Texas 2021 - 87th 3rd C.S.

Texas House Bill HJR9 Compare Versions

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

Old	New	Differences
1	1	87S30250 KJE-D
2	2	By: Burrows H.J.R. No. 9
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, appropriating the portion transferred
12	12	to the national research university fund, and dedicating the
13	13	portion transferred to the general revenue fund to provide for the
14	14	support and maintenance of public institutions of higher education.
15	15	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	16	SECTION 1. Section 17(c), Article VII, Texas Constitution,
17	17	is amended to read as follows:
18	18	(c) Pursuant to a two-thirds vote of the membership of each
19	19	house of the legislature, institutions of higher education may be
20	20	created at a later date by general law, and, when created, such an
21	21	institution shall be entitled to participate in the funding
22	22	provided by this section if it is not created as a part of The
23	23	University of Texas System or The Texas A&M University System. An
24	24	institution that is entitled to participate in dedicated funding
25	25	provided by [Article VII,] Section 18[,] of this article, other
26	26	than funding transferred to the national research university fund
27	27	or general revenue fund under that section, [constitution] may not
28	28	be entitled to participate in the funding provided by this section.
29	29	SECTION 2. Sections 18(b), (e), and (f), Article VII, Texas
30	30	Constitution, are amended to read as follows:
31	31	(b) The Board of Regents of The University of Texas System
32	32	may issue bonds and notes not to exceed a total amount of 10 [20]
33	33	percent of the cost value of investments and other assets of the
34	34	permanent university fund (exclusive of real estate) at the time of
35	35	issuance thereof, and may pledge all or any part of its one-third
36	36	[two-thirds] interest in the available university fund to secure
37	37	the payment of the principal and interest of those bonds and notes,
38	38	for the purpose of acquiring land either with or without permanent
39	39	improvements, constructing and equipping buildings or other
40	40	permanent improvements, major repair and rehabilitation of
41	41	buildings and other permanent improvements, acquiring capital
42	42	equipment and library books and library materials, and refunding
43	43	bonds or notes issued under this section or prior law, at or for The
44	44	University of Texas System administration and the following
45	45	component institutions of the system:
46	46	(1) The University of Texas at Arlington;
47	47	(2) The University of Texas at Austin;
48	48	(3) The University of Texas at Dallas;
49	49	(4) The University of Texas at El Paso;
50	50	(5) The University of Texas of the Permian Basin;
51	51	(6) The University of Texas at San Antonio;
52	52	(7) The University of Texas at Tyler;
53	53	(8) The University of Texas Health Science Center at
54	54	Dallas;
55	55	(9) The University of Texas Medical Branch at
56	56	Galveston;
57	57	(10) The University of Texas Health Science Center at
58	58	Houston;
59	59	(11) The University of Texas Health Science Center at
60	60	San Antonio;
61	61	(12) The University of Texas System Cancer Center;
62	62	(13) The University of Texas Health Center at Tyler;
63	63	and
64	64	(14) The University of Texas Institute of Texan
65	65	Cultures at San Antonio.
66	66	(e) The available university fund consists of the
67	67	distributions made to it from the total return on all investment
68	68	assets of the permanent university fund, including the net income
69	69	attributable to the surface of permanent university fund land. The
70	70	amount of any distributions to the available university fund shall
71	71	be determined by the board of regents of The University of Texas
72	72	System in a manner intended to provide the available university
73	73	fund with a stable and predictable stream of annual distributions
74	74	and to maintain over time the purchasing power of permanent
75	75	university fund investments and annual distributions to the
76	76	available university fund. The amount distributed to the available
77	77	university fund in a fiscal year must be not less than the amount
78	78	needed to pay the principal and interest due and owing in that
79	79	fiscal year on bonds and notes issued under this section and to meet
80	80	any obligation under this section that amounts be transferred in
81	81	that fiscal year to the national research university fund and the
82	82	general revenue fund. If the purchasing power of permanent
83	83	university fund investments for any rolling 10-year period is not
84	84	preserved, the board may not increase annual distributions to the
85	85	available university fund until the purchasing power of the
86	86	permanent university fund investments is restored, except as
87	87	necessary to pay the principal and interest due and owing on bonds
88	88	and notes issued under this section. An annual distribution made by
89	89	the board to the available university fund during any fiscal year
90	90	may not exceed an amount equal to seven percent of the average net
91	91	fair market value of permanent university fund investment assets as
92	92	determined by the board, except as necessary to pay any principal
93	93	and interest due and owing on bonds issued under this section. The
94	94	expenses of managing permanent university fund land and investments
95	95	shall be paid by the permanent university fund.
96	96	(f) Out of one-third of the annual distribution from the
97	97	permanent university fund to the available university fund, there
98	98	shall be appropriated an annual sum sufficient to pay the principal
99	99	and interest due on the bonds and notes issued by the Board of
100	100	Regents of The Texas A&M University System under this section and
101	101	prior law, and the remainder of that one-third of the annual
102	102	distribution to the available university fund shall be appropriated
103	103	to the Board of Regents of The Texas A&M University System which
104	104	shall have the authority and duty in turn to appropriate an
105	105	equitable portion of the same for the support and maintenance of The
106	106	Texas A&M University System administration, Texas A&M University,
107	107	and Prairie View A&M University. The Board of Regents of The Texas
108	108	A&M University System, in making just and equitable appropriations
109	109	to Texas A&M University and Prairie View A&M University, shall
110	110	exercise its discretion with due regard to such criteria as the
111	111	board may deem appropriate from year to year. Out of one third [the
112	112	other two-thirds] of the annual distribution from the permanent
113	113	university fund to the available university fund there shall be
114	114	appropriated an annual sum sufficient to pay the principal and
115	115	interest due on the bonds and notes issued by the Board of Regents
116	116	of The University of Texas System under this section and prior law,
117	117	and the remainder of that one-third [such two-thirds] of the annual
118	118	distribution to the available university fund, shall be
119	119	appropriated for the support and maintenance of The University of
120	120	Texas at Austin and The University of Texas System administration.
121	121	Out of the remaining one-third of the annual distribution from the
122	122	permanent university fund to the available university fund, the
123	123	Board of Regents of The University of Texas System, in the manner
124	124	prescribed by the comptroller of public accounts, shall annually
125	125	transfer:
126	126	(1) 25 percent of that one-third to the national
127	127	research university fund established under Section 20 of this
128	128	article; and
129	129	(2) 75 percent of that one-third to the general
130	130	revenue fund, to be appropriated only for the support and
131	131	maintenance of public institutions of higher education according to
132	132	equitable formulas prescribed by law.
133	133	SECTION 3. Sections 20(d) and (f), Article VII, Texas
134	134	Constitution, are amended to read as follows:
135	135	(d) In each state fiscal biennium, the legislature shall
136	136	appropriate the amount transferred to the fund under Section 18(f)
137	137	of this article and may appropriate as provided by Subsection (f) of
138	138	this section all or a portion of the total return on all investment
139	139	assets of the fund to carry out the purposes for which the fund is
140	140	established.
141	141	(f) The portion of the total return on investment assets of
142	142	the fund that is available for appropriation in a state fiscal
143	143	biennium under this section is the portion determined by the
144	144	legislature, or an agency designated by the legislature, as
145	145	necessary to provide as nearly as practicable a stable and
146	146	predictable stream of annual distributions to eligible state
147	147	universities and to maintain over time the purchasing power of fund
148	148	investment assets. If the purchasing power of fund investment
149	149	assets for any rolling 10-year period is not preserved, the
150	150	appropriations from the total return on investment assets of the
151	151	fund [distributions] may not be increased until the purchasing
152	152	power of the fund investment assets is restored. The amount
153	153	appropriated from the total return on investment assets of the fund
154	154	in any fiscal year may not exceed an amount equal to seven percent
155	155	of the average net fair market value of the investment assets of the
156	156	fund, as determined by law. Until the fund has been invested for a
157	157	period of time sufficient to determine the purchasing power over a
158	158	10-year period, the legislature may provide by law for means of
159	159	preserving the purchasing power of the fund.
160	160	SECTION 4. The following temporary provision is added to
161	161	the Texas Constitution:
162	162	TEMPORARY PROVISION. (a) This temporary provision applies to
163	163	the constitutional amendment proposed by the 87th Legislature, 3rd
164	164	Called Session, 2021, reducing The University of Texas System's
165	165	share of the income and other benefits of the permanent university
166	166	fund, transferring to the national research university fund and
167	167	general revenue fund a portion of the annual distribution made from
168	168	the permanent university fund to the available university fund,
169	169	appropriating the portion transferred to the national research
170	170	university fund, and dedicating the portion transferred to the
171	171	general revenue fund to provide for the support and maintenance of
172	172	public institutions of higher education.
173	173	(b) The amendment to Section 18, Article VII, of this
174	174	constitution does not impair any obligation created by the issuance
175	175	of bonds or notes by the board of regents of The University of Texas
176	176	System in accordance with that section before May 7, 2022, and all
177	177	outstanding bonds and notes validly issued by the board under that
178	178	section remain valid, enforceable, and binding and shall be paid in
179	179	full, both principal and interest, in accordance with their terms
180	180	and from the sources pledged to their payment. In order to ensure
181	181	that the amendment of that section does not impair any obligation
182	182	created by the issuance of those bonds and notes, notwithstanding
183	183	the amendments to Subsections (e) and (f) of that section:
184	184	(1) the amount allocated for appropriation to The
185	185	University of Texas System for a state fiscal year under Subsection
186	186	(f) of that section shall be increased, if necessary, to the amount
187	187	necessary to pay the principal and interest due and owing during
188	188	that fiscal year on those bonds and notes; and
189	189	(2) the amounts allocated for transfer to the national
190	190	research university fund and the general revenue fund for a state
191	191	fiscal year under Subsection (f) of that section shall be
192	192	proportionately reduced by a total amount equal to the amount, if
193	193	any, by which the amount allocated for appropriation to The
194	194	University of Texas System is increased under Subdivision (1) of
195	195	this subsection for that fiscal year.
196	196	(c) This section expires June 1, 2052.
197	197	SECTION 5. This proposed constitutional amendment shall be
198	198	submitted to the voters at an election to be held May 7, 2022. The
199	199	ballot shall be printed to permit voting for or against the
200	200	proposition: "The constitutional amendment reducing The
201	201	University of Texas System's share of the income and other benefits
202	202	of the permanent university fund, transferring to the national
203	203	research university fund and general revenue fund a portion of the
204	204	annual distribution made from the permanent university fund to the
205	205	available university fund, appropriating the portion transferred
206	206	to the national research university fund, and dedicating the
207	207	portion transferred to the general revenue fund to provide for the
208	208	support and maintenance of public institutions of higher
209	209	education."