HB 42

H.B. No. 42
  AN ACT
  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 Subsection (c-1) to read as
  follows:
         (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
  follows:
               (1)  to the following component institutions of the
  University of North Texas System:
                     (A)  $65,142,741 [$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
  system;
                     (B)  $21,716,116 [$15,581,837] to the University
  of North Texas Health Science Center at Fort Worth; and
                     (C)  $7,150,950 [$3,455,644] to the University of
  North Texas at Dallas;
               (2)  to the following component institutions of the
  Texas State University System:
                     (A)  $20,427,341 [$13,537,649] to Lamar
  University;
                     (B)  $7,956,305 [$2,630,158] to the Lamar
  Institute of Technology;
                     (C)  $5,556,444 [$1,533,301] to Lamar State
  College--Orange;
                     (D)  $6,949,525 [$2,283,992] to Lamar State
  College--Port Arthur;
                     (E)  $22,817,382 [$18,787,013] to Sam Houston
  State University;
                     (F)  $7,555,972 to Sam Houston State University
  College of Osteopathic Medicine;
                     (G)  $57,704,160 [$38,741,061] to Texas State
  University;
                     (H)  $4,699,091 [(G) $2,216,640] to Sul Ross State
  University; and
                     (I)  $2,886,904 [(H) $487,157] to Sul Ross State
  University-Rio Grande College;
               (3)  $12,750,829 [$12,072,906] to Texas Southern
  University;
               (4)  to the following component institutions of the
  Texas Tech University System:
                     (A)  $82,671,774 [$51,379,461] to Texas Tech
  University;
                     (B)  $29,075,466 [$22,305,642] to Texas Tech
  University Health Sciences Center and its branch campuses Texas
  Tech University Health Sciences Center at Abilene and Texas Tech
  University Health Sciences Center at Dallas, allocated as
  determined by the board of regents of the system;
                     (C)  $10,250,544 [$6,997,943] to Angelo State
  University;
                     (D)  $11,548,153 [$5,725,243] to Texas Tech
  University Health Sciences Center--El Paso; and
                     (E)  $7,261,812 [$5,082,034] to Midwestern State
  University;
               (5)  $19,536,274 [$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
  University of Houston System:
                     (A)  $70,708,909 [$56,158,685] to the University
  of Houston;
                     (B)  $6,030,405 [$3,649,703] to the University of
  Houston--Victoria;
                     (C)  $10,015,183 [$7,959,137] to the University
  of Houston--Clear Lake; [and]
                     (D)  $14,094,619 [$11,155,034] to the University
  of Houston--Downtown; and
                     (E)  $5,746,678 to the University of Houston
  College of Medicine;
               (7)  to the following component institutions of The
  Texas A&M University System:
                     (A)  $16,228,184 [$11,825,139] to Texas A&M
  University--Corpus Christi;
                     (B)  $11,686,588 [$7,687,534] to Texas A&M
  International University;
                     (C)  $10,453,123 [$9,125,307] to Texas A&M
  University--Kingsville;
                     (D)  $11,465,897 [$7,671,155] to West Texas A&M
  University;
                     (E)  $12,812,330 [$11,459,464] to East Texas A&M
  University [University--Commerce]; and
                     (F)  $4,731,552 [$2,112,129] to Texas A&M
  University--Texarkana; and
               (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, a collective
  unit in Nolan, Taylor, Brown, and Stephens Counties;
                     (B)  Texas State Technical College--Harrison
  County [College-Harlingen];
                     (C) [(B)]  Texas State Technical
  College--McLennan County [College--Marshall];
                     (D) [(C)]  Texas State Technical College, a
  collective unit of one or more locations in Ellis County
  [College--West Texas];
                     (E) [(D)]  Texas State Technical College, a
  collective unit in Comal and Guadalupe Counties [College--Waco];
                     (F) [(E)]  Texas State Technical College--Fort
  Bend County; [and]
                     (G) [(F)]  Texas State Technical College--Denton
  County;
                     (H)  Texas State Technical College, a collective
  unit of one or more locations in East Williamson County; and
                     (I)  Texas State Technical College in Cameron
  County [College--North Texas].
         (c-1)  Each governing board participating in the
  distribution of funds as described in this section may in its sole
  discretion use the funds to pay the principal and interest of bonds
  that were issued under Chapter 55 and the proceeds of which were
  spent for a purpose described in Section 17(a), Article VII, Texas
  Constitution.
         SECTION 2.  Section 62.024, Education Code, is amended to
  read as follows:
         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 $590,625,000
  [$393.75 million].  [Before the state fiscal year ending August 31,
  2017, the amount of the annual constitutional appropriation under
  that subsection is $262.5 million.]
         SECTION 3.  Section 62.027(c), Education Code, is amended to
  read as follows:
         (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
  repealed.
         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,
  2025.
         SECTION 6.  Contingent on the passage and becoming law of
  S.B. 2361 or similar legislation of the 89th Legislature, Regular
  Session, 2025, relating to the transfer of the University of
  Houston--Victoria to The Texas A&M University System, the amounts
  allocated to the University of Houston--Victoria under Section
  62.021, Education Code, as amended by this Act, are allocated to the
  university as transferred to The Texas A&M University System.
         SECTION 7.  (a)  Except as provided by Subsection (b) of this
  section, this Act takes effect September 1, 2025.
         (b)  Sections 2 and 3 of this Act take effect as provided by
  Subsection (a) of this section 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
  Constitution.
  ______________________________
  ______________________________
     President of the Senate
  Speaker of the House     
         I certify that H.B. No. 42 was passed by the House on May 6,
  2025, by the following vote:  Yeas 141, Nays 6, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 42 on May 29, 2025, by the following vote:  Yeas 111, Nays 15, 2
  present, not voting.
  ______________________________
  Chief Clerk of the House   
         I certify that H.B. No. 42 was passed by the Senate, with
  amendments, on May 27, 2025, by the following vote:  Yeas 30, Nays
  1.
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
           __________________
                Governor