15 | 14 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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16 | 15 | | SECTION 1. Article VII, Texas Constitution, is amended by |
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17 | 16 | | adding Section 21 to read as follows: |
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18 | 17 | | Sec. 21. (a) In this section: |
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19 | 18 | | (1) "Available fund" means the available workforce |
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20 | 19 | | education fund. |
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21 | 20 | | (2) "Permanent fund" means the permanent technical |
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22 | 21 | | institution infrastructure fund. |
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23 | 22 | | (b) The permanent technical institution infrastructure fund |
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24 | 23 | | and the available workforce education fund are established as |
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25 | 24 | | special funds in the state treasury outside the general revenue |
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26 | 25 | | fund to be administered as provided by this section without further |
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27 | 26 | | appropriation for the purpose of providing a dedicated source of |
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28 | 27 | | funding for capital projects and equipment purchases related to |
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29 | 28 | | educational programs offered by the Texas State Technical College |
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30 | 29 | | System. |
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31 | 30 | | (c) The permanent fund consists of: |
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32 | 31 | | (1) money appropriated, credited, transferred, or |
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33 | 32 | | deposited to the credit of the fund by this section or as authorized |
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34 | 33 | | by other law; |
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35 | 34 | | (2) any interest or other earnings attributable to the |
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36 | 35 | | investment of money in the fund; and |
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37 | 36 | | (3) gifts, grants, and donations made to the fund. |
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38 | 37 | | (d) The available fund consists of: |
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39 | 38 | | (1) money distributed to the fund from the permanent |
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40 | 39 | | fund as provided by this section; |
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41 | 40 | | (2) money appropriated, credited, transferred, or |
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42 | 41 | | deposited to the credit of the fund by this section or as authorized |
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43 | 42 | | by other law; |
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44 | 43 | | (3) any interest or other earnings attributable to the |
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45 | 44 | | investment of money in the fund; and |
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46 | 45 | | (4) gifts, grants, and donations made to the fund. |
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47 | 46 | | (e) The comptroller of public accounts or the board of |
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48 | 47 | | regents of the Texas State Technical College System may establish |
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49 | 48 | | accounts in the available fund as necessary to administer the fund |
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50 | 49 | | or pay for projects authorized under this section. |
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51 | 50 | | (f) The comptroller of public accounts shall hold, manage, |
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52 | 51 | | and invest the permanent fund. In managing the assets of the fund, |
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53 | 52 | | the comptroller may acquire, exchange, sell, supervise, manage, or |
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54 | 53 | | retain any kind of investment that a prudent investor, exercising |
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55 | 54 | | reasonable care, skill, and caution, would acquire or retain in |
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56 | 55 | | light of the purposes, terms, distribution needs, and other |
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57 | 56 | | circumstances of the fund, taking into consideration the investment |
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58 | 57 | | of all the assets of the fund rather than a single investment. The |
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59 | 58 | | expenses of managing the investments of the fund shall be paid from |
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60 | 59 | | the fund. |
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61 | 60 | | (g) Money may not be appropriated or transferred from the |
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62 | 61 | | permanent fund or the available fund except as provided by this |
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63 | 62 | | section. |
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64 | 63 | | (h) The comptroller of public accounts shall determine the |
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65 | 64 | | amount available for distribution from the permanent fund to the |
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69 | 67 | | (1) must be determined in a manner intended to: |
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70 | 68 | | (A) provide the available fund with a stable and |
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71 | 69 | | predictable stream of annual distributions; and |
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72 | 70 | | (B) preserve over a rolling 10-year period the |
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73 | 71 | | purchasing power of the permanent fund; and |
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74 | 72 | | (2) may not exceed 5.5 percent of the fair market value |
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75 | 73 | | of the investment assets of the permanent fund, as determined by the |
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76 | 74 | | comptroller. |
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77 | 75 | | (i) For each state fiscal year, on request of the board of |
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78 | 76 | | regents of the Texas State Technical College System, the |
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79 | 77 | | comptroller of public accounts shall distribute an amount that does |
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80 | 78 | | not exceed the amount determined under Subsection (h) of this |
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81 | 79 | | section from the permanent fund to the available fund for purposes |
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82 | 80 | | of this section. |
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83 | 81 | | (j) The amount distributed from the permanent fund to the |
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84 | 82 | | available fund under Subsection (i) of this section is appropriated |
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85 | 83 | | to the board of regents of the Texas State Technical College System |
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86 | 84 | | for: |
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87 | 85 | | (1) acquiring land, either with or without permanent |
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88 | 86 | | improvements; |
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89 | 87 | | (2) constructing and equipping buildings or other |
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90 | 88 | | permanent improvements; |
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91 | 89 | | (3) major repair and rehabilitation of buildings and |
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92 | 90 | | other permanent improvements; |
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93 | 91 | | (4) acquiring capital equipment, including |
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94 | 92 | | instructional equipment, virtual reality or augmented reality |
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95 | 93 | | equipment, heavy industrial equipment, and vehicles; |
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96 | 94 | | (5) acquiring library books and materials, including |
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97 | 95 | | digital or electronic library books and materials; |
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98 | 96 | | (6) payment of the principal and interest due on the |
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99 | 97 | | bonds and notes issued by the respective board of regents to finance |
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100 | 98 | | permanent improvements as authorized by other law; and |
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101 | 99 | | (7) any other purpose authorized by general law. |
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102 | 100 | | (k) Notwithstanding any other provision of this section, |
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103 | 101 | | money appropriated from the available fund under this section may |
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104 | 102 | | not be used for the purpose of constructing, equipping, repairing, |
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105 | 103 | | or rehabilitating buildings or other permanent improvements that |
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106 | 104 | | are to be used for intercollegiate athletics or auxiliary |
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107 | 105 | | enterprises. |
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108 | 106 | | (l) An institution, other than a component institution of |
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109 | 107 | | the Texas State Technical College System, that is entitled to |
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110 | 108 | | participate in dedicated funding provided by Section 17 or 18 of |
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111 | 109 | | this article may not be entitled to participate in the funding |
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112 | 110 | | provided by this section. |
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113 | 111 | | (m) This section does not impair any obligation created by |
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114 | 112 | | the issuance of bonds or notes in accordance with prior law, |
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115 | 113 | | including bonds or notes issued under Section 17 of this article, |
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116 | 114 | | and all outstanding bonds and notes shall be paid in full, both |
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117 | 115 | | principal and interest, in accordance with their terms. If this |
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118 | 116 | | section conflicts with any other provision of this constitution, |
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119 | 117 | | this section prevails. |
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120 | 118 | | (n) Money appropriated under Subsection (j) of this section |
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121 | 119 | | that is not spent during the state fiscal year for which the |
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122 | 120 | | appropriation is made is retained by the Texas State Technical |
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123 | 121 | | College System and may be spent in a subsequent state fiscal year |
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124 | 122 | | for a purpose for which the appropriation was made. |
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125 | 123 | | (n-1) On January 1, 2026, the amount of $850 million is |
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126 | 124 | | appropriated from the general revenue fund to the comptroller of |
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127 | 125 | | public accounts for the purpose of immediate deposit to the credit |
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128 | 126 | | of the permanent fund. This subsection expires December 31, 2026. |
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129 | | - | SECTION 2. Sections 17(b) and (c), Article VII, Texas |
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130 | | - | Constitution, are amended to read as follows: |
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131 | | - | (b) The funds appropriated under Subsection (a) of this |
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132 | | - | section shall be for the use of the following eligible agencies and |
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133 | | - | institutions of higher education (even though their names may be |
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134 | | - | changed): |
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135 | | - | (1) East Texas State University including East Texas |
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136 | | - | State University at Texarkana; |
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137 | | - | (2) Lamar University including Lamar University at |
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138 | | - | Orange and Lamar University at Port Arthur; |
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139 | | - | (3) Midwestern State University; |
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140 | | - | (4) University of North Texas; |
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141 | | - | (5) The University of Texas--Pan American including |
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142 | | - | The University of Texas at Brownsville; |
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143 | | - | (6) Stephen F. Austin State University; |
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144 | | - | (7) Texas College of Osteopathic Medicine; |
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145 | | - | (8) Texas State University System Administration and |
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146 | | - | the following component institutions: |
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147 | | - | (9) Sam Houston State University; |
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148 | | - | (10) Southwest Texas State University; |
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149 | | - | (11) Sul Ross State University including Uvalde Study |
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150 | | - | Center; |
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151 | | - | (12) Texas Southern University; |
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152 | | - | (13) Texas Tech University; |
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153 | | - | (14) Texas Tech University Health Sciences Center; |
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154 | | - | (15) Angelo State University; |
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155 | | - | (16) Texas Woman's University; |
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156 | | - | (17) University of Houston System Administration and |
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157 | | - | the following component institutions: |
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158 | | - | (18) University of Houston; |
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159 | | - | (19) University of Houston--Victoria; |
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160 | | - | (20) University of Houston--Clear Lake; |
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161 | | - | (21) University of Houston--Downtown; |
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162 | | - | (22) Texas A&M University--Corpus Christi; |
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163 | | - | (23) Texas A&M International University; |
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164 | | - | (24) Texas A&M University--Kingsville; and |
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165 | | - | (25) West Texas A&M University[; and |
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166 | | - | [(26) Texas State Technical College System and its |
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167 | | - | campuses, but not its extension centers or programs]. |
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168 | | - | (c) Pursuant to a two-thirds vote of the membership of each |
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169 | | - | house of the legislature, institutions of higher education may be |
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170 | | - | created at a later date by general law, and, when created, such an |
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171 | | - | institution shall be entitled to participate in the funding |
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172 | | - | provided by this section if it is not created as a part of The |
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173 | | - | University of Texas System or The Texas A&M University System. An |
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174 | | - | institution that is entitled to participate in dedicated funding |
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175 | | - | provided by [Article VII,] Section 18 or 21[,] of this article |
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176 | | - | [constitution] may not be entitled to participate in the funding |
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177 | | - | provided by this section. |
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| 127 | + | (o) For purposes of Section 22, Article VIII, of this |
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| 128 | + | constitution: |
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| 129 | + | (1) money in the permanent fund and the available fund |
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| 130 | + | is dedicated by this constitution; and |
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| 131 | + | (2) an appropriation of state tax revenues for the |
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| 132 | + | purpose of depositing money to the credit of the permanent fund or |
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| 133 | + | the available fund is treated as if it were an appropriation of |
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| 134 | + | revenues dedicated by this constitution. |
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| 135 | + | (p) If a board of regents of a higher education system, |
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| 136 | + | higher education system, institution of higher education, or state |
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| 137 | + | office referenced in this section is merged with another entity or |
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| 138 | + | dissolved or otherwise eliminated by law, the rights, privileges, |
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| 139 | + | benefits, entitlements, funding, duties, and obligations assigned |
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| 140 | + | to that board of regents, system, institution, or state office by |
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| 141 | + | this section pass to its successor in function. |
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| 142 | + | SECTION 2. Section 17(j), Article VII, Texas Constitution, |
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| 143 | + | is amended to read as follows: |
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| 144 | + | (j) The state systems and institutions of higher education |
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| 145 | + | designated in this section may not receive any additional funds |
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| 146 | + | from the general revenue of the state, other than money |
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| 147 | + | appropriated under Section 21 of this article, for acquiring land |
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| 148 | + | with or without permanent improvements, for constructing or |
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| 149 | + | equipping buildings or other permanent improvements, or for major |
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| 150 | + | repair and rehabilitation of buildings or other permanent |
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| 151 | + | improvements except that: |
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| 152 | + | (1) in the case of fire or natural disaster the |
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| 153 | + | legislature may appropriate from the general revenue an amount |
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| 154 | + | sufficient to replace the uninsured loss of any building or other |
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| 155 | + | permanent improvement; and |
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| 156 | + | (2) the legislature, by two-thirds vote of each house, |
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| 157 | + | may, in cases of demonstrated need, which need must be clearly |
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| 158 | + | expressed in the body of the act, appropriate additional general |
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| 159 | + | revenue funds for acquiring land with or without permanent |
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| 160 | + | improvements, for constructing or equipping buildings or other |
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| 161 | + | permanent improvements, or for major repair and rehabilitation of |
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| 162 | + | buildings or other permanent improvements. |
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| 163 | + | This subsection does not apply to legislative appropriations |
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| 164 | + | made prior to the adoption of this amendment. |
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