| COMPARISON OF INTRODUCED AND SUBSTITUTE While C.S.H.B. 42 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill. Higher Education Fund: Annual Constitutional Appropriation General Provisions Both the introduced and the substitute provide that their respective applicable amounts allocated apply to each state fiscal year beginning with the 2026 state fiscal year and both versions do the following: ·increase the amount of the annual constitutional appropriation from the higher education fund for certain eligible entities that are not supported by the available university fund; ·establish that the increase constitutes an increase that the legislature considers appropriate for the five-year period beginning September 1, 2025, and is applicable beginning with the 2026 state fiscal year; and ·establish that these foregoing bulleted provisions take effect contingent on the bill receiving the necessary two-thirds vote as required by the Texas Constitution. However, the total amounts of the annual constitutional appropriation differ. While the introduced set that amount at $590.625 million, the substitute sets it at $787.5 million. The substitute, but not the introduced, clarifies that those provisions take effect September 1, 2025, contingent on the bill receiving the necessary two-thirds vote. Additionally, the substitute changes the bill's effective date to September 1, 2025, except as otherwise provided, whereas the introduced provided for the bill to take effect August 31, 2025, except as otherwise provided. Bond Authority Both the introduced and the substitute provide for the bonding authority of each governing body participating in the distribution of the appropriated funds but they differ in the manner by which they express that authority as follows: ·the introduced authorized the use of the funds for the payment of bonds, notes, or credit agreements a board is authorized to enter into by applicable state law by virtue of its specific reference to the definition of "bonds" as that term is currently defined for purposes of the systemwide revenue financing program; whereas ·the substitute authorizes the use of the funds to pay the principal and interest of bonds that were issued and references the entirety of the applicable state law governing the program in making that authorization. Contingency Regarding the University of Houston--Victoria The substitute sets out a provision that is not included in the introduced regarding the proposed transfer of the University of Houston--Victoria to The Texas A&M University System by S.B. 2361 or similar legislation, specifying that, if such legislation passes, the amounts allocated under the substitute's provisions are allocated to the university as transferred to that system. Contingency Regarding the Texas State Technical College System Administration Both the introduced and the substitute provide alternative statutory schedules of annual allotments to eligible institutions of higher education from the annual constitutional appropriation of the higher education fund, as allocated by the equitable allocation formula, whereby the applicable schedule takes effect depending on whether the constitutional amendment proposed by the 89th Legislature providing for the creation of funds to support the capital needs of educational programs offered by the Texas State Technical College System Administration is approved by voters or is not approved by the voters. The contingencies are expressed by different drafting conventions and the applicable schedules, as subsequently described, provide for the following matters: ·if the proposed amendment is approved, the applicable schedules for only the 2026 state fiscal year includes the following additional institutions that are entitled to an applicable allotment: othe University of North Texas at Frisco, with the allotment allocated as determined by the board of regents of the University of North Texas System; oSam Houston State University College of Osteopathic Medicine; othe University of Houston College of Medicine; and oTexas State Technical College--East Williamson County; ·if the proposed amendment is approved, in each state fiscal year beginning with the 2027 state fiscal year, the applicable schedule does not include an allotment for the Texas State Technical College System Administration but includes allotments for the institutions in the preceding bulleted provision; and ·if the proposed amendment is not approved, in each state fiscal year beginning with the 2026 state fiscal year, the applicable schedule includes an allotment for the Texas State Technical College System Administration and also includes the institutions in that preceding bulleted provision. However, the substitute increases the allotment amounts in the introduced version's schedules, as subsequently outlined and specified, with respect to the following: ·schedules for the 2026 state fiscal year, contingent on the amendment being approved; ·schedules for each state fiscal year beginning with the 2027 state fiscal year, contingent on the amendment being approved; and ·schedules for each state fiscal year beginning with the 2026 state fiscal year, contingent on the amendment not being approved. Changes to Allotment Schedules for the 2026 State Fiscal Year: Contingent on Approval of Constitutional Amendment Both the introduced and the substitute make the 2026 state fiscal year schedules contingent on approval of the constitutional amendment by the voters, but the substitute provides for the express expiration of its schedule, which the introduced did not do, and the substitute changes the amounts allotted for the 2026 fiscal year, as follows: ·for the following component institutions of the University of North Texas System: ofrom $66,211,690 in the introduced to $89,980,939 for 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; ofrom $20,765,997 in the introduced to $27,502,778 for the University of North Texas Health Science Center at Fort Worth; and ofrom $7,094,726 in the introduced to $8,923,675 for the University of North Texas at Dallas; ·for the following component institutions of the Texas State University System: ofrom $20,089,746 in the introduced to $27,154,265 for Lamar University; ofrom $8,254,303 in the introduced to $10,512,021 for the Lamar Institute of Technology; ofrom $5,184,597 in the introduced to $6,327,832 for Lamar State College--Orange; ofrom $5,990,785 in the introduced to $7,423,432 for Lamar State College--Port Arthur; ofrom $22,988,648 in the introduced to $31,241,313 for Sam Houston State University; ofrom $55,028,264 in the introduced to $74,782,789 for Texas State University; ofrom $4,633,243 in the introduced to $5,578,548 for Sul Ross State University; ofrom $2,929,741 in the introduced to $3,263,508 for Sul Ross State University-Rio Grande College; and ofrom $5,825,969 in the introduced to $7,199,448 for Sam Houston State University College of Osteopathic Medicine; ·from $14,388,378 in the introduced to $19,001,710 for Texas Southern University; ·for the following component institutions of the Texas Tech University System: ofrom $82,019,289 in the introduced to $111,463,286 for Texas Tech University; ofrom $29,317,972 in the introduced to $39,124,816 for Texas Tech University Health Sciences Center; ofrom $10,069,019 in the introduced to $13,247,392 for Angelo State University; ofrom $10,659,472 in the introduced to $13,768,124 for Texas Tech University Health Sciences Center--El Paso; and ofrom $7,340,986 in the introduced to $9,266,572 for Midwestern State University; ·from $19,808,482 in the introduced to $26,688,793 for the component institutions of the Texas Woman's University System, allocated as determined by the board of regents of the system; ·for the following component institutions of the University of Houston System: ofrom $75,147,013 in the introduced to $102,123,941 for the University of Houston; ofrom $6,366,800 in the introduced to $7,934,433 for the University of Houston‑‑Victoria; ofrom $10,470,577 in the introduced to $13,665,066 for the University of Houston--Clear Lake; ofrom $14,866,227 in the introduced to $19,920,869 for the University of Houston--Downtown; and ofrom $4,799,064 in the introduced to $5,803,896 for the University of Houston College of Medicine; ·for the following component institutions of The Texas A&M University System: ofrom $15,386,251 in the introduced to $20,472,015 for Texas A&M University‑‑Corpus Christi; ofrom $11,911,395 in the introduced to $15,625,322 for Texas A&M International University; ofrom $10,424,459 in the introduced to $13,523,079 for Texas A&M University‑‑Kingsville; ofrom $11,705,500 in the introduced to $15,382,514 for West Texas A&M University; ofrom $13,281,126 in the introduced to $17,642,046 for East Texas A&M University; and ofrom $4,671,529 in the introduced to $5,630,578 for Texas A&M University‑‑Texarkana; and ·from $12,993,750 in the introduced to $17,325,000 for the Texas State Technical College System Administration and the applicable component campuses but not its extension centers or programs. Changes to Allotment Schedules for Each Fiscal Year Beginning With the 2027 State Fiscal Year: Contingent on Approval of Constitutional Amendment Both the introduced and the substitute make state fiscal year schedules for each fiscal year beginning with the 2027 state fiscal year contingent on approval of the constitutional amendment by the voters, but the substitute changes the amounts allotted for each fiscal year beginning with the 2027 state fiscal year as follows: ·for the following component institutions of the University of North Texas System: ofrom $67,815,750 in the introduced to $92,119,685 for 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; ofrom $21,220,626 in the introduced to $28,108,950 for the University of North Texas Health Science Center at Fort Worth; and ofrom $7,218,152 in the introduced to $9,088,243 for the University of North Texas at Dallas; ·for the following component institutions of the Texas State University System: ofrom $20,566,492 in the introduced to $27,789,927 for Lamar University; ofrom $8,406,665 in the introduced to $10,715,169 for the Lamar Institute of Technology; ofrom $5,261,748 in the introduced to $6,430,700 for Lamar State College--Orange; ofrom $6,087,467 in the introduced to $7,552,341 for Lamar State College--Port Arthur; ofrom $23,545,576 in the introduced to $31,983,884 for Sam Houston State University; and ofrom $5,918,658 in the introduced to $7,323,033 for Sam Houston State University College of Osteopathic Medicine; ofrom $56,361,392 in the introduced to $76,560,292 for Texas State University; ofrom $4,697,037 in the introduced to $5,663,606 for Sul Ross State University; and ofrom $2,952,266 in the introduced to $3,293,540 for Sul Ross State University-Rio Grande College; ·from $14,699,707 in the introduced to $19,416,816 for Texas Southern University; ·to the following component institutions of the Texas Tech University System: ofrom $84,006,307 in the introduced to $114,112,643 for Texas Tech University; ofrom $29,979,784 in the introduced to $40,007,231 for Texas Tech University Health Sciences Center; ofrom $10,283,510 in the introduced to $13,533,380 for Angelo State University; ofrom $10,869,258 in the introduced to $14,047,840 for Texas Tech University Health Sciences Center--El Paso; and ofrom $7,470,934 in the introduced to $9,439,836 for Midwestern State University; ·from $20,272,798 in the introduced to $27,307,881 for the component institutions of the Texas Woman's University System, allocated as determined by the board of regents of the system; ·for the following component institutions of the University of Houston System: ofrom $76,967,542 in the introduced to $104,551,313 for the University of Houston; ofrom $6,472,592 in the introduced to $8,075,487 for the University of Houston‑‑Victoria; ofrom $10,686,156 in the introduced to $13,952,505 for the University of Houston--Clear Lake; ofrom $15,207,338 in the introduced to $20,375,683 for the University of Houston--Downtown; and ofrom $4,866,875 in the introduced to $5,894,311 for the University of Houston College of Medicine; and ·for the following component institutions of The Texas A&M University System: ofrom $15,729,462 in the introduced to $20,929,630 for Texas A&M University‑‑Corpus Christi; ofrom $12,162,028 in the introduced to $15,959,500 for Texas A&M International University; ofrom $10,633,569 in the introduced to $13,801,892 for Texas A&M University‑‑Kingsville; ofrom $11,953,642 in the introduced to $15,713,370 for West Texas A&M University; ofrom $13,575,421 in the introduced to $18,034,440 for East Texas A&M University; and ofrom $4,736,250 in the introduced to $5,716,872 for Texas A&M University--Texarkana. Changes to Allotment Schedules for Each Fiscal Year Beginning With the 2026 State Fiscal Year: Contingent on Constitutional Amendment Not Approved Both the introduced and the substitute make state fiscal year schedules for each fiscal year beginning with the 2026 state fiscal year contingent on the constitutional amendment not being approved by the voters, but the substitute changes the amounts allotted for each fiscal year beginning with the 2026 state fiscal year as follows: ·for the following component institutions of the University of North Texas System: ofrom $66,211,690 in the introduced to $89,980,939 for 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; ofrom $20,765,997 in the introduced to $27,502,778 for the University of North Texas Health Science Center at Fort Worth; and ofrom $7,094,726 in the introduced to $8,923,675 for the University of North Texas at Dallas; ·for the following component institutions of the Texas State University System: ofrom $20,089,746 in the introduced to $27,154,265 for Lamar University; ofrom $8,254,303 in the introduced to $10,512,021 for the Lamar Institute of Technology; ofrom $5,184,597 in the introduced to $6,327,832 for Lamar State College--Orange; ofrom $5,990,785 in the introduced to $7,423,432 for Lamar State College--Port Arthur; ofrom $22,988,648 in the introduced to $31,241,313 for Sam Houston State University; ofrom $55,028,264 in the introduced to $74,782,789 for Texas State University; ofrom $4,633,243 in the introduced to $5,578,548 for Sul Ross State University; ofrom $2,929,741 in the introduced to $3,263,508 for Sul Ross State University-Rio Grande College; and ofrom $5,825,969 in the introduced to $7,199,448 for Sam Houston State University College of Osteopathic Medicine; ·from $14,388,378 in the introduced to $19,001,710 for Texas Southern University; ·for the following component institutions of the Texas Tech University System: ofrom $82,019,289 in the introduced to $111,463,286 for Texas Tech University; ofrom $29,317,972 in the introduced to $39,124,816 for Texas Tech University Health Sciences Center; ofrom $10,069,019 in the introduced to $13,247,392 for Angelo State University; ofrom $10,659,472 in the introduced to $13,768,124 for Texas Tech University Health Sciences Center--El Paso; and ofrom $7,340,986 in the introduced to $9,266,572 for Midwestern State University; ·from $19,808,482 in the introduced to $26,688,793 for the component institutions of the Texas Woman's University System, allocated as determined by the board of regents of the system; ·for the following component institutions of the University of Houston System: ofrom $75,147,013 in the introduced to $102,123,941 for the University of Houston; ofrom $6,366,800 in the introduced to $7,934,433 for the University of Houston‑‑Victoria; ofrom $10,470,577 in the introduced to $13,665,066 for the University of Houston--Clear Lake; ofrom $14,866,227 in the introduced to $19,920,869 for the University of Houston--Downtown; and ofrom $4,799,064 in the introduced to $5,803,896 for the University of Houston College of Medicine; ·for the following component institutions of The Texas A&M University System: ofrom $15,386,251 in the introduced to $20,472,015 for Texas A&M University‑‑Corpus Christi; ofrom $11,911,395 in the introduced to $15,625,322 for Texas A&M International University; ofrom $10,424,459 in the introduced to $13,523,079 for Texas A&M University‑‑Kingsville; ofrom $11,705,500 in the introduced to $15,382,514 for West Texas A&M University; ofrom $13,281,126 in the introduced to $17,642,046 for East Texas A&M University; and ofrom $4,671,529 in the introduced to $5,630,578 for Texas A&M University--Texarkana; and ·from $12,993,750 in the introduced to $17,325,000 for the Texas State Technical College System Administration and the applicable component campuses but not its extension centers or programs. |