By:  Culberson                                         H.B. No. 524
       73R2764 ESH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the composition of the permanent school fund and the
    1-3  financing of the foundation school program.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 15.01(a), Education Code, is amended to
    1-6  read as follows:
    1-7        (a)  The permanent school fund, which shall constitute a
    1-8  perpetual endowment for the public free schools of this state,
    1-9  shall consist of:
   1-10              (1)  all land appropriated for the public schools by
   1-11  the constitution and laws of Texas;
   1-12              (2)  all the unappropriated public domain remaining in
   1-13  Texas, including all land recovered by the state by suit or
   1-14  otherwise except pine forest land as defined in Section 88.111 of
   1-15  this code <12, Article 2613, Revised Civil Statutes of Texas, 1925,
   1-16  as amended>;
   1-17              (3)  all proceeds from the authorized sale of permanent
   1-18  school fund land, or any portion thereof, surveyed or unsurveyed;
   1-19              (4)  all proceeds from the lawful sale of any other
   1-20  properties belonging to the permanent school fund;
   1-21              (5)  all investments (authorized in Section 15.02 of
   1-22  this code) of properties belonging to the permanent school fund;
   1-23  and
   1-24              (6)  fifty percent of all income from the mineral
    2-1  development of land constituting the permanent school fund,
    2-2  including income from mineral development of riverbeds and other
    2-3  submerged land.
    2-4        SECTION 2.  Chapter 15, Education Code, is amended by adding
    2-5  Section 15.012 to read as follows:
    2-6        Sec. 15.012.  FOUNDATION SCHOOL FUND.  (a)  The foundation
    2-7  school fund is a special fund in the state treasury.
    2-8        (b)  The fund consists of:
    2-9              (1)  revenue, including tax revenue, required by
   2-10  statute to be deposited to the credit of the foundation school
   2-11  fund;
   2-12              (2)  fifty percent of all income from the mineral
   2-13  development of land constituting the permanent school fund,
   2-14  including income from the mineral development of riverbeds and
   2-15  other submerged land; and
   2-16              (3)  other funds transferred, dedicated, or
   2-17  appropriated to the fund.
   2-18        (c)  The fund may be appropriated only to finance the
   2-19  foundation school program.
   2-20        SECTION 3.  This Act takes effect on adoption of the
   2-21  constitutional amendment proposed by _____J.R. No. _____, Acts of
   2-22  the 73rd Legislature, Regular Session, 1993, relating to the
   2-23  composition of the permanent and available school funds.   If that
   2-24  amendment is not adopted, this Act has no effect.
   2-25        SECTION 4.  The importance of this legislation and the
   2-26  crowded condition of the calendars in both houses create an
   2-27  emergency and an imperative public necessity that the
    3-1  constitutional rule requiring bills to be read on three several
    3-2  days in each house be suspended, and this rule is hereby suspended,
    3-3  and that this Act take effect and be in force according to its
    3-4  terms, and it is so enacted.