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79R2388 JJT-D
By: Isett H.J.R. No. 48
A JOINT RESOLUTION
proposing a constitutional amendment concerning the restriction on
the rate of growth of state appropriations and establishing three
special funds to replace the economic stabilization fund.
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 except the federal
government [state tax revenues not dedicated by this constitution]
exceed a rate equal to the sum of the estimated rate of growth of the
state's population and the estimated rate of inflation in the state
[economy]. In this subsection, the rate of growth of
appropriations from the current biennium to the next biennium is
the percentage difference between:
(1) the lesser of:
(A) the amount of money appropriated for the
current biennium from all sources of revenue other than the federal
government, as cumulatively estimated by the comptroller at the
times the comptroller endorsed, in accordance with Article III,
Section 49a, of this constitution, the comptroller's certificate on
the bills making the appropriations; and
(B) the amount of money actually appropriated for
the current biennium from all sources of revenue other than the
federal government, using the most recently available information;
and
(2) the amount of money appropriated for the next
biennium from all sources of revenue other than the federal
government, 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.
(b) The legislature shall provide by general law procedures
to implement Subsection (a) of this section [subsection].
(c) [(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.
(d) Appropriations may not [(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 Subsection (c) to read as follows:
(c) No bill containing an appropriation of money from any
source except the federal government shall be considered as passed
or be sent to the Governor for consideration until and unless the
Comptroller of Public Accounts endorses the Comptroller's
certificate thereon showing that the appropriation does not
contravene the limitation on the rate of growth of appropriations
imposed by Section 22, Article VIII, of this constitution. When the
Comptroller finds that a bill contains an appropriation that
contravenes the limitation on the rate of growth of appropriations,
the Comptroller shall endorse that finding on the bill, return the
bill to the House from which it originated, and immediately notify
the House of Representatives and the Senate of the finding.
SECTION 3. Section 49-g, Article III, Texas Constitution,
is amended to read as follows:
Sec. 49-g. (a) There are established as special funds [The
economic stabilization fund is established as a special fund] in
the state treasury an emergency expense fund, a budget
stabilization fund, and a property tax payers rebate fund.
(b) For purposes of this subsection, general revenue is
considered encumbered on the last day of a state fiscal biennium
only to the extent that the revenue is subject to payment for
particular identifiable and legally enforceable obligations of
this state that were incurred on or before that day. Not [The
comptroller shall, not] later than the 90th day of each state fiscal
biennium, the comptroller shall transfer:
(1) to the emergency expense fund three percent
[economic stabilization fund one-half] of any unencumbered
positive balance of general revenues on the last day of the
preceding biennium;
(2) to the budget stabilization fund 15 percent of any
unencumbered positive balance of general revenues on the last day
of the preceding biennium; and
(3) to the property tax payers rebate fund the
unencumbered positive balance of general revenues on the last day
of the preceding biennium that remains after the transfers under
Subdivisions (1) and (2) of this subsection are performed. [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.]
(c) Money in the emergency expense fund may be appropriated
only on an affirmative vote of two-thirds of all members of each
house of the legislature. Money in the emergency expense fund may
not be appropriated or transferred from the fund except in
accordance with an appropriation authorized by this subsection.
Money appropriated from the emergency expense fund may be spent
only for a purpose that:
(1) is related to preserving the health, safety, or
general welfare of the residents of this state from a threat to
their health, safety, or welfare caused by an extraordinary event
or occurrence that could not reasonably have been foreseen or
prevented; and
(2) requires an immediate expenditure to meet the
purpose described by Subdivision (1) of this subsection.
(d) Money in the budget stabilization fund may be
appropriated only on an affirmative vote of two-thirds of all
members of each house of the legislature. Money in the budget
stabilization fund may not be appropriated or transferred from the
fund except in accordance with an appropriation authorized by this
subsection. Money in the budget stabilization fund may be
appropriated only for a purpose described by Subsection (l) of this
section and only if:
(1) anticipated revenues for the then current state
fiscal biennium are not sufficient to cover appropriations already
made for the biennium; or
(2) anticipated revenues for the next state fiscal
biennium are not sufficient to cover a current services budget.
(e) Money in the property tax payers rebate fund may be
appropriated only for the purposes of making a rebate of the surplus
revenues, interest, and other earnings or money held in the fund to
this state's property tax payers and of paying administrative costs
necessary to make the rebate. During each regular session of the
legislature, the legislature shall determine whether the property
tax payers rebate fund contains enough money to make a reasonably
substantial rebate to property tax payers after the administrative
costs of making the rebate are paid. The legislature may establish
a procedure by general law for making rebates authorized by this
subsection. Money in the property tax payers rebate fund may not be
appropriated or transferred from the fund except in accordance with
an appropriation authorized by this subsection.
(f) Not later than the 90th day of each fiscal year, the
comptroller of public accounts shall transfer from general revenue
[to the economic stabilization fund] the amounts prescribed by
Subsections (g) and (h) [(d) and (e)] of this section. [However, if
necessary, the comptroller shall reduce proportionately the
amounts transferred to prevent the amount in the fund from
exceeding the limit in effect for that biennium under Subsection
(g) of this section.]
(g) [(d)] If in the preceding year the state received from
oil production taxes a net amount greater than the net amount of oil
production taxes received by the state in the fiscal year ending
August 31, 1987, the comptroller shall transfer [to the economic
stabilization fund] an amount equal to 75 percent of the difference
between those amounts to the funds established by this section,
distributed among the funds in the same proportions as provided by
Subsection (b) of this section for transfers of surplus revenue
under that subsection. The comptroller shall retain the remaining
25 percent of the difference as general revenue. In computing the
net amount of oil production taxes received, the comptroller may
not consider refunds paid as a result of oil overcharge litigation.
(h) [(e)] If in the preceding year the state received from
gas production taxes a net amount greater than the net amount of gas
production taxes received by the state in the fiscal year ending
August 31, 1987, the comptroller shall transfer [to the economic
stabilization fund] an amount equal to 75 percent of the difference
between those amounts to the funds established by this section,
distributed among the funds in the same proportions as provided by
Subsection (b) of this section for transfers of surplus revenue
under that subsection. The comptroller shall retain the remaining
25 percent of the difference as general revenue. For the purposes
of this subsection, the comptroller shall adjust the comptroller's
[his] computation of revenues to reflect only 12 months of
collection.
(i) [(f)] The legislature may transfer or appropriate
additional money [amounts] to a fund established by this section
[the economic stabilization fund]. Interest and other earnings
earned on money in a fund established by this section accrue to that
fund. Notwithstanding Subsections (c), (d), and (e) of this
section, an amount in a fund equal to the amount of unexpended money
deposited in the fund by legislative transfer or appropriation and
the amount of unexpended interest or other earnings on money
deposited in the fund by legislative transfer or appropriation may
be appropriated as provided by the General Appropriations Act or
transferred from the fund as provided by general law. The
legislature by general law may establish any necessary accounting
principles applicable to the fund for purposes of this subsection.
(j) To the extent that the reports of payables and binding
encumbrances on which the transfers under Subsection (b) of this
section were based prove to have been underestimated, the
comptroller may reclaim money transferred under Subsection (b) of
this section to the extent the comptroller determines is necessary
to pay a claim that is legally payable from an appropriation that
was encumbered to pay the claim before the expiration of the
appropriation but the balance of which is insufficient to pay the
claim. The comptroller, in reclaiming money under this subsection,
shall reclaim the money from each fund established by this section
in the same proportion as the revenues were transferred to the
funds.
(k) [(g) During each fiscal biennium, the amount in the
economic stabilization fund may not exceed an amount equal to 10
percent of the total amount, excluding investment income, interest
income, and amounts borrowed from special funds, deposited in
general revenue during the preceding biennium.
[(h)] In preparing an estimate of anticipated revenues for a
succeeding biennium as required by Article III, Section 49a, of
this constitution, the comptroller shall estimate the amount of the
transfers that will be made under Subsections (b), (g) [(d)], and
(h) [(e)] of this section. The comptroller shall deduct that amount
from the estimate of anticipated revenues as if the transfers were
made on August 31 of that fiscal year.
[(i) The comptroller shall credit to 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.
[(j) The comptroller may transfer money from the economic
stabilization fund to general revenue to prevent or eliminate a
temporary cash deficiency in general revenue. The comptroller
shall return the amount transferred to the economic stabilization
fund as soon as practicable, but not later than August 31 of each
odd-numbered year. The comptroller shall allocate the depository
interest as if the transfers had not been made. If the comptroller
submits a statement to the governor and the legislature under
Article III, Section 49a, of this constitution when money from the
economic stabilization fund is in general revenue, the comptroller
shall state that the transferred money is not available for
appropriation from general revenue.]
(l) Money [(k) Amounts from the economic stabilization
fund] may be appropriated from the budget stabilization fund during
a regular legislative session only for a purpose for which an
appropriation from general revenue was made by the preceding
legislature and may be appropriated in a special session only for a
purpose for which an appropriation from general revenue was made in
a preceding regular or special legislative session of the same
legislature. [An appropriation from the economic stabilization
fund may be made only if the comptroller certifies that
appropriations from general revenue made by the preceding
legislature for the current biennium exceed available general
revenues and cash balances for the remainder of that biennium. The
amount of an appropriation from the economic stabilization fund may
not exceed the difference between the comptroller's estimate of
general revenue for the current biennium at the time the
comptroller receives for certification the bill making the
appropriation and the amount of general revenue appropriations for
that biennium previously certified by the comptroller.
Appropriations from the economic stabilization fund under this
subsection may not extend beyond the last day of the current
biennium. An appropriation from the economic stabilization fund
must be approved by a three-fifths vote of the members present in
each house of the legislature.
[(l) If an estimate of anticipated revenues for a succeeding
biennium prepared by the comptroller pursuant to Article III,
Section 49a, of this constitution is less than the revenues that are
estimated at the same time by the comptroller to be available for
the current biennium, the legislature may, by a three-fifths vote
of the members present in each house, appropriate for the
succeeding biennium from the economic stabilization fund an amount
not to exceed this difference. Following each fiscal year, the
actual amount of revenue shall be computed, and if the estimated
difference exceeds the actual difference, the comptroller shall
transfer the amount necessary from general revenue to the economic
stabilization fund so that the actual difference shall not be
exceeded. If all or a portion of the difference in revenue from one
biennium to the next results, at least in part, from a change in a
tax rate or base adopted by the legislature, the computation of
revenue difference shall be adjusted to the amount that would have
been available had the rate or base not been changed.]
(m) [In addition to the appropriation authority provided by
Subsections (k) and (l) of this section, the legislature may, by a
two-thirds vote of the members present in each house, appropriate
amounts from the economic stabilization fund at any time and for any
purpose.
[(n)] Money appropriated from a fund established by this
section [the economic stabilization fund] is subject to being
withheld or transferred, within any limits provided by statute and
this section, by any person or entity authorized to exercise the
power granted by Article XVI, Section 69, of this constitution.
[(o) In this section, "net" means the amount of money that
is equal to the difference between gross collections and refunds
before the comptroller allocates the receipts as provided by law.]
SECTION 4. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies
to the amendments to Section 22, Article VIII, Section 49a, Article
III, and Section 49-g, Article III, of this constitution, proposed
by the 79th Legislature, Regular Session, 2005, restricting the
rate of growth of appropriations from all sources of revenue except
the federal government to a rate equal to the sum of the estimated
rate of growth of the state's population and the estimated rate of
inflation in the state and establishing three special funds to
replace the economic stabilization fund. This temporary provision
expires December 1, 2007.
(b) On September 1, 2007, the comptroller shall transfer all
money held in the economic stabilization fund to the funds
established by the amendments to Section 49-g, Article III, of this
constitution. The comptroller shall transfer:
(1) three percent of the money to the emergency
expense fund;
(2) 15 percent of the money to the budget
stabilization fund; and
(3) the remainder of the money to the property tax
payers rebate fund.
(c) The changes made to Section 22, Article VIII, Section
49a, Article III, and Section 49-g, Article III, of this
constitution by the amendments apply only in relation to
appropriations made for the state fiscal biennium beginning
September 1, 2007, and subsequent state fiscal bienniums.
Appropriations for the state fiscal biennium that began September
1, 2005, are governed by Section 22, Article VIII, Section 49a,
Article III, and Section 49-g, Article III, as they existed
immediately before the amendment was approved by the voters.
(d) The changes made to Section 49-g, Article III, of this
constitution by the amendments with regard to transferring money
into the emergency expense fund, the budget stabilization fund, and
the property tax payers rebate fund apply beginning with any
unencumbered positive balance of general revenues on August 31,
2007, and with oil or gas production taxes received after that date.
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 to (1) replace the
state's rainy day fund with funds reserved for emergency
expenditures, budget stabilization, and rebates to property tax
payers; and (2) limit the rate of growth of the state budget paid
from all sources of revenue except the federal government to a rate
equal to the sum of the rate of growth of the state's population and
the rate of inflation."