SRC-JEC S.J.R. 36 78(R)   BILL ANALYSIS


Senate Research Center   S.J.R. 36
78R7581 ESH-DBy: Shapleigh
Education
4/3/2003
As Filed


DIGEST AND PURPOSE 

Currently, all realized capital gains from the permanent school fund
remain with the body of the fund, while income derived from fund
investments is distributed to local school districts through the available
school fund.  As proposed, S.J.R. 36 allows the state to change this
practice, and transform unrealized and realized capital gains into larger
distributions to local school districts. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 5, Article VII, Texas Constitution, as follows:

Sec. 5 (a)  Provides that the permanent school fund consists of all land
appropriated for public schools by this constitution or the other laws of
this state and of other properties and funds belonging to the permanent
school fund. 

(b)  Provides that the available school fund consists of the distribution
each fiscal year from the permanent school fund as provided by Subsection
(c) of this section and the taxes authorized by this constitution or
general law to be part of the available school fund.  Deletes text of
former Subsection (a) defining what constitutes the available and
permanent school funds. 

(c)  Requires the total amount distributed in each fiscal year from the
permanent school fund to the available school fund to be an amount equal
to one of two formulas. 

(d)  Makes nonsubstantive changes to modernize the statutory language.

  (e)  Redesignated from Subsection (b).  Makes a conforming change.

  (f) - (g) Redesignated from Subsections (c) - (d).

(h)  Provides that, notwithstanding Subsection (c) of this section, the
total distribution from the permanent school fund to the available school
fund for the state fiscal years beginning September 1, 2003, and September
1, 2004, is required to be a certain amount.  Provides that this
subsection expires December 1, 2005. 

SECTION 2.  Requires this proposed constitutional amendment to be
submitted to the voters at the November 4, 2003, election.  Requires the
ballot to be printed in a certain manner.