By Duncan S.B. No. 451
77R4997 ESH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the composition of the permanent school fund, the
1-3 available school fund, and the education excellence supplemental
1-4 fund and to transfers from the permanent school fund to the
1-5 available school fund and the education excellence supplemental
1-6 fund.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. The heading to Chapter 43, Education Code, is
1-9 amended to read as follows:
1-10 CHAPTER 43. PERMANENT SCHOOL FUND, [AND] AVAILABLE SCHOOL FUND,
1-11 AND EDUCATION EXCELLENCE SUPPLEMENTAL FUND
1-12 SECTION 2. Sections 43.001, 43.002, and 43.016, Education
1-13 Code, are amended to read as follows:
1-14 Sec. 43.001. COMPOSITION OF PERMANENT SCHOOL FUND, [AND]
1-15 AVAILABLE SCHOOL FUND, AND EDUCATION EXCELLENCE SUPPLEMENTAL FUND.
1-16 (a) Except as provided by Subsection (b), the [The] permanent
1-17 school fund, which is a perpetual endowment for the public schools
1-18 of this state, consists of:
1-19 (1) all land appropriated for the public schools by
1-20 the constitution and laws of this state;
1-21 (2) all of the unappropriated public domain remaining
1-22 in this state, including all land recovered by the state by suit or
1-23 otherwise except pine forest land as defined by Section 88.111;
1-24 (3) all proceeds from the authorized sale of permanent
2-1 school fund land;
2-2 (4) all proceeds from the lawful sale of any other
2-3 properties belonging to the permanent school fund;
2-4 (5) all investments authorized by Section 43.003 of
2-5 properties belonging to the permanent school fund; and
2-6 (6) all income from the mineral development of
2-7 permanent school fund land, including income from mineral
2-8 development of riverbeds and other submerged land.
2-9 (b) The available school fund, which shall be apportioned
2-10 annually to each school district [county] according to its
2-11 scholastic population, consists of:
2-12 (1) the distributions to the fund from the permanent
2-13 school fund as provided by Sections 5(a) and (b), Article VII,
2-14 Texas Constitution [interest and dividends arising from any
2-15 securities or funds belonging to the permanent school fund];
2-16 (2) all interest derivable from the proceeds of the
2-17 sale of land set apart for the permanent school fund;
2-18 (3) all money derived from the lease of land belonging
2-19 to the permanent school fund;
2-20 (4) one-fourth of all revenue derived from all state
2-21 occupation taxes, exclusive of delinquencies and cost of
2-22 collection;
2-23 (5) one-fourth of revenue derived from state gasoline
2-24 and special fuels excise taxes as provided by law; and
2-25 (6) all other appropriations to the available school
2-26 fund made by the legislature for public school purposes.
2-27 (c) The education excellence supplemental fund consists of
3-1 the distributions to the fund from the permanent school fund as
3-2 provided by Sections 5(a) and (c), Article VII, Texas Constitution.
3-3 (d) The distribution from the available school fund to a
3-4 school district may not exceed the distribution from the available
3-5 school fund the school district received for the state fiscal year
3-6 beginning September 1, 2001, adjusted for:
3-7 (1) inflation, as determined by the comptroller; and
3-8 (2) changes in the district's scholastic population.
3-9 (e) The term "scholastic population" in Subsection (b) or
3-10 any other law governing the apportionment, distribution, and
3-11 transfer of the available school fund means all students of school
3-12 age enrolled in average daily attendance the preceding school year
3-13 in the public elementary and high school grades of school districts
3-14 in [within or under the jurisdiction of a county of] this state.
3-15 Sec. 43.002. TRANSFERS FROM PERMANENT SCHOOL FUND AND
3-16 GENERAL REVENUE FUND TO AVAILABLE SCHOOL FUND AND EDUCATION
3-17 EXCELLENCE SUPPLEMENTAL FUND. (a) On the first working day of
3-18 each month in a state fiscal year, the comptroller shall transfer
3-19 from the permanent school fund:
3-20 (1) to the available school fund, an amount equal to
3-21 one-twelfth of the annual distribution from the permanent school
3-22 fund to the available school fund as determined by the comptroller
3-23 under Sections 5(a) and (b), Article VII, Texas Constitution, for
3-24 the fiscal year; and
3-25 (2) to the education excellence supplemental fund, an
3-26 amount equal to one-twelfth of the annual distribution from the
3-27 permanent school fund to the education excellence supplemental fund
4-1 as determined by the comptroller under Sections 5(a) and (c),
4-2 Article VII, Texas Constitution, for the fiscal year.
4-3 (b) Of the amounts available for transfer from the general
4-4 revenue fund to the available school fund for the months of January
4-5 and February of each fiscal year, no more than the amount necessary
4-6 to enable the comptroller to distribute from the available school
4-7 fund an amount equal to 9-1/2 percent of the estimated annual
4-8 available school fund apportionment to category 1 school districts,
4-9 as defined by Section 42.259, and 3-1/2 percent of the estimated
4-10 annual available school fund apportionment to category 2 school
4-11 districts, as defined by Section 42.259, may be transferred from
4-12 the general revenue fund to the available school fund. Any
4-13 remaining amount that would otherwise be available for transfer for
4-14 the months of January and February shall be transferred from the
4-15 general revenue fund to the available school fund in equal amounts
4-16 in June and in August of the same fiscal year.
4-17 Sec. 43.016. USE OF AVAILABLE SCHOOL FUND. All available
4-18 school funds shall be appropriated in each school district [county]
4-19 for the education of its students [children].
4-20 SECTION 3. Chapter 43, Education Code, is amended by adding
4-21 Section 43.020 to read as follows:
4-22 Sec. 43.020. MANAGEMENT AND USE OF EDUCATION EXCELLENCE
4-23 SUPPLEMENTAL FUND. (a) The education excellence supplemental fund
4-24 is under the management of the State Board of Education.
4-25 (b) The State Board of Education may use money in the
4-26 education excellence supplemental fund only for the improvement of
4-27 public education as directed by the General Appropriations Act.
5-1 SECTION 4. Section 43.008, Education Code, is repealed.
5-2 SECTION 5. This Act takes effect September 1, 2002, but only
5-3 if the constitutional amendment proposed by the 77th Legislature,
5-4 Regular Session, 2001, relating to making distributions from the
5-5 permanent school fund to the available school fund and creating the
5-6 education excellence supplemental fund is approved by the voters.
5-7 If the proposed constitutional amendment is not approved by the
5-8 voters, this Act has no effect.