Texas 2023 88th Regular

Texas Senate Bill SJR69 Introduced / Bill

Filed 02/28/2023

                    88R6959 KJE-D
 By: Perry S.J.R. No. 69


 A JOINT RESOLUTION
 proposing a constitutional amendment dedicating to the national
 research university fund a portion of certain income from the lease
 for oil and gas exploration of land dedicated to the permanent
 university fund.
 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 11a, Article VII, Texas Constitution, is
 amended to read as follows:
 Sec. 11a.  (a) In addition to the bonds enumerated in
 Section 11 of this article [Article VII of the Constitution of the
 State of Texas], the Board of Regents of The University of Texas
 System may invest the Permanent University Fund in securities,
 bonds or other obligations issued, insured, or guaranteed in any
 manner by the United States Government, or any of its agencies, and
 in such bonds, debentures, or obligations, and preferred and common
 stocks issued by corporations, associations, or other institutions
 as the Board of Regents of The University of Texas System may deem
 to be proper investments for said funds; provided, however, that
 not more than one per cent (1%) of said fund shall be invested in the
 securities of any one (1) corporation, nor shall more than five per
 cent (5%) of the voting stock of any one (1) corporation be owned;
 provided, further, that stocks eligible for purchase shall be
 restricted to stocks of companies incorporated within the United
 States which have paid dividends for five (5) consecutive years or
 longer immediately prior to the date of purchase and which, except
 for bank stocks and insurance stocks, are listed upon an exchange
 registered with the Securities and Exchange Commission or its
 successors.
 (b)  In making each and all of such investments, the [said]
 Board of Regents of The University of Texas System shall exercise
 the judgment and care under the circumstances then prevailing which
 men of ordinary prudence, discretion, and intelligence exercise in
 the management of their own affairs, not in regard to speculation
 but in regard to the permanent disposition of their funds,
 considering the probable income therefrom as well as the probable
 safety of their capital.
 (c)  The interest, dividends and other income accruing from
 the investments of the Permanent University Fund are [, except the
 portion thereof which is appropriated by the operation of Section
 18 of Article VII for the payment of principal and interest on bonds
 or notes issued thereunder, shall be] subject to appropriation by
 the Legislature to accomplish the purposes declared in Section 10
 of this article, except for:
 (1)  the portion distributed to the Available
 University Fund under Section 18 of this article for appropriation
 as provided by that section; and
 (2)  the portion of any bonus, rental, or royalty
 payments accruing from the lease for oil and gas exploration of land
 dedicated to the Permanent University Fund that is deposited to the
 credit of the national research university fund as required by
 Section 20(b-1) of this article [Article VII of this Constitution].
 (d)  This amendment shall be self-enacting, and shall become
 effective upon its adoption, provided, however, that the
 Legislature shall provide by law for full disclosure of all details
 concerning the investments in corporate stocks and bonds and other
 investments authorized herein.
 SECTION 2.  Section 20, Article VII, Texas Constitution, is
 amended by adding Subsection (b-1) to read as follows:
 (b-1)  The Board of Regents of The University of Texas System
 shall transmit to the comptroller of public accounts for deposit to
 the credit of the fund in the manner provided by general law an
 amount of any bonus, rental, or royalty payments accruing from the
 lease for oil and gas exploration of land dedicated to the Permanent
 University Fund equal to the lesser of:
 (1)  one-third of the total amount of those payments;
 or
 (2)  $100 million.
 SECTION 3.  The following temporary provision is added to
 the Texas Constitution:
 TEMPORARY PROVISION. (a)  This temporary provision applies
 to the constitutional amendment proposed by the 88th Legislature,
 Regular Session, 2023, dedicating to the national research
 university fund a portion of certain income from the lease for oil
 and gas exploration of land dedicated to the permanent university
 fund.
 (b)  The amendments to Sections 11a and 20, Article VII, of
 this constitution take effect January 1, 2024.
 SECTION 4.  This proposed constitutional amendment shall be
 submitted to the voters at an election to be held November 7, 2023.
 The ballot shall be printed to permit voting for or against the
 proposition: "The constitutional amendment dedicating to the
 national research university fund a portion of certain income from
 the lease for oil and gas exploration of land dedicated to the
 permanent university fund."