88R3845 KJE-D By: Perry S.J.R. No. 26 A JOINT RESOLUTION proposing a constitutional amendment to entitle all component institutions of The Texas A&M University System and The University of Texas System to participate in the income and other benefits of the permanent university fund. BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 18, Article VII, Texas Constitution, is amended by amending Subsections (a) and (b) and adding Subsection (a-1) to read as follows: (a) The Board of Regents of The Texas A&M University System may issue bonds and notes not to exceed a total amount of 10 percent of the cost value of the investments and other assets of the permanent university fund (exclusive of real estate) at the time of the issuance thereof, and may pledge all or any part of its one-third 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 Texas A&M University System administration and all [the following] component institutions of the system[: [(1) Texas A&M University, including its medical college which the legislature may authorize as a separate medical institution; [(2) Prairie View A&M University, including its nursing school in Houston; [(3) Tarleton State University; [(4) Texas A&M University at Galveston; [(5) Texas Forest Service; [(6) Texas Agricultural Experiment Stations; [(7) Texas Agricultural Extension Service; [(8) Texas Engineering Experiment Stations; [(9) Texas Transportation Institute; and [(10) Texas Engineering Extension Service]. (a-1) In applying a portion of its one-third interest in the available university fund to the payment of the principal of and interest on bonds and notes issued under Subsection (a) of this section, the Board of Regents of The Texas A&M University System shall include sufficient funds to pay the principal of and interest on all bonds and notes, including refunding bonds and notes, previously issued for the benefit of component institutions of the system under Section 17(b) of this article. (b) The Board of Regents of The University of Texas System may issue bonds and notes not to exceed a total amount of 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 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 all [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]. SECTION 2. Section 17(b), Article VII, Texas Constitution, is 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) [East Texas State University including East Texas State University at Texarkana; [(2)] Lamar University including Lamar State College—Orange [University at Orange] and Lamar State College—Port Arthur [University at Port Arthur]; (2) [(3)] Midwestern State University; (3) [(4)] University of North Texas; (4) [(5) The University of Texas--Pan American including The University of Texas at Brownsville; [(6)] Stephen F. Austin State University; (5) [(7)] Texas College of Osteopathic Medicine; (6) [(8)] Texas State University System Administration and the following component institutions: (7) [(9)] Sam Houston State University; (8) [(10) Southwest] Texas State University; (9) [(11)] Sul Ross State University including Rio Grande College [Uvalde Study Center]; (10) [(12)] Texas Southern University; (11) [(13)] Texas Tech University; (12) [(14)] Texas Tech University Health Sciences Center; (13) [(15)] Angelo State University; (14) [(16)] Texas Woman's University; (15) [(17)] University of Houston System Administration and the following component institutions: (16) [(18)] University of Houston; (17) [(19)] University of Houston--Victoria; (18) [(20)] University of Houston--Clear Lake; (19) [(21)] University of Houston--Downtown; and (20) [(22) Texas A&M University--Corpus Christi; [(23) Texas A&M International University; [(24) Texas A&M University--Kingsville; [(25) West Texas A&M University; and [(26)] Texas State Technical College System and its campuses, but not its extension centers or programs. SECTION 3. Article VII, Texas Constitution, is amended by adding Section 17A to read as follows: Sec. 17A. TEMPORARY PROVISION. (a) The transfer of component institutions of The Texas A&M University System from Section 17 of this article to Section 18 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, 2024. (b) Beginning with the state fiscal year that begins September 1, 2024, the funds allocated as provided by Section 17(d) of this article to the component institutions of The Texas A&M University 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 component institutions of The Texas A&M University System from the formula and allocations made under Section 17(d) of this article. (c) This section expires September 1, 2031. SECTION 4. 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 following proposition: "The constitutional amendment to entitle all component institutions of The Texas A&M University System and The University of Texas System to participate in the income and other benefits of the permanent university fund."