Enrolled Bill Summary

            Senate Bill 206 amends the Education Code to change the composition of the permanent school fund (PSF) and the available school fund (ASF) by providing that the ASF consists in part of distributions from the PSF required by the Texas Constitution instead of certain interest, dividends, and income required by law. The bill requires the comptroller each month to transfer an amount equal to one-twelfth of the annual distribution from the PSF to the ASF as required by the Texas Constitution and provides certain exceptions for transfers during the 2003-2004 school year. The bill also amends the Natural Resources Code to require the following funds to be credited to the PSF instead of the ASF: (1) money, in addition to permit fees, received by the School Land Board for management of coastal public lands; (2) payments on public school land, including payments received as interest on the purchase of public school land, received by the commissioner of the General Land Office; (3) income received by the commissioner for easements to land, timber, and surface resources on public school land; (4) interest on funds received from the sale of permanent school fund land, timber, and surface resources; (5) the principal and allocated interest of protested royalty payments for oil and gas on state land; (6) interest received on compensation for damages to surface state land in prospecting for, exploring, developing, or producing oil, gas, coal, lignite, and other leased minerals; and (7) all income received for easements on state land for water supply projects by the Nueces County Water Control and Improvement District No. 4.             Senate Bill 206 takes effect January 1, 2004, contingent on voter approval of a constitutional amendment proposed by House Joint Resolution 68.