79S30558 JJT-D
By: Callegari H.J.R. No. 39
A JOINT RESOLUTION
proposing a constitutional amendment concerning the limitation on
the rate of growth of state appropriations and the use of
unencumbered surplus state revenues to finance a state sales tax
holiday.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 22, Article VIII, Texas Constitution, is
amended to read as follows:
Sec. 22. (a) In no biennium shall the rate of growth of
appropriations from all sources of revenue other than the federal
government [state tax revenues not dedicated by this constitution]
exceed a rate equal to the sum of the estimated rate of increase or
decrease [growth] of the state's population and the estimated rate
of inflation or deflation in the prices of goods as those rates are
estimated in the manner provided by general law [economy]. If the
sum of those estimated rates is a negative number, appropriations
for the biennium from all sources of revenue other than the federal
government must decrease by a rate at least equal to the sum of
those estimated rates.
(b) In this section, the rate of change of appropriations
from all sources of revenue other than the federal government is the
percentage difference between:
(1) the amount of money appropriated for the current
biennium from those sources as estimated in the manner prescribed
by law at or near the time the legislature convenes in regular
session during the current biennium; and
(2) the amount of money appropriated for the next
biennium from those sources as finally estimated by the comptroller
at the times the Acts making appropriations are considered by the
comptroller under Article III, Section 49a, of this constitution.
(c) The legislature shall provide by general law procedures
to implement Subsections (a) and (b) of this section [subsection].
(d) [(b)] If the legislature by adoption of a resolution
approved by a record vote of two-thirds [a majority] of the members
of each house finds that an emergency exists and identifies the
nature of the emergency, the legislature may provide for
appropriations in excess of the amount authorized by Subsection (a)
of this section. The excess authorized under this subsection may
not exceed the amount specified in the resolution.
(e) [(c)] In no case shall appropriations exceed revenues as
provided in Article III, Section 49a, of this constitution.
Nothing in this section shall be construed to alter, amend, or
repeal Article III, Section 49a, of this constitution.
SECTION 2. Section 49a, Article III, Texas Constitution, is
amended by adding Subsections (c) and (d) to read as follows:
(c) A bill containing an appropriation may not be considered
as passed and may not be sent to the Governor for consideration
until the Comptroller of Public Accounts endorses on the bill the
comptroller's certificate showing that the amount appropriated
does not exceed the limitation on the rate of growth of
appropriations imposed by Section 22, Article VIII, of this
constitution.
(d) When the Comptroller of Public Accounts finds that a
bill containing an appropriation exceeds the limitation on the rate
of growth of appropriations imposed by Section 22, Article VIII, of
this constitution, the comptroller shall endorse that finding on
the bill, return the bill to the House in which it originated, and
immediately notify the House of Representatives and the Senate of
the finding.
SECTION 3. Subsection (b), Section 49-g, Article III, Texas
Constitution, is amended to read as follows:
(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. For purposes of this subsection,
general revenues are considered encumbered on the last day of a
state fiscal biennium only to the extent that general revenues are
subject to payment for particular identifiable and legally
enforceable obligations of this state that were incurred on or
before that day and intended to be paid out of appropriations for
that biennium.
SECTION 4. Article III, Texas Constitution, is amended by
adding Section 49-g-1 to read as follows:
Sec. 49-g-1. (a) The tax holiday fund is a special fund in
the state treasury. Money in the tax holiday fund is not subject to
appropriation but may be transferred to the general revenue fund of
the state treasury as provided by this section. Interest on money
in the tax holiday fund is credited to the tax holiday fund.
(b) Not later than the 90th day of each biennium, the
comptroller shall transfer to the tax holiday fund the unencumbered
positive balance of general revenues on the last day of the
preceding biennium that remains after the transfer of revenues to
the economic stabilization fund under Subsection (b), Section 49-g,
Article III, of this constitution. For purposes of this
subsection, general revenues are considered encumbered on the last
day of a state fiscal biennium only to the extent that general
revenues are subject to payment for particular identifiable and
legally enforceable obligations of this state that were incurred on
or before that day and intended to be paid out of appropriations for
that biennium.
(c) The legislature by general law shall provide a procedure
under which a legislative agency, an executive agency, or the
governor shall declare a tax holiday period during which sales
taxes will not be collected on transactions specified by the
legislature on which a sales tax is otherwise imposed.
(d) The general law must provide that the comptroller,
during the same state fiscal year in which a tax holiday is declared
under that law, shall transfer to the general revenue fund out of
the tax holiday fund an amount equal to the estimated amount of
state sales taxes that would have been collected during the tax
holiday period but for the declaration of the holiday period. The
general law must prescribe procedures to ensure that a declared tax
holiday period will not result in a decrease in estimated state
sales tax revenues by an amount that exceeds 90 percent of the
balance of the tax holiday fund.
(e) The general law must specify the transactions to which a
declared tax holiday may apply.
SECTION 5. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 7, 2006.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment regarding the
limitation on the rate of growth in appropriations and the use of
unencumbered surplus state revenues to finance a state sales tax
holiday."