SJR59 - 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.

      S.J.R. No. 59         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.          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.           (o)     The sum of the amount allocated to the Texas State   Technical College System under Section 17 of this article and the   amount distributed to the system under this section may not exceed:                 (1)     for the state fiscal year beginning September 1,   2025, $52 million; and                 (2)     for a state fiscal year beginning on or after   September 1, 2026, the amount determined under this subsection for   the preceding state fiscal year adjusted by the increase, if any, in   the rate of inflation during the preceding state fiscal year, as   determined by the comptroller of public accounts on the basis of   changes in the most recent construction cost index published by the   Engineering News-Record or, if that index is unavailable, a   comparable cost index determined by the comptroller.           (p)     If the sum of the amounts described by Subsection (o) of   this section would exceed the limit provided under Subsection (o)   for a state fiscal year:                 (1)     the amount allocated to the system under Section   17 of this article shall be reduced until the limit is met or the   amount allocated is reduced to zero; and                 (2)     if necessary after the reduction under Subdivision   (1) of this subsection, the amount distributed to the system under   this section shall be reduced until the limit is met or the amount   distributed is reduced to zero.          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.  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."             ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certif [Text truncated for display. Full text available on LegiScan.]