By: Taylor H.J.R. No. 18

A JOINT RESOLUTION

proposing a constitutional amendment requiring the allocation of certain interest and investment income from the economic stabilization fund to the purposes of public education, water development projects, and transportation.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 49-g, Article III, Texas Constitution, is amended by amending Subsection (g) and adding Subsections (g-1), (g-2), and (g-3) to read as follows:

(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. The amount of money required to be transferred from the economic stabilization fund under Subsection (g-1) of this section is considered to be transferred before any amounts are transferred to the fund as required by Subsections (b), (c), (d), and (e) of this section, regardless of the actual order in which those transfers occur.

(g-1) Not later than the 90th day of each state fiscal year, the comptroller shall:

(1) determine whether the ending balance of the economic stabilization fund for the preceding state fiscal year, excluding the amount of money from interest and investment income received during the preceding state fiscal year, equals or exceeds an amount equal to seven percent of the total amount of general revenue appropriations made for the state fiscal biennium during which the determination is made; and

(2) if the ending balance described by Subdivision (1) of this subsection equals or exceeds seven percent of the total amount of the general revenue appropriations described by that subdivision, transfer from the economic stabilization fund the amount of money equal to the amount of interest and investment income received during the preceding state fiscal year as follows:

(A) one-third of the amount to the permanent school fund;

(B) one-third of the amount to the Texas Water Development Fund II; and

(C) the remaining amount to the state highway fund.

(g-2) For purposes of Subsection (g-1) of this section, the ending balance of the economic stabilization fund for a state fiscal year includes all amounts of money transferred to the general revenue fund under Subsection (j) of this section during the state fiscal biennium that includes the fiscal year for which the ending balance is determined, regardless of whether the money has been returned.

(g-3) A transfer of money under Subsection (g-1) of this section is an appropriation from state tax revenues dedicated by this constitution for purposes of determining the rate of growth of those appropriations under Section 22, Article VIII, of this constitution.

SECTION 2. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 5, 2013. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment requiring the allocation of certain interest and investment income from the economic stabilization fund to the purposes of public education, water development projects, and transportation."