88R13554 KBB-F
By: Howard H.J.R. No. 203
A JOINT RESOLUTION
proposing a constitutional amendment providing for the creation of
the Texas legacy fund and the Texas legacy distribution fund,
dedicating the Texas legacy distribution fund to certain state
infrastructure projects or the reduction of certain long-term
obligations, and providing for the transfer of certain general
revenues to the economic stabilization fund, the Texas legacy fund,
and the state highway fund.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 49-g, Article III, Texas Constitution,
is amended by adding Subsections (a-1), (a-2), (b-1), and (b-2) and
amending Subsections (b), (c), (c-1), (c-2), and (i) to read as
follows:
(a-1) The comptroller of public accounts shall invest the
economic stabilization fund as provided by general law. The
expenses of managing the investments of the fund are paid from the
fund without appropriation. The comptroller shall credit to the
fund the interest and other earnings attributable to the investment
of money in the fund, subject to the limit in effect under
Subsection (g) of this section.
(a-2) For the purposes of allocating amounts to be
transferred as provided by this section, the legislature by general
law shall determine a sufficient balance of the economic
stabilization fund or a method to determine that sufficient
balance.
(b) The comptroller of public accounts shall, not later than
the 90th day of each biennium, transfer from the general revenue
fund to the economic stabilization fund and the Texas legacy fund a
total amount equal to one-half of any unencumbered positive balance
of general revenues on the last day of the preceding biennium and
allocate that amount as provided by Subsections (b-1) and (b-2) of
this section. However, if [If] necessary and notwithstanding the
allocations prescribed by Subsection (b-2) of this section, the
comptroller shall reduce the amount to be transferred to the
economic stabilization fund under that subsection 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.
(b-1) If at the time the comptroller of public accounts
makes the transfer under Subsection (b) of this section the
unappropriated balance of the economic stabilization fund is equal
to or greater than the sufficient balance as determined in
accordance with Subsection (a-2) of this section, the comptroller
shall allocate to the Texas legacy fund the total amount required to
be transferred as prescribed by Subsection (b) of this section.
(b-2) If at the time the comptroller of public accounts
makes the transfer under Subsection (b) of this section the
unappropriated balance of the economic stabilization fund is less
than the sufficient balance as determined in accordance with
Subsection (a-2) of this section, in making the transfer, the
comptroller shall allocate:
(1) to the economic stabilization fund an amount equal
to the lesser of:
(A) the amount necessary to make the
unappropriated balance of the economic stabilization fund equal to
the sufficient balance; and
(B) the total amount required to be transferred
as prescribed by Subsection (b) of this section; and
(2) to the Texas legacy fund an amount equal to the
remainder, if any, of the total amount required to be transferred as
prescribed by Subsection (b) of this section after making the
allocation under Subdivision (1) of this subsection.
(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, the Texas legacy
fund, and the state highway fund the sum of the amounts described by
Subsections (d) and (e) of this section and allocate those
amounts[, to be allocated] as provided by Subsections (c-1) and
(c-2) of this section. However, if necessary and notwithstanding
the 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
under that subsection 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 of public accounts shall allocate one-half to the Texas
legacy [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, notwithstanding Subsection (c-1) of this
section, the allocation of the total amount required to be
transferred as prescribed by Subsection (c) [sum of the amounts
described by Subsections (d) and (e)] of this section may be
adjusted to provide for an allocation for [a] transfer to the
economic stabilization fund of an amount determined under general
law, [greater than the allocation provided for under Subsection
(c-1) of this section] with the remainder of that total amount
[sum], if any, allocated for transfer to the Texas legacy fund and
the state highway fund as provided by general law. The allocation
made as provided by that general law is binding on the comptroller
of public accounts for the purposes of the transfers required by
Subsection (c) of this section.
(i) The comptroller of public accounts shall credit to the
Texas legacy fund any [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.
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 legacy fund is established as a
special fund in the state treasury.
(b) The comptroller of public accounts shall invest the
Texas legacy fund as provided by general law. The expenses of
managing the investments of the fund are paid from the fund without
appropriation. The comptroller shall credit to the fund the
interest and other earnings attributable to the investment of money
in the fund, subject to any transfer to the Texas legacy
distribution fund made in accordance with Subsection (e) of this
section.
(c) The legislature may appropriate money to the Texas
legacy fund in addition to money transferred to the fund under
Section 49-g of this article.
(d) The legislature may not appropriate money from the Texas
legacy fund.
(e) Each fiscal year, the comptroller of public accounts
shall transfer a portion of the accumulated interest and other
earnings credited to the Texas legacy fund from the Texas legacy
fund to the Texas legacy distribution fund. In making a transfer,
the comptroller shall determine the amount of the transfer in a
manner to provide a stable and predictable stream of annual
transfers while preserving over time the purchasing power of the
principal amount of the Texas legacy fund. If the comptroller
determines that the purchasing power of the principal amount of the
Texas legacy fund has diminished when computed for any 10-year
period, the comptroller may reduce the amount of the annual
transfers from the Texas legacy fund to the Texas legacy
distribution fund and retain a greater portion of the interest and
earnings on the principal in the Texas legacy fund so that the
purchasing power of that fund's principal is restored.
SECTION 3. Article III, Texas Constitution, is amended by
adding Section 49-g-2 to read as follows:
Sec. 49-g-2. (a) The Texas legacy distribution fund is
established as a special fund in the state treasury.
(b) The comptroller of public accounts shall invest the
Texas legacy distribution fund as provided by general law. The
expenses of managing the investments of the fund are paid from the
fund without appropriation. The comptroller shall credit to the
fund the interest and other earnings attributable to the investment
of money in the fund.
(c) The legislature may appropriate money to the Texas
legacy distribution fund in addition to money transferred to the
fund under Section 49-g-1 of this article.
(d) The legislature may appropriate money from the Texas
legacy distribution fund only to pay for unfunded actuarial
liabilities of the Employees Retirement System of Texas or the
Teacher Retirement System of Texas, notwithstanding the limitation
on contributions otherwise provided by Section 67(b), Article XVI,
of this constitution.
(e) In determining the rate of growth of appropriations from
state tax revenues not dedicated by this constitution for purposes
of Section 22, Article VIII, of this constitution, an appropriation
of money from the Texas legacy distribution fund for a purpose
described by Subsection (d) of this section shall be excluded
regardless of the source of the revenues appropriated.
SECTION 4. 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
legacy fund and the Texas legacy distribution fund, dedicating the
Texas legacy distribution fund to certain state infrastructure
projects or the reduction of certain long-term obligations, and
providing for the transfer of certain general revenues to the
economic stabilization fund, the Texas legacy fund, and the state
highway fund.
(b) Sections 49-g-1 and 49-g-2, 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) As soon as practicable after the effective date of the
amendment adding Sections 49-g-1 and 49-g-2 to Article III of this
constitution, the comptroller of public accounts shall establish
the Texas legacy fund and the Texas legacy distribution fund as
provided by those sections. The comptroller shall transfer from
the economic stabilization fund the amount of $500 million as the
principal balance of the Texas legacy fund.
(d) As soon as practicable after the effective date of the
amendment, the comptroller of public accounts shall invest the
economic stabilization fund, the Texas legacy fund, and the Texas
legacy distribution fund as provided by general law.
(e) This temporary provision expires January 1, 2025.
SECTION 5. 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 legacy fund and the Texas legacy distribution
fund, dedicating the Texas legacy distribution fund to certain
state infrastructure projects or the reduction of certain long-term
obligations, and providing for the transfer of certain general
revenues to the economic stabilization fund, the Texas legacy fund,
and the state highway fund."