By: Birdwell, et al. S.J.R. No. 81
SENATE JOINT RESOLUTION
proposing a constitutional amendment providing for the creation of
the permanent technical institution infrastructure fund and the
available workforce education fund to support the capital needs of
career and technical education programs offered by the Texas State
Technical College System.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article VII, Texas Constitution, is amended by
adding Section 23 to read as follows:
Sec. 23. (a) In this section:
(1) "Available fund" means the available workforce
education fund.
(2) "Board of regents" means the board of regents of
the Texas State Technical College System.
(3) "Permanent fund" means the permanent technical
institution infrastructure fund.
(b) The permanent technical institution infrastructure fund
and the available workforce education fund are established as
special funds in the state treasury outside the general revenue
fund to be administered as provided by this section without further
appropriation for the purpose of providing a dedicated source of
funding for capital projects and equipment purchases related to
career and technical education programs offered by the Texas State
Technical College System.
(c) The permanent fund consists of:
(1) money appropriated, credited, transferred, or
deposited to the credit of the fund by this section or as authorized
by other law;
(2) any interest or other earnings attributable to the
investment of money in the fund; and
(3) gifts, grants, and donations made to the fund.
(d) The available fund consists of:
(1) money distributed to the fund from the permanent
fund as provided by this section;
(2) money appropriated, credited, transferred, or
deposited to the credit of the fund by this section or as authorized
by other law;
(3) any interest or other earnings attributable to the
investment of money in the fund; and
(4) gifts, grants, and donations made to the fund.
(e) The comptroller of public accounts or the board of
regents may establish accounts in the available fund as necessary
to administer the fund or pay for projects authorized under this
section.
(f) The comptroller of public accounts shall hold, manage,
and invest the permanent fund. In managing the assets of the fund,
the comptroller may acquire, exchange, sell, supervise, manage, or
retain any kind of investment that a prudent investor, exercising
reasonable care, skill, and caution, would acquire or retain in
light of the purposes, terms, distribution needs, and other
circumstances of the fund, taking into consideration the investment
of all the assets of the fund rather than a single investment. The
expenses of managing the investments of the fund shall be paid from
the fund.
(g) The legislature may not appropriate or transfer money
from the permanent fund for any purpose.
(h) The comptroller of public accounts shall determine the
amount available for distribution from the permanent fund to the
available fund for each fiscal year. The amount available for
distribution:
(1) must be determined in a manner intended to:
(A) provide the available fund with a stable and
predictable stream of annual distributions; and
(B) preserve the purchasing power of the assets
of the permanent fund over a full economic cycle; and
(2) may not exceed 5.5 percent of the fair market value
of the investment assets of the permanent fund, as determined by the
comptroller.
(i) For each state fiscal year, on request of the board of
regents, the comptroller of public accounts shall distribute an
amount that does not exceed the amount determined under Subsection
(h) of this section from the permanent fund to the available fund
for purposes of this section.
(j) The total amount of the distribution from the permanent
fund to the available fund under Subsection (i) of this section is
appropriated to the board of regents for:
(1) acquiring land, either with or without permanent
improvements;
(2) constructing and equipping buildings or other
permanent improvements;
(3) major repair and rehabilitation of buildings and
other permanent improvements;
(4) acquiring capital equipment, including
instructional equipment, virtual reality or augmented reality
equipment, heavy industrial equipment, and vehicles;
(5) acquiring library books and materials, including
digital or electronic library books and materials;
(6) payment of the principal and interest due on the
bonds and notes issued by the board of regents to finance permanent
improvements as authorized by other law; and
(7) any other purpose authorized by general law.
(k) Notwithstanding any other provision of this section,
money appropriated from the available fund under this section may
not be used for the purpose of constructing, equipping, repairing,
or rehabilitating buildings or other permanent improvements that
are to be used for intercollegiate athletics or auxiliary
enterprises.
(l) An institution that is entitled to participate in
dedicated funding provided by Section 17 or 18 of this article may
not be entitled to participate in the funding provided by this
section.
(m) This section does not impair any obligation created by
the issuance of bonds or notes in accordance with prior law,
including bonds or notes issued under Section 17 of this article
before January 1, 2024, and all outstanding bonds and notes shall be
paid in full, both principal and interest, in accordance with their
terms. If this section conflicts with any other provision of this
constitution, this section prevails.
(m-1) On January 1, 2024, the amount of $750 million is
appropriated from the general revenue fund to the comptroller of
public accounts for the purpose of immediate deposit to the credit
of the permanent fund. This subsection expires December 31, 2024.
(n) For purposes of Section 22, Article VIII, of this
constitution:
(1) money in the permanent fund is dedicated by this
constitution; and
(2) an appropriation of state tax revenues for the
purpose of depositing money to the credit of the permanent fund is
treated as if it were an appropriation of revenues dedicated by this
constitution.
SECTION 2. Sections 17(b) and (c), Article VII, Texas
Constitution, are amended to read as follows:
(b) The funds appropriated under Subsection (a) of this
section shall be for the use of the following eligible agencies and
institutions of higher education (even though their names may be
changed):
(1) Texas A&M University--Commerce [East Texas State
University including East Texas State University at Texarkana];
(2) Lamar University including Lamar State College--
[University at] Orange and Lamar State College-- [University at]
Port Arthur;
(3) Midwestern State University;
(4) University of North Texas;
(5) [The University of Texas--Pan American including
The University of Texas at Brownsville;
[(6)] Stephen F. Austin State University;
(6) [(7)] Texas College of Osteopathic Medicine;
(7) [(8)] Texas State University System
Administration and the following component institutions:
(8) [(9)] Sam Houston State University;
(9) [(10) Southwest] Texas State University;
(10) [(11)] Sul Ross State University including Rio
Grande College [Uvalde Study Center];
(11) [(12)] Texas Southern University;
(12) [(13)] Texas Tech University;
(13) [(14)] Texas Tech University Health Sciences
Center;
(14) [(15)] Angelo State University;
(15) [(16)] Texas Woman's University;
(16) [(17)] University of Houston System
Administration and the following component institutions:
(17) [(18)] University of Houston;
(18) [(19)] University of Houston--Victoria;
(19) [(20)] University of Houston--Clear Lake;
(20) [(21)] University of Houston--Downtown;
(21) [(22)] Texas A&M University--Corpus Christi;
(22) [(23)] Texas A&M International University;
(23) [(24)] Texas A&M University--Kingsville;
(24) [(25)] West Texas A&M University; and
(25) Texas A&M University--Texarkana [(26) Texas
State Technical College System and its campuses, but not its
extension centers or programs].
(c) Pursuant to a two-thirds vote of the membership of each
house of the legislature, institutions of higher education may be
created at a later date by general law, and, when created, such an
institution shall be entitled to participate in the funding
provided by this section if it is not created as a part of The
University of Texas System or The Texas A&M University System. An
institution that is entitled to participate in dedicated funding
provided by [Article VII,] Section 18 or 23[,] of this article
[constitution] may not be entitled to participate in the funding
provided by this section.
SECTION 3. Section 18(c), Article VII, Texas Constitution,
is amended to read as follows:
(c) Pursuant to a two-thirds vote of the membership of each
house of the legislature, institutions of higher education may be
created at a later date as a part of The University of Texas System
or The Texas A&M University System by general law, and, when
created, such an institution shall be entitled to participate in
the funding provided by this section for the system in which it is
created. An institution that is entitled to participate in
dedicated funding provided by [Article VII,] Section 17 or 23[,] of
this article [constitution] may not be entitled to participate in
the funding provided by this section.
SECTION 4. Section 17(d-1), Article VII, Texas
Constitution, is repealed.
SECTION 5. Article VII, Texas Constitution, is amended by
adding Section 23A to read as follows:
Sec. 23A. TEMPORARY PROVISION. (a) The transfer of the
Texas State Technical College System from Section 17 of this
article to Section 23 of this article by the constitutional
amendment proposed by the 88th Legislature, Regular Session, 2023,
applies beginning with the state fiscal year that begins September
1, 2025.
(b) Beginning with the state fiscal year that begins
September 1, 2025, the funds allocated as provided by Section 17(d)
of this article to the Texas State Technical College System shall be
allocated to the other agencies and institutions eligible to
receive funds under Section 17 of this article in proportion to the
other funds allocated to those agencies and institutions as
provided by Section 17(d) of this article, until the legislature or
designated agency eliminates the Texas State Technical College
System from the formula and allocations made under Section 17(d) of
this article.
(c) This section expires September 1, 2031.
SECTION 6. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 7, 2023.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment providing for the
creation of the permanent technical institution infrastructure
fund and the available workforce education fund to support the
capital needs of career and technical education programs offered by
the Texas State Technical College System."