By: Ogden S.J.R. No. 5
(In the Senate - Filed April 18, 2011; April 18, 2011, read
first time and referred to Committee on Finance; April 26, 2011,
reported adversely, with favorable Committee Substitute by the
following vote: Yeas 15, Nays 0; April 26, 2011, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.J.R. No. 5 By: Ogden
SENATE JOINT RESOLUTION
proposing a constitutional amendment relating to increasing the
market value of the permanent school fund for the purpose of
allowing increased distributions from the available school fund.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (a), Section 5, Article VII, Texas
Constitution, is amended to read as follows:
(a) The permanent school fund consists of all land
appropriated for public schools by this constitution or the other
laws of this state, other properties belonging to the permanent
school fund, and all revenue derived from the land or other
properties. The available school fund consists of the
distributions made to it from the total return on all investment
assets of the permanent school fund, the taxes authorized by this
constitution or general law to be part of the available school fund,
and appropriations made to the available school fund by the
legislature. The total amount distributed from the permanent
school fund to the available school fund:
(1) in each year of a state fiscal biennium must be an
amount that is not more than six percent of the average of the
market value of the permanent school fund, excluding real property
belonging to the fund that is managed, sold, or acquired under
Section 4 of this article, but including discretionary real assets
investments and cash in the state treasury derived from property
belonging to the fund, on the last day of each of the 16 state fiscal
quarters preceding the regular session of the legislature that
begins before that state fiscal biennium, in accordance with the
rate adopted by:
(A) a vote of two-thirds of the total membership
of the State Board of Education, taken before the regular session of
the legislature convenes; or
(B) the legislature by general law or
appropriation, if the State Board of Education does not adopt a rate
as provided by Paragraph (A) of this subdivision; and
(2) over the 10-year period consisting of the current
state fiscal year and the nine preceding state fiscal years may not
exceed the total return on all investment assets of the permanent
school fund over the same 10-year period.
SECTION 2. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies
to the constitutional amendment proposed by S.J.R. No. 5, 82nd
Legislature, Regular Session, 2011, providing for an increase in
the market value of the permanent school fund for the purpose of
allowing increased distributions from the available school fund.
(b) The change to Section 5(a), Article VII, of this
constitution made by the amendment applies to a distribution from
the permanent school fund to the available school fund made on or
after September 1, 2011.
(c) This temporary provision expires December 1, 2015.
SECTION 3. 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 permit voting for or against the
proposition: "The constitutional amendment providing for an
increase in the market value of the permanent school fund for the
purpose of allowing increased distributions from the available
school fund."
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