Texas 2021 - 87th 2nd C.S.

Texas House Bill HJR24 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87S20046 KJE-D
2	2	By: Burrows H.J.R. No. 24
3	3
4	4
5	5	A JOINT RESOLUTION
6	6	proposing a constitutional amendment reducing The University of
7	7	Texas System's share of the income and other benefits of the
8	8	permanent university fund, transferring to the national research
9	9	university fund and general revenue fund a portion of the annual
10	10	distribution made from the permanent university fund to the
11	11	available university fund, and dedicating the portion transferred
12	12	to the general revenue fund to provide for the support and
13	13	maintenance of public institutions of higher education.
14	14	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 17(c), Article VII, Texas Constitution,
16	16	is amended to read as follows:
17	17	(c) Pursuant to a two-thirds vote of the membership of each
18	18	house of the legislature, institutions of higher education may be
19	19	created at a later date by general law, and, when created, such an
20	20	institution shall be entitled to participate in the funding
21	21	provided by this section if it is not created as a part of The
22	22	University of Texas System or The Texas A&M University System. An
23	23	institution that is entitled to participate in dedicated funding
24	24	provided by [Article VII,] Section 18[,] of this article, other
25	25	than funding transferred to the national research university fund
26	26	or general revenue fund under that section, [constitution] may not
27	27	be entitled to participate in the funding provided by this section.
28	28	SECTION 2. Sections 18(b), (e), and (f), Article VII, Texas
29	29	Constitution, are amended to read as follows:
30	30	(b) The Board of Regents of The University of Texas System
31	31	may issue bonds and notes not to exceed a total amount of 10 [20]
32	32	percent of the cost value of investments and other assets of the
33	33	permanent university fund (exclusive of real estate) at the time of
34	34	issuance thereof, and may pledge all or any part of its one-third
35	35	[two-thirds] interest in the available university fund to secure
36	36	the payment of the principal and interest of those bonds and notes,
37	37	for the purpose of acquiring land either with or without permanent
38	38	improvements, constructing and equipping buildings or other
39	39	permanent improvements, major repair and rehabilitation of
40	40	buildings and other permanent improvements, acquiring capital
41	41	equipment and library books and library materials, and refunding
42	42	bonds or notes issued under this section or prior law, at or for The
43	43	University of Texas System administration and the following
44	44	component institutions of the system:
45	45	(1) The University of Texas at Arlington;
46	46	(2) The University of Texas at Austin;
47	47	(3) The University of Texas at Dallas;
48	48	(4) The University of Texas at El Paso;
49	49	(5) The University of Texas of the Permian Basin;
50	50	(6) The University of Texas at San Antonio;
51	51	(7) The University of Texas at Tyler;
52	52	(8) The University of Texas Health Science Center at
53	53	Dallas;
54	54	(9) The University of Texas Medical Branch at
55	55	Galveston;
56	56	(10) The University of Texas Health Science Center at
57	57	Houston;
58	58	(11) The University of Texas Health Science Center at
59	59	San Antonio;
60	60	(12) The University of Texas System Cancer Center;
61	61	(13) The University of Texas Health Center at Tyler;
62	62	and
63	63	(14) The University of Texas Institute of Texan
64	64	Cultures at San Antonio.
65	65	(e) The available university fund consists of the
66	66	distributions made to it from the total return on all investment
67	67	assets of the permanent university fund, including the net income
68	68	attributable to the surface of permanent university fund land. The
69	69	amount of any distributions to the available university fund shall
70	70	be determined by the board of regents of The University of Texas
71	71	System in a manner intended to provide the available university
72	72	fund with a stable and predictable stream of annual distributions
73	73	and to maintain over time the purchasing power of permanent
74	74	university fund investments and annual distributions to the
75	75	available university fund. The amount distributed to the available
76	76	university fund in a fiscal year must be not less than the amount
77	77	needed to pay the principal and interest due and owing in that
78	78	fiscal year on bonds and notes issued under this section and to meet
79	79	any obligation under this section that amounts be transferred in
80	80	that fiscal year to the national research university fund and the
81	81	general revenue fund. If the purchasing power of permanent
82	82	university fund investments for any rolling 10-year period is not
83	83	preserved, the board may not increase annual distributions to the
84	84	available university fund until the purchasing power of the
85	85	permanent university fund investments is restored, except as
86	86	necessary to pay the principal and interest due and owing on bonds
87	87	and notes issued under this section. An annual distribution made by
88	88	the board to the available university fund during any fiscal year
89	89	may not exceed an amount equal to seven percent of the average net
90	90	fair market value of permanent university fund investment assets as
91	91	determined by the board, except as necessary to pay any principal
92	92	and interest due and owing on bonds issued under this section. The
93	93	expenses of managing permanent university fund land and investments
94	94	shall be paid by the permanent university fund.
95	95	(f) Out of one-third of the annual distribution from the
96	96	permanent university fund to the available university fund, there
97	97	shall be appropriated an annual sum sufficient to pay the principal
98	98	and interest due on the bonds and notes issued by the Board of
99	99	Regents of The Texas A&M University System under this section and
100	100	prior law, and the remainder of that one-third of the annual
101	101	distribution to the available university fund shall be appropriated
102	102	to the Board of Regents of The Texas A&M University System which
103	103	shall have the authority and duty in turn to appropriate an
104	104	equitable portion of the same for the support and maintenance of The
105	105	Texas A&M University System administration, Texas A&M University,
106	106	and Prairie View A&M University. The Board of Regents of The Texas
107	107	A&M University System, in making just and equitable appropriations
108	108	to Texas A&M University and Prairie View A&M University, shall
109	109	exercise its discretion with due regard to such criteria as the
110	110	board may deem appropriate from year to year. Out of one third [the
111	111	other two-thirds] of the annual distribution from the permanent
112	112	university fund to the available university fund there shall be
113	113	appropriated an annual sum sufficient to pay the principal and
114	114	interest due on the bonds and notes issued by the Board of Regents
115	115	of The University of Texas System under this section and prior law,
116	116	and the remainder of that one-third [such two-thirds] of the annual
117	117	distribution to the available university fund, shall be
118	118	appropriated for the support and maintenance of The University of
119	119	Texas at Austin and The University of Texas System administration.
120	120	Out of the remaining one-third of the annual distribution from the
121	121	permanent university fund to the available university fund, the
122	122	Board of Regents of The University of Texas System, in the manner
123	123	prescribed by the comptroller of public accounts, shall annually
124	124	transfer:
125	125	(1) 25 percent of that one-third to the national
126	126	research university fund established under Section 20 of this
127	127	article; and
128	128	(2) 75 percent of that one-third to the general
129	129	revenue fund, to be appropriated only for the support and
130	130	maintenance of public institutions of higher education according to
131	131	equitable formulas prescribed by law.
132	132	SECTION 3. The following temporary provision is added to
133	133	the Texas Constitution:
134	134	TEMPORARY PROVISION. (a) This temporary provision applies to
135	135	the constitutional amendment proposed by the 87th Legislature, 2nd
136	136	Called Session, 2021, reducing The University of Texas System's
137	137	share of the income and other benefits of the permanent university
138	138	fund, transferring to the national research university fund and
139	139	general revenue fund a portion of the annual distribution made from
140	140	the permanent university fund to the available university fund, and
141	141	dedicating the portion transferred to the general revenue fund to
142	142	provide for the support and maintenance of public institutions of
143	143	higher education.
144	144	(b) The amendment to Section 18, Article VII, of this
145	145	constitution does not impair any obligation created by the issuance
146	146	of bonds or notes by the board of regents of The University of Texas
147	147	System in accordance with that section before May 7, 2022, and all
148	148	outstanding bonds and notes validly issued by the board under that
149	149	section remain valid, enforceable, and binding and shall be paid in
150	150	full, both principal and interest, in accordance with their terms
151	151	and from the sources pledged to their payment. In order to ensure
152	152	that the amendment of that section does not impair any obligation
153	153	created by the issuance of those bonds and notes, notwithstanding
154	154	the amendments to Subsections (e) and (f) of that section:
155	155	(1) the amount allocated for appropriation to The
156	156	University of Texas System for a state fiscal year under Subsection
157	157	(f) of that section shall be increased, if necessary, to the amount
158	158	necessary to pay the principal and interest due and owing during
159	159	that fiscal year on those bonds and notes; and
160	160	(2) the amounts allocated for transfer to the national
161	161	research university fund and the general revenue fund for a state
162	162	fiscal year under Subsection (f) of that section shall be
163	163	proportionately reduced by a total amount equal to the amount, if
164	164	any, by which the amount allocated for appropriation to The
165	165	University of Texas System is increased under Subdivision (1) of
166	166	this subsection for that fiscal year.
167	167	(c) This section expires June 1, 2052.
168	168	SECTION 4. This proposed constitutional amendment shall be
169	169	submitted to the voters at an election to be held May 7, 2022. The
170	170	ballot shall be printed to permit voting for or against the
171	171	proposition: "The constitutional amendment reducing The
172	172	University of Texas System's share of the income and other benefits
173	173	of the permanent university fund, transferring to the national
174	174	research university fund and general revenue fund a portion of the
175	175	annual distribution made from the permanent university fund to the
176	176	available university fund, and dedicating the portion transferred
177	177	to the general revenue fund to provide for the support and
178	178	maintenance of public institutions of higher education."