By: Shapleigh S.J.R. No. 14
2001S0250/2
1-1 SENATE JOINT RESOLUTION
1-2 proposing a constitutional amendment relating to distributions from
1-3 the permanent school fund to the available school fund and to 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. Section 5, Article VII, Texas Constitution, is
1-7 amended to read as follows:
1-8 Sec. 5. (a) The permanent school fund consists of all land
1-9 appropriated for public schools by this constitution or the other
1-10 laws of this state and of other properties and funds belonging to
1-11 the permanent school fund.
1-12 (b) The available school fund consists of two-thirds of the
1-13 distributions from the permanent school fund under Subsection (d)
1-14 of this section each fiscal year and the taxes authorized by this
1-15 constitution or general law to be part of [principal of all bonds
1-16 and other funds, and the principal arising from the sale of the
1-17 lands hereinbefore set apart to said school fund, shall be the
1-18 permanent school fund, and all the interest derivable therefrom and
1-19 the taxes herein authorized and levied shall be] the available
1-20 school fund. The available school fund shall be applied annually
1-21 to the support of the public free schools.
1-22 (c) The school employees primary health coverage fund, which
1-23 shall be used to provide benefits under the Texas school employees
1-24 group insurance program, consists of appropriated funds and other
2-1 funds and one-third of the distributions from the permanent school
2-2 fund under Subsection (d) of this section each fiscal year.
2-3 (d) The total amount distributed from the permanent school
2-4 fund to the available school fund and the school employees primary
2-5 health coverage fund in each fiscal year must be an amount equal
2-6 to:
2-7 (1) at least three percent but not more than seven
2-8 percent of the average fair market value of the permanent school
2-9 fund at the end of each of the preceding 12 quarters, in accordance
2-10 with the rate adopted by a vote of two-thirds of the total
2-11 membership of the State Board of Education; or
2-12 (2) five percent of the average fair market value of
2-13 the permanent school fund at the end of each of the preceding 12
2-14 quarters, if the State Board of Education does not adopt a rate
2-15 under Subdivision (1) of this subsection.
2-16 (e) Except as provided by this section, the legislature may
2-17 not enact a [no] law [shall ever be enacted] appropriating any part
2-18 of the permanent school fund or available school fund to any other
2-19 purpose. The permanent school fund and the available school fund
2-20 may not [whatever; nor shall the same, or any part thereof ever] be
2-21 appropriated to or used for the support of any sectarian school.
2-22 The[; and the] available school fund [herein provided] shall be
2-23 distributed to the several counties according to their scholastic
2-24 population and applied in the [such] manner [as may be] provided by
2-25 law.
2-26 (f) [(b)] The legislature by law may provide for using the
3-1 permanent school fund [and the income from the permanent school
3-2 fund] to guarantee bonds issued by school districts or by the state
3-3 for the purpose of making loans to or purchasing the bonds of
3-4 school districts for the purpose of acquisition, construction, or
3-5 improvement of instructional facilities including all furnishings
3-6 thereto. If any payment is required to be made by the permanent
3-7 school fund as a result of its guarantee of bonds issued by the
3-8 state, an amount equal to this payment shall be immediately paid by
3-9 the state from the treasury to the permanent school fund. An
3-10 amount owed by the state to the permanent school fund under this
3-11 section shall be a general obligation of the state until paid. The
3-12 amount of bonds authorized hereunder shall not exceed $750 million
3-13 or a higher amount authorized by a two-thirds record vote of both
3-14 houses of the legislature. If the proceeds of bonds issued by the
3-15 state are used to provide a loan to a school district and the
3-16 district becomes delinquent on the loan payments, the amount of the
3-17 delinquent payments shall be offset against state aid to which the
3-18 district is otherwise entitled.
3-19 (g) [(c)] The legislature may appropriate part of the
3-20 available school fund for administration of [the permanent school
3-21 fund or of] a bond guarantee program established under this
3-22 section.
3-23 (h) [(d)] Notwithstanding any other provision of this
3-24 constitution, in managing the assets of the permanent school fund,
3-25 the State Board of Education may acquire, exchange, sell,
3-26 supervise, manage, or retain, through procedures and subject to
4-1 restrictions it establishes and in amounts it considers
4-2 appropriate, any kind of investment, including investments in the
4-3 Texas growth fund created by Article XVI, Section 70, of this
4-4 constitution, that persons of ordinary prudence, discretion, and
4-5 intelligence, exercising the judgment and care under the
4-6 circumstances then prevailing, acquire or retain for their own
4-7 account in the management of their affairs, not in regard to
4-8 speculation but in regard to the permanent disposition of their
4-9 funds, considering the probable income as well as the probable
4-10 safety of their capital.
4-11 (i) Notwithstanding Subsection (d) of this section, the
4-12 total distribution from the permanent school fund to the available
4-13 school fund and to the school employees primary health coverage
4-14 fund for the state fiscal years beginning September 1, 2001, and
4-15 September 1, 2002, must be an amount equal to five percent of the
4-16 market value of the permanent school fund on the first day of the
4-17 appropriate fiscal year. This subsection expires December 1, 2003.
4-18 SECTION 2. This proposed constitutional amendment shall be
4-19 submitted to the voters at an election to be held November 6, 2001.
4-20 The ballot shall be printed to permit voting for or against the
4-21 proposition: "The constitutional amendment relating to
4-22 distributions from the permanent school fund to the available
4-23 school fund and to the school employees primary health coverage
4-24 fund."