H.J.R. No. 109
 
 
 
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 H.J.R. No. 109, 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."
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.J.R. No. 109 was passed by the House on May
  11, 2011, by the following vote:  Yeas 147, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.J.R.
  No. 109 on May 23, 2011, by the following vote:  Yeas 143, Nays 0, 2
  present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.J.R. No. 109 was passed by the Senate, with
  amendments, on May 21, 2011, by the following vote:  Yeas 31, Nays
  0
  .
 
  _______________________________
  Secretary of the Senate    
  RECEIVED:  _____________________
                     Date         
   
            _____________________
              Secretary of State