| |
| |
|
|
A JOINT RESOLUTION
|
|
|
proposing a constitutional amendment dedicating to the national |
|
|
research university fund a portion of certain income from the lease |
|
|
for oil and gas exploration of land dedicated to the permanent |
|
|
university fund. |
|
|
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 11a, Article VII, Texas Constitution, is |
|
|
amended to read as follows: |
|
|
Sec. 11a. (a) In addition to the bonds enumerated in |
|
|
Section 11 of this article [Article VII of the Constitution of the |
|
|
State of Texas], the Board of Regents of The University of Texas |
|
|
System may invest the Permanent University Fund in securities, |
|
|
bonds or other obligations issued, insured, or guaranteed in any |
|
|
manner by the United States Government, or any of its agencies, and |
|
|
in such bonds, debentures, or obligations, and preferred and common |
|
|
stocks issued by corporations, associations, or other institutions |
|
|
as the Board of Regents of The University of Texas System may deem |
|
|
to be proper investments for said funds; provided, however, that |
|
|
not more than one per cent (1%) of said fund shall be invested in the |
|
|
securities of any one (1) corporation, nor shall more than five per |
|
|
cent (5%) of the voting stock of any one (1) corporation be owned; |
|
|
provided, further, that stocks eligible for purchase shall be |
|
|
restricted to stocks of companies incorporated within the United |
|
|
States which have paid dividends for five (5) consecutive years or |
|
|
longer immediately prior to the date of purchase and which, except |
|
|
for bank stocks and insurance stocks, are listed upon an exchange |
|
|
registered with the Securities and Exchange Commission or its |
|
|
successors. |
|
|
(b) In making each and all of such investments, the [said] |
|
|
Board of Regents of The University of Texas System shall exercise |
|
|
the judgment and care under the circumstances then prevailing which |
|
|
men of ordinary prudence, discretion, and intelligence exercise in |
|
|
the management of their own affairs, not in regard to speculation |
|
|
but in regard to the permanent disposition of their funds, |
|
|
considering the probable income therefrom as well as the probable |
|
|
safety of their capital. |
|
|
(c) The interest, dividends and other income accruing from |
|
|
the investments of the Permanent University Fund are [, except the |
|
|
portion thereof which is appropriated by the operation of Section |
|
|
18 of Article VII for the payment of principal and interest on bonds |
|
|
or notes issued thereunder, shall be] subject to appropriation by |
|
|
the Legislature to accomplish the purposes declared in Section 10 |
|
|
of this article, except for: |
|
|
(1) the portion distributed to the Available |
|
|
University Fund under Section 18 of this article for appropriation |
|
|
as provided by that section; and |
|
|
(2) the portion of any bonus, rental, or royalty |
|
|
payments accruing from the lease for oil and gas exploration of land |
|
|
dedicated to the Permanent University Fund that is deposited to the |
|
|
credit of the national research university fund as required by |
|
|
Section 20(b-1) of this article [Article VII of this Constitution]. |
|
|
(d) This amendment shall be self-enacting, and shall become |
|
|
effective upon its adoption, provided, however, that the |
|
|
Legislature shall provide by law for full disclosure of all details |
|
|
concerning the investments in corporate stocks and bonds and other |
|
|
investments authorized herein. |
|
|
SECTION 2. Section 20, Article VII, Texas Constitution, is |
|
|
amended by adding Subsection (b-1) to read as follows: |
|
|
(b-1) The Board of Regents of The University of Texas System |
|
|
shall transmit to the comptroller of public accounts for deposit to |
|
|
the credit of the fund in the manner provided by general law an |
|
|
amount of any bonus, rental, or royalty payments accruing from the |
|
|
lease for oil and gas exploration of land dedicated to the Permanent |
|
|
University Fund equal to the lesser of: |
|
|
(1) one-third of the total amount of those payments; |
|
|
or |
|
|
(2) $100 million. |
|
|
SECTION 3. The following temporary provision is added to |
|
|
the Texas Constitution: |
|
|
TEMPORARY PROVISION. (a) This temporary provision applies |
|
|
to the constitutional amendment proposed by the 88th Legislature, |
|
|
Regular Session, 2023, dedicating to the national research |
|
|
university fund a portion of certain income from the lease for oil |
|
|
and gas exploration of land dedicated to the permanent university |
|
|
fund. |
|
|
(b) The amendments to Sections 11a and 20, Article VII, of |
|
|
this constitution take effect January 1, 2024. |
|
|
SECTION 4. This proposed constitutional amendment shall be |
|
|
submitted to the voters at an election to be held November 7, 2023. |
|
|
The ballot shall be printed to permit voting for or against the |
|
|
proposition: "The constitutional amendment dedicating to the |
|
|
national research university fund a portion of certain income from |
|
|
the lease for oil and gas exploration of land dedicated to the |
|
|
permanent university fund." |