87S20046 KJE-D     By: Burrows H.J.R. No. 24       A JOINT RESOLUTION   proposing a constitutional amendment reducing The University of   Texas System's share of the income and other benefits of the   permanent university fund, transferring to the national research   university fund and general revenue fund a portion of the annual   distribution made from the permanent university fund to the   available university fund, and dedicating the portion transferred   to the general revenue fund to provide for the support and   maintenance of public institutions of higher education.          BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 17(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 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[,] of this article, other   than funding transferred to the national research university fund   or general revenue fund under that section, [constitution] may not   be entitled to participate in the funding provided by this section.          SECTION 2.  Sections 18(b), (e), and (f), Article VII, Texas   Constitution, are amended to read as follows:          (b)  The Board of Regents of The University of Texas System   may issue bonds and notes not to exceed a total amount of 10 [20]   percent of the cost value of investments and other assets of the   permanent university fund (exclusive of real estate) at the time of   issuance thereof, and may pledge all or any part of its one-third   [two-thirds] interest in the available university fund to secure   the payment of the principal and interest of those bonds and notes,   for the purpose of acquiring land either with or without permanent   improvements, constructing and equipping buildings or other   permanent improvements, major repair and rehabilitation of   buildings and other permanent improvements, acquiring capital   equipment and library books and library materials, and refunding   bonds or notes issued under this section or prior law, at or for The   University of Texas System administration and the following   component institutions of the system:                (1)  The University of Texas at Arlington;                (2)  The University of Texas at Austin;                (3)  The University of Texas at Dallas;                (4)  The University of Texas at El Paso;                (5)  The University of Texas of the Permian Basin;                (6)  The University of Texas at San Antonio;                (7)  The University of Texas at Tyler;                (8)  The University of Texas Health Science Center at   Dallas;                (9)  The University of Texas Medical Branch at   Galveston;                (10)  The University of Texas Health Science Center at   Houston;                (11)  The University of Texas Health Science Center at   San Antonio;                (12)  The University of Texas System Cancer Center;                (13)  The University of Texas Health Center at Tyler;   and                (14)  The University of Texas Institute of Texan   Cultures at San Antonio.          (e)  The available university fund consists of the   distributions made to it from the total return on all investment   assets of the permanent university fund, including the net income   attributable to the surface of permanent university fund land. The   amount of any distributions to the available university fund shall   be determined by the board of regents of The University of Texas   System in a manner intended to provide the available university   fund with a stable and predictable stream of annual distributions   and to maintain over time the purchasing power of permanent   university fund investments and annual distributions to the   available university fund. The amount distributed to the available   university fund in a fiscal year must be not less than the amount   needed to pay the principal and interest due and owing in that   fiscal year on bonds and notes issued under this section and to meet   any obligation under this section that amounts be transferred in   that fiscal year to the national research university fund and the   general revenue fund. If the purchasing power of permanent   university fund investments for any rolling 10-year period is not   preserved, the board may not increase annual distributions to the   available university fund until the purchasing power of the   permanent university fund investments is restored, except as   necessary to pay the principal and interest due and owing on bonds   and notes issued under this section. An annual distribution made by   the board to the available university fund during any fiscal year   may not exceed an amount equal to seven percent of the average net   fair market value of permanent university fund investment assets as   determined by the board, except as necessary to pay any principal   and interest due and owing on bonds issued under this section. The   expenses of managing permanent university fund land and investments   shall be paid by the permanent university fund.          (f)  Out of one-third of the annual distribution from the   permanent university fund to the available university fund, there   shall be appropriated an annual sum sufficient to pay the principal   and interest due on the bonds and notes issued by the Board of   Regents of The Texas A&M University System under this section and   prior law, and the remainder of that one-third of the annual   distribution to the available university fund shall be appropriated   to the Board of Regents of The Texas A&M University System which   shall have the authority and duty in turn to appropriate an   equitable portion of the same for the support and maintenance of The   Texas A&M University System administration, Texas A&M University,   and Prairie View A&M University. The Board of Regents of The Texas   A&M University System, in making just and equitable appropriations   to Texas A&M University and Prairie View A&M University, shall   exercise its discretion with due regard to such criteria as the   board may deem appropriate from year to year. Out of one third [the   other two-thirds] of the annual distribution from the permanent   university fund to the available university fund there shall be   appropriated an annual sum sufficient to pay the principal and   interest due on the bonds and notes issued by the Board of Regents   of The University of Texas System under this section and prior law,   and the remainder of that one-third [such two-thirds] of the annual   distribution to the available university fund, shall be   appropriated for the support and maintenance of The University of   Texas at Austin and The University of Texas System administration.   Out of the remaining one-third of the annual distribution from the   permanent university fund to the available university fund, the   Board of Regents of The University of Texas System, in the manner   prescribed by the comptroller of public accounts, shall annually   transfer:                (1)  25 percent of that one-third to the national   research university fund established under Section 20 of this   article; and                (2)  75 percent of that one-third to the general   revenue fund, to be appropriated only for the support and   maintenance of public institutions of higher education according to   equitable formulas prescribed by law.          SECTION 3.  The following temporary provision is added to   the Texas Constitution:          TEMPORARY PROVISION. (a) This temporary provision applies to   the constitutional amendment proposed by the 87th Legislature, 2nd   Called Session, 2021, reducing The University of Texas System's   share of the income and other benefits of the permanent university   fund, transferring to the national research university fund and   general revenue fund a portion of the annual distribution made from   the permanent university fund to the available university fund, and   dedicating the portion transferred to the general revenue fund to   provide for the support and maintenance of public institutions of   higher education.          (b)  The amendment to Section 18, Article VII, of this   constitution does not impair any obligation created by the issuance   of bonds or notes by the board of regents of The University of Texas   System in accordance with that section before May 7, 2022, and all   outstanding bonds and notes validly issued by the board under that   section remain valid, enforceable, and binding and shall be paid in   full, both principal and interest, in accordance with their terms   and from the sources pledged to their payment. In order to ensure   that the amendment of that section does not impair any obligation   created by the issuance of those bonds and notes, notwithstanding   the amendments to Subsections (e) and (f) of that section:                (1)  the amount allocated for appropriation to The   University of Texas System for a state fiscal year under Subsection   (f) of that section shall be increased, if necessary, to the amount   necessary to pay the principal and interest due and owing during   that fiscal year on those bonds and notes; and                (2)  the amounts allocated for transfer to the national   research university fund and the general revenue fund for a state   fiscal year under Subsection (f) of that section shall be   proportionately reduced by a total amount equal to the amount, if   any, by which the amount allocated for appropriation to The   University of Texas System is increased under Subdivision (1) of   this subsection for that fiscal year.          (c)  This section expires June 1, 2052.          SECTION 4.  This proposed constitutional amendment shall be   submitted to the voters at an election to be held May 7, 2022. The   ballot shall be printed to permit voting for or against the   proposition: "The constitutional amendment reducing The   University of Texas System's share of the income and other benefits   of the permanent university fund, transferring to the national   research university fund and general revenue fund a portion of the   annual distribution made from the permanent university fund to the   available university fund, and dedicating the portion transferred   to the general revenue fund to provide for the support and   maintenance of public institutions of higher education."