By:  Nelson                                           S.B. No. 1791
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the efficient administration and effective management
 1-2     administration of the Permanent School Fund.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Chapter 43.001(b), Education Code, is amended to
 1-5     read as follows:
 1-6           Sec. 43.001.  (b)  The available school fund, which shall be
 1-7     apportioned annually to each county according to its scholastic
 1-8     population, consists of:
 1-9                 (1)  the interest and dividends arising from any
1-10     securities or funds belonging to the permanent school fund,
1-11     excluding administrative expenses;
1-12           SECTION 2.  Chapter 43.006(d), Education Code, is amended as
1-13     follows:
1-14           (d)  The board of directors of the corporation must be
1-15     members of the State Board of Education.  A member of the State
1-16     Board of Education serving as a member of the board of directors of
1-17     the corporation is engaged in a governmental function and retains
1-18     the same immunity as when acting as a member of the State Board of
1-19     Education.
1-20           SECTION 3.  Chapter 43.006, Education Code, is amended by
1-21     adding a new subsection (l) as follows:
1-22           (l)  The State Board of Education may, prior to entering into
 2-1     an investment contract under Subsection (b), determine whether any
 2-2     employees of the nonprofit corporation shall be state employees and
 2-3     eligible for membership in the Employees Retirement System and
 2-4     shall notify the executive director of that system in writing of
 2-5     the determination.  Should the board determine that employees of
 2-6     the nonprofit corporation shall not be state employees, the
 2-7     corporation may establish suitable retirement and compensation
 2-8     systems.  Regardless of the determination of the board under this
 2-9     section, an employee of the corporation is not subject to general
2-10     limits on state employee compensation.
2-11           SECTION 4.  This Act takes effect September 1, 1999.
2-12           SECTION 5.  The importance of this legislation and the
2-13     crowded condition of the calendars in both houses create an
2-14     emergency and an imperative necessity that the constitutional rule
2-15     requiring bills to be read on three several days in each house be
2-16     suspended, and this rule is hereby suspended.