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 removing that system and its campuses from the annual appropriation of certain constitutionally dedicated funding for public institutions of higher education.

89(R) HJR 5 - Engrossed version - Bill Text

89R20594 KJE-F

By: Lambert, Wilson, Curry, Harris Davila,

H.J.R. No. 5

Spiller, et al.

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 removing that

system and its campuses from 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 workforce

education fund.

(2)

"Permanent fund" means the permanent technical

institution infrastructure fund.

(b)

The permanent technical institution infrastructure fund

and the available workforce education 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.

(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 or the board of

regents of the Texas State Technical College 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 in accordance with a

distribution policy adopted by the comptroller. 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, 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)

The amount distributed from the permanent fund to the

available fund under Subsection (i) of this section is appropriated

to the board of regents of the Texas State Technical College 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)

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.

(l)

An institution, other than a component institution of

the Texas State Technical College System, 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.

(m)

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.

(n)

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 and may be spent in a subsequent state fiscal year

for a purpose for which the appropriation was made.

(n-1)

On January 1, 2026, the amount of $850 million 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.

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) East Texas State University including East Texas

State University at Texarkana;

(2) Lamar University including Lamar University at

Orange and Lamar 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;

(7) Texas College of Osteopathic Medicine;

(8) Texas State University System Administration and

the following component institutions:

(9) Sam Houston State University;

(10) Southwest Texas State University;

(11) Sul Ross State University including Uvalde Study

Center;

(12) Texas Southern University;

(13) Texas Tech University;

(14) Texas Tech University Health Sciences Center;

(15) Angelo State University;

(16) Texas Woman's University;

(17) University of Houston System Administration and

the following component institutions:

(18) University of Houston;

(19) University of Houston--Victoria;

(20) University of Houston--Clear Lake;

(21) University of Houston--Downtown;

(22) Texas A&M University--Corpus Christi;

(23) Texas A&M International University;

(24) Texas A&M University--Kingsville;
and

(25) West Texas A&M University[
; and

[
(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 21
[
,
] 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 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. The following temporary provision is added to

the Texas Constitution:

TEMPORARY PROVISION. (a) This temporary provision applies

to the constitutional amendment proposed by the 89th Legislature,

Regular Session, 2025, providing for the creation of the permanent

technical institution infrastructure fund and the available

workforce education fund to support the capital needs of

educational programs offered by the Texas State Technical College

System and removing that system and its campuses from the annual

appropriation of certain constitutionally dedicated funding for

public institutions of higher education.

(b)

The amendments to Section 17, Article VII, of this

constitution take effect September 1, 2026.

(c) This temporary provision expires September 1, 2027.

SECTION 6. 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 technical institution infrastructure

fund and the available workforce education fund to support the

capital needs of educational programs offered by the Texas State

Technical College System and removing that system and its campuses

from the annual appropriation of certain constitutionally

dedicated funding for public institutions of higher education."