Monitoring the Session

HB 42

university building fund rises from $393.75M to $590.625M

Became law, effective Sep 1, 2025

Verdict: No flags

No flagsInitial review
Rep. Terry M. WilsonRHouse 20

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

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.

Caption from analyzed text · version I.

Summary

Starts the fiscal year ending August 31, 2026.

The bill raises the state's yearly constitutional fund for building and repairing public universities from $393.75 million to $590.625 million, starting with the fiscal year that ends August 31, 2026. It sets new dollar amounts for each listed university, health science center, and Texas State Technical College campus, adds new shares for the Sam Houston State and University of Houston medical colleges, and sets a second schedule for later years that leaves out the technical college system if a related constitutional amendment passes. Each university board may also use the money to pay off bonds for the building purposes allowed by the Texas Constitution, and the increase takes effect only if two-thirds of each house approves it.

Labels

Labels: ACROSS THE AISLE. Joint authors: 4 Republicans, 1 Democrat. Party as the Legislative Reference Library lists it for the 89th Legislature.

Receipt

The receipt

89R-HB42 · 2025-03-07

SOLD BY

+ 2 more authors, 6 coauthors

ITEM

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.

WHAT IT DOES

Starts the fiscal year ending August 31, 2026.

The bill raises the state's yearly constitutional fund for building and repairing public universities from $393.75 million to $590.625 million, starting with the fiscal year that ends August 31, 2026. It sets new dollar amounts for each listed university, health science center, and Texas State Technical College campus, adds new shares for the Sam Houston State and University of Houston medical colleges, and sets a second schedule for later years that leaves out the technical college system if a related constitutional amendment passes. Each university board may also use the money to pay off bonds for the building purposes allowed by the Texas Constitution, and the increase takes effect only if two-thirds of each house approves it.

CHARGES

[ ] NONE FOUND

TOTAL

Net to General Revenue · FY 2026($196,875,000)

LBB estimate, flow · fiscal note version F · ( ) = negative · source

Sources

Fiscal note · version F · May 28, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB42, As Passed 2nd House: a negative impact of ($393,750,000) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

First year · FY 2026 · ($196,875,000)

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Higher Education
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Committee substitute considered in committee
  7. Testimony taken/registration(s) recorded in committee
  8. Left pending in committee
  9. Considered in public hearing
  10. Committee substitute considered in committee
  11. Reported favorably as substituted
  12. Comte report filed with Committee Coordinator
  13. Committee report distributed
  14. Committee report sent to Calendars
  15. Considered in Calendars
  16. Placed on General State Calendar
  17. Read 2nd time
  18. Postponed 5/5/25 11:00 AM
  19. Laid out as postponed business
  20. Amended 1-Wilson
  21. Passed to engrossment as amended
  22. Record vote RV#1379
  23. Read 3rd time
  24. Passed
  25. Record vote RV#1399
  26. Reported engrossed
  27. Received from the House
  28. Read first time
  29. Referred to Finance
  30. Co-sponsor authorized
  31. Scheduled for public hearing on . . .
  32. Considered in public hearing
  33. Left pending in committee
  34. Considered in public hearing
  35. Vote taken in committee
  36. Reported favorably as substituted
  37. Committee report printed and distributed
  38. Co-sponsor authorized
  39. Placed on intent calendar
  40. Rules suspended-Regular order of business
  41. Read 2nd time & passed to 3rd reading
  42. Vote recorded in Journal
  43. Three day rule suspended
  44. Record vote
  45. Read 3rd time
  46. Passed
  47. Record vote
  48. Senate passage as amended reported
  49. Senate Amendments distributed
  50. Senate Amendments Analysis distributed
  51. House concurs in Senate amendment(s)
  52. Record vote RV#4028
  53. Statement(s) of vote recorded in Journal
  54. Text of Senate Amendment(s)
  55. House concurs in Senate amendment(s)-reported
  56. Reported enrolled
  57. Signed in the House
  58. Signed in the Senate
  59. Sent to the Governor
  60. Signed by the Governor
  61. Effective on 9/1/25
FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 141 yea · 6 nay

Senate · 30 yea · 1 nay

Sources

House: Final passage · May 6, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · May 27, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 29, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$413,658.18

Texans for Lawsuit Reform PAC

$413,658.18

Cash
$35,000.00
Paid by others
$378,658.18
Total
$413,658.18
mail $190,451.68advertising $178,456.50polling $8,750.00Other filed descriptions $1,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 27, 2025 to Oct 20, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101007854, 101030352, 101067580, 101071564.

Texas Conservative Majority PAC$231,075.00

Texas Conservative Majority PAC

$231,075.00

Cash
$50,000.00
Paid by others
$181,075.00
Total
$231,075.00
canvassing $157,125.00polling $23,950.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Aug 25, 2026 to Oct 18, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101067580, 101071564.

Kenneth Mongold$25,000.00
Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$413,658.18

Cash
$35,000.00
Paid by others
$378,658.18
Total
$413,658.18
mail $190,451.68advertising $178,456.50polling $8,750.00Other filed descriptions $1,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 27, 2025 to Oct 20, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101007854, 101030352, 101067580, 101071564.

×

Texas Conservative Majority PAC

$231,075.00

Cash
$50,000.00
Paid by others
$181,075.00
Total
$231,075.00
canvassing $157,125.00polling $23,950.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Aug 25, 2026 to Oct 18, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101067580, 101071564.

Votes6

House May 29, 2025

Yea
111
Nay
15
Present, not voting
2
Absent
16
Excused
6
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 4028

Representative Wilson moved to concur in the senate amendments to HB 42. The motion to concur in the senate amendments to HB 42 prevailed by (Record 4028): 111 Yeas, 15 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 111 (published)
  • Nay: 15 (published)
  • Present, not voting: 2 (published)
  • Absent: 16 (derived from named list)
  • Excused: 6 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Senate May 27, 2025

Yea
30
Nay
1
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

The bill was read third time and was passed by the following vote: Yeas 30, Nays 1. (Same as previous roll call)

Published stock of positions for this vote, except where marked derived.

  • Yea: 30 (published)
  • Nay: 1 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 27, 2025

Yea
30
Nay
1
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

Senator Huffman moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSHB 42 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 30, Nays 1.

Published stock of positions for this vote, except where marked derived.

  • Yea: 30 (published)
  • Nay: 1 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 27, 2025

Yea
Not printed
Nay
Not printed
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

Senator Huffman moved to suspend the regular order of business to take up for consideration CSHB 42 at this time on its second reading: CSHB 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. The motion prevailed. Senator Middleton asked to be recorded as voting "Nay" on suspension of the regular order of business. The bill was read second time and was passed to third reading by a viva voce vote.

Published stock of positions for this vote, except where marked derived.

  • Yea: Not printed
  • Nay: Not printed
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

House May 6, 2025

Yea
141
Nay
6
Present, not voting
2
Absent
1
Excused
0
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1399

HB 42 was passed by (Record 1399): 141 Yeas, 6 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 141 (published)
  • Nay: 6 (published)
  • Present, not voting: 2 (published)
  • Absent: 1 (derived from named list)
  • Excused: 0 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 5, 2025

Yea
131
Nay
11
Present, not voting
2
Absent
3
Excused
3
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1379

CSHB 42, as amended, was passed to engrossment by (Record 1379): 131 Yeas, 11 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 131 (published)
  • Nay: 11 (published)
  • Present, not voting: 2 (published)
  • Absent: 3 (derived from named list)
  • Excused: 3 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses13
For
7
Against
0
On
6
Names

For

  • Dallas Regional Chamber2 registrations
  • Opportunity Austin1 registration
  • Self2 registrations
  • Texas Association of Manufacturers2 registrations

On

  • Sam houston state university1 registration
  • Texas Higher Education Coordinating Board1 registration
  • Texas higher education coordinating board1 registration
  • Texas Southern University1 registration
  • Texas Tech University System1 registration
  • University of North Texas1 registration
Sources

13 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal
Net to General Revenue · FY 2026($196,875,000)

LBB estimate, flow · fiscal note version F · ( ) = negative · source

Sources

Fiscal note · version F · May 28, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB42, As Passed 2nd House: a negative impact of ($393,750,000) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

First year · FY 2026 · ($196,875,000)

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Mar 7, 2025

06/20/2025 E Effective on 9/1/25

Texas Legislature Online · Introduced · House Committee Report · Engrossed · Senate Committee Report · Enrolled

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Coauthors
Sponsors
Cosponsors

House committee · Higher Education · Committee vote 10 aye, 0 nay, 1 absent · Out of committee

Senate committee · Finance · Committee vote 15 aye, 0 nay · Out of committee

Subjects

Education--Higher--Finance

State Finances--Appropriations

ANGELO STATE UNIVERSITY

EAST TEXAS A&M UNIVERSITY (UL0VH)

LAMAR INSTITUTE OF TECHNOLOGY (UU062)

LAMAR STATE COLLEGE--ORANGE

LAMAR STATE COLLEGE--PORT ARTHUR

LAMAR UNIVERSITY

MIDWESTERN STATE UNIVERSITY

SAM HOUSTON STATE UNIVERSITY

SAM HOUSTON STATE UNIVERSITY COLLEGE OF OSTEOPATHIC MEDICINE

SUL ROSS STATE UNIVERSITY

SUL ROSS STATE UNIVERSITY--RIO GRANDE COLLEGE

TEXAS A&M INTERNATIONAL UNIVERSITY (U952O)

TEXAS A&M UNIVERSITY SYSTEM

TEXAS A&M UNIVERSITY--CORPUS CHRISTI

TEXAS A&M UNIVERSITY--KINGSVILLE

TEXAS A&M UNIVERSITY--TEXARKANA

TEXAS SOUTHERN UNIVERSITY

TEXAS STATE TECHNICAL COLLEGE

TEXAS STATE UNIVERSITY

TEXAS TECH UNIVERSITY

TEXAS TECH UNIVERSITY HEALTH SCIENCES CENTER

TEXAS TECH UNIVERSITY HEALTH SCIENCES CENTER AT EL PASO

TEXAS WOMAN'S UNIVERSITY

UNIVERSITY OF HOUSTON

UNIVERSITY OF HOUSTON COLLEGE OF MEDICINE

UNIVERSITY OF HOUSTON-CLEAR LAKE

UNIVERSITY OF HOUSTON-DOWNTOWN

UNIVERSITY OF HOUSTON-VICTORIA

UNIVERSITY OF NORTH TEXAS

UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER AT FT. WORTH

WEST TEXAS A&M UNIVERSITY

COMPTROLLER OF PUBLIC ACCOUNTS

Text

The text as introduced · 1,668 words

By: Wilson
H.B. No. 42

A BILL TO BE ENTITLED

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 Subsections (a-1), (a-2) and

(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) $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

system ;

(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

North Texas at Dallas;

(2) to the following component institutions of the

Texas State University System:

(A) $20,089,746 [ $13,537,649 ] to Lamar

University;

(B) $8,254,303 [ $2,630,158 ] to the Lamar

Institute of Technology;

(C) $5,184,597 [ $1,533,301 ] to Lamar State

College--Orange;

(D) $5,990,785 [ $2,283,992 ] to Lamar State

College--Port Arthur;

(E) $22,988,648 [ $18,787,013 ] to Sam Houston

State University;

(F) $55,028,264 [ $38,741,061 ] to Texas State

University;

(G) $4,633,243 [ $2,216,640 ] to Sul Ross State

University; [ and ]

(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

University;

(4) to the following component institutions of the

Texas Tech University System:

(A) $82,019,289 [ $51,379,461 ] to Texas Tech

University;

(B) $29,317,972 [ $22,305,642 ] to Texas Tech

University Health Sciences Center;

(C) $10,069,019 [ $6,997,943 ] to Angelo State

University;

(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

University;

(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

University of Houston System:

(A) $75,147,013 [ $56,158,685 ] to the University

of Houston;

(B) $6,366,800 [ $3,649,703 ] to the University of

Houston--Victoria;

(C) $10,470,577 [ $7,959,137 ] to the University

of Houston--Clear Lake; [ and ]

(D) $14,866,227 [ $11,155,034 ] to the University

of Houston--Downtown; and

(E) $4,799,064 to the University of Houston

College of Medicine;

(7) to the following component institutions of The

Texas A&M University System:

(A) $15,386,251 [ $11,825,139 ] to Texas A&M

University--Corpus Christi;

(B) $11,911,395 [ $7,687,534 ] to Texas A&M

International University;

(C) $10,424,459 [ $9,125,307 ] to Texas A&M

University--Kingsville;

(D) $11,705,500 [ $7,671,155 ] to West Texas A&M

University;

(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

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-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;

[ and ]

(F) Texas State Technical College--North Texas ;

and

(G) Texas State Technical College-East

Williamson County .

(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

follows:

(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

at Dallas;

(2) to the following component institutions of the

Texas State University System:

(A) $20,566,492 to Lamar University;

(B) $8,406,665 to the Lamar Institute of

Technology;

(C) $5,261,748 to Lamar State College--Orange;

(D) $6,087,467 to Lamar State College--Port

Arthur;

(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

Grande College; and

(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

Texas Tech University System:

(A) $84,006,307 to Texas Tech University;

(B) $29,979,784 to Texas Tech University Health

Sciences Center;

(C) $10,283,510 to Angelo State University;

(D) $10,869,258 to Texas Tech University Health

Sciences Center--El Paso; and

(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

University of Houston System:

(A) $76,967,542 to the University of Houston;

(B) $6,472,592 to the University of

Houston--Victoria;

(C) $10,686,156 to the University of

Houston--Clear Lake;

(D) $15,207,338 to the University of

Houston--Downtown; and

(E) $4,866,875 to the University of Houston

College of Medicine;

(7) to the following component institutions of The

Texas A&M University System:

(A) $15,729,462 to Texas A&M University--Corpus

Christi;

(B) $12,162,028 to Texas A&M International

University;

(C) $10,633,569 to Texas A&M

University--Kingsville;

(D) $11,953,642 to West Texas A&M University;

(E) $13,575,421 to East Texas A&M University; and

(F) $4,736,250 to Texas A&M

University-Texarkana.

(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

section has no effect.

(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

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 [ $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. (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

Constitution.