Texas 2023 - 88th Regular

Texas House Bill HJR189 Compare Versions

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1	1	By: Burrows H.J.R. No. 189
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4	4	A JOINT RESOLUTION
5	5	proposing a constitutional amendment reducing The University of
6	6	Texas System's share of the income and other benefits of the
7	7	permanent university fund, transferring to the national research
8	8	university fund and general revenue fund a portion of the annual
9	9	distribution made from the permanent university fund to the
10	10	available university fund, appropriating the portion transferred
11	11	to the national research university fund, and dedicating the
12	12	portion transferred to the general revenue fund to provide for the
13	13	support and 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. Sections 20(d) and (f), Article VII, Texas
133	133	Constitution, are amended to read as follows:
134	134	(d) In each state fiscal biennium, the legislature shall
135	135	appropriate the amount transferred to the fund under Section 18(f)
136	136	of this article and may appropriate as provided by Subsection (f) of
137	137	this section all or a portion of the total return on all investment
138	138	assets of the fund to carry out the purposes for which the fund is
139	139	established.
140	140	(f) The portion of the total return on investment assets of
141	141	the fund that is available for appropriation in a state fiscal
142	142	biennium under this section is the portion determined by the
143	143	legislature, or an agency designated by the legislature, as
144	144	necessary to provide as nearly as practicable a stable and
145	145	predictable stream of annual distributions to eligible state
146	146	universities and to maintain over time the purchasing power of fund
147	147	investment assets. If the purchasing power of fund investment
148	148	assets for any rolling 10-year period is not preserved, the
149	149	appropriations from the total return on investment assets of the
150	150	fund [distributions] may not be increased until the purchasing
151	151	power of the fund investment assets is restored. The amount
152	152	appropriated from the total return on investment assets of the fund
153	153	in any fiscal year may not exceed an amount equal to seven percent
154	154	of the average net fair market value of the investment assets of the
155	155	fund, as determined by law. Until the fund has been invested for a
156	156	period of time sufficient to determine the purchasing power over a
157	157	10-year period, the legislature may provide by law for means of
158	158	preserving the purchasing power of the fund.
159	159	SECTION 4. The following temporary provision is added to
160	160	the Texas Constitution:
161	161	TEMPORARY PROVISION. (a) This temporary provision applies
162	162	to the constitutional amendment proposed by the 88th Legislature,
163	163	2023, reducing The University of Texas System's share of the income
164	164	and other benefits of the permanent university fund, transferring
165	165	to the national research university fund and general revenue fund a
166	166	portion of the annual distribution made from the permanent
167	167	university fund to the available university fund, appropriating the
168	168	portion transferred to the national research university fund, and
169	169	dedicating the portion transferred to the general revenue fund to
170	170	provide for the support and maintenance of public institutions of
171	171	higher education.
172	172	(b) The amendment to Section 18, Article VII, of this
173	173	constitution does not impair any obligation created by the issuance
174	174	of bonds or notes by the board of regents of The University of Texas
175	175	System in accordance with that section before May 4, 2024, and all
176	176	outstanding bonds and notes validly issued by the board under that
177	177	section remain valid, enforceable, and binding and shall be paid in
178	178	full, both principal and interest, in accordance with their terms
179	179	and from the sources pledged to their payment. In order to ensure
180	180	that the amendment of that section does not impair any obligation
181	181	created by the issuance of those bonds and notes, notwithstanding
182	182	the amendments to Subsections (e) and (f) of that section:
183	183	(1) the amount allocated for appropriation to The
184	184	University of Texas System for a state fiscal year under Subsection
185	185	(f) of that section shall be increased, if necessary, to the amount
186	186	necessary to pay the principal and interest due and owing during
187	187	that fiscal year on those bonds and notes; and
188	188	(2) the amounts allocated for transfer to the national
189	189	research university fund and the general revenue fund for a state
190	190	fiscal year under Subsection (f) of that section shall be
191	191	proportionately reduced by a total amount equal to the amount, if
192	192	any, by which the amount allocated for appropriation to The
193	193	University of Texas System is increased under Subdivision (1) of
194	194	this subsection for that fiscal year.
195	195	(c) This section expires June 1, 2052.
196	196	SECTION 5. This proposed constitutional amendment shall be
197	197	submitted to the voters at an election to be held May 4, 2024. The
198	198	ballot shall be printed to permit voting for or against the
199	199	proposition: "The constitutional amendment reducing The
200	200	University of Texas System's share of the income and other benefits
201	201	of the permanent university fund, transferring to the national
202	202	research university fund and general revenue fund a portion of the
203	203	annual distribution made from the permanent university fund to the
204	204	available university fund, appropriating the portion transferred
205	205	to the national research university fund, and dedicating the
206	206	portion transferred to the general revenue fund to provide for the
207	207	support and maintenance of public institutions of higher
208	208	education."