86R3246 KJE-F
 
  By: Capriglione H.J.R. No. 10
 
 
 
A JOINT RESOLUTION
  proposing a constitutional amendment providing for the creation of
  the Texas legacy fund and the Texas legacy distribution fund,
  dedicating earnings on the Texas legacy distribution fund to
  certain state infrastructure projects or the reduction of certain
  long-term obligations, and providing for the transfer of certain
  general revenues to the economic stabilization fund, the Texas
  legacy fund, and the state highway fund.
         BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 49-g, Article III, Texas Constitution,
  is amended by adding Subsections (a-1), (a-2), (b-1), and (b-2) and
  amending Subsections (b), (c), (c-1), (c-2), and (i) to read as
  follows:
         (a-1)  The comptroller of public accounts shall invest the
  economic stabilization fund as provided by general law. The
  expenses of managing the investments of the fund are paid from the
  fund without appropriation. The comptroller shall credit to the
  fund the interest and other earnings attributable to the investment
  of money in the fund, subject to the limit in effect under
  Subsection (g) of this section.
         (a-2)  For the purposes of allocating amounts to be
  transferred as provided by this section, the legislature by general
  law shall determine a sufficient balance of the economic
  stabilization fund or a method to determine that sufficient
  balance.
         (b)  The comptroller of public accounts shall, not later than
  the 90th day of each biennium, transfer from the general revenue
  fund to the economic stabilization fund and the Texas legacy fund a
  total amount equal to one-half of any unencumbered positive balance
  of general revenues on the last day of the preceding biennium and
  allocate that amount as provided by Subsections (b-1) and (b-2) of
  this section.  However, if [If] necessary and notwithstanding the
  allocations prescribed by Subsection (b-2) of this section, the
  comptroller shall reduce the amount to be transferred to the
  economic stabilization fund under that subsection 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.
         (b-1)  If at the time the comptroller of public accounts
  makes the transfer under Subsection (b) of this section the
  unappropriated balance of the economic stabilization fund is equal
  to or greater than the sufficient balance as determined in
  accordance with Subsection (a-2) of this section, the comptroller
  shall allocate to the Texas legacy fund the total amount required to
  be transferred as prescribed by Subsection (b) of this section.
         (b-2)  If at the time the comptroller of public accounts
  makes the transfer under Subsection (b) of this section the
  unappropriated balance of the economic stabilization fund is less
  than the sufficient balance as determined in accordance with
  Subsection (a-2) of this section, in making the transfer, the
  comptroller shall allocate:
               (1)  to the economic stabilization fund an amount equal
  to the lesser of:
                     (A)  the amount necessary to make the
  unappropriated balance of the economic stabilization fund equal to
  the sufficient balance; and
                     (B)  the total amount required to be transferred
  as prescribed by Subsection (b) of this section; and
               (2)  to the Texas legacy fund an amount equal to the
  remainder, if any, of the total amount required to be transferred as
  prescribed by Subsection (b) of this section after making the
  allocation under Subdivision (1) of this subsection.
         (c)  Not later than the 90th day of each fiscal year, the
  comptroller of public accounts shall transfer from the general
  revenue fund to the economic stabilization fund, the Texas legacy
  fund, and the state highway fund the sum of the amounts described by
  Subsections (d) and (e) of this section and allocate those
  amounts[, to be allocated] as provided by Subsections (c-1) and
  (c-2) of this section.  However, if necessary and notwithstanding
  the allocations prescribed by Subsection [Subsections (c-1) and]
  (c-2) of this section, the comptroller shall reduce proportionately
  the amounts [described by Subsections (d) and (e) of this section]
  to be transferred and allocated to the economic stabilization fund
  under that subsection to prevent the amount in that fund from
  exceeding the limit in effect for that biennium under Subsection
  (g) of this section.  Revenue transferred to the state highway fund
  under this subsection may be used only for constructing,
  maintaining, and acquiring rights-of-way for public roadways other
  than toll roads.
         (c-1)  Of the sum of the amounts described by Subsections (d)
  and (e) of this section and required to be transferred from the
  general revenue fund under Subsection (c) of this section, the
  comptroller of public accounts shall allocate one-half to the Texas
  legacy [economic stabilization] fund and the remainder to the state
  highway fund, except as provided by Subsection (c-2) of this
  section.
         (c-2)  The legislature by general law shall provide for a
  procedure by which, notwithstanding Subsection (c-1) of this
  section, the allocation of the total amount required to be
  transferred as prescribed by Subsection (c) [sum of the amounts
  described by Subsections (d) and (e)] of this section may be
  adjusted to provide for an allocation [a transfer] to the economic
  stabilization fund of an amount determined under general law, 
  [greater than the allocation provided for under Subsection (c-1) of
  this section] with the remainder of that total amount [sum], if any,
  allocated for transfer to the Texas legacy fund and the state
  highway fund as provided by general law.  The allocation made as
  provided by that general law is binding on the comptroller of public
  accounts for the purposes of the transfers required by Subsection
  (c) of this section.
         (i)  The comptroller of public accounts shall credit to the
  Texas legacy 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 under
  Subsection (g) of this section.
         SECTION 2.  Article III, Texas Constitution, is amended by
  adding Section 49-g-1 to read as follows:
         Sec. 49-g-1.  (a)  The Texas legacy fund is established as a
  special fund in the state treasury.
         (b)  The comptroller of public accounts shall invest the
  Texas legacy fund as provided by general law.  The expenses of
  managing the investments of the fund are paid from the fund without
  appropriation.  The comptroller shall credit to the fund the
  interest and other earnings attributable to the investment of money
  in the fund, subject to any transfer to the Texas legacy
  distribution fund made in accordance with Subsection (e) of this
  section.
         (c)  The legislature may appropriate money to the Texas
  legacy fund in addition to money transferred to the fund under
  Section 49-g of this article.
         (d)  The legislature may not appropriate money from the Texas
  legacy fund.
         (e)  Each fiscal year, the comptroller of public accounts
  shall transfer a portion of the accumulated interest and other
  earnings credited to the Texas legacy fund from the Texas legacy
  fund to the Texas legacy distribution fund. In making a transfer,
  the comptroller shall determine the amount of the transfer in a
  manner to provide a stable and predictable stream of annual
  transfers while preserving over time the purchasing power of the
  principal amount of the Texas legacy fund. If the comptroller
  determines that the purchasing power of the principal amount of the
  Texas legacy fund has diminished when computed for any 10-year
  period, the comptroller may reduce the amount of the annual
  transfers from the Texas legacy fund to the Texas legacy
  distribution fund and retain a greater portion of the interest and
  earnings on the principal in the Texas legacy fund so that the
  purchasing power of that fund's principal is restored.
         SECTION 3.  Article III, Texas Constitution, is amended by
  adding Section 49-g-2 to read as follows:
         Sec. 49-g-2.  (a) The Texas legacy distribution fund is
  established as a special fund in the state treasury.
         (b)  The comptroller of public accounts shall invest the
  Texas legacy distribution fund as provided by general law. The
  expenses of managing the investments of the fund are paid from the
  fund without appropriation.  The comptroller shall credit to the
  fund the interest and other earnings attributable to the investment
  of money in the fund.
         (c)  The legislature may appropriate money to the Texas
  legacy distribution fund in addition to money transferred to the
  fund under Section 49-g-1 of this article.
         (d)  The legislature may appropriate money from the Texas
  legacy distribution fund only to pay for:
               (1)  state debt service obligations that depend on
  general revenue for debt service;
               (2)  unfunded actuarial liabilities of the Employees
  Retirement System of Texas or the Teacher Retirement System of
  Texas, notwithstanding the limitation on contributions otherwise
  provided by Section 67(b), Article XVI, of this constitution;
               (3)  projects to repair, renovate, rehabilitate, or
  construct state infrastructure other than transportation
  infrastructure and higher education facilities; or
               (4)  other obligations of this state that are:
                     (A)  recognized as long-term obligations
  according to generally accepted accounting principles; and
                     (B)  approved by the legislature by general law,
  by a vote of two-thirds of the members present in each house, to be
  paid for from appropriations made under this subsection.
         (e)  In determining the rate of growth of appropriations from
  state tax revenues not dedicated by this constitution for purposes
  of Section 22, Article VIII, of this constitution, an appropriation
  of money from the Texas legacy distribution fund shall be excluded
  regardless of the source of the revenues appropriated.
         SECTION 4.  The following temporary provision is added to
  the Texas Constitution:
         TEMPORARY PROVISION. (a) This temporary provision applies
  to the constitutional amendment proposed by the 86th Legislature,
  Regular Session, 2019, providing for the creation of the Texas
  legacy fund and the Texas legacy distribution fund, dedicating
  earnings on the Texas legacy distribution fund to certain state
  infrastructure projects or the reduction of certain long-term
  obligations, and providing for the transfer of certain general
  revenues to the economic stabilization fund, the Texas legacy fund,
  and the state highway fund. 
         (b)  Sections 49-g-1 and 49-g-2, Article III, of this
  constitution, as added by the amendment, and the amendment to
  Section 49-g, Article III, of this constitution, take effect
  January 1, 2020.
         (c)  As soon as practicable after the effective date of the
  amendment adding Sections 49-g-1 and 49-g-2 to Article III of this
  constitution, the comptroller of public accounts shall establish
  the Texas legacy fund and the Texas legacy distribution fund as
  provided by those sections. The comptroller shall transfer from
  the economic stabilization fund the amount of $3.5 billion as the
  principal balance of the Texas legacy fund.
         (d)  As soon as practicable after the effective date of the
  amendment, the comptroller of public accounts shall invest the
  economic stabilization fund, the Texas legacy fund, and the Texas
  legacy distribution fund as provided by general law.
         (e)  This temporary provision expires January 1, 2021.
         SECTION 5.  This proposed constitutional amendment shall be
  submitted to the voters at an election to be held November 5, 2019.
  The ballot shall be printed to permit voting for or against the
  proposition: "The constitutional amendment providing for the
  creation of the Texas legacy fund and the Texas legacy distribution
  fund, dedicating earnings on the Texas legacy distribution fund to
  certain state infrastructure projects or the reduction of certain
  long-term obligations, and providing for the transfer of certain
  general revenues to the economic stabilization fund, the Texas
  legacy fund, and the state highway fund."