By Ellis, et al. S.B. No. 490
77R641 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 public school employee health
1-4 insurance fund and to transfers from the permanent school fund to
1-5 the available school fund and the public school employee health
1-6 insurance 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 PUBLIC SCHOOL EMPLOYEE HEALTH INSURANCE FUND
1-12 SECTION 2. Section 43.001, Education Code, is amended to
1-13 read as follows:
1-14 Sec. 43.001. COMPOSITION OF PERMANENT SCHOOL FUND, [AND]
1-15 AVAILABLE SCHOOL FUND, AND PUBLIC SCHOOL EMPLOYEE HEALTH FUND. (a)
1-16 Except as provided by Subsection (b), the [The] permanent school
1-17 fund, which is a perpetual endowment for the public schools of this
1-18 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 county according to its scholastic population,
2-11 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
2-19 belonging 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 (3) [(5)] one-fourth of revenue derived from state
2-24 gasoline and special fuels excise taxes as provided by law; and
2-25 (4) [(6)] all other appropriations to the available
2-26 school fund made by the legislature for public school purposes.
2-27 (c) The public school employee health insurance fund
3-1 consists of:
3-2 (1) the distributions to the fund from the permanent
3-3 school fund as provided by Sections 5(a) and (b), Article VII,
3-4 Texas Constitution; and
3-5 (2) all other appropriations to the public school
3-6 employee health insurance fund made by the legislature for the
3-7 purpose of providing and administering a group health insurance
3-8 program for active and retired public school employees.
3-9 (d) 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 within or under the jurisdiction of a county of this state.
3-15 SECTION 3. Section 43.002, Education Code, is amended to
3-16 read as follows:
3-17 Sec. 43.002. TRANSFERS FROM PERMANENT SCHOOL FUND AND
3-18 GENERAL REVENUE FUND TO AVAILABLE SCHOOL FUND AND PUBLIC SCHOOL
3-19 EMPLOYEE HEALTH INSURANCE FUND. (a) On the first working day of
3-20 each month in a state fiscal year, the comptroller shall transfer
3-21 from the permanent school fund:
3-22 (1) to the available school fund, an amount equal to
3-23 one-twelfth of the annual distribution from the permanent school
3-24 fund to the available school fund as determined by the comptroller
3-25 under Sections 5(a) and (b), Article VII, Texas Constitution, for
3-26 the fiscal year; and
3-27 (2) to the public school employee health insurance
4-1 fund, an amount equal to one-twelfth of the annual distribution
4-2 from the permanent school fund to the public school employee health
4-3 insurance fund as determined by the comptroller under Sections 5(a)
4-4 and (b), Article VII, Texas Constitution, for the fiscal year.
4-5 (b) Of the amounts available for transfer from the general
4-6 revenue fund to the available school fund for the months of January
4-7 and February of each fiscal year, no more than the amount necessary
4-8 to enable the comptroller to distribute from the available school
4-9 fund an amount equal to 9-1/2 percent of the estimated annual
4-10 available school fund apportionment to category 1 school districts,
4-11 as defined by Section 42.259, and 3-1/2 percent of the estimated
4-12 annual available school fund apportionment to category 2 school
4-13 districts, as defined by Section 42.259, may be transferred from
4-14 the general revenue fund to the available school fund. Any
4-15 remaining amount that would otherwise be available for transfer for
4-16 the months of January and February shall be transferred from the
4-17 general revenue fund to the available school fund in equal amounts
4-18 in June and in August of the same fiscal year.
4-19 SECTION 4. Chapter 43, Education Code, is amended by adding
4-20 Section 43.020 to read as follows:
4-21 Sec. 43.020. MANAGEMENT AND USE OF PUBLIC SCHOOL EMPLOYEE
4-22 HEALTH INSURANCE FUND. (a) The public school employee health
4-23 insurance fund is under the management of the board of trustees of
4-24 the Teacher Retirement System of Texas.
4-25 (b) The Teacher Retirement System of Texas may use money in
4-26 the public school employee health insurance fund only to provide
4-27 and administer the group health insurance under the Texas School
5-1 Employees Uniform Group Health Insurance Benefits Act (Article
5-2 3.50-7, Insurance Code).
5-3 SECTION 5. Section 43.008, Education Code, is repealed.
5-4 SECTION 6. This Act takes effect September 1, 2002, but only
5-5 if the constitutional amendment proposed by the 77th Legislature,
5-6 Regular Session, 2001, relating to the use of income and
5-7 appreciation of the permanent school fund, is approved by the
5-8 voters. If the proposed constitutional amendment is not approved
5-9 by the voters, this Act has no effect.