By Culberson                                     H.B. No. 555

      75R1729 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 43.001(a), Education Code, is amended to

 1-6     read as follows:

 1-7           (a)  The permanent school fund, which is a perpetual

 1-8     endowment for the public schools of this state, consists of:

 1-9                 (1)  all land appropriated for the public schools by

1-10     the constitution and laws of this state;

1-11                 (2)  all of the unappropriated public domain remaining

1-12     in this state, including all land recovered by the state by suit or

1-13     otherwise except pine forest land as defined by Section 88.111;

1-14                 (3)  all proceeds from the authorized sale of permanent

1-15     school fund land;

1-16                 (4)  all proceeds from the lawful sale of any other

1-17     properties belonging to the permanent school fund;

1-18                 (5)  all investments authorized by Section 43.003 of

1-19     properties belonging to the permanent school fund; and

1-20                 (6)  50 percent of all income from the mineral

1-21     development of permanent school fund land, including income from

1-22     mineral development of riverbeds and other submerged land.

1-23           SECTION 2.  Chapter 43, Education Code, is amended by adding

1-24     Section 43.020 to read as follows:

 2-1           Sec. 43.020.  FOUNDATION SCHOOL FUND.  (a)  The foundation

 2-2     school fund is in the state treasury.

 2-3           (b)  The fund consists of:

 2-4                 (1)  revenue, including tax revenue, required by

 2-5     statute to be deposited to the credit of the foundation school

 2-6     fund;

 2-7                 (2)  50 percent of all income from the mineral

 2-8     development of land constituting the permanent school fund,

 2-9     including income from the mineral development of riverbeds and

2-10     other submerged land; and

2-11                 (3)  other funds transferred, dedicated, or

2-12     appropriated to the fund.

2-13           (c)  The fund may be appropriated only to finance the

2-14     Foundation School Program.

2-15           SECTION 3.  The heading to Chapter 43, Education Code, is

2-16     amended to read as follows:

2-17             CHAPTER 43.  PERMANENT SCHOOL FUND, [AND] AVAILABLE

2-18                                SCHOOL FUND,

2-19                         AND FOUNDATION SCHOOL FUND

2-20           SECTION 4.  This Act takes effect September 1, 1998, but only

2-21     if the constitutional amendment proposed by _____J.R. No. _____,

2-22     75th Legislature, Regular Session, 1997, relating to the

2-23     composition of the permanent and available school funds is approved

2-24     by the voters. If that amendment is not approved by the voters,

2-25     this Act has no effect.

2-26           SECTION 5.  The importance of this legislation and the

2-27     crowded condition of the calendars in both houses create an

 3-1     emergency and an imperative public necessity that the

 3-2     constitutional rule requiring bills to be read on three several

 3-3     days in each house be suspended, and this rule is hereby suspended.