78R4201 ESH-D
By: Duncan S.B. No. 877
A BILL TO BE ENTITLED
AN ACT
relating to the composition of the permanent school fund, the
available school fund, and the education excellence supplemental
fund and to transfers from the permanent school fund to the
available school fund and the education excellence supplemental
fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 43, Education Code, is
amended to read as follows:
CHAPTER 43. PERMANENT SCHOOL FUND, [AND] AVAILABLE SCHOOL FUND,
AND EDUCATION EXCELLENCE SUPPLEMENTAL FUND
SECTION 2. Sections 43.001, 43.002, and 43.016, Education
Code, are amended to read as follows:
Sec. 43.001. COMPOSITION OF PERMANENT SCHOOL FUND, [AND]
AVAILABLE SCHOOL FUND, AND EDUCATION EXCELLENCE SUPPLEMENTAL FUND.
(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 school district [county] according to its
scholastic population, consists of:
(1) the distributions to the fund from the permanent
school fund as provided by Sections 5(a) and (b), 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;
(5) one-fourth of revenue derived from state gasoline
and special fuels excise taxes as provided by law; and
(6) all other appropriations to the available school
fund made by the legislature for public school purposes.
(c) The education excellence supplemental fund consists of
the distributions to the fund from the permanent school fund as
provided by Sections 5(a) and (c), Article VII, Texas Constitution.
(d) The distribution from the available school fund to a
school district may not exceed the distribution from the available
school fund the school district received for the state fiscal year
beginning September 1, 2003, adjusted for:
(1) inflation, as determined by the comptroller; and
(2) changes in the district's scholastic population.
(e) The term "scholastic population" in Subsection (b) or
any other law governing the apportionment, distribution, and
transfer of the available school fund means all students of school
age enrolled in average daily attendance the preceding school year
in the public elementary and high school grades of school districts
in [within or under the jurisdiction of a county of] this state.
Sec. 43.002. TRANSFERS FROM PERMANENT SCHOOL FUND AND
GENERAL REVENUE FUND TO AVAILABLE SCHOOL FUND AND EDUCATION
EXCELLENCE SUPPLEMENTAL FUND. (a) On the first working day of each
month in a state fiscal year, the comptroller shall transfer from
the permanent school fund:
(1) 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 determined by the comptroller
under Sections 5(a) and (b), Article VII, Texas Constitution, for
the fiscal year; and
(2) to the education excellence supplemental fund, an
amount equal to one-twelfth of the annual distribution from the
permanent school fund to the education excellence supplemental fund
as determined by the comptroller under Sections 5(a) and (c),
Article VII, Texas Constitution, for the fiscal year.
(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.
Sec. 43.016. USE OF AVAILABLE SCHOOL FUND. All available
school funds shall be appropriated in each school district [county]
for the education of its students [children].
SECTION 3. Chapter 43, Education Code, is amended by adding
Section 43.020 to read as follows:
Sec. 43.020. MANAGEMENT AND USE OF EDUCATION EXCELLENCE
SUPPLEMENTAL FUND. (a) The education excellence supplemental fund
is under the management of the State Board of Education.
(b) The State Board of Education may use money in the
education excellence supplemental fund only for the improvement of
public education as directed by the General Appropriations Act.
SECTION 4. Section 43.008, Education Code, is repealed.
SECTION 5. This Act takes effect September 1, 2004, but
only if the constitutional amendment proposed by the 78th
Legislature, Regular Session, 2003, relating to making
distributions from the permanent school fund to the available
school fund and creating the education excellence supplemental fund
is approved by the voters. If the proposed constitutional
amendment is not approved by the voters, this Act has no effect.