By: Orr, Aycock, Hochberg, Pitts, Otto, H.J.R. No. 109

et al.

Substitute the following for H.J.R. No. 109:

By: Pitts C.S.H.J.R. No. 109

A JOINT RESOLUTION

proposing a constitutional amendment to clarify references to the permanent school fund and to allow the legislature by general law to direct the General Land Office to distribute revenue derived from permanent school fund land or properties to the available school fund.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 49-b(h), Article III, Texas Constitution, is amended to read as follows:

(h) Lands purchased and comprising a part of the Veterans' Land Fund are declared to be held for a governmental purpose, but the individual purchasers of those lands shall be subject to taxation to the same extent and in the same manner as are purchasers of lands dedicated to the Permanent [Free Public] School Fund. The lands shall be sold to veterans in quantities, on terms, at prices, and at fixed, variable, floating, or other rates of interest, determined by the Board and in accordance with rules of the Board. Notwithstanding any provisions of this section to the contrary, lands in the Veterans' Land Fund that are offered for sale to veterans and that are not sold may be sold or resold to the purchasers in quantities, on terms, at prices, and at rates of interest determined by the Board and in accordance with rules of the Board.

SECTION 2. Sections 2 and 4, Article VII, Texas Constitution, are amended to read as follows:

Sec. 2. All funds, lands and other property heretofore set apart and appropriated for the support of public schools; all the alternate sections of land reserved by the State out of grants heretofore made or that may hereafter be made to railroads or other corporations of any nature whatsoever; one half of the public domain of the State; and all sums of money that may come to the State from the sale of any portion of the same, shall constitute a permanent [perpetual public] school fund.

Sec. 4. The lands herein set apart to the Permanent [Public Free] School fund, shall be sold under such regulations, at such times, and on such terms as may be prescribed by law; and the Legislature shall not have power to grant any relief to purchasers thereof. The proceeds of such sales must be used to acquire other land for the Permanent [Public Free] School fund as provided by law or the proceeds shall be invested by the comptroller of public accounts, as may be directed by the Board of Education herein provided for, in the bonds of the United States, the State of Texas, or counties in said State, or in such other securities, and under such restrictions as may be prescribed by law; and the State shall be responsible for all investments.

SECTION 3. Section 5, Article VII, Texas Constitution, is amended by adding Subsection (g) to read as follows:

(g) Notwithstanding any other provision of this constitution or of a statute, the legislature by general law may direct the General Land Office or an entity other than the State Board of Education that has responsibility for the management of permanent school fund land or other properties to distribute to the available school fund each year not more than 50 percent of the net revenue derived during that year from the land or properties.

SECTION 4. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 8, 2011. The ballot shall be printed to provide for voting for or against the proposition: "The constitutional amendment clarifying references to the permanent school fund and allowing the legislature by general law to direct the General Land Office to distribute revenue from permanent school fund land or other properties to the available school fund."