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A JOINT RESOLUTION
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proposing a constitutional amendment to create the Permanent School |
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Fund Management Council to assume the duty of the State Board of |
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Education to manage the permanent school fund. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 49-b(h), Article III, Texas |
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Constitution, is amended to read as follows: |
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(h) Lands purchased and comprising a part of the Veterans' |
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Land Fund are declared to be held for a governmental purpose, but |
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the individual purchasers of those lands shall be subject to |
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taxation to the same extent and in the same manner as are purchasers |
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of lands dedicated to the Permanent [Free Public] School Fund. The |
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lands shall be sold to veterans in quantities, on terms, at prices, |
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and at fixed, variable, floating, or other rates of interest, |
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determined by the Board and in accordance with rules of the Board. |
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Notwithstanding any provisions of this section to the contrary, |
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lands in the Veterans' Land Fund that are offered for sale to |
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veterans and that are not sold may be sold or resold to the |
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purchasers in quantities, on terms, at prices, and at rates of |
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interest determined by the Board and in accordance with rules of the |
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Board. |
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SECTION 2. Sections 2 and 4, Article VII, Texas |
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Constitution, are amended to read as follows: |
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Sec. 2. All funds, lands and other property heretofore set |
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apart and appropriated for the support of public schools; all the |
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alternate sections of land reserved by the State out of grants |
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heretofore made or that may hereafter be made to railroads or other |
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corporations of any nature whatsoever; one half of the public |
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domain of the State; and all sums of money that may come to the State |
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from the sale of any portion of the same, shall constitute a |
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permanent [perpetual public] school fund. |
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Sec. 4. The lands herein set apart to the Permanent [Public
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Free] School fund, shall be sold under such regulations, at such |
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times, and on such terms as may be prescribed by law; and the |
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Legislature shall not have power to grant any relief to purchasers |
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thereof. The proceeds of such sales must be used to acquire other |
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land for the Permanent [Public Free] School fund as provided by law |
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or the proceeds shall be invested by the comptroller of public |
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accounts, as may be directed by the Permanent School Fund |
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Management Council [Board of Education] herein provided for, in the |
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bonds of the United States, the State of Texas, or counties in said |
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State, or in such other securities, and under such restrictions as |
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may be prescribed by law; and the State shall be responsible for all |
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investments. |
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SECTION 3. Sections 5(a) and (f), Article VII, Texas |
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Constitution, are amended to read as follows: |
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(a) The permanent school fund consists of all land |
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appropriated for public schools by this constitution or the other |
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laws of this state, other properties belonging to the permanent |
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school fund, and all revenue derived from the land or other |
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properties. The available school fund consists of the distributions |
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made to it from the total return on all investment assets of the |
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permanent school fund, the taxes authorized by this constitution or |
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general law to be part of the available school fund, and |
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appropriations made to the available school fund by the |
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legislature. The total amount distributed from the permanent school |
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fund to the available school fund: |
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(1) in each year of a state fiscal biennium must be an |
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amount that is not more than six percent of the average of the |
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market value of the permanent school fund, excluding real property |
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belonging to the fund that is managed, sold, or acquired under |
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Section 4 of this article, on the last day of each of the 16 state |
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fiscal quarters preceding the regular session of the legislature |
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that begins before that state fiscal biennium, in accordance with |
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the rate adopted by: |
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(A) a vote of two-thirds of the total membership |
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of the Permanent School Fund Management Council [State Board of
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Education], taken before the regular session of the legislature |
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convenes; or |
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(B) the legislature by general law or |
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appropriation, if the Permanent School Fund Management Council |
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[State Board of Education] does not adopt a rate as provided by |
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Paragraph (A) of this subdivision; and |
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(2) over the 10-year period consisting of the current |
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state fiscal year and the nine preceding state fiscal years may not |
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exceed the total return on all investment assets of the permanent |
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school fund over the same 10-year period. |
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(f) Notwithstanding any other provision of this |
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constitution, in managing the assets of the permanent school fund, |
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the Permanent School Fund Management Council [State Board of
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Education] may acquire, exchange, sell, supervise, manage, or |
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retain, through procedures and subject to restrictions it |
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establishes and in amounts it considers appropriate, any kind of |
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investment, including investments in the Texas growth fund created |
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by Article XVI, Section 70, of this constitution, that persons of |
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ordinary prudence, discretion, and intelligence, exercising the |
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judgment and care under the circumstances then prevailing, acquire |
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or retain for their own account in the management of their affairs, |
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not in regard to speculation but in regard to the permanent |
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disposition of their funds, considering the probable income as well |
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as the probable safety of their capital. |
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SECTION 4. Article VII, Texas Constitution, is amended by |
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adding Section 5a to read as follows: |
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Sec. 5a. (a) The legislature shall provide by law for a |
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Permanent School Fund Management Council to manage the permanent |
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school fund. Members of the council are appointed or elected as |
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provided by the legislature for terms determined by the |
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legislature. The council shall perform the duties prescribed by |
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law. |
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SECTION 5. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 3, 2009. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment to create the Permanent |
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School Fund Management Council to assume the duty of the State Board |
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of Education to manage the permanent school fund." |