By: Taylor S.J.R. No. 77
SENATE JOINT RESOLUTION
proposing a constitutional amendment relating to the dedication of
certain severance tax collections for school district ad valorem
tax compression.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 49-g, Article III, Texas Constitution,
is amended to read as follows:
Sec. 49-g. ECONOMIC STABILIZATION FUND; ALLOCATION OF
CERTAIN OIL AND GAS PRODUCTION TAX REVENUE. (a) The economic
stabilization fund is established as a special fund in the state
treasury.
(b) The comptroller shall, not later than the 90th day of
each biennium, transfer to the economic stabilization fund one-half
of any unencumbered positive balance of general revenues on the
last day of the preceding biennium. If necessary, the comptroller
shall reduce the amount transferred in proportion to the other
amounts prescribed by this section to prevent the amount in the fund
from exceeding the limit in effect for that biennium under
Subsection (g) of this section.
(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 Subsections
(c-1) and (c-2) of this section. However, if necessary and
notwithstanding the allocations prescribed by 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 25 percent 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) 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.
(d) If in the preceding 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, the comptroller shall transfer under Subsection
(c) of this section and allocate in accordance with Subsections
(c-1) and (c-2) of this section an amount equal to 50 75 percent of
the difference between those amounts. The comptroller shall retain
the remaining 50 25 percent of the difference as general revenue
dedicated to school district ad valorem tax rate compression. 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 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, the comptroller shall transfer under Subsection
(c) of this section and allocate in accordance with Subsections
(c-1) and (c-2) of this section an amount equal to 50 75 percent of
the difference between those amounts. The comptroller shall retain
the remaining 50 25 percent of the difference as general revenue
dedicated to school district ad valorem tax rate compression. For
the purposes of this subsection, the comptroller shall adjust the
computation of revenues to reflect only 12 months of collection.
(f) The legislature may appropriate additional amounts to
the economic stabilization fund.
(g) During each fiscal biennium, the amount in the economic
stabilization fund may not exceed an amount equal to 10 percent of
the total amount, excluding investment income, interest income, and
amounts borrowed from special funds, deposited in general revenue
during the preceding biennium.
(h) In preparing an estimate of anticipated revenues for a
succeeding biennium as required by Article III, Section 49a, of
this constitution, the comptroller shall estimate the amount of the
transfers that will be made under Subsections (b), (d), and (e) of
this section. The comptroller shall deduct that amount from the
estimate of anticipated revenues as if the transfers were made on
August 31 of that fiscal year.
(i) The comptroller shall credit to general revenue
interest due to the economic stabilization fund that would result
in an amount in the economic stabilization fund that exceeds the
limit in effect under Subsection (g) of this section.
(j) The comptroller may transfer money from the economic
stabilization fund to general revenue to prevent or eliminate a
temporary cash deficiency in general revenue. The comptroller
shall return the amount transferred to the economic stabilization
fund as soon as practicable, but not later than August 31 of each
odd-numbered year. The comptroller shall allocate the depository
interest as if the transfers had not been made. If the comptroller
submits a statement to the governor and the legislature under
Article III, Section 49a, of this constitution when money from the
economic stabilization fund is in general revenue, the comptroller
shall state that the transferred money is not available for
appropriation from general revenue.
(k) Amounts from the economic stabilization fund may be
appropriated during a regular legislative session only for a
purpose for which an appropriation from general revenue was made by
the preceding legislature and may be appropriated in a special
session only for a purpose for which an appropriation from general
revenue was made in a preceding legislative session of the same
legislature. An appropriation from the economic stabilization fund
may be made only if the comptroller certifies that appropriations
from general revenue made by the preceding legislature for the
current biennium exceed available general revenues and cash
balances for the remainder of that biennium. The amount of an
appropriation from the economic stabilization fund may not exceed
the difference between the comptroller's estimate of general
revenue for the current biennium at the time the comptroller
receives for certification the bill making the appropriation and
the amount of general revenue appropriations for that biennium
previously certified by the comptroller. Appropriations from the
economic stabilization fund under this subsection may not extend
beyond the last day of the current biennium. An appropriation from
the economic stabilization fund must be approved by a three-fifths
vote of the members present in each house of the legislature.
(l) If an estimate of anticipated revenues for a succeeding
biennium prepared by the comptroller pursuant to Article III,
Section 49a, of this constitution is less than the revenues that are
estimated at the same time by the comptroller to be available for
the current biennium, the legislature may, by a three-fifths vote
of the members present in each house, appropriate for the
succeeding biennium from the economic stabilization fund an amount
not to exceed this difference. Following each fiscal year, the
actual amount of revenue shall be computed, and if the estimated
difference exceeds the actual difference, the comptroller shall
transfer the amount necessary from general revenue to the economic
stabilization fund so that the actual difference shall not be
exceeded. If all or a portion of the difference in revenue from one
biennium to the next results, at least in part, from a change in a
tax rate or base adopted by the legislature, the computation of
revenue difference shall be adjusted to the amount that would have
been available had the rate or base not been changed.
(m) In addition to the appropriation authority provided by
Subsections (k) and (l) of this section, the legislature may, by a
two-thirds vote of the members present in each house, appropriate
amounts from the economic stabilization fund at any time and for any
purpose.
(n) Money appropriated from the economic stabilization fund
is subject to being withheld or transferred, within any limits
provided by statute, by any person or entity authorized to exercise
the power granted by Article XVI, Section 69, of this constitution.
(o) In this section, "net" means the amount of money that is
equal to the difference between gross collections and refunds
before the comptroller allocates the receipts as provided by law.
SECTION 2. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 5, 2019.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment relating to dedicating
certain severance tax collections for the reduction of school
district tax rates."