| 1 | 1 | | 87R3489 BRG-D |
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| 2 | 2 | | By: Eckhardt S.J.R. No. 21 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A JOINT RESOLUTION |
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| 6 | 6 | | proposing a constitutional amendment providing for an annual state |
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| 7 | 7 | | budget and annual legislative sessions for budget purposes. |
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| 8 | 8 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 5(a), Article III, Texas Constitution, |
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| 10 | 10 | | is amended to read as follows: |
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| 11 | 11 | | (a) The Legislature shall meet every odd-numbered year in |
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| 12 | 12 | | regular session and every even-numbered year in budget session [two |
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| 13 | 13 | | years] at such times [time] as may be provided by law. The |
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| 14 | 14 | | Legislature also shall meet [and] at other times when convened by |
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| 15 | 15 | | the Governor. |
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| 16 | 16 | | SECTION 2. Section 24(a), Article III, Texas Constitution, |
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| 17 | 17 | | is amended to read as follows: |
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| 18 | 18 | | (a) Members of the Legislature shall receive from the Public |
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| 19 | 19 | | Treasury a salary of Six Hundred Dollars ($600) per month, unless a |
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| 20 | 20 | | greater amount is recommended by the Texas Ethics Commission and |
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| 21 | 21 | | approved by the voters of this State in which case the salary is |
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| 22 | 22 | | that amount. Each member shall also receive a per diem set by the |
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| 23 | 23 | | Texas Ethics Commission for each day during each Regular, Budget, |
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| 24 | 24 | | and Special Session of the Legislature. |
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| 25 | 25 | | SECTION 3. Article III, Texas Constitution, is amended by |
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| 26 | 26 | | adding Section 40a to read as follows: |
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| 27 | 27 | | Sec. 40a. (a) A budget session of the legislature may not |
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| 28 | 28 | | exceed 90 days in duration. When convened in budget session, a |
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| 29 | 29 | | house of the legislature may not consider a bill or proposed |
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| 30 | 30 | | constitutional amendment on a matter other than: |
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| 31 | 31 | | (1) appropriations, transfers of state money among |
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| 32 | 32 | | funds and accounts, or state revenue; or |
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| 33 | 33 | | (2) an emergency matter submitted by the governor in a |
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| 34 | 34 | | special message to the legislature. |
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| 35 | 35 | | (b) Except as otherwise provided by this constitution, a |
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| 36 | 36 | | budget session is treated in the same manner as a special session of |
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| 37 | 37 | | the legislature for purposes of this constitution. |
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| 38 | 38 | | (c) Unless otherwise provided by general law, a budget |
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| 39 | 39 | | session shall be convened at noon on the second Tuesday in January. |
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| 40 | 40 | | SECTION 4. Section 49(c), Article III, Texas Constitution, |
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| 41 | 41 | | is amended to read as follows: |
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| 42 | 42 | | (c) The legislature may call an election during any regular |
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| 43 | 43 | | session or budget session of the legislature or during any special |
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| 44 | 44 | | session of the legislature in which the subject of the election is |
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| 45 | 45 | | designated in the governor's proclamation for that special session. |
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| 46 | 46 | | The election may be held on any date, and notice of the election |
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| 47 | 47 | | shall be given for the period and in the manner required for |
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| 48 | 48 | | amending this constitution. The election shall be held in each |
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| 49 | 49 | | county in the manner provided by law for other statewide elections. |
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| 50 | 50 | | SECTION 5. Section 49a(a), Article III, Texas Constitution, |
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| 51 | 51 | | is amended to read as follows: |
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| 52 | 52 | | (a) It shall be the duty of the Comptroller of Public |
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| 53 | 53 | | Accounts in advance of each Regular Session and Budget Session of |
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| 54 | 54 | | the Legislature to prepare and submit to the Governor and to the |
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| 55 | 55 | | Legislature upon its convening a statement under oath showing fully |
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| 56 | 56 | | the financial condition of the State Treasury at the close of the |
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| 57 | 57 | | last fiscal year [period] and an estimate of the probable receipts |
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| 58 | 58 | | and disbursements for the then current fiscal year. There shall |
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| 59 | 59 | | also be contained in said statement an itemized estimate of the |
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| 60 | 60 | | anticipated revenue based on the laws then in effect that will be |
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| 61 | 61 | | received by and for the State from all sources showing the fund |
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| 62 | 62 | | accounts to be credited during the next fiscal year, [the |
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| 63 | 63 | | succeeding biennium] and said statement shall contain such other |
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| 64 | 64 | | information as may be required by law. Supplemental statements |
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| 65 | 65 | | shall be submitted at any Special Session of the Legislature and at |
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| 66 | 66 | | such other times as may be necessary to show probable changes. |
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| 67 | 67 | | SECTION 6. Sections 49-g(b), (c), (g), (h), (j), (k), and |
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| 68 | 68 | | (l), Article III, Texas Constitution, are amended to read as |
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| 69 | 69 | | follows: |
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| 70 | 70 | | (b) The comptroller shall, not later than the 90th day of |
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| 71 | 71 | | each fiscal year [biennium], transfer to the economic stabilization |
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| 72 | 72 | | fund one-half of any unencumbered positive balance of general |
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| 73 | 73 | | revenues on the last day of the preceding fiscal year [biennium]. |
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| 74 | 74 | | If necessary, the comptroller shall reduce the amount transferred |
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| 75 | 75 | | in proportion to the other amounts prescribed by this section to |
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| 76 | 76 | | prevent the amount in the fund from exceeding the limit in effect |
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| 77 | 77 | | for that fiscal year [biennium] under Subsection (g) of this |
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| 78 | 78 | | section. |
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| 79 | 79 | | (c) Not later than the 90th day of each fiscal year, the |
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| 80 | 80 | | comptroller of public accounts shall transfer from the general |
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| 81 | 81 | | revenue fund to the economic stabilization fund and the state |
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| 82 | 82 | | highway fund the sum of the amounts described by Subsections (d) and |
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| 83 | 83 | | (e) of this section, to be allocated as provided by Subsections |
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| 84 | 84 | | (c-1) and (c-2) of this section. However, if necessary and |
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| 85 | 85 | | notwithstanding the allocations prescribed by Subsections (c-1) |
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| 86 | 86 | | and (c-2) of this section, the comptroller shall reduce |
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| 87 | 87 | | proportionately the amounts described by Subsections (d) and (e) of |
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| 88 | 88 | | this section to be transferred and allocated to the economic |
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| 89 | 89 | | stabilization fund to prevent the amount in that fund from |
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| 90 | 90 | | exceeding the limit in effect for that fiscal year [biennium] under |
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| 91 | 91 | | Subsection (g) of this section. Revenue transferred to the state |
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| 92 | 92 | | highway fund under this subsection may be used only for |
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| 93 | 93 | | constructing, maintaining, and acquiring rights-of-way for public |
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| 94 | 94 | | roadways other than toll roads. |
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| 95 | 95 | | (g) During each fiscal year [biennium], the amount in the |
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| 96 | 96 | | economic stabilization fund may not exceed an amount equal to 10 |
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| 97 | 97 | | percent of the total amount, excluding investment income, interest |
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| 98 | 98 | | income, and amounts borrowed from special funds, deposited in |
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| 99 | 99 | | general revenue during the preceding two fiscal years [biennium]. |
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| 100 | 100 | | (h) In preparing an estimate of anticipated revenues for a |
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| 101 | 101 | | succeeding fiscal year [biennium] as required by Article III, |
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| 102 | 102 | | Section 49a, of this constitution, the comptroller shall estimate |
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| 103 | 103 | | the amount of the transfers that will be made under Subsections (b), |
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| 104 | 104 | | (d), and (e) of this section. The comptroller shall deduct that |
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| 105 | 105 | | amount from the estimate of anticipated revenues as if the |
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| 106 | 106 | | transfers were made on August 31 of that fiscal year. |
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| 107 | 107 | | (j) The comptroller may transfer money from the economic |
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| 108 | 108 | | stabilization fund to general revenue to prevent or eliminate a |
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| 109 | 109 | | temporary cash deficiency in general revenue. The comptroller |
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| 110 | 110 | | shall return the amount transferred to the economic stabilization |
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| 111 | 111 | | fund as soon as practicable, but not later than August 31 of the |
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| 112 | 112 | | fiscal year in which the transfer is made [each odd-numbered year]. |
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| 113 | 113 | | The comptroller shall allocate the depository interest as if the |
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| 114 | 114 | | transfers had not been made. If the comptroller submits a statement |
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| 115 | 115 | | to the governor and the legislature under Article III, Section 49a, |
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| 116 | 116 | | of this constitution when money from the economic stabilization |
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| 117 | 117 | | fund is in general revenue, the comptroller shall state that the |
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| 118 | 118 | | transferred money is not available for appropriation from general |
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| 119 | 119 | | revenue. |
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| 120 | 120 | | (k) Amounts from the economic stabilization fund may be |
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| 121 | 121 | | appropriated during a regular or budget [legislative] session only |
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| 122 | 122 | | for a purpose for which an appropriation from general revenue was |
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| 123 | 123 | | made for the current fiscal year [by the preceding legislature] and |
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| 124 | 124 | | may be appropriated in a special session only for a purpose for |
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| 125 | 125 | | which an appropriation from general revenue was made in a preceding |
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| 126 | 126 | | legislative session of the same legislature. An appropriation from |
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| 127 | 127 | | the economic stabilization fund may be made under this subsection |
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| 128 | 128 | | only if the comptroller certifies that appropriations from general |
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| 129 | 129 | | revenue made for the current fiscal year [by the preceding |
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| 130 | 130 | | legislature for the current biennium] exceed available general |
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| 131 | 131 | | revenues and cash balances for the remainder of that fiscal year |
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| 132 | 132 | | [biennium]. The amount of the [an] appropriation [from the |
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| 133 | 133 | | economic stabilization fund] may not exceed the difference between |
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| 134 | 134 | | the comptroller's estimate of general revenue for the current |
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| 135 | 135 | | fiscal year [biennium] at the time the comptroller receives for |
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| 136 | 136 | | certification the bill making the appropriation and the amount of |
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| 137 | 137 | | general revenue appropriations for that fiscal year [biennium] |
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| 138 | 138 | | previously certified by the comptroller. Appropriations from the |
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| 139 | 139 | | economic stabilization fund under this subsection may not extend |
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| 140 | 140 | | beyond the last day of the current fiscal year [biennium]. An |
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| 141 | 141 | | appropriation from the economic stabilization fund under this |
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| 142 | 142 | | subsection must be approved by a three-fifths vote of the members |
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| 143 | 143 | | present in each house of the legislature. |
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| 144 | 144 | | (l) If an estimate of anticipated revenues for the [a] |
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| 145 | 145 | | succeeding fiscal year [biennium] prepared by the comptroller |
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| 146 | 146 | | pursuant to Article III, Section 49a, of this constitution is less |
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| 147 | 147 | | than the revenues that are estimated at the same time by the |
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| 148 | 148 | | comptroller to be available for the current fiscal year [biennium], |
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| 149 | 149 | | the legislature may, by a three-fifths vote of the members present |
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| 150 | 150 | | in each house, appropriate for the succeeding fiscal year |
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| 151 | 151 | | [biennium] from the economic stabilization fund an amount not to |
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| 152 | 152 | | exceed this difference. Following each fiscal year, the actual |
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| 153 | 153 | | amount of revenue shall be computed, and if the estimated |
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| 154 | 154 | | difference exceeds the actual difference, the comptroller shall |
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| 155 | 155 | | transfer the amount necessary from general revenue to the economic |
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| 156 | 156 | | stabilization fund so that the actual difference shall not be |
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| 157 | 157 | | exceeded. If all or a portion of the difference in revenue from one |
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| 158 | 158 | | fiscal year [biennium] to the next results, at least in part, from a |
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| 159 | 159 | | change in a tax rate or base adopted by the legislature, the |
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| 160 | 160 | | computation of revenue difference shall be adjusted to the amount |
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| 161 | 161 | | that would have been available had the rate or base not been |
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| 162 | 162 | | changed. |
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| 163 | 163 | | SECTION 7. Section 51-a(b), Article III, Texas |
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| 164 | 164 | | Constitution, is amended to read as follows: |
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| 165 | 165 | | (b) The Legislature may provide by General Law for medical |
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| 166 | 166 | | care, rehabilitation and other similar services for needy persons. |
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| 167 | 167 | | The Legislature may prescribe such other eligibility requirements |
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| 168 | 168 | | for participation in these programs as it deems appropriate and may |
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| 169 | 169 | | make appropriations out of state funds for such purposes. The |
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| 170 | 170 | | maximum amount paid out of state funds for assistance grants to or |
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| 171 | 171 | | on behalf of needy dependent children and their caretakers shall |
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| 172 | 172 | | not exceed one percent of the state budget. The Legislature by |
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| 173 | 173 | | general statute shall provide for the means for determining the |
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| 174 | 174 | | state budget amounts, including state and other funds appropriated |
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| 175 | 175 | | by the Legislature, to be used in establishing the [biennial] limit |
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| 176 | 176 | | for a fiscal year. |
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| 177 | 177 | | SECTION 8. Section 9, Article IV, Texas Constitution, is |
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| 178 | 178 | | amended to read as follows: |
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| 179 | 179 | | Sec. 9. The Governor shall, at the commencement of each |
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| 180 | 180 | | session of the Legislature, and at the close of the Governor's [his] |
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| 181 | 181 | | term of office, give to the Legislature information, by message, of |
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| 182 | 182 | | the condition of the State; and the Governor [he] shall recommend to |
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| 183 | 183 | | the Legislature such measures as the Governor [he] may deem |
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| 184 | 184 | | expedient. The Governor [He] shall account to the Legislature for |
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| 185 | 185 | | all public moneys the Governor has received and paid out [by him], |
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| 186 | 186 | | from any funds subject to the Governor's [his] order, with |
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| 187 | 187 | | vouchers; and shall accompany the [his] message with a statement of |
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| 188 | 188 | | the same. And at the commencement of each regular session and |
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| 189 | 189 | | budget session, the Governor [he] shall present estimates of the |
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| 190 | 190 | | amount of money required to be raised by taxation for all purposes. |
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| 191 | 191 | | SECTION 9. Section 5(a), Article VII, Texas Constitution, |
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| 192 | 192 | | is amended to read as follows: |
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| 193 | 193 | | (a) The permanent school fund consists of all land |
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| 194 | 194 | | appropriated for public schools by this constitution or the other |
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| 195 | 195 | | laws of this state, other properties belonging to the permanent |
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| 196 | 196 | | school fund, and all revenue derived from the land or other |
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| 197 | 197 | | properties. The available school fund consists of the distributions |
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| 198 | 198 | | made to it from the total return on all investment assets of the |
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| 199 | 199 | | permanent school fund, the taxes authorized by this constitution or |
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| 200 | 200 | | general law to be part of the available school fund, and |
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| 201 | 201 | | appropriations made to the available school fund by the |
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| 202 | 202 | | legislature. The total amount distributed from the permanent school |
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| 203 | 203 | | fund to the available school fund: |
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| 204 | 204 | | (1) in [each year of] a state fiscal year [biennium] |
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| 205 | 205 | | must be an amount that is not more than six percent of the average of |
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| 206 | 206 | | the market value of the permanent school fund, excluding real |
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| 207 | 207 | | property belonging to the fund that is managed, sold, or acquired |
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| 208 | 208 | | under Section 4 of this article, but including discretionary real |
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| 209 | 209 | | assets investments and cash in the state treasury derived from |
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| 210 | 210 | | property belonging to the fund, on the last day of each of the 16 |
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| 211 | 211 | | state fiscal quarters preceding the regular or budget session of |
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| 212 | 212 | | the legislature, as applicable, that begins before that state |
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| 213 | 213 | | fiscal year [biennium], in accordance with the rate adopted by: |
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| 214 | 214 | | (A) a vote of two-thirds of the total membership |
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| 215 | 215 | | of the State Board of Education, taken before that [the] regular or |
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| 216 | 216 | | budget session of the legislature convenes; or |
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| 217 | 217 | | (B) the legislature by general law or |
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| 218 | 218 | | appropriation, if the State Board of Education does not adopt a rate |
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| 219 | 219 | | as provided by Paragraph (A) of this subdivision; and |
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| 220 | 220 | | (2) over the 10-year period consisting of the current |
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| 221 | 221 | | state fiscal year and the nine preceding state fiscal years may not |
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| 222 | 222 | | exceed the total return on all investment assets of the permanent |
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| 223 | 223 | | school fund over the same 10-year period. |
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| 224 | 224 | | SECTION 10. Sections 20(d), (e), (f), and (g), Article VII, |
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| 225 | 225 | | Texas Constitution, are amended to read as follows: |
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| 226 | 226 | | (d) In each state fiscal year [biennium], the legislature |
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| 227 | 227 | | may appropriate as provided by Subsection (f) of this section all or |
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| 228 | 228 | | a portion of the total return on all investment assets of the fund |
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| 229 | 229 | | to carry out the purposes for which the fund is established. |
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| 230 | 230 | | (e) The legislature annually [biennially] shall allocate |
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| 231 | 231 | | the amounts appropriated under this section, or shall provide for |
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| 232 | 232 | | an annual [a biennial] allocation of those amounts, to eligible |
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| 233 | 233 | | state universities to carry out the purposes of the fund. The money |
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| 234 | 234 | | shall be allocated based on an equitable formula established by the |
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| 235 | 235 | | legislature or an agency designated by the legislature. The |
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| 236 | 236 | | legislature shall review and as appropriate adjust, or provide for |
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| 237 | 237 | | a review and adjustment, of the allocation formula at the end of |
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| 238 | 238 | | each state fiscal year [biennium]. |
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| 239 | 239 | | (f) The portion of the total return on investment assets of |
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| 240 | 240 | | the fund that is available for appropriation in a state fiscal year |
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| 241 | 241 | | [biennium] under this section is the portion determined by the |
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| 242 | 242 | | legislature, or an agency designated by the legislature, as |
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| 243 | 243 | | necessary to provide as nearly as practicable a stable and |
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| 244 | 244 | | predictable stream of annual distributions to eligible state |
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| 245 | 245 | | universities and to maintain over time the purchasing power of fund |
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| 246 | 246 | | investment assets. If the purchasing power of fund investment |
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| 247 | 247 | | assets for any rolling 10-year period is not preserved, the |
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| 248 | 248 | | distributions may not be increased until the purchasing power of |
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| 249 | 249 | | the fund investment assets is restored. The amount appropriated |
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| 250 | 250 | | from the fund in any fiscal year may not exceed an amount equal to |
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| 251 | 251 | | seven percent of the average net fair market value of the investment |
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| 252 | 252 | | assets of the fund, as determined by law. Until the fund has been |
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| 253 | 253 | | invested for a period of time sufficient to determine the |
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| 254 | 254 | | purchasing power over a 10-year period, the legislature may provide |
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| 255 | 255 | | by law for means of preserving the purchasing power of the fund. |
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| 256 | 256 | | (g) The legislature shall establish criteria by which a |
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| 257 | 257 | | state university may become eligible to receive a portion of the |
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| 258 | 258 | | distributions from the fund. A state university that becomes |
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| 259 | 259 | | eligible to receive a portion of the distributions from the fund in |
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| 260 | 260 | | a state fiscal year [biennium] remains eligible to receive |
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| 261 | 261 | | additional distributions from the fund in any subsequent state |
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| 262 | 262 | | fiscal year [biennium]. The University of Texas at Austin and Texas |
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| 263 | 263 | | A&M University are not eligible to receive money from the fund. |
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| 264 | 264 | | SECTION 11. Section 6, Article VIII, Texas Constitution, is |
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| 265 | 265 | | amended to read as follows: |
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| 266 | 266 | | Sec. 6. No money shall be drawn from the Treasury but in |
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| 267 | 267 | | pursuance of specific appropriations made by law; nor shall any |
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| 268 | 268 | | appropriation of money be made for a longer term than one year [two |
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| 269 | 269 | | years]. |
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| 270 | 270 | | SECTION 12. Section 22(a), Article VIII, Texas |
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| 271 | 271 | | Constitution, is amended to read as follows: |
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| 272 | 272 | | (a) In no fiscal year [biennium] shall the rate of growth of |
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| 273 | 273 | | appropriations from state tax revenues not dedicated by this |
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| 274 | 274 | | constitution exceed the estimated rate of growth of the state's |
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| 275 | 275 | | economy. The legislature shall provide by general law procedures |
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| 276 | 276 | | to implement this subsection. |
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| 277 | 277 | | SECTION 13. The following temporary provision is added to |
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| 278 | 278 | | the Texas Constitution: |
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| 279 | 279 | | TEMPORARY PROVISION. (a) The constitutional amendment |
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| 280 | 280 | | proposed by the 87th Legislature, Regular Session, 2021, providing |
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| 281 | 281 | | for an annual state budget and annual legislative sessions for |
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| 282 | 282 | | budget purposes takes effect September 1, 2023. |
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| 283 | 283 | | (b) The amendment does not affect the validity of an |
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| 284 | 284 | | appropriation made before September 1, 2023, for any part of the two |
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| 285 | 285 | | consecutive state fiscal years ending August 31, 2025. |
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| 286 | 286 | | (c) This temporary provision expires January 1, 2026. |
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| 287 | 287 | | SECTION 14. This proposed constitutional amendment shall be |
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| 288 | 288 | | submitted to the voters at an election to be held November 2, 2021. |
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| 289 | 289 | | The ballot shall be printed to permit voting for or against the |
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| 290 | 290 | | proposition: "The constitutional amendment providing for an annual |
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| 291 | 291 | | state budget and annual legislative sessions for budget purposes." |
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