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.