89R5379 KJE-F     By: Lambert H.J.R. No. 85       A JOINT RESOLUTION   proposing a constitutional amendment providing for the creation of   funds to support the capital needs of educational programs offered   by the Texas State Technical College System and certain component   institutions of the Texas State University System and repealing the   limitation on the allocation to the Texas State Technical College   System and its campuses of the annual appropriation of certain   constitutionally dedicated funding for public institutions of   higher education.          BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Article VII, Texas Constitution, is amended by   adding Section 21 to read as follows:          Sec. 21.  (a) In this section:                (1)  "Available fund" means the available instruction   in manufacturing and technical workforce operations fund.                (2)  "Permanent fund" means the permanent instruction   in manufacturing and technical workforce operations fund.          (b)  The permanent instruction in manufacturing and   technical workforce operations fund and the available instruction   in manufacturing and technical workforce operations fund are   established as special funds in the state treasury outside the   general revenue fund to be administered as provided by this section   without further appropriation for the purpose of providing a   dedicated source of funding for capital projects and equipment   purchases related to educational programs offered by the Texas   State Technical College System and component institutions of the   Texas State University System described by Subsection (k) of this   section.          (c)  The permanent fund consists of:                (1)  money appropriated, credited, transferred, or   deposited to the credit of the fund by this section or as authorized   by other law;                (2)  any interest or other earnings attributable to the   investment of money in the fund; and                (3)  gifts, grants, and donations made to the fund.          (d)  The available fund consists of:                (1)  money distributed to the fund from the permanent   fund as provided by this section;                (2)  money appropriated, credited, transferred, or   deposited to the credit of the fund by this section or as authorized   by other law;                (3)  any interest or other earnings attributable to the   investment of money in the fund; and                (4)  gifts, grants, and donations made to the fund.          (e)  The comptroller of public accounts, the board of regents   of the Texas State Technical College System, or the board of regents   of the Texas State University System may establish accounts in the   available fund as necessary to administer the fund or pay for   projects authorized under this section.          (f)  The comptroller of public accounts shall hold, manage,   and invest the permanent fund.  In managing the assets of the fund,   the comptroller may acquire, exchange, sell, supervise, manage, or   retain any kind of investment that a prudent investor, exercising   reasonable care, skill, and caution, would acquire or retain in   light of the purposes, terms, distribution needs, and other   circumstances of the fund, taking into consideration the investment   of all the assets of the fund rather than a single investment.  The   expenses of managing the investments of the fund shall be paid from   the fund.          (g)  Money may not be appropriated or transferred from the   permanent fund or the available fund except as provided by this   section.          (h)  The comptroller of public accounts shall determine the   amount available for distribution from the permanent fund to the   available fund for each fiscal year.  The amount available for   distribution:                (1)  must be determined in a manner intended to:                      (A)  provide the available fund with a stable and   predictable stream of annual distributions; and                      (B)  preserve over a rolling 10-year period the   purchasing power of the permanent fund; and                (2)  may not exceed 5.5 percent of the fair market value   of the investment assets of the permanent fund, as determined by the   comptroller.          (i)  For each state fiscal year, on request of the board of   regents of the Texas State Technical College System or the board of   regents of the Texas State University System, the comptroller of   public accounts shall distribute an amount that does not exceed the   amount determined under Subsection (h) of this section from the   permanent fund to the available fund for purposes of this section.          (j)  Out of the distribution from the permanent fund to the   available fund under Subsection (i) of this section, two-thirds is   appropriated to the board of regents of the Texas State Technical   College System and, subject to Subsection (k) of this section,   one-third is appropriated to the board of regents of the Texas State   University System for:                (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;                (6)  payment of the principal and interest due on the   bonds and notes issued by the respective board of regents to finance   permanent improvements as authorized by other law; and                (7)  any other purpose authorized by general law.          (k)  The board of regents of the Texas State University   System may use money appropriated under Subsection (j) of this   section only for the benefit of:                (1)  the Lamar Institute of Technology;                (2)  Lamar State College--Orange;                (3)  Lamar State College--Port Arthur; or                (4)  pursuant to a majority vote of the legislature, an   institution of higher education created as a part of or added to the   system on or after January 1, 2026.          (l)  Notwithstanding any other provision of this section,   money appropriated from the available 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.          (m)  An institution, other than a component institution of   the Texas State Technical College System or a component institution   of the Texas State University System described by Subsection (k) of   this section, 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.          (n)  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,   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)  Money appropriated under Subsection (j) 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 or the Texas State University System, as applicable,   and may be spent in a subsequent state fiscal year for a purpose for   which the appropriation was made.          (o-1)  On January 1, 2026, the amount of $1,500,000,000 is   appropriated from the general revenue fund to the comptroller of   public accounts for the purpose of immediate deposit to the credit   of the permanent fund. This subsection expires December 31, 2026.          (p)  For purposes of Section 22, Article VIII, of this   constitution:                (1)  money in the permanent fund and the available fund   is dedicated by this constitution; and                (2)  an appropriation of state tax revenues for the   purpose of depositing money to the credit of the permanent fund or   the available fund is treated as if it were an appropriation of   revenues dedicated by this constitution.          (q)  If a board of regents of a higher education system,   higher education system, institution of higher education, or state   office referenced in this section is merged with another entity or   dissolved or otherwise eliminated by law, the rights, privileges,   benefits, entitlements, funding, duties, and obligations assigned   to that board of regents, system, institution, or state office by   this section pass to its successor in function.          SECTION 2.  Section 17(j), Article VII, Texas Constitution,   is amended to read as follows:          (j)  The state systems and institutions of higher education   designated in this section may not receive any additional funds   from the general revenue of the state, other than money   appropriated under Section 21 of this article, for acquiring land   with or without permanent improvements, for constructing or   equipping buildings or other permanent improvements, or for major   repair and rehabilitation of buildings or other permanent   improvements except that:                (1)  in the case of fire or natural disaster the   legislature may appropriate from the general revenue an amount   sufficient to replace the uninsured loss of any building or other   permanent improvement; and                (2)  the legislature, by two-thirds vote of each house,   may, in cases of demonstrated need, which need must be clearly   expressed in the body of the act, appropriate additional general   revenue funds for acquiring land with or without permanent   improvements, for constructing or equipping buildings or other   permanent improvements, or for major repair and rehabilitation of   buildings or other permanent improvements.          This subsection does not apply to legislative appropriations   made prior to the adoption of this amendment.          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 21[,] 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.  This proposed constitutional amendment shall be   submitted to the voters at an election to be held November 4, 2025.   The ballot shall be printed to permit voting for or against the   proposition: "The constitutional amendment providing for the   creation of the permanent instruction in manufacturing and   technical workforce operations fund and the available instruction   in manufacturing and technical workforce operations fund to support   the capital needs of educational programs offered by the Texas   State Technical College System and certain component institutions   of the Texas State University System and repealing the limitation   on the allocation to the Texas State Technical College System and   its campuses of the annual appropriation of certain   constitutionally dedicated funding for public institutions of   higher education."