By: Landgraf, Guillen, Dean, Murr, Hunter, H.J.R. No. 111
et al.
A JOINT RESOLUTION
proposing a constitutional amendment providing for the creation of
the Texas severance tax revenue and oil and natural gas (Texas
STRONG) defense fund, dedicating the money in that fund to benefit
areas of the state significantly affected by oil and gas
production, and providing for the transfer of certain general
revenues to that fund, the economic stabilization fund, the state
highway fund, the oil and gas regulation and cleanup account, the
Texas emissions reduction plan fund, and the property tax relief
fund.
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), and (c-2) and adding
Subsection (c-3) 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, and the Texas severance tax revenue and oil and
natural gas (Texas STRONG) defense 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) Except as provided by Subsection (c-2) of this
section, the comptroller shall allocate [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 as follows:
(1) 38 percent[, the comptroller shall allocate
one-half] to the economic stabilization fund;
(2) 10 percent to the Texas severance tax revenue and
oil and natural gas (Texas STRONG) defense fund, subject to
Subsection (c-3) of this section;
(3) 1 percent to the oil and gas regulation and cleanup
account;
(4) 1 percent to the Texas emissions reduction plan
fund; and
(5) 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 prescribed by Subsection (c-1)
[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 that subsection [Subsection (c-1) of
this section] with the remainder of that sum, if any, allocated for
transfer to the state highway fund, the oil and gas regulation and
cleanup account, the Texas emissions reduction plan fund, the
property tax relief fund, and the Texas severance tax revenue and
oil and natural gas (Texas STRONG) defense fund as provided by
general law. 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 amount allocated to be transferred to the Texas
severance tax revenue and oil and natural gas (Texas STRONG)
defense fund for a state fiscal year under Subsection (c-1) or (c-2)
of this section would cause the total amount allocated for transfer
to the fund under those subsections for a state fiscal year to
exceed $500 million, the comptroller shall:
(1) reduce the amount allocated to be transferred to
the fund under the applicable subsection by the amount that would
exceed $500 million for the year; and
(2) transfer to the property tax relief fund the
amount by which the allocation is reduced under Subdivision (1) of
this subsection.
SECTION 2. Article III, Texas Constitution, is amended by
adding Section 49-g-1 to read as follows:
Sec. 49-g-1. (a) The Texas severance tax revenue and oil and
natural gas (Texas STRONG) defense fund is established as a fund in
the state treasury.
(b) The Texas severance tax revenue and oil and natural gas
(Texas STRONG) defense fund may consist of:
(1) money transferred to the fund under Section 49-g
of this article;
(2) money appropriated to the fund by the legislature;
(3) money that the legislature by statute dedicates
for deposit to the credit of the fund;
(4) gifts or grants contributed to the fund; and
(5) investment earnings and interest earned on amounts
credited to the fund.
(c) The legislature may appropriate money from the Texas
severance tax revenue and oil and natural gas (Texas STRONG)
defense fund only for use in areas of the state that are
significantly affected by oil and gas production as determined by
the legislature and for the purpose of funding grants to state
agencies, political subdivisions of the state, public institutions
of higher education, and nonprofit organizations to address public
health and safety concerns and supplement educational
opportunities and workforce preparedness needs.
(d) On the last day of each state fiscal biennium, the
comptroller of public accounts shall transfer any unobligated and
unappropriated money that remains in the fund on that date to the
general revenue fund.
SECTION 3. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies
to the constitutional amendment proposed by the 88th Legislature,
Regular Session, 2023, providing for the creation of the Texas
severance tax revenue and oil and natural gas (Texas STRONG)
defense fund, dedicating the money in that fund to benefit areas of
the state significantly affected by oil and gas production, and
providing for the transfer of certain general revenues to that
fund, the economic stabilization fund, the state highway fund, the
oil and gas regulation and cleanup account, the Texas emissions
reduction plan fund, and the property tax relief fund.
(b) Section 49-g-1, Article III, of this constitution, as
added by the amendment, and the amendment to Section 49-g, Article
III, of this constitution, take effect January 1, 2024.
(c) This temporary provision expires January 1, 2025.
SECTION 4. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 7, 2023.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment providing for the
creation of the Texas severance tax revenue and oil and natural gas
(Texas STRONG) defense fund, dedicating the money in that fund to
benefit areas of the state significantly affected by oil and gas
production, and providing for the transfer of certain general
revenues to that fund, the economic stabilization fund, the state
highway fund, the oil and gas regulation and cleanup account, the
Texas emissions reduction plan fund, and the property tax relief
fund."