By: Birdwell, et al. S.J.R. No. 81          (In the Senate - Filed March 9, 2023; March 21, 2023, read   first time and referred to Subcommittee on Higher Education;   April 6, 2023, reported favorably from Committee on Education by   the following vote:  Yeas 13, Nays 0; April 6, 2023, sent to   printer.)Click here to see the committee vote       SENATE JOINT RESOLUTION       proposing a constitutional amendment providing for the creation of   the technical institution infrastructure fund and the available   workforce education fund to support the capital needs of career and   technical education programs offered by the Texas State Technical   College System.          BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Article VII, Texas Constitution, is amended by   adding Section 23 to read as follows:          Sec. 23.  (a) The technical institution infrastructure fund   and the available workforce education fund are established as   special funds in the state treasury for the purpose of providing   funding for capital projects and equipment purchases related to   career and technical education programs offered by the Texas State   Technical College System.          (b)  The technical institution infrastructure fund consists   of:                (1)  money transferred or deposited to the credit of   the fund; and                (2)  any interest or other earnings attributable to the   investment of money in the fund.          (c)  The available workforce education fund consists of   money distributed to the fund from the technical institution   infrastructure fund as provided by this section.          (d)  The board of regents of the Texas State Technical   College System shall administer the technical institution   infrastructure fund, which shall be invested in the manner and   according to the standards provided for investment of the permanent   university fund. The expenses of managing the investments of the   fund shall be paid from the fund.          (e)  The legislature may not appropriate money from the   technical institution infrastructure fund for any purpose.          (f)  For each state fiscal year, the board of regents of the   Texas State Technical College System shall distribute an amount   from the interest and other earnings attributable to the investment   of money in the technical institution infrastructure fund to the   available workforce education fund for purposes of this section.   The amount of the distribution:                (1)  must be:                      (A)  at least equal to the amount necessary to pay   the principal and interest due for that fiscal year on bonds and   notes issued under this section; and                      (B)  determined in a manner intended to:                            (i)  provide the available workforce   education fund with a stable and predictable stream of annual   distributions; and                            (ii)  maintain over time the purchasing   power of the technical institution infrastructure fund; and                (2)  subject to Subdivision (1)(A) of this subsection,   may not exceed:                      (A)  if the purchasing power of the technical   institution infrastructure fund for any rolling 10-year period is   not preserved, the amount distributed for the preceding state   fiscal year until the purchasing power of the fund is restored; or                      (B)  seven percent of the average net fair market   value of the investment assets of the technical institution   infrastructure fund, as determined by the board of regents.          (g)  Subject to Subsection (h) of this section, the board of   regents of the Texas State Technical College System may issue bonds   and notes in a total amount not to exceed 30 percent of the cost   value of the investments and other assets of the technical   institution infrastructure fund, other than real estate, at the   time of issuance, and may pledge all or any part of the system's   interest in the available workforce education fund to secure the   payment of principal and interest of those bonds and notes, for the   purpose of supporting the system administration and career and   technical education programs offered by component institutions of   the system.          (h)  Bonds and notes may be issued under Subsection (g) of   this section only for the purpose of:                (1)  acquiring land, either with or without permanent   improvements;                (2)  constructing and equipping buildings or other   permanent improvements;                (3)  major repair and rehabilitation of buildings and   other permanent improvements;                (4)  acquiring capital equipment, including   instructional equipment, virtual reality or augmented reality   equipment, heavy industrial equipment, and vehicles;                (5)  acquiring library books and materials, including   digital or electronic library books and materials; and                (6)  refunding bonds or notes issued under this section   or prior law.          (i)  The total amount of the annual distribution from the   technical institution infrastructure fund to the available   workforce education fund is appropriated to the board of regents of   the Texas State Technical College System for:                (1)  payment of the principal and interest due on the   bonds and notes issued by the board of regents under this section   and prior law; and                (2)  if any money remains after the payment of   principal and interest under Subdivision (1) of this subsection, a   purpose described by Subsection (h) of this section for the support   of the system administration and career and technical education   programs offered by component institutions of the system.          (j)  The bonds and notes issued under this section shall be   payable solely out of the available workforce education fund,   mature serially or otherwise in not more than 30 years from the date   of issuance, and, except for refunding bonds, be sold only through   competitive biddings. Each bond or note is subject to approval by   the attorney general and, when so approved, is incontestable.   Money in the technical institution infrastructure fund may be   invested in these bonds and notes.          (k)  Money appropriated under Subsection (i) of this section   that is not spent during the state fiscal year for which the   appropriation is made is retained by the Texas State Technical   College System and may be spent in a subsequent state fiscal year   for a purpose for which the appropriation was made.          (l)  The Texas State Technical College System may not receive   money from the general revenue fund for a purpose for which the   board of regents of the system may issue bonds or notes under this   section, except that:                (1)  in the case of fire, natural disaster, or man-made   disaster, the legislature by majority vote of the membership of   each house may appropriate to the system from the general revenue   fund an amount sufficient to replace the uninsured loss of a   building or other permanent improvement; and                (2)  the legislature by two-thirds vote of the   membership of each house may, in cases of demonstrated need clearly   expressed in the act, appropriate to the system money from the   general revenue fund for a purpose for which the board of regents of   the system may issue bonds or notes under this section.          (l-1)  Subsection (l) of this section does not apply to money   appropriated before January 1, 2024, or for the payment of   principal and interest due on bonds and notes issued under other law   before January 1, 2024. This subsection expires January 1, 2054.          (m)  Notwithstanding any other provision of this section,   bonds and notes issued under this section, and money appropriated   from the available workforce education fund under this section, may   not be used for the purpose of constructing, equipping, repairing,   or rehabilitating buildings or other permanent improvements that   are to be used for intercollegiate athletics or auxiliary   enterprises.          (n)  An institution that is entitled to participate in   dedicated funding provided by Section 17 or 18 of this article may   not be entitled to participate in the funding provided by this   section.          (o)  This section does not impair any obligation created by   the issuance of bonds or notes in accordance with prior law,   including bonds or notes issued under Section 17 of this article   before January 1, 2024, and all outstanding bonds and notes shall be   paid in full, both principal and interest, in accordance with their   terms. If this section conflicts with any other provision of this   constitution, this section prevails.          (o-1)  On January 1, 2024, the comptroller of public accounts   shall transfer $750 million of the unencumbered balance of the   general revenue fund that exists on that date to the technical   institution infrastructure fund. This subsection expires December   31, 2024.          SECTION 2.  Sections 17(b) and (c), Article VII, Texas   Constitution, are 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)  Texas A&M University--Commerce [East Texas State   University including East Texas State University at Texarkana];                (2)  Lamar University including Lamar State College--   [University at] Orange and Lamar State College-- [University at]   Port Arthur;                (3)  Midwestern State University;                (4)  University of North Texas;                (5)  [The University of Texas--Pan American including   The University of Texas at Brownsville;                [(6)]  Stephen F. Austin State University;                (6) [(7)]  Texas College of Osteopathic Medicine;                (7) [(8)]  Texas State University System   Administration and the following component institutions:                (8) [(9)]  Sam Houston State University;                (9) [(10)  Southwest] Texas State University;                (10) [(11)]  Sul Ross State University including Rio   Grande College [Uvalde Study Center];                (11) [(12)]  Texas Southern University;                (12) [(13)]  Texas Tech University;                (13) [(14)]  Texas Tech University Health Sciences   Center;                (14) [(15)]  Angelo State University;                (15) [(16)]  Texas Woman's University;                (16) [(17)]  University of Houston System   Administration and the following component institutions:                (17) [(18)]  University of Houston;                (18) [(19)]  University of Houston--Victoria;                (19) [(20)]  University of Houston--Clear Lake;                (20) [(21)]  University of Houston--Downtown;                (21) [(22)]  Texas A&M University--Corpus Christi;                (22) [(23)]  Texas A&M International University;                (23) [(24)]  Texas A&M University--Kingsville;                (24) [(25)]  West Texas A&M University; and                (25)  Texas A&M University--Texarkana [(26)  Texas   State Technical College System and its campuses, but not its   extension centers or programs].          (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 or 23[,] of this article   [constitution] may not be entitled to participate in the funding   provided by this section.          SECTION 3.  Section 18(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 as a part of The University of Texas System   or The Texas A&M University System by general law, and, when   created, such an institution shall be entitled to participate in   the funding provided by this section for the system in which it is   created. An institution that is entitled to participate in   dedicated funding provided by [Article VII,] Section 17 or 23[,] of   this article [constitution] may not be entitled to participate in   the funding provided by this section.          SECTION 4.  Section 17(d-1), Article VII, Texas   Constitution, is repealed.          SECTION 5.  Article VII, Texas Constitution, is amended by   adding Section 23A to read as follows:          Sec. 23A.  TEMPORARY PROVISION. (a) The transfer of the   Texas State Technical College System from Section 17 of this   article to Section 23 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, 2025.          (b)  Beginning with the state fiscal year that begins   September 1, 2025, the funds allocated as provided by Section 17(d)   of this article to the Texas State Technical College 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 Texas State Technical College   System from the formula and allocations made under Section 17(d) of   this article.          (c)  This section expires September 1, 2031.          SECTION 6.  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   proposition: "The constitutional amendment providing for the   creation of the technical institution infrastructure fund and the   available workforce education fund to support the capital needs of   career and technical education programs offered by the Texas State   Technical College System."     * * * * *