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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of an irrevocable trust for the proceeds of |
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the sale or disposition of county school lands. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter E, Chapter 45, Education Code, is |
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amended by adding Section 45.113 to read as follows: |
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Sec. 45.113. TRUST FOR COUNTY PERMANENT SCHOOL FUND. (a) |
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Notwithstanding former Subchapter E, Chapter 17, as that subchapter |
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existed on May 1, 1995, the commissioners court of a county may: |
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(1) sell or otherwise dispose of county school lands |
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in the manner determined by the court; |
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(2) establish an irrevocable trust for the proceeds of |
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a sale or other disposition under Subdivision (1); and |
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(3) invest the principal of a trust created under |
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Subdivision (2) in any investment permitted for other county funds |
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under Chapter 2256, Government Code. |
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(b) The members of the commissioners court and their |
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successors in office must be the sole trustees of a trust |
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established under Subsection (a)(2). The trustees may not delegate |
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the authority to manage or invest the trust but may contract with |
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qualified persons for investment advice. |
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(c) The principal of a trust established under Subsection |
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(a)(2) constitutes a portion of the county permanent school fund |
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and must be held in perpetuity for the benefit of the public schools |
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in the county. The income of a trust established under Subsection |
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(a)(2) constitutes a portion of the county available school fund |
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and may be distributed as permitted by law. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |