87S30250 KJE-D
	By: Burrows	H.J.R. No. 9

	A JOINT RESOLUTION
	proposing a constitutional amendment reducing The University of
	Texas System's share of the income and other benefits of the
	permanent university fund, transferring to the national research
	university fund and general revenue fund a portion of the annual
	distribution made from the permanent university fund to the
	available university fund, appropriating the portion transferred
	to the national research university fund, and dedicating the
	portion transferred to the general revenue fund to provide for the
	support and maintenance of public institutions of higher education.
	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 17(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 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[,] of this article, other
	than funding transferred to the national research university fund
	or general revenue fund under that section, [constitution] may not
	be entitled to participate in the funding provided by this section.
	SECTION 2.  Sections 18(b), (e), and (f), Article VII, Texas
	Constitution, are amended to read as follows:
	(b)  The Board of Regents of The University of Texas System
	may issue bonds and notes not to exceed a total amount of 10 [20]
	percent of the cost value of investments and other assets of the
	permanent university fund (exclusive of real estate) at the time of
	issuance thereof, and may pledge all or any part of its one-third
	[two-thirds] interest in the available university fund to secure
	the payment of the principal and interest of those bonds and notes,
	for the purpose of acquiring land either with or without permanent
	improvements, constructing and equipping buildings or other
	permanent improvements, major repair and rehabilitation of
	buildings and other permanent improvements, acquiring capital
	equipment and library books and library materials, and refunding
	bonds or notes issued under this section or prior law, at or for The
	University of Texas System administration and the following
	component institutions of the system:
	(1)  The University of Texas at Arlington;
	(2)  The University of Texas at Austin;
	(3)  The University of Texas at Dallas;
	(4)  The University of Texas at El Paso;
	(5)  The University of Texas of the Permian Basin;
	(6)  The University of Texas at San Antonio;
	(7)  The University of Texas at Tyler;
	(8)  The University of Texas Health Science Center at
	Dallas;
	(9)  The University of Texas Medical Branch at
	Galveston;
	(10)  The University of Texas Health Science Center at
	Houston;
	(11)  The University of Texas Health Science Center at
	San Antonio;
	(12)  The University of Texas System Cancer Center;
	(13)  The University of Texas Health Center at Tyler;
	and
	(14)  The University of Texas Institute of Texan
	Cultures at San Antonio.
	(e)  The available university fund consists of the
	distributions made to it from the total return on all investment
	assets of the permanent university fund, including the net income
	attributable to the surface of permanent university fund land. The
	amount of any distributions to the available university fund shall
	be determined by the board of regents of The University of Texas
	System in a manner intended to provide the available university
	fund with a stable and predictable stream of annual distributions
	and to maintain over time the purchasing power of permanent
	university fund investments and annual distributions to the
	available university fund. The amount distributed to the available
	university fund in a fiscal year must be not less than the amount
	needed to pay the principal and interest due and owing in that
	fiscal year on bonds and notes issued under this section and to meet
	any obligation under this section that amounts be transferred in
	that fiscal year to the national research university fund and the
	general revenue fund. If the purchasing power of permanent
	university fund investments for any rolling 10-year period is not
	preserved, the board may not increase annual distributions to the
	available university fund until the purchasing power of the
	permanent university fund investments is restored, except as
	necessary to pay the principal and interest due and owing on bonds
	and notes issued under this section. An annual distribution made by
	the board to the available university fund during any fiscal year
	may not exceed an amount equal to seven percent of the average net
	fair market value of permanent university fund investment assets as
	determined by the board, except as necessary to pay any principal
	and interest due and owing on bonds issued under this section. The
	expenses of managing permanent university fund land and investments
	shall be paid by the permanent university fund.
	(f)  Out of one-third of the annual distribution from the
	permanent university fund to the available university fund, there
	shall be appropriated an annual sum sufficient to pay the principal
	and interest due on the bonds and notes issued by the Board of
	Regents of The Texas A&M University System under this section and
	prior law, and the remainder of that one-third of the annual
	distribution to the available university fund shall be appropriated
	to the Board of Regents of The Texas A&M University System which
	shall have the authority and duty in turn to appropriate an
	equitable portion of the same for the support and maintenance of The
	Texas A&M University System administration, Texas A&M University,
	and Prairie View A&M University. The Board of Regents of The Texas
	A&M University System, in making just and equitable appropriations
	to Texas A&M University and Prairie View A&M University, shall
	exercise its discretion with due regard to such criteria as the
	board may deem appropriate from year to year. Out of one third [the
	other two-thirds] of the annual distribution from the permanent
	university fund to the available university fund there shall be
	appropriated an annual sum sufficient to pay the principal and
	interest due on the bonds and notes issued by the Board of Regents
	of The University of Texas System under this section and prior law,
	and the remainder of that one-third [such two-thirds] of the annual
	distribution to the available university fund, shall be
	appropriated for the support and maintenance of The University of
	Texas at Austin and The University of Texas System administration.
	Out of the remaining one-third of the annual distribution from the
	permanent university fund to the available university fund, the
	Board of Regents of The University of Texas System, in the manner
	prescribed by the comptroller of public accounts, shall annually
	transfer:
	(1)  25 percent of that one-third to the national
	research university fund established under Section 20 of this
	article; and
	(2)  75 percent of that one-third to the general
	revenue fund, to be appropriated only for the support and
	maintenance of public institutions of higher education according to
	equitable formulas prescribed by law.
	SECTION 3.  Sections 20(d) and (f), Article VII, Texas
	Constitution, are amended to read as follows:
	(d)  In each state fiscal biennium, the legislature shall
	appropriate the amount transferred to the fund under Section 18(f)
	of this article and may appropriate as provided by Subsection (f) of
	this section all or a portion of the total return on all investment
	assets of the fund to carry out the purposes for which the fund is
	established.
	(f)  The portion of the total return on investment assets of
	the fund that is available for appropriation in a state fiscal
	biennium under this section is the portion determined by the
	legislature, or an agency designated by the legislature, as
	necessary to provide as nearly as practicable a stable and
	predictable stream of annual distributions to eligible state
	universities and to maintain over time the purchasing power of fund
	investment assets. If the purchasing power of fund investment
	assets for any rolling 10-year period is not preserved, the
	appropriations from the total return on investment assets of the
	fund [distributions] may not be increased until the purchasing
	power of the fund investment assets is restored. The amount
	appropriated from the total return on investment assets of the fund
	in any fiscal year may not exceed an amount equal to seven percent
	of the average net fair market value of the investment assets of the
	fund, as determined by law. Until the fund has been invested for a
	period of time sufficient to determine the purchasing power over a
	10-year period, the legislature may provide by law for means of
	preserving the purchasing power of the fund.
	SECTION 4.  The following temporary provision is added to
	the Texas Constitution:
	TEMPORARY PROVISION. (a) This temporary provision applies to
	the constitutional amendment proposed by the 87th Legislature, 3rd
	Called Session, 2021, reducing The University of Texas System's
	share of the income and other benefits of the permanent university
	fund, transferring to the national research university fund and
	general revenue fund a portion of the annual distribution made from
	the permanent university fund to the available university fund,
	appropriating the portion transferred to the national research
	university fund, and dedicating the portion transferred to the
	general revenue fund to provide for the support and maintenance of
	public institutions of higher education.
	(b)  The amendment to Section 18, Article VII, of this
	constitution does not impair any obligation created by the issuance
	of bonds or notes by the board of regents of The University of Texas
	System in accordance with that section before May 7, 2022, and all
	outstanding bonds and notes validly issued by the board under that
	section remain valid, enforceable, and binding and shall be paid in
	full, both principal and interest, in accordance with their terms
	and from the sources pledged to their payment. In order to ensure
	that the amendment of that section does not impair any obligation
	created by the issuance of those bonds and notes, notwithstanding
	the amendments to Subsections (e) and (f) of that section:
	(1)  the amount allocated for appropriation to The
	University of Texas System for a state fiscal year under Subsection
	(f) of that section shall be increased, if necessary, to the amount
	necessary to pay the principal and interest due and owing during
	that fiscal year on those bonds and notes; and
	(2)  the amounts allocated for transfer to the national
	research university fund and the general revenue fund for a state
	fiscal year under Subsection (f) of that section shall be
	proportionately reduced by a total amount equal to the amount, if
	any, by which the amount allocated for appropriation to The
	University of Texas System is increased under Subdivision (1) of
	this subsection for that fiscal year.
	(c)  This section expires June 1, 2052.
	SECTION 5.  This proposed constitutional amendment shall be
	submitted to the voters at an election to be held May 7, 2022. The
	ballot shall be printed to permit voting for or against the
	proposition: "The constitutional amendment reducing The
	University of Texas System's share of the income and other benefits
	of the permanent university fund, transferring to the national
	research university fund and general revenue fund a portion of the
	annual distribution made from the permanent university fund to the
	available university fund, appropriating the portion transferred
	to the national research university fund, and dedicating the
	portion transferred to the general revenue fund to provide for the
	support and maintenance of public institutions of higher
	education."