SRC-MKV S.J.R. 20 77(R) BILL ANALYSIS Senate Research Center S.J.R. 20 77R3279 ESH-DBy: Duncan Education 3/5/2001 As Filed DIGEST AND PURPOSE Currently, the Texas Constitution assigns responsibility for investment of the permanent school fund to the State Board of Education. Since 1989, members have been elected from 15 single-member districts with the governor designating the chairman; however, no members are required to have experience in investment management. S.J.R. 20 transfers the authority to manage and invest the permanent school fund from the State Board of Education to the Texas Education Agency to be governed by an investment board with appropriate financial expertise. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 4, Article VII, Texas Constitution, to change a reference from "Public Free School fund" to "permanent school fund." Requires that the proceeds of sales of land of the permanent school fund to be used to acquire other land for the fund as provided by law or the proceeds are required to be invested by the comptroller of public accounts, as may be directed by the Permanent School Fund Investment Board (investment board), rather than the State Board of Education, provided for by Section 5(d) of this article. SECTION 2. Amends Section 5, Article VII, Texas Constitution, by amending Subsection (d) and by adding Subsections (d-1), (d-2), and (e), as follows: (d) Requires the investment board to invest and manage the assets of the permanent school fund. Provides that the investment board consists of two members appointed by the governor, one member by the lieutenant governor, one member by the speaker of the house of representatives, one member by the State Board of Education, and the chief executive officer of the state agency responsible for public education, who serves as an ex officio member. Provides that in order to be eligible for appointment to the investment board, a person must have appropriate expertise in investing institutional funds. Provides that appointed members serve staggered terms of four years, with the terms of two or three members expiring February 1, of each odd-numbered year. (d-1) Sets forth certain criteria in making the initial appointments to the investment board. (d-2) Provides that Subsection (d-1) of this section and this subsection expire January 1, 2003. (e) Makes a conforming change. SECTION 3. Requires that this constitutional amendment be put before the voters in an election on November 6, 2001. Requires the ballot be printed to permit a person to vote for or against the proposition and sets forth specific wording to be contained on the ballot.