By Lucio                                              S.J.R. No. 40
         77R3699 KKA-F                           
                                 A JOINT RESOLUTION
 1-1     proposing a constitutional amendment providing for the
 1-2     establishment of a public education facilities assistance fund.
 1-3           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Article VII, Texas Constitution, is amended by
 1-5     adding Section 3a to read as follows:
 1-6           Sec. 3a. (a)  The public education facilities assistance fund
 1-7     is created as a permanent fund outside the treasury with the
 1-8     comptroller of public accounts.  The fund shall be administered as
 1-9     provided by law and is dedicated to generating income to provide
1-10     for financial assistance to school districts in acquiring land,
1-11     whether improved or unimproved, constructing or equipping school
1-12     buildings or other permanent improvements to land, and acquiring
1-13     capital equipment for school buildings or other permanent
1-14     improvements to land.  The fund consists of money deposited to the
1-15     credit of the fund in accordance with law.
1-16           (b)  The legislature by law shall provide for distribution of
1-17     income derived from the principal of the fund, including interest
1-18     and dividend income, less administrative expenses not to exceed
1-19     amounts set by law or appropriation, to school districts for the
1-20     purposes stated in this section.  The law may provide for
1-21     distribution without appropriation.  The legislature may not
1-22     distribute the principal of the fund, except the legislature may
1-23     distribute all or part of capital gains as income.
1-24           (c)  For 10 consecutive fiscal years, beginning September 1,
 2-1     2003, out of the first money coming into the treasury not otherwise
 2-2     appropriated by the Texas Constitution, an amount equal to one
 2-3     percent of the total amount of anticipated state general revenue
 2-4     for the applicable fiscal year, as determined by the comptroller of
 2-5     public accounts in accordance with Section 49a, Article III, Texas
 2-6     Constitution, is transferred to the fund.  Notwithstanding
 2-7     Subsection (b) of this section, in each fiscal year subject to this
 2-8     subsection an amount of fund principal not to exceed one-half of
 2-9     the amount transferred to the fund under this subsection for that
2-10     year may be used to provide financial assistance to school
2-11     districts for the purposes stated in this section.  Any amount of
2-12     fund principal authorized under this subsection to be used in a
2-13     fiscal year that is not used in that year may be carried over for
2-14     use in a subsequent fiscal year.  This subsection expires September
2-15     1, 2013.
2-16           SECTION 2.  This proposed constitutional amendment shall be
2-17     submitted to the voters at an election to be held November 6, 2001.
2-18     The ballot shall be printed to permit voting for or against the
2-19     proposition:  "The constitutional amendment creating a fund to
2-20     provide for financial assistance to school districts for the
2-21     acquisition of land, the construction or equipping of school
2-22     buildings, and the acquisition of capital equipment."