| 1 | 1 | | 85R7531 MM-D |
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| 2 | 2 | | By: Schwertner S.J.R. No. 57 |
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| 5 | 5 | | A JOINT RESOLUTION |
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| 6 | 6 | | proposing a constitutional amendment relating to the maximum amount |
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| 7 | 7 | | of the annual distribution made from the permanent university fund |
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| 8 | 8 | | to the available university fund. |
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| 9 | 9 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 18(e), Article VII, Texas Constitution, |
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| 11 | 11 | | is amended to read as follows: |
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| 12 | 12 | | (e) The available university fund consists of the |
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| 13 | 13 | | distributions made to it from the total return on all investment |
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| 14 | 14 | | assets of the permanent university fund, including the net income |
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| 15 | 15 | | attributable to the surface of permanent university fund land. The |
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| 16 | 16 | | amount of any distributions to the available university fund shall |
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| 17 | 17 | | be determined by the board of regents of The University of Texas |
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| 18 | 18 | | System in a manner intended to provide the available university |
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| 19 | 19 | | fund with a stable and predictable stream of annual distributions |
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| 20 | 20 | | and to maintain over time the purchasing power of permanent |
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| 21 | 21 | | university fund investments and annual distributions to the |
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| 22 | 22 | | available university fund. The amount distributed to the available |
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| 23 | 23 | | university fund in a fiscal year must be not less than the amount |
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| 24 | 24 | | needed to pay the principal and interest due and owing in that |
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| 25 | 25 | | fiscal year on bonds and notes issued under this section. If the |
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| 26 | 26 | | purchasing power of permanent university fund investments for any |
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| 27 | 27 | | rolling 10-year period is not preserved, the board may not increase |
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| 28 | 28 | | annual distributions to the available university fund until the |
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| 29 | 29 | | purchasing power of the permanent university fund investments is |
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| 30 | 30 | | restored, except as necessary to pay the principal and interest due |
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| 31 | 31 | | and owing on bonds and notes issued under this section. An annual |
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| 32 | 32 | | distribution made by the board to the available university fund |
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| 33 | 33 | | during any fiscal year may not exceed an amount equal to six [seven] |
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| 34 | 34 | | percent of the average net fair market value of permanent |
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| 35 | 35 | | university fund investment assets as determined by the board, |
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| 36 | 36 | | except as necessary to pay any principal and interest due and owing |
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| 37 | 37 | | on bonds issued under this section. The expenses of managing |
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| 38 | 38 | | permanent university fund land and investments shall be paid by the |
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| 39 | 39 | | permanent university fund. |
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| 40 | 40 | | SECTION 2. This proposed constitutional amendment shall be |
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| 41 | 41 | | submitted to the voters at an election to be held November 7, 2017. |
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| 42 | 42 | | The ballot shall be printed to permit voting for or against the |
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| 43 | 43 | | proposition: "The constitutional amendment relating to the maximum |
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| 44 | 44 | | amount of the annual distribution made from the permanent |
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| 45 | 45 | | university fund to the available university fund." |
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