HBA-TBM H.J.R. 64 77(R) BILL ANALYSIS Office of House Bill AnalysisH.J.R. 64 By: Junell Appropriations 4/8/2001 Introduced BACKGROUND AND PURPOSE Currently, the Texas Constitution provides for the annual appropriation of money to institutions of higher education (university). Under current law, a university is authorized to pledge up to 50 percent of its allocated funds to the payment of principal and interest owed for bonds and notes issued by the university. Because the pledge is made before the allocation adjustment, after an adjustment a university may have pledged more than 50 percent of its allocation. As proposed, House Joint Resolution 64 requires the submission to the voters of a constitutional amendment validating this adjustment. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this resolution does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Joint Resolution 64 amends the Texas Constitution to provide that an adjustment in the allocation formula for the annual allocations to eligible agencies and institutions of higher education is not invalid even though under the adjusted allocation more than 50 percent of the money allocated to a governing board must be used to pay the principal and interest of outstanding bonds or notes. The resolution provides that such an adjustment is validated. The provision expires January 1, 2006. FOR ELECTION This proposed constitutional amendment shall be submitted to the voters at an election to be held November 6, 2001. If the voters approve the amendment, H.J.R. 64 takes effect January 1, 2002.