HBA-NLM H.B. 1768 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1768
By: Junell
Appropriations
3/25/1999
Introduced



BACKGROUND AND PURPOSE 

Under the Excellence in Higher Education Act of 1985 (Chapter 62, Education
Code), the amount of funds distributed to each institution are made in
accordance with an equitable formula dictated by statutory variables,
including space deficit, facilities condition, and institutional
complexity.  The specified amount of allocations for each public academic
institution eligible for funds from the higher education fund are provided
in the Education Code.  

H.B. 1768 deletes the existing provision relating to the allocation of
funds made in accordance with an equitable formula and amounts allocated by
the formula.  This bill requires the legislature to determine the
allocation for each eligible public academic institution in the General
Appropriations Act. In addition, this bill calls for the Texas Higher
Education Coordinating Board to report to the governor and the Legislative
Budget Board  information necessary to update allocations, for the
recommendation to the legislature for the upcoming biennium. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 62.003(1), Education Code, to redefine "eligible
institution" by deleting eligible agencies and institutions of higher
education listed in  Section 17(b) (Colleges and Universities;
Appropriations and Funding) Article VII, Texas Constitution, and by
including eligible participants in the disbursement of funds pursuant to
Section 17(a), rather than Section 17(c), Texas Constitution. 

SECTION 2.  Amends Section 62.021(a), Education Code, to require the
legislature to determine the allocation, described in this section, in the
General Appropriations Act.  Deletes existing text relating to the
allocation of funds made in accordance with an equitable formula and
amounts allocated by the formula. Makes conforming and nonsubstantive
changes. 

SECTION 3.  Amends Section 62.022, Education Code, as follows:

Sec. 62.022. ADJUSTMENT OF ALLOCATION FORMULA. (a) Requires the Texas
Higher Education Coordinating Board (coordinating board) to report to the
governor and the Legislative Budget Board  (LBB) certain enrollment and
other information described in this section.   

(b) Authorizes LBB to request the coordinating board to conduct a study and
to present recommendations relating to the allocation of funds under this
chapter.  Deletes the provision that requires the coordinating board to
conduct the study and present recommendations prior to the convening of the
regular session of the Texas Legislature in 1999 and the requirement for
adjustment of the equitable allocation formula. 

(c)  Authorizes, rather than requires, the legislature, in determining the
method of  or formula for the allocation of funds under Section 62.021(a),
to approve, modify and  approve, or reject the recommendations of the
coordinating board or LBB.  Section 62.021(a) provides for specified
amounts to be allocated to certain universities. Deletes existing
Subsection (c), relating to the continuance of the 10-year allocation. 

(d)  Provides that an adjustment under this subsection may not, rather than
shall not, prevent payment of the principal of or interest on outstanding
bonds and notes described by this section.  Makes nonsubstantive changes. 

(e) Deletes these existing subsections relating to the conduction of a
study and recommendations to LBB . 

(f) Deletes these existing language providing for the contents of a review
of the allocation formula. 

SECTION 4.  Amends Section 62.026(h), Education Code, to require the
comptroller to distribute in accordance with Section 17(e), rather than
Section 17(i), Article VII, Texas Constitution, the income earned, rather
than the interest, dividends and other income earned, from the investment
of the fund to eligible institutions in accordance with the allocation
provided by the General Appropriations Act and adopted under Section
62.021(a) (Allocations), Education Code.  Makes a conforming and
nonsubstantive changes. 

SECTION 5.  Repealer:  Sections 62.021(d), 62.021(e), 62.024 (Amount of
Allocation Increased), and 62.027 (Effect of Legislation), Education Code.
Sections 62.021(d) and  62.021(e) state that all funds appropriated by
Section 17, Article VII, Texas Constitution, but not expended during the
fiscal year of appropriation, shall be carried forward and reappropriated
for each of the succeeding fiscal years until expended by the governing
boards of eligible institutions for the purposes described in Section 17,
Article VII, Texas Constitution. The amount otherwise allocated in this
section to Lamar University and its educational centers is considered part
of the amount allocated to the Texas State University System administration
and its component institutions, to be spent as otherwise provided in this
section in the sole discretion of the governing board of the Texas State
University System for the system and its institutions. 


SECTION 6.  Provides that this Act takes effect September 1, 2000, but only
if the constitutional amendment revising the provisions for funding capital
improvements and acquisitions by institutions of higher education proposed
by the 76th Legislature, Regular Session, 1999, is approved by the voters.
Provides that this Act has no effect if that amendment is not approved by
the voters. 

SECTION 7.  Provides that a change in law made by this Act does not impair
any obligation created by the issuance of bonds or notes in accordance with
Section 17, Article VII, Texas Constitution, before January 1, 2000, and
all outstanding bonds and notes validly issued under those sections remain
valid, enforceable, and binding and are required to be paid in full, both
principal and interest, in accordance with their terms and from the sources
pledged to the payment of the bonds. Provides that the changes made by this
Act relating to the allocation of the funds do not affect the pledges made
in connection with bonds or notes. 

SECTION 8.  Emergency clause.