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Texas House Bill HJR10

Texas 2019 - 86th Regular

Texas House Bill HJR10 Compare Versions

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1+86R25659 KJE-F
12 By: Capriglione, Zerwas, Bonnen of Galveston, H.J.R. No. 10
23 Rose, et al.
4+ Substitute the following for H.J.R. No. 10:
5+ By: Zerwas C.S.H.J.R. No. 10
36
47
58 A JOINT RESOLUTION
69 proposing a constitutional amendment providing for the creation of
710 the Texas legacy fund and the Texas legacy distribution fund,
811 dedicating the Texas legacy distribution fund to certain state
912 infrastructure projects or the reduction of certain long-term
1013 obligations, and providing for the transfer of certain general
1114 revenues to the economic stabilization fund, the Texas legacy fund,
1215 and the state highway fund.
1316 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1417 SECTION 1. Section 49-g, Article III, Texas Constitution,
1518 is amended by adding Subsections (a-1), (a-2), (b-1), and (b-2) and
1619 amending Subsections (b), (c), (c-1), (c-2), and (i) to read as
1720 follows:
1821 (a-1) The comptroller of public accounts shall invest the
1922 economic stabilization fund as provided by general law. The
2023 expenses of managing the investments of the fund are paid from the
2124 fund without appropriation. The comptroller shall credit to the
2225 fund the interest and other earnings attributable to the investment
2326 of money in the fund, subject to the limit in effect under
2427 Subsection (g) of this section.
2528 (a-2) For the purposes of allocating amounts to be
2629 transferred as provided by this section, the legislature by general
2730 law shall determine a sufficient balance of the economic
2831 stabilization fund or a method to determine that sufficient
2932 balance.
3033 (b) The comptroller of public accounts shall, not later than
3134 the 90th day of each biennium, transfer from the general revenue
3235 fund to the economic stabilization fund and the Texas legacy fund a
3336 total amount equal to one-half of any unencumbered positive balance
3437 of general revenues on the last day of the preceding biennium and
3538 allocate that amount as provided by Subsections (b-1) and (b-2) of
3639 this section. However, if [If] necessary and notwithstanding the
3740 allocations prescribed by Subsection (b-2) of this section, the
3841 comptroller shall reduce the amount to be transferred to the
3942 economic stabilization fund under that subsection in proportion to
4043 the other amounts prescribed by this section to prevent the amount
4144 in the fund from exceeding the limit in effect for that biennium
4245 under Subsection (g) of this section.
4346 (b-1) If at the time the comptroller of public accounts
4447 makes the transfer under Subsection (b) of this section the
4548 unappropriated balance of the economic stabilization fund is equal
4649 to or greater than the sufficient balance as determined in
4750 accordance with Subsection (a-2) of this section, the comptroller
4851 shall allocate to the Texas legacy fund the total amount required to
4952 be transferred as prescribed by Subsection (b) of this section.
5053 (b-2) If at the time the comptroller of public accounts
5154 makes the transfer under Subsection (b) of this section the
5255 unappropriated balance of the economic stabilization fund is less
5356 than the sufficient balance as determined in accordance with
5457 Subsection (a-2) of this section, in making the transfer, the
5558 comptroller shall allocate:
5659 (1) to the economic stabilization fund an amount equal
5760 to the lesser of:
5861 (A) the amount necessary to make the
5962 unappropriated balance of the economic stabilization fund equal to
6063 the sufficient balance; and
6164 (B) the total amount required to be transferred
6265 as prescribed by Subsection (b) of this section; and
6366 (2) to the Texas legacy fund an amount equal to the
6467 remainder, if any, of the total amount required to be transferred as
6568 prescribed by Subsection (b) of this section after making the
6669 allocation under Subdivision (1) of this subsection.
6770 (c) Not later than the 90th day of each fiscal year, the
6871 comptroller of public accounts shall transfer from the general
6972 revenue fund to the economic stabilization fund, the Texas legacy
7073 fund, and the state highway fund the sum of the amounts described by
7174 Subsections (d) and (e) of this section and allocate those
7275 amounts[, to be allocated] as provided by Subsections (c-1) and
7376 (c-2) of this section. However, if necessary and notwithstanding
7477 the allocations prescribed by Subsection [Subsections (c-1) and]
7578 (c-2) of this section, the comptroller shall reduce proportionately
7679 the amounts [described by Subsections (d) and (e) of this section]
7780 to be transferred and allocated to the economic stabilization fund
7881 under that subsection to prevent the amount in that fund from
7982 exceeding the limit in effect for that biennium under Subsection
8083 (g) of this section. Revenue transferred to the state highway fund
8184 under this subsection may be used only for constructing,
8285 maintaining, and acquiring rights-of-way for public roadways other
8386 than toll roads.
8487 (c-1) Of the sum of the amounts described by Subsections (d)
8588 and (e) of this section and required to be transferred from the
8689 general revenue fund under Subsection (c) of this section, the
8790 comptroller of public accounts shall allocate one-half to the Texas
8891 legacy [economic stabilization] fund and the remainder to the state
8992 highway fund, except as provided by Subsection (c-2) of this
9093 section.
9194 (c-2) The legislature by general law shall provide for a
9295 procedure by which, notwithstanding Subsection (c-1) of this
9396 section, the allocation of the total amount required to be
9497 transferred as prescribed by Subsection (c) [sum of the amounts
9598 described by Subsections (d) and (e)] of this section may be
9699 adjusted to provide for an allocation for [a] transfer to the
97100 economic stabilization fund of an amount determined under general
98101 law, [greater than the allocation provided for under Subsection
99102 (c-1) of this section] with the remainder of that total amount
100103 [sum], if any, allocated for transfer to the Texas legacy fund and
101104 the state highway fund as provided by general law. The allocation
102105 made as provided by that general law is binding on the comptroller
103106 of public accounts for the purposes of the transfers required by
104107 Subsection (c) of this section.
105108 (i) The comptroller of public accounts shall credit to the
106109 Texas legacy fund any [general revenue] interest due to the
107110 economic stabilization fund that would result in an amount in the
108111 economic stabilization fund that exceeds the limit in effect under
109112 Subsection (g) of this section.
110113 SECTION 2. Article III, Texas Constitution, is amended by
111114 adding Section 49-g-1 to read as follows:
112115 Sec. 49-g-1. (a) The Texas legacy fund is established as a
113116 special fund in the state treasury.
114117 (b) The comptroller of public accounts shall invest the
115118 Texas legacy fund as provided by general law. The expenses of
116119 managing the investments of the fund are paid from the fund without
117120 appropriation. The comptroller shall credit to the fund the
118121 interest and other earnings attributable to the investment of money
119122 in the fund, subject to any transfer to the Texas legacy
120123 distribution fund made in accordance with Subsection (e) of this
121124 section.
122125 (c) The legislature may appropriate money to the Texas
123126 legacy fund in addition to money transferred to the fund under
124127 Section 49-g of this article.
125128 (d) The legislature may not appropriate money from the Texas
126129 legacy fund.
127130 (e) Each fiscal year, the comptroller of public accounts
128131 shall transfer a portion of the accumulated interest and other
129132 earnings credited to the Texas legacy fund from the Texas legacy
130133 fund to the Texas legacy distribution fund. In making a transfer,
131134 the comptroller shall determine the amount of the transfer in a
132135 manner to provide a stable and predictable stream of annual
133136 transfers while preserving over time the purchasing power of the
134137 principal amount of the Texas legacy fund. If the comptroller
135138 determines that the purchasing power of the principal amount of the
136139 Texas legacy fund has diminished when computed for any 10-year
137140 period, the comptroller may reduce the amount of the annual
138141 transfers from the Texas legacy fund to the Texas legacy
139142 distribution fund and retain a greater portion of the interest and
140143 earnings on the principal in the Texas legacy fund so that the
141144 purchasing power of that fund's principal is restored.
142145 SECTION 3. Article III, Texas Constitution, is amended by
143146 adding Section 49-g-2 to read as follows:
144147 Sec. 49-g-2. (a) The Texas legacy distribution fund is
145148 established as a special fund in the state treasury.
146149 (b) The comptroller of public accounts shall invest the
147150 Texas legacy distribution fund as provided by general law. The
148151 expenses of managing the investments of the fund are paid from the
149152 fund without appropriation. The comptroller shall credit to the
150153 fund the interest and other earnings attributable to the investment
151154 of money in the fund.
152155 (c) The legislature may appropriate money to the Texas
153156 legacy distribution fund in addition to money transferred to the
154157 fund under Section 49-g-1 of this article.
155158 (d) The legislature may appropriate money from the Texas
156- legacy distribution fund only to pay for unfunded actuarial
157- liabilities of the Employees Retirement System of Texas or the
158- Teacher Retirement System of Texas, notwithstanding the limitation
159- on contributions otherwise provided by Section 67(b), Article XVI,
160- of this constitution.
159+ legacy distribution fund only to pay for:
160+ (1) redemption or defeasance in advance of scheduled
161+ maturity of state debt obligations that depend on general revenue
162+ for debt service;
163+ (2) unfunded actuarial liabilities of the Employees
164+ Retirement System of Texas or the Teacher Retirement System of
165+ Texas, notwithstanding the limitation on contributions otherwise
166+ provided by Section 67(b), Article XVI, of this constitution;
167+ (3) projects to repair, renovate, rehabilitate, or
168+ construct state infrastructure other than transportation
169+ infrastructure and higher education facilities; or
170+ (4) other obligations of this state that are:
171+ (A) recognized as long-term obligations
172+ according to generally accepted accounting principles; and
173+ (B) approved by the legislature by general law,
174+ by a vote of two-thirds of the members present in each house, to be
175+ paid for from appropriations made under this subsection.
161176 (e) In determining the rate of growth of appropriations from
162177 state tax revenues not dedicated by this constitution for purposes
163178 of Section 22, Article VIII, of this constitution, an appropriation
164179 of money from the Texas legacy distribution fund for a purpose
165- described by Subsection (d) of this section shall be excluded
180+ described by Subsection (d)(2) of this section shall be excluded
166181 regardless of the source of the revenues appropriated.
167182 SECTION 4. The following temporary provision is added to
168183 the Texas Constitution:
169184 TEMPORARY PROVISION. (a) This temporary provision applies
170185 to the constitutional amendment proposed by the 86th Legislature,
171186 Regular Session, 2019, providing for the creation of the Texas
172187 legacy fund and the Texas legacy distribution fund, dedicating the
173188 Texas legacy distribution fund to certain state infrastructure
174189 projects or the reduction of certain long-term obligations, and
175190 providing for the transfer of certain general revenues to the
176191 economic stabilization fund, the Texas legacy fund, and the state
177192 highway fund.
178193 (b) Sections 49-g-1 and 49-g-2, Article III, of this
179194 constitution, as added by the amendment, and the amendment to
180195 Section 49-g, Article III, of this constitution, take effect
181196 January 1, 2020.
182197 (c) As soon as practicable after the effective date of the
183198 amendment adding Sections 49-g-1 and 49-g-2 to Article III of this
184199 constitution, the comptroller of public accounts shall establish
185200 the Texas legacy fund and the Texas legacy distribution fund as
186201 provided by those sections. The comptroller shall transfer from
187202 the economic stabilization fund the amount of $500 million as the
188203 principal balance of the Texas legacy fund.
189204 (d) As soon as practicable after the effective date of the
190205 amendment, the comptroller of public accounts shall invest the
191206 economic stabilization fund, the Texas legacy fund, and the Texas
192207 legacy distribution fund as provided by general law.
193208 (e) This temporary provision expires January 1, 2021.
194209 SECTION 5. This proposed constitutional amendment shall be
195210 submitted to the voters at an election to be held November 5, 2019.
196211 The ballot shall be printed to permit voting for or against the
197212 proposition: "The constitutional amendment providing for the
198213 creation of the Texas legacy fund and the Texas legacy distribution
199214 fund, dedicating the Texas legacy distribution fund to certain
200215 state infrastructure projects or the reduction of certain long-term
201216 obligations, and providing for the transfer of certain general
202217 revenues to the economic stabilization fund, the Texas legacy fund,
203218 and the state highway fund."