S.B. No. 206
AN ACT
relating to the composition of the permanent school fund and the
available school fund and to transfers from the permanent school
fund to the available school fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsections (a) and (e), Section 41.0021,
Education Code, are amended to read as follows:
(a) Notwithstanding Section 41.002, for the [2001-2002,
2002-2003, and] 2003-2004, 2004-2005, and 2005-2006 school years, a
school district that in the 1999-2000 school year did not offer each
grade level from kindergarten through 12 may elect to have its
wealth per student determined under this section.
(e) This section expires September 1, 2006 [2004].
SECTION 2. Subsections (a) and (b), Section 43.001,
Education Code, are amended to read as follows:
(a) Except as provided by Subsection (b), the [The]
permanent school fund, which is a perpetual endowment for the
public schools of this state, consists of:
(1) all land appropriated for the public schools by
the constitution and laws of this state;
(2) all of the unappropriated public domain remaining
in this state, including all land recovered by the state by suit or
otherwise except pine forest land as defined by Section 88.111;
(3) all proceeds from the authorized sale of permanent
school fund land;
(4) all proceeds from the lawful sale of any other
properties belonging to the permanent school fund;
(5) all investments authorized by Section 43.003 of
properties belonging to the permanent school fund; and
(6) all income from the mineral development of
permanent school fund land, including income from mineral
development of riverbeds and other submerged land.
(b) The available school fund, which shall be apportioned
annually to each county according to its scholastic population,
consists of:
(1) the distributions to the fund from the permanent
school fund as provided by Section 5(a), Article VII, Texas
Constitution [interest and dividends arising from any securities or
funds belonging to the permanent school fund];
(2) [all interest derivable from the proceeds of the
sale of land set apart for the permanent school fund;
[(3) all money derived from the lease of land
belonging to the permanent school fund;
[(4)] one-fourth of all revenue derived from all state
occupation taxes, exclusive of delinquencies and cost of
collection;
(3) [(5)] one-fourth of revenue derived from state
gasoline and special fuels excise taxes as provided by law; and
(4) [(6)] all other appropriations to the available
school fund made by the legislature for public school purposes.
SECTION 3. Section 43.002, Education Code, is amended to
read as follows:
Sec. 43.002. TRANSFERS FROM PERMANENT SCHOOL FUND AND
GENERAL REVENUE FUND TO AVAILABLE SCHOOL FUND. (a) On the first
working day of each month in a state fiscal year, the comptroller
shall transfer from the permanent school fund to the available
school fund an amount equal to one-twelfth of the annual
distribution from the permanent school fund to the available school
fund as provided by Section 5(a), Article VII, Texas Constitution,
for the fiscal year.
(a-1) Notwithstanding Subsection (a), for the fiscal year
beginning September 1, 2003, the comptroller shall transfer from
the permanent school fund to the available school fund:
(1) on January 2, 2004, an amount equal to
five-twelfths of the annual distribution from the permanent school
fund to the available school fund for that fiscal year as provided
by Section 5(g), Article VII, Texas Constitution; and
(2) on the first working day of each month after
January 2004, an amount equal to one-twelfth of the annual
distribution from the permanent school fund to the available school
fund for that fiscal year as provided by Section 5(g), Article VII,
Texas Constitution.
(a-2) Subsection (a-1) and this subsection expire September
1, 2004.
(b) Of the amounts available for transfer from the general
revenue fund to the available school fund for the months of January
and February of each fiscal year, no more than the amount necessary
to enable the comptroller to distribute from the available school
fund an amount equal to 9-1/2 percent of the estimated annual
available school fund apportionment to category 1 school districts,
as defined by Section 42.259, and 3-1/2 percent of the estimated
annual available school fund apportionment to category 2 school
districts, as defined by Section 42.259, may be transferred from
the general revenue fund to the available school fund. Any
remaining amount that would otherwise be available for transfer for
the months of January and February shall be transferred from the
general revenue fund to the available school fund in equal amounts
in June and in August of the same fiscal year.
SECTION 4. Subsection (e), Section 31.301, Natural
Resources Code, is amended to read as follows:
(e) Before approving the trade, the appropriate board shall
make a finding that no loss to the permanent [available] school fund
or the available university fund will occur as a result of the
trade.
SECTION 5. Sections 33.016, 51.069, and 51.300, Natural
Resources Code, are amended to read as follows:
Sec. 33.016. DISPOSITION OF OTHER FUNDS. Money received by
the board for the grant of any interest not under Section [33.014
or] 33.015 of this code shall be deposited in the State Treasury to
the credit of the permanent [available] school fund.
Sec. 51.069. DISPOSITION OF PAYMENTS ON PUBLIC SCHOOL LAND.
[(a)] Payments on public school land received by the commissioner,
including payments received as interest on the purchase of public
school land, shall be transmitted to the comptroller to be credited
to the [proper fund.
[(b) The comptroller shall credit payments received on the
purchase price of public school land to the] permanent school fund
[and payments received as interest on the purchase of public school
land to the available school fund].
Sec. 51.300. DISPOSITION OF INCOME. Income received by the
commissioner under this subchapter from public school land shall be
credited to the permanent [available] school fund, and income
received from university land shall be credited to the available
university fund. Other income received by the commissioner on
other land under this subchapter shall be credited to the General
Revenue Fund.
SECTION 6. Subsection (b), Section 51.401, Natural
Resources Code, is amended to read as follows:
(b) The special fund account must be an interest-bearing
account, and the interest received on the account shall be
deposited in the State Treasury to the credit of the permanent
[available] school fund.
SECTION 7. Subsection (b), Section 52.137, Natural
Resources Code, is amended to read as follows:
(b) The commissioner, upon receipt of such payment made
under protest as authorized by this section, shall send to the
comptroller the payment and a written statement that the payment
was made under protest. Immediately upon receipt, the comptroller
shall:
(1) place the payment in state depositories bearing
interest in the same manner that other funds are required to be
placed in state depositories at interest;
(2) allocate the interest earned on these funds;
(3) credit the amount allocated to an account
established for this purpose until the status of the protest is
finally determined; and
(4) upon final determination that some or all of the
protested funds belong to the state, deposit the principal and the
allocated interest to the [proper funds as provided by law. All
protest payments finally determined to belong to the] permanent
school fund [shall be deposited to that fund upon such
determination, and interest earned and allocated on those funds
shall be deposited to the available school fund].
SECTION 8. Subsection (d), Section 52.297, Natural
Resources Code, is amended to read as follows:
(d) The special fund account must be an interest-bearing
account, and the interest received on the account shall be
deposited in the State Treasury to the credit of the permanent
[available] school fund.
SECTION 9. Subsection (d), Section 53.155, Natural
Resources Code, is amended to read as follows:
(d) The special fund account must be an interest-bearing
account, and the interest received on the account shall be
deposited in the State Treasury to the credit of the permanent
[available] school fund.
SECTION 10. Section 5, Chapter 314, Acts of the 56th
Legislature, Regular Session, 1959 (Article 5337-2, Vernon's Texas
Civil Statutes), is amended to read as follows:
Sec. 5. All income received by the Land Commissioner under
this Act from Public School Lands shall be credited to the Permanent
[Available] School Fund.
SECTION 11. Section 43.008, Education Code, is repealed.
SECTION 12. This Act takes effect January 1, 2004, but only
if the constitutional amendment proposed by H.J.R. No. 68, 78th
Legislature, Regular Session, 2003, is approved by the voters. If
the proposed constitutional amendment is not approved by the
voters, this Act has no effect.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 206 passed the Senate on
May 9, 2003, by a viva-voce vote; and that the Senate concurred in
House amendments on May 30, 2003, by a viva-voce vote.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 206 passed the House, with
amendments, on May 28, 2003, by a non-record vote.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor