Source: http://www.tea.state.tx.us/index4.aspx?id=7689
Timestamp: 2013-05-18 17:38:52
Document Index: 475358566

Matched Legal Cases: ['§33', '§33', '§7', '§5', '§33', '§7', '§5', '§5', '§5', '§5', '§5', '§5', '§33', '§2006', '§33', '§33', '§33']

Texas Education Agency - January 2010 Committee of the Full Board Wednesday Item 4
January 2010 Committee of the Full Board Wednesday Item 4
Proposed New 19 TAC Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund, §33.2, Distributions to the Available School Fund (First Reading and Filing Authorization)January 15, 2010 COMMITTEE OF THE FULL BOARD: ACTION STATE BOARD OF EDUCATION: ACTION SUMMARY: This item presents for first reading and filing authorization proposed new 19 TAC Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund, §33.2, Distributions to the Available School Fund. The proposed new rule would implement Texas Attorney General Opinion No. GA-0707 regarding transfers from the Permanent School Fund to the Available School Fund. STATUTORY AUTHORITY: Texas Education Code (TEC), §7.102(c)(31) and (33), and the Texas Constitution, Article VII, §5(a)(2) and (f). EFFECTIVE DATE: The proposed effective date of the proposed new 19 TAC §33.2 would be 20 days after filing as adopted with the Texas Register in order to implement the latest policy in a timely manner. Under TEC, §7.102(f), the State Board of Education (SBOE) must approve the rule action at second reading and final adoption by a vote of two-thirds of its members to specify an effective date earlier than the beginning of the 2010-2011 school year. PREVIOUS BOARD ACTION: At the November 2009 meeting, the SBOE took action to determine that a distribution of $60.7 million for fiscal year 2010 is permitted under Texas Constitution, Article VII, §5(a)(2). BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: The rules in 19 TAC Chapter 33 establish provisions supporting the management and investment of the Permanent School Fund. On November 4, 2008, the chair of the SBOE sought an opinion from the Attorney General regarding the implementation of the Texas Constitution, Article VII, §5(a)(2), in limiting transfers from the Permanent School Fund to the Available School Fund. A supplementary request was made on January 14, 2009. On April 13, 2009, the Attorney General responded to the requests, noting that Article VII, §5(a)(1) and §5(a)(2), require distinct calculations using different methodologies and covering different time periods. The Attorney General Opinion No. GA-0707 stated that the SBOE is the entity authorized to apply the limits of Article VII, §5(a)(2), in the first instance to the amount distributed from the Permanent School Fund to the Available School Fund. Article VII, §5(a)(2), requires an annual determination by the SBOE of whether a transfer can be made from the Permanent School Fund to the Available School Fund based on the preceding nine state fiscal years and the current fiscal year. Proposed new §33.2 would establish in rule the procedures and the requirement that the SBOE determine whether a distribution to the Available School Fund shall be made for the current state fiscal year. FISCAL IMPACT: The TEA has determined that there are no additional costs to the state or persons required to comply with the proposed rule action. In addition, there is no direct adverse economic impact for small businesses and microbusinesses; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required. PUBLIC AND STUDENT BENEFIT: Chapter 33 establishes provisions supporting the management and investment of the Permanent School Fund. The proposed new rule would establish in rule procedures relating to the distribution of the Permanent School Fund to the school districts, which would reduce the tax burden to the public and the state of Texas. PROCEDURAL AND REPORTING IMPLICATIONS: The proposed new rule would have no procedural and reporting requirements. LOCALLY MAINTAINED PAPERWORK REQUIREMENTS: The proposed new rule would have no locally maintained paperwork requirements. PUBLIC COMMENTS: The official public comment period will begin when the new rule is published as proposed in the Texas Register. ALTERNATIVES: None. OTHER COMMENTS AND RELATED ISSUES: A request for a public hearing on the proposal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 14 calendar days after notice of the proposal has been published in the Texas Register. COMMISSIONER'S RECOMMENDATION: I recommend that the State Board of Education: Approve for first reading and filing authorization proposed new 19 TAC Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund, §33.2, Distributions to the Available School Fund. Respectfully submitted, Robert Scott Commissioner of Education Staff Member Responsible:Holland Timmins, Executive Administrator and Chief Investment Officer of the Texas Permanent School Fund Attachments:I. Statutory CitationsII. Text of Current 19 TAC Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund, §33.1, Constitutional Authority and Constitutional Restrictions, and Proposed New 19 TAC §33.2, Distributions to the Available School FundIII. Texas Attorney General Opinion No. GA-0707