Relating to the amount and allocation of the annual constitutional appropriation to certain agencies and institutions of higher education and to the permissible uses of that money.

89(R) HB 42 - Enrolled version - Bill Text

H.B. No. 42

AN ACT

relating to the amount and allocation of the annual constitutional

appropriation to certain agencies and institutions of higher

education and to the permissible uses of that money.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 62.021, Education Code, is amended by

amending Subsection (a) and adding Subsection (c-1) to read as

follows:

(a) In each state fiscal year beginning with the state

fiscal year ending August 31,
2026
[
2021
], an eligible institution

is entitled to receive an amount allocated in accordance with this

section from the funds appropriated for that year by Section 17(a),

Article VII, Texas Constitution. The comptroller shall distribute

funds allocated under this subsection only on presentation of a

claim and issuance of a warrant in accordance with Section 403.071,

Government Code. An eligible institution may not present a claim

to be paid from any funds allocated under this subsection before the

delivery of goods or services described in Section 17, Article VII,

Texas Constitution, except for the payment of principal or interest

on bonds or notes or for a payment for a book or other published

library material as authorized by Section 2155.386, Government

Code. The allocation of funds under this subsection is made in

accordance with an equitable formula consisting of the following

elements: space deficit, facilities condition, institutional

complexity, and a separate allocation for the Texas State Technical

College System. The annual amounts allocated by the formula are as

follows:

(1) to the following component institutions of the

University of North Texas System:

(A)
$65,142,741
[
$38,473,304
] to the University

of North Texas
and its branch campus the University of North Texas

at Frisco, allocated as determined by the board of regents of the

system
;

(B)
$21,716,116
[
$15,581,837
] to the University

of North Texas Health Science Center at Fort Worth; and

(C)
$7,150,950
[
$3,455,644
] to the University of

North Texas at Dallas;

(2) to the following component institutions of the

Texas State University System:

(A)
$20,427,341
[
$13,537,649
] to Lamar

University;

(B)
$7,956,305
[
$2,630,158
] to the Lamar

Institute of Technology;

(C)
$5,556,444
[
$1,533,301
] to Lamar State

College--Orange;

(D)
$6,949,525
[
$2,283,992
] to Lamar State

College--Port Arthur;

(E)
$22,817,382
[
$18,787,013
] to Sam Houston

State University;

(F)
$7,555,972 to Sam Houston State University

College of Osteopathic Medicine;

(G) $57,704,160
[
$38,741,061
] to Texas State

University;

(H) $4,699,091
[
(G) $2,216,640
] to Sul Ross State

University; and

(I) $2,886,904
[
(H) $487,157
] to Sul Ross State

University-Rio Grande College;

(3)
$12,750,829
[
$12,072,906
] to Texas Southern

University;

(4) to the following component institutions of the

Texas Tech University System:

(A)
$82,671,774
[
$51,379,461
] to Texas Tech

University;

(B)
$29,075,466
[
$22,305,642
] to Texas Tech

University Health Sciences Center
and its branch campuses Texas

Tech University Health Sciences Center at Abilene and Texas Tech

University Health Sciences Center at Dallas, allocated as

determined by the board of regents of the system
;

(C)
$10,250,544
[
$6,997,943
] to Angelo State

University;

(D)
$11,548,153
[
$5,725,243
] to Texas Tech

University Health Sciences Center--El Paso; and

(E)
$7,261,812
[
$5,082,034
] to Midwestern State

University;

(5)
$19,536,274
[
$14,993,229
] to the component

institutions of the Texas Woman's University System, allocated as

determined by the board of regents of the system;

(6) to the following component institutions of the

University of Houston System:

(A)
$70,708,909
[
$56,158,685
] to the University

of Houston;

(B)
$6,030,405
[
$3,649,703
] to the University of

Houston--Victoria;

(C)
$10,015,183
[
$7,959,137
] to the University

of Houston--Clear Lake; [
and
]

(D)
$14,094,619
[
$11,155,034
] to the University

of Houston--Downtown;
and

(E)

$5,746,678 to the University of Houston

College of Medicine;

(7) to the following component institutions of The

Texas A&M University System:

(A)
$16,228,184
[
$11,825,139
] to Texas A&M

University--Corpus Christi;

(B)
$11,686,588
[
$7,687,534
] to Texas A&M

International University;

(C)
$10,453,123
[
$9,125,307
] to Texas A&M

University--Kingsville;

(D)
$11,465,897
[
$7,671,155
] to West Texas A&M

University;

(E)
$12,812,330
[
$11,459,464
] to
East
Texas A&M

University
[
University--Commerce
]; and

(F)
$4,731,552
[
$2,112,129
] to Texas A&M

University--Texarkana; and

(8)
$12,993,750
[
$8,662,500
] to the Texas State

Technical College System Administration and the following

component campuses, but not its extension centers or programs:

(A)
Texas State Technical College, a collective

unit in Nolan, Taylor, Brown, and Stephens Counties;

(B)
Texas State Technical
College--Harrison

County
[
College-Harlingen
];

(C)
[
(B)
] Texas State Technical

College--McLennan County
[
College--Marshall
];

(D)
[
(C)
] Texas State Technical
College, a

collective unit of one or more locations in Ellis County

[
College--West Texas
];

(E)
[
(D)
] Texas State Technical
College, a

collective unit in Comal and Guadalupe Counties
[
College--Waco
];

(F)
[
(E)
] Texas State Technical College--Fort

Bend
County
; [
and
]

(G)
[
(F)
] Texas State Technical
College--Denton

County;

(H)

Texas State Technical College, a collective

unit of one or more locations in East Williamson County; and

(I)

Texas State Technical College in Cameron

County
[
College--North Texas
].

(c-1)

Each governing board participating in the

distribution of funds as described in this section may in its sole

discretion use the funds to pay the principal and interest of bonds

that were issued under Chapter 55 and the proceeds of which were

spent for a purpose described in Section 17(a), Article VII, Texas

Constitution.

SECTION 2. Section 62.024, Education Code, is amended to

read as follows:

Sec. 62.024. AMOUNT OF ALLOCATION INCREASED. In

accordance with Section 17(a), Article VII, Texas Constitution, for

each state fiscal year beginning with the state fiscal year ending

August 31,
2026
[
2017
], the amount of the annual constitutional

appropriation under that subsection is increased to
$590,625,000

[
$393.75 million
]. [
Before the state fiscal year ending August 31,

2017, the amount of the annual constitutional appropriation under

that subsection is $262.5 million.
]

SECTION 3. Section 62.027(c), Education Code, is amended to

read as follows:

(c) The increase provided by the amendment to Section 62.024

enacted by the
89th
[
84th
] Legislature, Regular Session,
2025

[
2015
], in the amount of the appropriation made under Section

17(a), Article VII, Texas Constitution, for each state fiscal year

beginning with the state fiscal year ending August 31,
2026
[
2017
],

constitutes the increase in accordance with Section 17(a) that the

legislature considers appropriate for the five-year period

beginning September 1,
2025
[
2015
].

SECTION 4. Section 62.021(e-2), Education Code, is

repealed.

SECTION 5. The amounts allocated under Section 62.021,

Education Code, as amended by this Act, apply to each state fiscal

year beginning with the state fiscal year beginning September 1,

2025.

SECTION 6. Contingent on the passage and becoming law of

S.B. 2361 or similar legislation of the 89th Legislature, Regular

Session, 2025, relating to the transfer of the University of

Houston--Victoria to The Texas A&M University System, the amounts

allocated to the University of Houston--Victoria under Section

62.021, Education Code, as amended by this Act, are allocated to the

university as transferred to The Texas A&M University System.

SECTION 7. (a) Except as provided by Subsection (b) of this

section, this Act takes effect September 1, 2025.

(b) Sections 2 and 3 of this Act take effect as provided by

Subsection (a) of this section only if this Act is approved by a

vote of two-thirds of the membership of each house of the

legislature as required by Section 17(a), Article VII, Texas

Constitution.

______________________________

______________________________

President of the Senate

Speaker of the House

I certify that H.B. No. 42 was passed by the House on May 6,

2025, by the following vote: Yeas 141, Nays 6, 2 present, not

voting; and that the House concurred in Senate amendments to H.B.

No. 42 on May 29, 2025, by the following vote: Yeas 111, Nays 15, 2

present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 42 was passed by the Senate, with

amendments, on May 27, 2025, by the following vote: Yeas 30, Nays

1.

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor