78R7580 ESH-D
By: Shapleigh S.B. No. 962
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. Sections 43.001 and 43.002, Education Code, are
amended to read as follows:
Sec. 43.001. COMPOSITION OF PERMANENT SCHOOL FUND AND
AVAILABLE SCHOOL FUND. (a) 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;
(7) the interest and dividends arising from any
securities or funds belonging to the permanent school fund;
(8) all interest derivable from the proceeds of the
sale of land set apart for the permanent school fund; and
(9) all money derived from the lease of land belonging
to the permanent school fund.
(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 Section 5, Article VII, Texas
Constitution;
(2) [the 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.
(c) 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 a school district
in [districts 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 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 for the
fiscal year as determined by the State Board of Education under
Section 5, Article VII, Texas Constitution, and by the General
Appropriations Act.
(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, Article VII, Texas Constitution, and by the General
Appropriations Act; 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, Article VII,
Texas Constitution, and by the General Appropriations Act.
(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 2. This Act takes effect January 1, 2004, but only
if the constitutional amendment proposed by the 78th Legislature,
Regular Session, 2003, relating to distributions from the permanent
school fund, is approved by the voters. If the proposed
constitutional amendment is not approved by the voters, this Act
has no effect.