82R104 JJT-F

By: Paxton H.J.R. No. 70

A JOINT RESOLUTION

proposing a constitutional amendment regarding the maximum rate of growth of appropriations and the use of unencumbered surplus general revenues to fund the state's rainy day fund and a public school property tax relief 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) The [In no biennium shall the] rate of growth of appropriations from the state treasury for a fiscal biennium, as compared to the previous fiscal biennium, from all available sources of revenue except the federal government may not [state tax revenues not dedicated by this constitution] exceed the maximum [the estimated] rate of growth determined in accordance with Subsection (c) of this section and general law. The amount of appropriations from the state treasury for a fiscal biennium may not exceed the amount of permissible appropriations from all available sources of revenue except the federal government for that fiscal biennium, as determined in accordance with Subsection (d) of this section and general law [of the state's economy].

(b) For purposes of this section, appropriations from any source of revenue made for the sole purpose of reducing the imposition of ad valorem taxes by a political subdivision of this state or otherwise providing ad valorem tax relief are excluded from the determinations made under Subsections (c) and (d) of this section.

(c) The maximum rate of growth of appropriations from all available sources of revenue except the federal government is the least of:

(1) a rate equal to the sum of:

(A) the estimated rate of growth of this state's population; and

(B) the estimated rate of monetary inflation in this state;

(2) the estimated rate of growth of this state's gross state product; or

(3) the estimated rate of growth of personal income of this state's residents.

(d) The amount of permissible appropriations from all available sources of revenue except the federal government may not exceed an amount determined by multiplying the amount of appropriations from all available sources of revenue except the federal government for the then current fiscal biennium by the sum of one plus the maximum rate of growth determined under Subsection (c) of this section. If the maximum rate of growth determined under Subsection (c) of this section is a negative rate, the maximum amount of permissible appropriations from all available sources of revenue except the federal government for the next fiscal biennium is an amount less than the amount of appropriations for the then current fiscal biennium reduced in accordance with that negative growth rate.

(e) The legislature shall provide by general law procedures to implement this section [subsection].

(f) [(b)] If the legislature, by adoption on a record vote of a resolution approved by two-thirds [a record vote of a majority] of the members of each house, finds that an emergency exists and identifies the nature of the emergency, the legislature may provide by that resolution for appropriations in excess of the maximum permissible amount of appropriations authorized under [by] Subsection (d) [(a)] of this section. The total of the excess appropriations authorized by resolutions approved under this subsection may not exceed the total of the amounts [amount] specified in those resolutions [the resolution].

(g) [(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 maximum amount of permissible appropriations authorized under Section 22, Article VIII, of this constitution.

(d) When the Comptroller of Public Accounts finds that a bill containing an appropriation exceeds the maximum amount of permissible appropriations authorized under Section 22, Article VIII, of this constitution, the Comptroller shall:

(1) endorse on the bill that finding;

(2) return the bill to the House in which it originated; and

(3) notify immediately the House of Representatives and the Senate of the finding.

SECTION 3. Section 49-g(b), Article III, Texas Constitution, is amended to read as follows:

(b) The comptroller shall, not later than the 90th day of each state fiscal biennium, transfer to the economic stabilization fund one-quarter [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) Not later than the 90th day of each state fiscal biennium, the comptroller of public accounts shall ascertain the amount of the unencumbered positive balance of general revenues on the last day of the preceding state fiscal biennium that remains after the transfer of general revenues to the economic stabilization fund under Section 49-g(b) of this article. 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.

(b) Not later than the 91st day of each state fiscal biennium, the comptroller of public accounts shall transfer to a property tax relief fund two-thirds of the amount of the balance ascertained under Subsection (a) of this section. Money transferred to the property tax relief fund may be appropriated only for the purpose of reducing as provided by general law the rate of the school district maintenance and operation taxes authorized by Section 3(e), Article VII, of this constitution.

(c) The legislature by general law shall provide the method by which the school district maintenance and operation tax rate is to be reduced by the appropriation of money dedicated for that purpose by Subsection (b) of this section. The maximum rate at which a school district may impose maintenance and operation taxes is to be reduced by an amount equal to one cent per $100 valuation of taxable property for each one cent per $100 valuation of taxable property that the school district's maintenance and operation tax is reduced by the general law method required by this subsection.

(d) In preparing an estimate of anticipated revenues for a succeeding biennium as required by Section 49a of this article, the comptroller of public accounts shall estimate the amount of the transfers that will be made under 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.

SECTION 5. (a) This proposed constitutional amendment shall be submitted to the voters at an election to be held November 6, 2012.

(b) The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment regarding the maximum rate of growth of appropriations and the use of unencumbered surplus general revenues to fund the state's rainy day fund and a public school property tax relief fund."