Bill Text: TX HJR85 | 2011-2012 | 82nd Legislature | Introduced


Bill Title: Proposing a constitutional amendment to create the Permanent School Fund Management Council to assume the duty of the State Board of Education to manage the permanent school fund.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-02-28 - Referred to Public Education [HJR85 Detail]

Download: Texas-2011-HJR85-Introduced.html
  82R5073 CAE-D
 
  By: Howard of Travis H.J.R. No. 85
 
 
 
A JOINT RESOLUTION
  proposing a constitutional amendment to create the Permanent School
  Fund Management Council to assume the duty of the State Board of
  Education to manage the permanent 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 Permanent School Fund
  Management Council [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.  Sections 5(a) and (f), Article VII, Texas
  Constitution, are 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, 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 Permanent School Fund Management Council, with the approval
  of a majority vote 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 Permanent School Fund Management Council
  [State Board of Education] does not adopt a rate or the State Board
  of Education does not approve 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.
         (f)  Notwithstanding any other provision of this
  constitution, in managing the assets of the permanent school fund,
  the Permanent School Fund Management Council [State Board of
  Education] may acquire, exchange, sell, supervise, manage, or
  retain, through procedures and subject to restrictions it
  establishes and in amounts it considers appropriate, any kind of
  investment[, including investments in the Texas growth fund created
  by Article XVI, Section 70, of this constitution,] that persons of
  ordinary prudence, discretion, and intelligence, exercising the
  judgment and care under the circumstances then prevailing, acquire
  or retain for their own account in the management of their affairs,
  not in regard to speculation but in regard to the permanent
  disposition of their funds, considering the probable income as well
  as the probable safety of their capital.
         SECTION 4.  Article VII, Texas Constitution, is amended by
  adding Section 5a to read as follows:
         Sec. 5a.  The legislature shall provide by law for a
  Permanent School Fund Management Council to manage the permanent
  school fund. Members of the council must have substantial
  institutional investment expertise or institutional financial
  management experience.  Members of the council are appointed or
  elected as provided by the legislature for terms determined by the
  legislature. The council shall perform the duties prescribed by
  law.
         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 permit voting for or against the
  proposition: "The constitutional amendment to create the Permanent
  School Fund Management Council, composed of members with
  substantial institutional investment expertise or institutional
  financial management experience, to assume the duty of the State
  Board of Education to manage the permanent school fund."
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