By Gallego H.J.R. No. 106
77R5867 ESH-F
A JOINT RESOLUTION
1-1 proposing a constitutional amendment relating to the provision of
1-2 group health benefits for active and retired public school
1-3 employees, distributions from the permanent school fund, and the
1-4 school employees primary health coverage fund.
1-5 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Article VII, Texas Constitution, is amended by
1-7 adding Section 3-c to read as follows:
1-8 Sec. 3-c. (a) The legislature may provide for counties that
1-9 provide public primary and secondary schools and independent school
1-10 districts to levy an additional ad valorem tax at a rate determined
1-11 by the legislature or by the county or district to pay for group
1-12 health benefits for active and retired public school employees.
1-13 (b) An ad valorem tax under this section may not be levied
1-14 unless approved by a majority of the voters of the county or school
1-15 district voting at an election held for that purpose.
1-16 SECTION 2. Section 5, Article VII, Texas Constitution, is
1-17 amended to read as follows:
1-18 Sec. 5. (a) The permanent school fund consists of all land
1-19 appropriated for public schools by this constitution or the other
1-20 laws of this state and of other properties and funds belonging to
1-21 the permanent school fund.
1-22 (b) The available school fund consists of a portion of the
1-23 distributions each fiscal year from the permanent school fund as
1-24 provided by Subsections (d) and (e) of this section and the taxes
2-1 authorized by this constitution or general law to be part of
2-2 [principal of all bonds and other funds, and the principal arising
2-3 from the sale of the lands hereinbefore set apart to said school
2-4 fund, shall be the permanent school fund, and all the interest
2-5 derivable therefrom and the taxes herein authorized and levied
2-6 shall be] the available school fund. The available school fund
2-7 shall be applied annually to the support of the public free
2-8 schools.
2-9 (c) The school employees primary health coverage fund, which
2-10 shall be used only to provide group health benefits for active and
2-11 retired public school employees, consists of:
2-12 (1) a portion of the distributions each fiscal year
2-13 from the permanent school fund as provided by Subsections (d) and
2-14 (e) of this section;
2-15 (2) school district ad valorem taxes levied as
2-16 provided by Section 3-c of this article; and
2-17 (3) other funds appropriated or dedicated for the
2-18 purpose of providing those benefits, as provided by general law.
2-19 (d) The total amount distributed in each fiscal year from
2-20 the permanent school fund to the available school fund and the
2-21 school employees primary health coverage fund must be an amount
2-22 equal to:
2-23 (1) at least three percent but not more than seven
2-24 percent of the average fair market value of the permanent school
2-25 fund at the end of each of the preceding 12 quarters, in accordance
2-26 with the rate adopted by a vote of two-thirds of the total
2-27 membership of the State Board of Education; or
3-1 (2) five percent of the average fair market value of
3-2 the permanent school fund at the end of each of the preceding 12
3-3 quarters, if the State Board of Education does not adopt a rate
3-4 under Subdivision (1) of this subsection.
3-5 (e) The legislature in the General Appropriations Act shall
3-6 determine for each state fiscal year which portion of the
3-7 distributions from the permanent school fund under Subsection (d)
3-8 of this section shall be placed in the available school fund and
3-9 which portion shall be placed in the school employees primary
3-10 health coverage fund. The portions for a state fiscal year may not
3-11 be changed after the beginning of the fiscal year. The portion
3-12 placed in the available school fund for a state fiscal year must be
3-13 at least 50 percent but not more than 75 percent of the total
3-14 distribution from the permanent school fund for that fiscal year.
3-15 (f) Except as provided by this section, the legislature may
3-16 not enact a [no] law [shall ever be enacted] appropriating any part
3-17 of the permanent school fund or available school fund to any other
3-18 purpose. The permanent school fund and the available school fund
3-19 may not [whatever; nor shall the same, or any part thereof ever] be
3-20 appropriated to or used for the support of any sectarian school.
3-21 The[; and the] available school fund [herein provided] shall be
3-22 distributed to school districts [the several counties] according to
3-23 their scholastic population and applied in the [such] manner [as
3-24 may be] provided by law.
3-25 (g) [(b)] The legislature by law may provide for using the
3-26 permanent school fund [and the income from the permanent school
3-27 fund] to guarantee bonds issued by school districts or by the state
4-1 for the purpose of making loans to or purchasing the bonds of
4-2 school districts for the purpose of acquisition, construction, or
4-3 improvement of instructional facilities including all furnishings
4-4 thereto. If any payment is required to be made by the permanent
4-5 school fund as a result of its guarantee of bonds issued by the
4-6 state, an amount equal to this payment shall be immediately paid by
4-7 the state from the treasury to the permanent school fund. An
4-8 amount owed by the state to the permanent school fund under this
4-9 section shall be a general obligation of the state until paid. The
4-10 amount of bonds authorized hereunder shall not exceed $750 million
4-11 or a higher amount authorized by a two-thirds record vote of both
4-12 houses of the legislature. If the proceeds of bonds issued by the
4-13 state are used to provide a loan to a school district and the
4-14 district becomes delinquent on the loan payments, the amount of the
4-15 delinquent payments shall be offset against state aid to which the
4-16 district is otherwise entitled.
4-17 (h) [(c)] The legislature may appropriate part of the
4-18 available school fund for administration of the permanent school
4-19 fund or of a bond guarantee program established under this section.
4-20 (i) [(d)] Notwithstanding any other provision of this
4-21 constitution, in managing the assets of the permanent school fund,
4-22 the State Board of Education may acquire, exchange, sell,
4-23 supervise, manage, or retain, through procedures and subject to
4-24 restrictions it establishes and in amounts it considers
4-25 appropriate, any kind of investment, including investments in the
4-26 Texas growth fund created by Article XVI, Section 70, of this
4-27 constitution, that persons of ordinary prudence, discretion, and
5-1 intelligence, exercising the judgment and care under the
5-2 circumstances then prevailing, acquire or retain for their own
5-3 account in the management of their affairs, not in regard to
5-4 speculation but in regard to the permanent disposition of their
5-5 funds, considering the probable income as well as the probable
5-6 safety of their capital.
5-7 (j) Notwithstanding Subsection (d) of this section, the
5-8 total distribution from the permanent school fund to the available
5-9 school fund and to the school employees primary health coverage
5-10 fund for the state fiscal years beginning September 1, 2001, and
5-11 September 1, 2002, must be an amount equal to five percent of the
5-12 market value of the permanent school fund on the first day of the
5-13 appropriate fiscal year. This subsection expires December 1, 2003.
5-14 SECTION 3. This proposed constitutional amendment shall be
5-15 submitted to the voters at an election to be held November 6, 2001.
5-16 The ballot shall be printed to permit voting for or against the
5-17 proposition: "The constitutional amendment relating to the
5-18 provision of group health benefits for active and retired public
5-19 school employees, distributions from the permanent school fund, and
5-20 the school employees primary health coverage fund."