,432 [$2,283,992] to Lamar State
  College--Port Arthur;
                     (E)  $31,241,313 [$18,787,013] to Sam Houston
  State University;
                     (F)  $7,199,448 to Sam Houston State University
  College of Osteopathic Medicine;
                     (G)  $74,782,789 [$38,741,061] to Texas State
  University;
                     (H)  $5,578,548 [(G) $2,216,640] to Sul Ross State
  University; and
                     (I)  $3,263,508 [(H) $487,157] to Sul Ross State
  University-Rio Grande College;
               (3)  $19,001,710 [$12,072,906] to Texas Southern
  University;
               (4)  to the following component institutions of the
  Texas Tech University System:
                     (A)  $111,463,286 [$51,379,461] to Texas Tech
  University;
                     (B)  $39,124,816 [$22,305,642] to Texas Tech
  University Health Sciences Center;
                     (C)  $13,247,392 [$6,997,943] to Angelo State
  University;
                     (D)  $13,768,124 [$5,725,243] to Texas Tech
  University Health Sciences Center--El Paso; and
                     (E)  $9,266,572 [$5,082,034] to Midwestern State
  University;
               (5)  $26,688,793 [$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)  $102,123,941 [$56,158,685] to the University
  of Houston;
                     (B)  $7,934,433 [$3,649,703] to the University of
  Houston--Victoria;
                     (C)  $13,665,066 [$7,959,137] to the University
  of Houston--Clear Lake; [and]
                     (D)  $19,920,869 [$11,155,034] to the University
  of Houston--Downtown; and
                     (E)  $5,803,896 to the University of Houston
  College of Medicine;
               (7)  to the following component institutions of The
  Texas A&M University System:
                     (A)  $20,472,015 [$11,825,139] to Texas A&M
  University--Corpus Christi;
                     (B)  $15,625,322 [$7,687,534] to Texas A&M
  International University;
                     (C)  $13,523,079 [$9,125,307] to Texas A&M
  University--Kingsville;
                     (D)  $15,382,514 [$7,671,155] to West Texas A&M
  University;
                     (E)  $17,642,046 [$11,459,464] to East Texas A&M
  University [University--Commerce]; and
                     (F)  $5,630,578 [$2,112,129] to Texas A&M
  University--Texarkana; and
               (8)  $17,325,000 [$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:
         (c-1)  Each governing board participating in the
  distribution of funds as described in this section may in its sole
  discretion use the funds to pay the principal and interest of bonds
  that were issued under Chapter 55 and the proceeds of which were
  spent for a purpose described in Section 17(a), Article VII, Texas
  Constitution.
         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 $787.5
  [$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
  S.B. 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.