2017S0275-1 02/21/17
By: Seliger S.J.R. No. 41
JOINT RESOLUTION
proposing a constitutional amendment to provide for foregoing the
transfer of oil and gas production tax revenue to the economic
stabilization fund if the ending fund balance for the preceding
fiscal year is greater than $5 billion and for reducing the rates of
oil and gas production taxes by amounts sufficient to equal the
foregone transfer.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 49-g, Article III, Texas Constitution,
is amended by amending Subsections (c), (c-1), (c-2), (d), and (e)
and adding Subsections (c-3), (c-4), (c-5), and (c-6) to read as
follows:
(c) Not later than the 90th day of each fiscal year, the
comptroller of public accounts shall transfer from the general
revenue fund to the economic stabilization fund and the state
highway fund the sum of the amounts described by Subsections (d) and
(e) of this section, to be allocated as provided by Subsection
[Subsections] (c-1) [and (c-2)] of this section. However, if
necessary and notwithstanding the allocation [allocations]
prescribed by Subsection [Subsections] (c-1) [and (c-2)] of this
section, the comptroller shall reduce proportionately the amounts
described by Subsections (d) and (e) of this section to be
transferred and allocated to the economic stabilization fund to
prevent the amount in that fund from exceeding the limit in effect
for that biennium under Subsection (g) of this section. Revenue
transferred to the state highway fund under this subsection may be
used only for constructing, maintaining, and acquiring
rights-of-way for public roadways other than toll roads.
(c-1) Of the sum of the amounts described by Subsections (d)
and (e) of this section and required to be transferred from the
general revenue fund under Subsection (c) of this section, the
comptroller shall allocate one-half to the economic stabilization
fund and the remainder to the state highway fund[, except as
provided by Subsection (c-2) of this section].
(c-2) If the ending balance in the economic stabilization
fund for the preceding fiscal year was not greater than $5 billion,
the rate of tax imposed on oil production and the rate of tax
imposed on gas production in the current fiscal year shall be as
provided by the legislature under general law [The legislature by
general law shall provide for a procedure by which the allocation of
the sum of the amounts described by Subsections (d) and (e) of this
section may be adjusted to provide for a transfer to the economic
stabilization fund of an amount greater than the allocation
provided for under Subsection (c-1) of this section with the
remainder of that sum, if any, allocated for transfer to the state
highway fund. The allocation made as provided by that general law
is binding on the comptroller for the purposes of the transfers
required by Subsection (c) of this section].
(c-3) If the ending balance in the economic stabilization
fund for the preceding fiscal year was greater than $5 billion, the
comptroller shall not transfer any amount collected from oil
production tax or gas production tax to the economic stabilization
fund during the current fiscal year but shall transfer to the state
highway fund under Subsection (c) of this section and retain as
general revenue under Subsections (d) and (e) of this section the
amounts that would have been transferred or retained had the ending
balance been $5 billion or less. The amount that would have been
transferred to the economic stabilization fund shall be deposited
to the credit of the tax relief set-aside account in the general
revenue fund.
(c-4) In this section:
(1) "Tax relief set-aside" means the net amount of oil
production tax or gas production tax, as appropriate, that would
have been transferred to the economic stabilization fund in the
preceding fiscal year under Subsection (c) of this section had the
ending balance in the fund for that fiscal year been not greater
than $5 billion.
(2) "Tax-rate-cut factor" means the quotient of the
tax relief set-aside divided by the net amount of oil production tax
or gas production tax, as appropriate, that the comptroller
estimates under Article III, Section 49a(a), of this constitution
will be collected in the current fiscal year.
(c-5) If the ending balance in the economic stabilization
fund for the preceding fiscal year was greater than $5 billion, the
rate of tax imposed on oil production for the current fiscal year
shall be calculated by subtracting the tax-rate-cut factor from one
and multiplying the remainder by the tax rate for oil production
provided by the legislature under general law. The comptroller
shall establish the rate of oil production tax not later than the
90th day of each fiscal year.
(c-6) If the ending balance in the economic stabilization
fund for the preceding fiscal year was greater than $5 billion, the
rate of tax imposed on gas production for the current fiscal year
shall be calculated by subtracting the tax-rate-cut factor from one
and multiplying the remainder by the tax rate for gas production
provided by the legislature under general law. The comptroller
shall establish the rate of gas production tax not later than the
90th day of each fiscal year.
(d) If in the preceding fiscal year the state received from
oil production taxes a net amount greater than the net amount of oil
production taxes received by the state in the fiscal year ending
August 31, 1987, and the ending balance in the economic
stabilization fund for the preceding fiscal year was not greater
than $5 billion, the comptroller shall transfer under Subsection
(c) of this section and allocate in accordance with Subsection
[Subsections] (c-1) [and (c-2)] of this section an amount equal to
75 percent of the difference between those amounts. The
comptroller shall retain the remaining 25 percent of the difference
as general revenue. In computing the net amount of oil production
taxes received, the comptroller may not consider refunds paid as a
result of oil overcharge litigation.
(e) If in the preceding fiscal year the state received from
gas production taxes a net amount greater than the net amount of gas
production taxes received by the state in the fiscal year ending
August 31, 1987, and the ending balance in the economic
stabilization fund for the preceding fiscal year was not greater
than $5 billion, the comptroller shall transfer under Subsection
(c) of this section and allocate in accordance with Subsection
[Subsections] (c-1) [and (c-2)] of this section an amount equal to
75 percent of the difference between those amounts. The
comptroller shall retain the remaining 25 percent of the difference
as general revenue. For the purposes of this subsection, the
comptroller shall adjust the computation of revenues to reflect
only 12 months of collection.
SECTION 2. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies
to the constitutional amendment proposed by the 85th Legislature,
Regular Session, 2017, providing for foregoing the transfer of oil
and gas production tax revenue to the economic stabilization fund
if the ending fund balance for the preceding fiscal year is greater
than $5 billion and for reducing the rates of oil and gas production
taxes by amounts sufficient to equal the foregone transfer.
(b) The amendments to Section 49-g, Article III, of this
constitution take effect January 1, 2018, and apply only to oil
production taxes and gas production taxes imposed for a fiscal year
beginning after that date.
(c) This temporary provision expires January 1, 2018.
SECTION 3. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 7, 2017.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment providing for
foregoing the transfer of oil and gas production tax revenue to the
economic stabilization fund if the ending fund balance for the
preceding fiscal year is greater than $5 billion and for reducing
the rates of oil and gas production taxes by amounts sufficient to
equal the foregone transfer."