Texas 2009 - 81st Regular

Texas Senate Bill SJR51 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: West S.J.R. No. 51
2	2
3	3
4	4	SENATE JOINT RESOLUTION
5	5	proposing a constitutional amendment establishing the Texas power
6	6	source fund.
7	7	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Article 16, Texas Constitution, is amended by
9	9	adding Section 73 to read as follows:
10	10	Sec. 73. (a) In this section:
11	11	(1) "Board of trustees" means the board of trustees of
12	12	the Texas power source fund.
13	13	(2) "Fund" means the Texas power source fund.
14	14	(b) The Texas power source fund is created as a trust fund
15	15	outside the state treasury. Except as otherwise provided by this
16	16	section, the fund is subject to the general laws of this state
17	17	governing private sector trusts. Only individuals who are
18	18	residents of this state and political subdivisions of this state
19	19	may invest in the fund.
20	20	(c) The comptroller shall invest in the fund on the behalf
21	21	of this state one dollar from the general revenue fund to match each
22	22	dollar invested by other investors in the fund after the total
23	23	amount invested by other investors reaches $500 million. The
24	24	comptroller may not invest under this subsection more than $500
25	25	million.
26	26	(d) In the year of investment, an individual investor in the
27	27	fund is entitled to an incentive in the amount of non-school ad
28	28	valorem taxes owed by the investor for that tax year, but not to
29	29	exceed the lesser of 20 percent of the amount invested in the fund
30	30	during that year, the total amount of non-school ad valorem taxes
31	31	owed by the investor for that tax year, or $3,000. The board of
32	32	trustees may give the investor the incentive amount in the form of a
33	33	cash payment from the fund or as additional shares in the fund, as
34	34	the investor chooses.
35	35	(e) The fund is managed by a board of trustees consisting of
36	36	nine members appointed by the governor.
37	37	(f) Each member of the board must have demonstrated
38	38	substantial investment expertise. Each member serves for a
39	39	six-year term expiring February 1 of an odd-numbered year.
40	40	(g) The governor shall designate a presiding officer from
41	41	among the members of the board of trustees who serves a term of two
42	42	years expiring February 1 of each odd-numbered year. A member may
43	43	serve more than one term as presiding officer.
44	44	(h) The board of trustees shall manage the fund, and may:
45	45	(1) employ and retain staff, including a chief
46	46	executive officer;
47	47	(2) take any action necessary for the creation,
48	48	administration, and protection of the fund;
49	49	(3) enter into investment contracts with investors;
50	50	(4) adopt rules regarding the operation of the fund;
51	51	(5) acquire, hold, and dispose of assets;
52	52	(6) execute contracts;
53	53	(7) pay expenses of the fund based on an assessment on
54	54	investor contributions;
55	55	(8) provide for different classes of voting and
56	56	non-voting shares; and
57	57	(9) alternatively, or in combination with its own
58	58	staff, contract for the management of investments under this
59	59	section with a private investment management firm or with an
60	60	investing fund or system electing a member of the board of trustees.
61	61	(i) The board of trustees shall appoint regional investment
62	62	boards. Each part of the state must be in the territory of one
63	63	regional investment board. Each regional investment board shall
64	64	evaluate potential investment opportunities in its region and make
65	65	investment decisions in its region. The board of trustees by a vote
66	66	of six members may override an investment decision of a regional
67	67	investment board.
68	68	(j) The fund may invest only in Texas businesses. The fund
69	69	may invest in publicly traded or closely held businesses.
70	70	(k) In making investments, the board of trustees and
71	71	regional investment boards shall exercise the judgment and care
72	72	under the circumstances then prevailing that persons of ordinary
73	73	prudence, discretion, and intelligence exercise in the management
74	74	of their own affairs, not in regard to speculation but in regard to
75	75	the permanent disposition of their funds, considering the probable
76	76	income as well as the probable safety of the capital of the fund.
77	77	(l) The board of trustees shall establish and operate the
78	78	fund to the extent practicable under the generally accepted
79	79	business procedures relating to a mutual fund and shall value the
80	80	investments for determining the purchase or sales price of
81	81	participating shares of investors in the fund consistent with
82	82	investment contracts. Evidences of participation in the fund shall
83	83	be held by the comptroller of public accounts in keeping with the
84	84	custodial responsibilities of that office.
85	85	(m) On a quarterly basis, the amount of income realized on
86	86	investments under this section shall be distributed to each of the
87	87	investors in the fund in proportion to the number of participating
88	88	shares of each investor. Capital appreciation becomes a part of the
89	89	corpus of the fund and shall be distributed in accordance with the
90	90	investment contracts.
91	91	(n) The board of trustees shall make arrangements to begin
92	92	liquidation, phase out investments, and return the principal and
93	93	capital gains on investments to the investors in the fund not later
94	94	than the 10th anniversary of the date of the adoption of this
95	95	section or the date of extension of the fund, as applicable. Except
96	96	under unusual circumstances where it may be necessary to protect
97	97	investments previously made, further investments may not be made in
98	98	or by the fund after the 10th anniversary of the date of the
99	99	adoption of this section or the date of extension of the fund, as
100	100	applicable.
101	101	(o) At the regular legislative session next preceding the
102	102	10th anniversary of the date of the adoption of this section or the
103	103	date of extension of the fund, as applicable, the legislature, by
104	104	two-thirds vote of each house, may extend the duration of the fund
105	105	for 10 years.
106	106	(p) The board of trustees may purchase liability insurance
107	107	for the coverage of the trustees, employees, and agents of the
108	108	board.
109	109	(q) The legislature shall provide by law for the periodic
110	110	review of the board of trustees in the same manner and at the same
111	111	intervals as it provides for review of other state agencies, except
112	112	that the legislature shall provide that the board of trustees is not
113	113	subject to abolishment as part of the review process.
114	114	(r) The board of directors shall make an annual report to
115	115	the legislature regarding the finances and operation of the fund.
116	116	(s) The legislature by general law may provide for the
117	117	operation of the fund and may authorize an executive officer or
118	118	agency to adopt rules governing the operation of the fund.
119	119	(t) This section is self-executing and takes effect on its
120	120	adoption by the voters. All state officials named in this section
121	121	and the comptroller of public accounts shall take all necessary
122	122	actions for the implementation of this section. The legislature
123	123	shall provide by law for full disclosure of all details concerning
124	124	investments authorized by this section.
125	125	SECTION 2. This proposed constitutional amendment shall be
126	126	submitted to the voters at an election to be held November 3, 2009.
127	127	The ballot shall be printed to permit voting for or against the
128	128	proposition: "The constitutional amendment establishing the Texas
129	129	power source fund."