By Duncan S.J.R. No. 20
77R3279 ESH-D
A JOINT RESOLUTION
1-1 proposing a constitutional amendment relating to the authority to
1-2 invest and manage the permanent school fund.
1-3 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 4, Article VII, Texas Constitution, is
1-5 amended to read as follows:
1-6 Sec. 4. (a) The lands herein set apart to the permanent
1-7 school [Public Free School] fund[,] shall be sold under such
1-8 regulations, at such times, and on such terms as may be prescribed
1-9 by law. The[; and the] Legislature shall not have power to grant
1-10 any relief to purchasers of that land [thereof].
1-11 (b) The proceeds of [such] sales of land of the permanent
1-12 school fund must be used to acquire other land for the [Public Free
1-13 School] fund as provided by law or the proceeds shall be invested
1-14 by the comptroller of public accounts, as may be directed by the
1-15 Permanent School Fund Investment Board [of Education herein]
1-16 provided for by Section 5(d) of this article. The[, in the bonds
1-17 of the United States, the State of Texas, or counties in said
1-18 State, or in such other securities, and under such restrictions as
1-19 may be prescribed by law; and the] State shall be responsible for
1-20 all investments.
1-21 SECTION 2. Section 5, Article VII, Texas Constitution, is
1-22 amended by amending Subsection (d) and adding Subsections (d-1),
1-23 (d-2), and (e) to read as follows:
1-24 (d) The Permanent School Fund Investment Board shall invest
2-1 and manage the assets of the permanent school fund. The board
2-2 consists of two members appointed by the governor, one member
2-3 appointed by the lieutenant governor, one member appointed by the
2-4 speaker of the house of representatives, one member appointed by
2-5 the State Board of Education, and the chief executive officer of
2-6 the state agency responsible for public education, who serves as an
2-7 ex officio member. To be eligible for appointment to the board, a
2-8 person must have appropriate expertise in investing institutional
2-9 funds. Appointed members serve staggered terms of four years, with
2-10 the terms of two or three members expiring February 1 of each
2-11 odd-numbered year.
2-12 (d-1) In making the initial appointments to the Permanent
2-13 School Fund Investment Board:
2-14 (1) the governor shall appoint one person to a term
2-15 expiring February 1, 2003, and one to a term expiring February 1,
2-16 2005;
2-17 (2) the lieutenant governor and the speaker of the
2-18 house of representatives shall each appoint one person to a term
2-19 expiring February 1, 2005; and
2-20 (3) the State Board of Education shall appoint one
2-21 person to a term expiring February 1, 2003.
2-22 (d-2) Subsection (d-1) of this section and this subsection
2-23 expire January 1, 2003.
2-24 (e) In [Notwithstanding any other provision of this
2-25 constitution, in] managing the assets of the permanent school fund,
2-26 the Permanent School Fund Investment Board [State Board of
2-27 Education] may acquire, exchange, sell, supervise, manage, or
3-1 retain, through procedures and subject to restrictions it
3-2 establishes and in amounts it considers appropriate, any kind of
3-3 investment, including investments in the Texas growth fund created
3-4 by Article XVI, Section 70, of this constitution, that persons of
3-5 ordinary prudence, discretion, and intelligence, exercising the
3-6 judgment and care under the circumstances then prevailing, acquire
3-7 or retain for their own account in the management of their affairs,
3-8 not in regard to speculation but in regard to the permanent
3-9 disposition of their funds, considering the probable income as well
3-10 as the probable safety of their capital.
3-11 SECTION 3. This proposed constitutional amendment shall be
3-12 submitted to the voters at an election to be held November 6, 2001.
3-13 The ballot shall be printed to permit voting for or against the
3-14 proposition: "The constitutional amendment providing for the
3-15 transfer of authority to invest and manage the permanent school
3-16 fund from the State Board of Education to the Permanent School Fund
3-17 Investment Board."