81R7142 JJT-D

By: Isett H.J.R. No. 110

A JOINT RESOLUTION

proposing a constitutional amendment regarding the limit on the amount in the economic stabilization fund (rainy day fund) and establishing an infrastructure 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 (a), (b), (c), (f), (g), (h), and (i) and adding Subsections (b-1), (b-2), (b-3), (i-1), (p), and (q) to read as follows:

Sec. 49-g. (a) The economic stabilization fund and the infrastructure fund are special funds [is] established [as a special fund] in the state treasury.

(b) The comptroller shall, not later than the 90th day of each biennium, transfer to the economic stabilization fund from [one-half of] any unencumbered positive balance of general revenues on the last day of the preceding biennium the lesser of:

(1) an amount equal to the difference between the balance of the economic stabilization fund on the last day of the preceding biennium and the limit in effect for the preceding fiscal biennium as prescribed by Subsection (g); and

(2) one-half of that unencumbered positive balance.

(b-1) If necessary, the comptroller shall reduce the amount transferred to the economic stabilization fund in proportion to the other amounts prescribed by this section to prevent the amount in the fund from exceeding the limit in effect for the then-current fiscal [that] biennium under Subsection (g) of this section.

(b-2) If, after the transfer of unencumbered general revenue to the economic stabilization fund under Subsection (b) of this section, any of that unencumbered positive balance of general revenues remains, the comptroller shall transfer that balance to the infrastructure fund not later than the 90th day of the fiscal biennium.

(b-3) For purposes of this section, 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) 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 (d) and (e) of this section. However, if necessary [, the comptroller shall reduce proportionately the amounts transferred] to prevent the amount in the economic stabilization fund from exceeding the limit in effect for that fiscal biennium under Subsection (g) of this section, the comptroller shall:

(1) reduce proportionately the amounts transferred to the economic stabilization fund under Subsections (d) and (e) of this section; and

(2) transfer the remaining amounts ordinarily transferred to the economic stabilization fund under those subsections to the infrastructure fund.

(f) The legislature may transfer [appropriate] additional amounts to the economic stabilization fund or infrastructure fund.

(g) During each fiscal biennium, the amount in the economic stabilization fund may not exceed an amount equal to seven and one-half [10] percent of the total amount of general revenue appropriated for expenditure [, 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), (b-1), (b-2), (c), (d), and (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 the infrastructure fund any interest due to the infrastructure fund.

(i-1) The comptroller shall credit to the economic stabilization fund any interest due to the economic stabilization fund except that the comptroller shall credit to the infrastructure 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 for that fiscal biennium under Subsection (g) of this section.

(p) Money in the infrastructure fund may be appropriated only to pay direct costs, excluding administrative costs or costs related to financing, of:

(1) transportation projects;

(2) rail relocation projects; and

(3) water-related infrastructure projects.

(q) Any amount of money appropriated from the infrastructure fund that is unspent at the end of the fiscal year or fiscal biennium for which it was appropriated shall be deposited to the credit of the infrastructure fund.

SECTION 2. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 3, 2009. The ballot shall be printed to provide for voting for or against the proposition: "The constitutional amendment regarding the limit on the amount in the economic stabilization fund (rainy day fund) and establishing an infrastructure fund."