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A JOINT RESOLUTION
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proposing a constitutional amendment providing for the creation of |
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the Texas severance tax revenue and oil and natural gas (Texas |
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STRONG) defense fund, dedicating the money in that fund to benefit |
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areas of the state significantly affected by oil and gas |
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production, and providing for the transfer of certain general |
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revenues to that fund, the economic stabilization fund, and certain |
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other funds and accounts. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 49-g, Article III, Texas Constitution, |
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is amended by amending Subsections (c), (c-1), and (c-2) and adding |
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Subsection (c-3) to read as follows: |
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(c) Not later than the 90th day of each fiscal year, the |
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comptroller of public accounts shall transfer from the general |
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revenue fund to the economic stabilization fund, [and] the state |
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highway fund, the oil and gas regulation and cleanup account or a |
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successor account, the Texas emissions reduction plan fund or a |
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successor fund, and the Texas severance tax revenue and oil and |
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natural gas (Texas STRONG) defense fund the sum of the amounts |
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described by Subsections (d) and (e) of this section, to be |
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allocated as provided by Subsections (c-1) and (c-2) of this |
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section. However, if necessary and notwithstanding the allocations |
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prescribed by Subsections (c-1) and (c-2) of this section, the |
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comptroller shall reduce proportionately the amounts described by |
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Subsections (d) and (e) of this section to be transferred and |
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allocated to the economic stabilization fund to prevent the amount |
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in that fund from exceeding the limit in effect for that biennium |
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under Subsection (g) of this section. Revenue transferred to the |
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state highway fund under this subsection may be used only for |
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constructing, maintaining, and acquiring rights-of-way for public |
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roadways other than toll roads. |
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(c-1) Except as provided by Subsection (c-2) of this |
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section, the comptroller shall allocate [Of] the sum of the amounts |
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described by Subsections (d) and (e) of this section and required to |
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be transferred from the general revenue fund under Subsection (c) |
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of this section as follows: |
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(1) 38 percent[, the comptroller shall allocate |
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one-half] to the economic stabilization fund; |
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(2) 10 percent to the Texas severance tax revenue and |
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oil and natural gas (Texas STRONG) defense fund, subject to |
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Subsection (c-3) of this section; |
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(3) one percent to the oil and gas regulation and |
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cleanup account or a successor account; |
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(4) one percent to the Texas emissions reduction plan |
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fund or a successor fund; and |
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(5) the remainder to the state highway fund[, except |
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as provided by Subsection (c-2) of this section]. |
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(c-2) The legislature by general law shall provide for a |
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procedure by which the allocation prescribed by Subsection (c-1) |
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[of the sum of the amounts described by Subsections (d) and (e)] of |
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this section may be adjusted to provide for a transfer to the |
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economic stabilization fund of an amount greater than the |
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allocation provided for under that subsection [Subsection (c-1) of |
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this section] with the remainder of that sum, if any, allocated for |
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transfer to the other funds and accounts described by that |
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subsection as provided by general law [state highway fund]. The |
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allocation made as provided by that general law is binding on the |
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comptroller for the purposes of the transfers required by |
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Subsection (c) of this section. |
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(c-3) If the amount allocated to be transferred to the Texas |
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severance tax revenue and oil and natural gas (Texas STRONG) |
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defense fund for a state fiscal year under Subsection (c-1) or (c-2) |
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of this section would cause the total amount allocated for transfer |
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to the fund under those subsections for a state fiscal year to |
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exceed $500 million, the comptroller shall: |
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(1) reduce the amount allocated to be transferred to |
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the fund under the applicable subsection by the amount that would |
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exceed $500 million for the year; and |
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(2) transfer the amount by which the allocation is |
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reduced under Subdivision (1) of this subsection to the property |
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tax relief fund or a successor fund. |
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SECTION 2. Article III, Texas Constitution, is amended by |
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adding Section 49-g-1 to read as follows: |
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Sec. 49-g-1. (a) The Texas severance tax revenue and oil |
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and natural gas (Texas STRONG) defense fund is established as a fund |
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in the state treasury. |
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(b) The Texas severance tax revenue and oil and natural gas |
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(Texas STRONG) defense fund may consist of: |
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(1) money transferred to the fund under Section 49-g |
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of this article; |
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(2) money appropriated to the fund by the legislature; |
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(3) money that the legislature by statute dedicates |
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for deposit to the credit of the fund; |
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(4) gifts or grants contributed to the fund; and |
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(5) investment earnings and interest earned on amounts |
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credited to the fund. |
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(c) The legislature may appropriate money from the Texas |
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severance tax revenue and oil and natural gas (Texas STRONG) |
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defense fund only for use in areas of the state that are |
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significantly affected by oil and gas production as determined by |
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the legislature. Money appropriated from the fund may be used as |
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provided by general law to fund grants to state agencies, political |
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subdivisions of the state, public institutions of higher education, |
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and nonprofit organizations to address public health and safety |
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concerns and workforce preparedness needs and to supplement |
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educational opportunities. |
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(d) On the last day of each state fiscal biennium, the |
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comptroller of public accounts shall transfer any unobligated and |
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unappropriated money that remains in the fund on that date to the |
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general revenue fund. |
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SECTION 3. The following temporary provision is added to |
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the Texas Constitution: |
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TEMPORARY PROVISION. (a) This temporary provision applies |
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to the constitutional amendment proposed by the 89th Legislature, |
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Regular Session, 2025, providing for the creation of the Texas |
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severance tax revenue and oil and natural gas (Texas STRONG) |
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defense fund, dedicating the money in that fund to benefit areas of |
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the state significantly affected by oil and gas production, and |
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providing for the transfer of certain general revenues to that |
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fund, the economic stabilization fund, and certain other funds and |
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accounts. |
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(b) Section 49-g-1, Article III, of this constitution, as |
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added by the amendment, and the amendment to Section 49-g, Article |
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III, of this constitution, take effect September 1, 2027. |
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(c) This temporary provision expires September 1, 2028. |
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SECTION 4. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 4, 2025. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment providing for the |
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creation of the Texas severance tax revenue and oil and natural gas |
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(Texas STRONG) defense fund, dedicating the money in that fund to |
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benefit areas of the state significantly affected by oil and gas |
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production, and providing for the transfer of certain general |
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revenues to that fund, the economic stabilization fund, and certain |
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other funds and accounts used to construct roads, reduce the |
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emission of air contaminants, regulate oil and gas development, and |
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provide property tax relief." |