Bill Text: TX SJR69 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-03-09 - Referred to s/c on Higher Education by Pres [SJR69 Detail]

Download: Texas-2023-SJR69-Introduced.html

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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."