By: Wilson	H.J.R. No. 201

	A 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, the Lamar Institute of Technology, Lamar State
	College-Orange, and Lamar State College-Port Arthur.
	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, the Lamar Institute of Technology, Lamar
	State College - Orange, and Lamar State College - Port Arthur as
	provided by this section.
	(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 (i) 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 20 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
	two-thirds 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)  Subject to Subsection (i) of this section, the board of
	regents of the Texas State University System may issue bonds and
	notes in a total amount not to exceed 10 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 one-thirds
	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 career and technical education programs
	offered by the Lamar Institute of Technology, Lamar State College -
	Orange, and Lamar State College - Port Arthur as provided by this
	section.
	(i)  Bonds and notes may be issued under Subsection (g) of or
	(h)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.
	(j)  Out of the annual distribution from the technical
	institution infrastructure fund to the available workforce
	education fund:
	(1)  two-thirds are appropriated to the board of
	regents of the Texas State Technical College System for:
	(A)  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
	(B)  if any money remains after the payment of
	principal and interest under Subdivision (A) of this subsection, a
	purpose described by Subsection (i) of this section for the support
	of the system administration and career and technical education
	programs offered by component institutions of the system; and
	(2)  one-third is appropriated to the board of regents
	of the Texas State University System for:
	(A)  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
	(B)  if any money remains after the payment of
	principal and interest under Subdivision (A) of this subsection, a
	purpose described by Subsection (i) of this section for the support
	of the career and technical education programs offered by the Lamar
	Institute of Technology, Lamar State College - Orange, and Lamar
	State College - Port Arthur.
	(k)  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.
	(l)  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 receiving system and may be
	spent in a subsequent state fiscal year for a purpose for which the
	appropriation was made.
	(m)  The Texas State Technical College System and the Texas
	State University 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 systems may issue bonds or notes under this section.
	(m-1)  Subsection (m) 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.
	(n)  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.
	(o)  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.
	(p)  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.
	(p-1)  On January 1, 2024, the comptroller of public accounts
	shall transfer $1.5 billion 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 University at
	Orange and Lamar University at Port Arthur];
	(3)  Midwestern State University;
	(4)  University of North Texas;
	(5)  The University of Texas Rio Grande Valley
	[Texas-Pan American including The University of Texas at
	Brownville]
	(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 Rio Grande
	College [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;
	(25)  West Texas A&M University; and
	(26)  Texas A&M University - Texarkana [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, Lamar Institute of
	Technology, Lamar State College- Orange, and Lamar State
	College-Port Arthur 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, Lamar
	Institute of Technology, Lamar State College- Orange, and Lamar
	State College-Port Arthur 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, Lamar Institute of
	Technology, Lamar State College- Orange, and Lamar State
	College-Port Arthur 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, Lamar Institute of Technology, Lamar
	State College-Orange, and Lamar State College-Port Arthur."