HB 42

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 Subsections (a-1), (a-2) and
(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
(1)  to the following component institutions of the
University of North Texas System:
(A)  $66,211,690 [$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
(B)  $20,765,997 [$15,581,837] to the University
of North Texas Health Science Center at Fort Worth; and
(C)  $7,094,726 [$3,455,644] to the University of
(2)  to the following component institutions of the
(A)  $20,089,746 [$13,537,649] to Lamar
(B)  $8,254,303 [$2,630,158] to the Lamar
(C)  $5,184,597 [$1,533,301] to Lamar State
(D)  $5,990,785 [$2,283,992] to Lamar State
(E)  $22,988,648 [$18,787,013] to Sam Houston
(F)  $55,028,264 [$38,741,061] to Texas State
(G)  $4,633,243 [$2,216,640] to Sul Ross State
(H)  $2,929,741 [$487,157] to Sul Ross State
University-Rio Grande College; and
(I)  $5,825,969 to Sam Houston State University
College of Osteopathic Medicine;
(3)  $14,388,378 [$12,072,906] to Texas Southern
(4)  to the following component institutions of the
(A)  $82,019,289 [$51,379,461] to Texas Tech
(B)  $29,317,972 [$22,305,642] to Texas Tech
University Health Sciences Center;
(C)  $10,069,019 [$6,997,943] to Angelo State
(D)  $10,659,472 [$5,725,243] to Texas Tech
University Health Sciences Center--El Paso; and
(E)  $7,340,986 [$5,082,034] to Midwestern State
(5)  $19,808,482 [$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
(A)  $75,147,013 [$56,158,685] to the University
(B)  $6,366,800 [$3,649,703] to the University of
(C)  $10,470,577 [$7,959,137] to the University
(D)  $14,866,227 [$11,155,034] to the University
(E)  $4,799,064 to the University of Houston
(7)  to the following component institutions of The
(A)  $15,386,251 [$11,825,139] to Texas A&M
(B)  $11,911,395 [$7,687,534] to Texas A&M
(C)  $10,424,459 [$9,125,307] to Texas A&M
(D)  $11,705,500 [$7,671,155] to West Texas A&M
(E)  $13,281,126 [$11,459,464] to East Texas A&M
University [University--Commerce]; and
(F)  $4,671,529 [$2,112,129] to Texas A&M
(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-Harlingen;
(B)  Texas State Technical College--Marshall;
(C)  Texas State Technical College--West Texas;
(D)  Texas State Technical College--Waco;
(E)  Texas State Technical College--Fort Bend;
(F)  Texas State Technical College--North Texas;
(G)  Texas State Technical College-East
(a-1)  In each state fiscal year beginning with the state
fiscal year ending August 31, 2027, 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.  The annual amounts allocated by the formula are as
(1)  to the following component institutions of the
University of North Texas System:
(A)  $67,815,750 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)  $21,220,626 to the University of North Texas
Health Science Center at Fort Worth; and
(C)  $7,218,152 to the University of North Texas
(2)  to the following component institutions of the
(A)  $20,566,492 to Lamar University;
(B)  $8,406,665 to the Lamar Institute of
(C)  $5,261,748 to Lamar State College--Orange;
(D)  $6,087,467 to Lamar State College--Port
(E)  $23,545,576 to Sam Houston State University;
(F)  $56,361,392 to Texas State University;
(G)  $4,697,037 to Sul Ross State University;
(H)  $2,952,266 to Sul Ross State University-Rio
(I)  $5,918,658 to Sam Houston State University
College of Osteopathic Medicine;
(3)  $14,699,707 to Texas Southern University;
(4)  to the following component institutions of the
(A)  $84,006,307 to Texas Tech University;
(B)  $29,979,784 to Texas Tech University Health
(C)  $10,283,510 to Angelo State University;
(D)  $10,869,258 to Texas Tech University Health
(E)  $7,470,934 to Midwestern State University;
(5)  $20,272,798 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
(A)  $76,967,542 to the University of Houston;
(B)  $6,472,592 to the University of
(C)  $10,686,156 to the University of
(D)  $15,207,338 to the University of
(E)  $4,866,875 to the University of Houston
(7)  to the following component institutions of The
(A)  $15,729,462 to Texas A&M University--Corpus
(B)  $12,162,028 to Texas A&M International
(D)  $11,953,642 to West Texas A&M University;
(E)  $13,575,421 to East Texas A&M University; and
(a-2)  Notwithstanding Subsections (a) and (a-1), if the
constitutional amendment proposed by the 89th Legislature, Regular
Session, 2023, relating to a permanent fund to support the capital
needs of educational programs offered by the Texas State Technical
College System is not approved by the voters, Subsection (a) of this
section applies in each state fiscal year beginning with the state
fiscal year ending August 31, 2026, and Subsection (a-1) of this
(c-1)  Each governing board participating in the
distribution of funds as described in this section may in its sole
discretion use the funds for the payment of bonds as defined in
Section 55.01 of this code, the proceeds of which were expended for
any and all purposes described in Section 17, Article VII, Texas
SECTION 2.  Section 62.024, Education Code, is amended to
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 [$393.75] million.
[Before the state fiscal year ending August 31, 2017, the amount of
the annual constitutional appropriation under that subsection is
SECTION 3.  Section 62.027(c), Education Code, is amended to
(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
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,
SECTION 6.  (a)  Except as provided by Subsection (b) of this
section, this Act takes effect August 31, 2025.
(b)  Sections 2 and 3 of this Act take effect 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