Amend Floor Amendment No. 1 to HB 3107 by adding the following 
SECTION, appropriately numbered, and renumbering the subsequent 
SECTIONS of the bill appropriately:
	SECTION ____.  PERMANENT FUND FOR VETERANS' 
ASSISTANCE.  (a)  Section 403.108, Government Code, is transferred 
to Subchapter A, Chapter 434, Government Code, redesignated as 
Section 434.017, and amended to read as follows:
	Sec. 434.017 [403.108].  [PERMANENT] FUND FOR VETERANS' 
ASSISTANCE.  (a)  The [permanent] fund for veterans' assistance is 
a special fund in the state treasury outside the general revenue 
fund. The fund is composed of:
		(1)  money transferred to the fund at the direction of 
the legislature;     
		(2)  gifts and grants contributed to the fund; and                            
		(3)  the [available] earnings of the fund [determined 
in accordance with Section 403.1068].

	(b)  Except as provided by Subsections (c) and (e), money in 
the fund may not be appropriated for any purpose.
	(c)  Money in [The available earnings of] the fund may be 
appropriated to the Texas Veterans Commission to:
		(1)  enhance or improve veterans' assistance programs, 
including veterans' representation and counseling; and
		(2)  make grants to local communities to address 
veterans' needs.           
	(d)  The Texas Veterans Commission may adopt rules governing 
the award of grants by the commission under this section.
	(e)  The comptroller may solicit and accept gifts and grants 
to the fund.   A gift or grant to the fund may be appropriated in the 
same manner as other money in [the available earnings of] the fund, 
subject to any limitation or requirement placed on the gift or grant 
by the donor or granting entity.
	(f)  Sections 403.095 and 404.071 do not apply to the fund.                    
	(b)  Section 403.1068(a), Government Code, is amended to 
read as follows:    
	(a)  This section applies only to management of the permanent 
funds established under Sections 403.105, 403.1055, 403.106, 
403.1065, and 403.1066[, and 403.108].
	(c)  Effective August 27, 2007, the fund for veterans' 
assistance is re-created as a special fund in the state treasury 
outside the general revenue fund, and the fund and the revenue 
deposited to the credit of the fund are exempt from Section 2 of 
this Act.