By: Bernsen S.B. No. 1688 99S0816/1 A BILL TO BE ENTITLED AN ACT 1-1 relating to the establishment and administration of the education 1-2 endowment fund. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Chapter 42, Education Code, is amended by adding 1-5 Subchapter I to read as follows: 1-6 SUBCHAPTER I. EDUCATION ENDOWMENT FUND 1-7 Sec. 42.451. DEFINITIONS. In this subchapter: 1-8 (1) "Board" means the education endowment fund board. 1-9 (2) "Fund" means the education endowment fund. 1-10 Sec. 42.452. EDUCATION ENDOWMENT FUND. (a) The fund is an 1-11 account in the general revenue fund. 1-12 (b) Funds that may be credited to the account include gifts, 1-13 grants, donations, and legislative appropriations. 1-14 (c) The comptroller shall issue warrants drawn on the fund 1-15 as requested by the board in accordance with the purposes of this 1-16 subchapter. 1-17 (d) The board shall use funds in the account to award grants 1-18 in accordance with this subchapter to school districts for: 1-19 (1) teacher salaries; and 1-20 (2) the building and improvement of facilities owned 1-21 by a school district. 1-22 Sec. 42.453. EDUCATION ENDOWMENT FUND BOARD. (a) The board 1-23 consists of: 1-24 (1) three members appointed by the governor; 2-1 (2) three members appointed by the governor from a 2-2 list of individuals provided by the speaker of the house of 2-3 representatives; and 2-4 (3) three members appointed by the lieutenant 2-5 governor. 2-6 (b) The governor shall designate the presiding officer of 2-7 the board. 2-8 (c) The governor and the lieutenant governor, in making 2-9 appointments to the board, and the speaker of the house of 2-10 representatives, in compiling a list of recommended persons, shall 2-11 attempt to select members representing the diversity of all 2-12 geographic areas of the state. 2-13 (d) A person may not serve on the board if the person is 2-14 required to register as a lobbyist under Chapter 305, Government 2-15 Code, because of the person's activities for compensation on behalf 2-16 of a profession related to the operation of the board. 2-17 (e) Members of the board: 2-18 (1) serve without pay; and 2-19 (2) are entitled to reimbursement for their actual 2-20 expenses incurred in attending meetings of the board or in 2-21 attending to other work of the board, if approved by the presiding 2-22 officer. 2-23 (f) Members of the board serve for staggered six-year terms, 2-24 with three members' terms expiring August 31 of each odd-numbered 2-25 year. 2-26 Sec. 42.454. POWERS AND DUTIES OF BOARD. (a) The board 3-1 shall administer the fund. 3-2 (b) The board shall establish rules to administer the 3-3 awarding of grants under this subchapter, including: 3-4 (1) the application process; 3-5 (2) eligibility requirements for school districts, 3-6 including: 3-7 (A) the change in enrollment patterns of a 3-8 school district; 3-9 (B) the variation in known resource costs and 3-10 costs of education beyond the control of a school district; and 3-11 (C) the decline experienced by a school 3-12 district's tax base; and 3-13 (3) the manner in which grants shall be distributed to 3-14 eligible school districts. 3-15 (c) The board shall prepare an annual report that: 3-16 (1) details the revenues deposited into the fund; and 3-17 (2) summarizes the disbursements made from the fund. 3-18 (d) Not later than January 15 of each year, the board shall 3-19 submit the report for the proceeding year to the governor and to 3-20 each standing committee in the senate and house of representatives 3-21 that has jurisdiction over public education. 3-22 (e) The board may: 3-23 (1) adopt rules necessary to administer this 3-24 subchapter; 3-25 (2) enter into contracts with state agencies or 3-26 private entities necessary to perform the board's duties; 4-1 (3) employ personnel reasonably necessary to perform 4-2 duties delegated by the board; 4-3 (4) appoint one or more committees to assist the board 4-4 in performing the board's duties; and 4-5 (5) accept a gift or grant and use it for the purposes 4-6 of this subchapter. 4-7 Sec. 42.455. SUNSET PROVISION. The board is subject to 4-8 Chapter 325, Government Code (Texas Sunset Act). Unless continued 4-9 in existence as provided by that chapter, the board is abolished 4-10 and this subchapter expires September 1, 2008. 4-11 SECTION 2. As soon as possible after the effective date of 4-12 this Act, the governor and the lieutenant governor shall appoint 4-13 the initial members of the education endowment fund board. The 4-14 governor shall appoint two members to serve terms expiring on 4-15 August 21, 2001, two members to serve terms expiring on August 31, 4-16 2003, and two members to serve terms expiring on August 31, 2005. 4-17 The terms of the initial members appointed from the list provided 4-18 by the speaker of the house of representatives must be staggered so 4-19 that the term of one of those appointees expires every odd-numbered 4-20 year. The lieutenant governor shall appoint one member to serve a 4-21 term expiring on August 31, 2001, one member to serve a term 4-22 expiring on August 31, 2003, and one member to serve a term 4-23 expiring on August 31, 2005. 4-24 SECTION 3. This Act takes effect September 1, 1999. 4-25 SECTION 4. The importance of this legislation and the 4-26 crowded condition of the calendars in both houses create an 5-1 emergency and an imperative public necessity that the 5-2 constitutional rule requiring bills to be read on three several 5-3 days in each house be suspended, and this rule is hereby suspended.