By: Ogden S.J.R. No. 5
(Pitts)
Substitute the following for S.J.R. No. 5: No.
A JOINT RESOLUTION
proposing a constitutional amendment to clarify references to the
permanent school fund, to allow the General Land Office to
distribute revenue derived from permanent school fund land or other
properties to the available school fund, and to provide for an
increase in 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. 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 amending Subsection (a) and adding Subsection (g) 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.
(g) Notwithstanding any other provision of this
constitution or of a statute, 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
may in its sole discretion distribute to the available school fund
each year revenue derived during that year from the land or
properties, not to exceed $300 million each year.
SECTION 4. 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 5. 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, allowing the General Land Office to
distribute revenue from permanent school fund land or other
properties to the available school fund to provide additional
funding for public education, and 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."