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78R7581 ESH-D
By: Shapleigh S.J.R. No. 36
A JOINT RESOLUTION
proposing a constitutional amendment relating to distributions
from the permanent school fund.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5, Article VII, Texas Constitution, is
amended to read as follows:
Sec. 5. (a) 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) 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 [principal of all bonds
and other funds, and the principal arising from the sale of the
lands hereinbefore set apart to said school fund, shall be the
permanent school fund, and all the interest derivable therefrom and
the taxes herein authorized and levied shall be] the available
school fund. The available school fund shall be applied annually to
the support of the public free schools.
(c) The total amount distributed in each fiscal year from
the permanent school fund to the available school fund must be an
amount equal to:
(1) at least three percent but not more than seven
percent of the average fair market value of the permanent school
fund at the end of each of the preceding 12 quarters, in accordance
with the rate adopted by a vote of two-thirds of the total
membership of the State Board of Education; or
(2) five percent of the average fair market value of
the permanent school fund at the end of each of the preceding 12
quarters, if the State Board of Education does not adopt a rate
under Subdivision (1) of this subsection.
(d) Except as provided by this section, the legislature may
not enact a [no] law [shall ever be enacted] appropriating any part
of the permanent school fund or available school fund to any other
purpose. The permanent school fund and the available school fund
may not [whatever; nor shall the same, or any part thereof ever] be
appropriated to or used for the support of any sectarian school.
The[; and the] available school fund [herein provided] shall be
distributed to school districts [the several counties] according to
their scholastic population and applied in the [such] manner [as
may be] provided by law.
(e) [(b)] The legislature by law may provide for using the
permanent school fund [and the income from the permanent school
fund] to guarantee bonds issued by school districts or by the state
for the purpose of making loans to or purchasing the bonds of school
districts for the purpose of acquisition, construction, or
improvement of instructional facilities including all furnishings
thereto. If any payment is required to be made by the permanent
school fund as a result of its guarantee of bonds issued by the
state, an amount equal to this payment shall be immediately paid by
the state from the treasury to the permanent school fund. An amount
owed by the state to the permanent school fund under this section
shall be a general obligation of the state until paid. The amount
of bonds authorized hereunder shall not exceed $750 million or a
higher amount authorized by a two-thirds record vote of both houses
of the legislature. If the proceeds of bonds issued by the state
are used to provide a loan to a school district and the district
becomes delinquent on the loan payments, the amount of the
delinquent payments shall be offset against state aid to which the
district is otherwise entitled.
(f) [(c)] The legislature may appropriate part of the
available school fund for administration of the permanent school
fund or of a bond guarantee program established under this section.
(g) [(d)] Notwithstanding any other provision of this
constitution, in managing the assets of the permanent school fund,
the State Board of Education may acquire, exchange, sell,
supervise, manage, or retain, through procedures and subject to
restrictions it establishes and in amounts it considers
appropriate, any kind of investment, including investments in the
Texas growth fund created by Article XVI, Section 70, of this
constitution, that persons of ordinary prudence, discretion, and
intelligence, exercising the judgment and care under the
circumstances then prevailing, acquire or retain for their own
account in the management of their affairs, not in regard to
speculation but in regard to the permanent disposition of their
funds, considering the probable income as well as the probable
safety of their capital.
(h) 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, must be an amount equal to five percent of
the market value of the permanent school fund on the first day of
the appropriate fiscal year. This subsection expires December 1,
2005.
SECTION 2. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 4, 2003.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment relating to
distributions from the permanent school fund."