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