78(R) SB 206 - House Committee Report version


                                                                                



By:  Ellis                                                        S.B. No. 206


A BILL TO BE ENTITLED

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 (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 2.  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 3.  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 4.  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 5.  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 6.  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 7.  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 8.  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 9.  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 10.  Section 43.008, Education Code, is repealed.                      
	SECTION 11.  This Act takes effect January 1, 2004, but only 
if the constitutional amendment proposed by H.J.R. No. 66 or S.J.R. 
No. 13, 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.