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A JOINT RESOLUTION
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proposing a constitutional amendment relating to the maximum amount |
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of the annual distribution made from the permanent university fund |
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to the available university fund. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 18(e), Article VII, Texas Constitution, |
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is amended to read as follows: |
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(e) The available university fund consists of the |
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distributions made to it from the total return on all investment |
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assets of the permanent university fund, including the net income |
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attributable to the surface of permanent university fund land. The |
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amount of any distributions to the available university fund shall |
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be determined by the board of regents of The University of Texas |
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System in a manner intended to provide the available university |
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fund with a stable and predictable stream of annual distributions |
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and to maintain over time the purchasing power of permanent |
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university fund investments and annual distributions to the |
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available university fund. The amount distributed to the available |
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university fund in a fiscal year must be not less than the amount |
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needed to pay the principal and interest due and owing in that |
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fiscal year on bonds and notes issued under this section. If the |
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purchasing power of permanent university fund investments for any |
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rolling 10-year period is not preserved, the board may not increase |
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annual distributions to the available university fund until the |
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purchasing power of the permanent university fund investments is |
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restored, except as necessary to pay the principal and interest due |
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and owing on bonds and notes issued under this section. An annual |
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distribution made by the board to the available university fund |
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during any fiscal year may not exceed an amount equal to six [seven] |
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percent of the average net fair market value of permanent |
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university fund investment assets as determined by the board, |
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except as necessary to pay any principal and interest due and owing |
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on bonds issued under this section. The expenses of managing |
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permanent university fund land and investments shall be paid by the |
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permanent university fund. |
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SECTION 2. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 7, 2017. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment relating to the maximum |
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amount of the annual distribution made from the permanent |
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university fund to the available university fund." |