SRC-PNG S.J.R. 33 76(R)   BILL ANALYSIS


Senate Research Center   S.J.R. 33
76R9240 KKA-FBy: Lucio
Education
4/6/1999
As Filed


DIGEST 

Currently, in Texas, a public education facilities assistance fund does not
exist.  Historically, the legislature has appropriated a set amount of
monies, through the appropriations bill, to finance school facilities'
initiatives.  This bill would require the submission to the voters of a
constitutional amendment to establish a public education facilities
assistance fund, to offset the need for the legislature to appropriate
funds in the appropriations bill for school facilities. 

PURPOSE

As proposed, S.J.R. 33 requires the submission to the voters of a
constitutional amendment to establish a public education facilities
assistance fund. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article VII, Texas Constitution, by adding Section 3a,
as follows: 

Sec.  3a.  (a) Provides that the public education facilities assistance
fund (fund) is created as a permanent fund outside the treasury with the
comptroller of public accounts (comptroller). Requires the fund to be
administered as provided by law and is dedicated to generating income to
provide for financial assistance to school districts in acquiring land,
constructing or equipping school buildings or other permanent improvements
to the land, and acquiring capital equipment for school buildings or other
permanent improvements to land.  Provides that the fund consists of money
deposited to the credit of the fund in accordance with law.  

(b) Requires the legislature by law to provide for the distribution of
income derived from the principal of the fund, less administrative expenses
not to exceed amounts set by law or appropriation, to school districts for
the purposes stated in this section.  Authorizes the law to provide for
distribution without appropriation.  Prohibits the legislature from
distributing the principal of the fund, except that the legislature may
distribute all or part of capital gains as income.   

(c) Provides that for 10 consecutive fiscal years, beginning September 1,
2001, out of the first money coming into the treasury not otherwise
appropriated by the Texas Constitution, an amount equal to one-quarter of
one percent of the total amount of an anticipated state general revenue for
the applicable fiscal year, as determined by the comptroller in accordance
with Section 49A, Article III, Texas Constitution, is transferred to the
fund.  Authorizes an amount of fund principal not to exceed one-half of the
amount transferred to the fund under this subsection for that year to be
used to provide financial assistance to school districts for the purposes
stated in this section, in each fiscal year subject to this subsection,
notwithstanding Subsection (b).  Authorizes any amount of fund principal
authorized under this subsection to be used in a fiscal year that is not
used in that year to be carried over for use in a subsequent fiscal year.
Provides that this subsection expires September 1, 2011. 

SECTION 2. Requires this proposed constitutional amendment to be submitted
to the voters at an election to be held November 2, 1999.  Sets forth the
required language for the ballot.