HBA-LJP H.B. 3699 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3699 By: Ritter Higher Education 5/2/2001 Introduced BACKGROUND AND PURPOSE The Texas Constitution sets forth the allocation of constitutionally appropriated funds under the equitable allocation formula to institutions of higher education (institution) for specified expenditures, but does not specify whether an institution is authorized to transfer funds among different member institutions. While some institutions have transferred these allocated funds to different member institutions, such as Lamar University transferring funds to the Lamar Institute of Technology, there is still confusion on whether an institution is specifically authorized to transfer these allocated funds. House Bill 3699 specifies that an institution that is entitled to allocated funds under the equitable allocation formula is authorized to transfer the allocated funds to other eligible member institutions. 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. ANALYSIS House Bill 3699 amends the Education Code to specify that each governing board of an institution of higher education (institution) that is eligible to receive allocated funds under the equitable allocation formula is authorized to expend funds without limitation either at the specified institution or subject to board authorized transfer at other eligible institutions. The bill specifies that the $8,818,023 allocation that Lamar University is entitled to under the equitable allocation formula includes an allocation of $491,946 to the Lamar Institute of Technology. The bill authorizes the board of regents of the Texas State University System to expend the funds allocated to the Lamar Institute of Technology for any constitutionally authorized purpose in the same manner and under the same circumstances as expenditures for those purposes for other separate degree-granting institutions. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.