By: Seliger S.J.R. No. 21
 
 
 
   
 
 
 
SENATE JOINT RESOLUTION
  proposing a constitutional amendment to provide for foregoing the
  transfer of oil and gas production tax revenue to the economic
  stabilization fund if the ending fund balance for the preceding
  fiscal year is greater than 10 percent of the prior fiscal year's
  total net general revenue related collections and for reducing the
  rates of oil and gas production taxes by amounts sufficient to equal
  the foregone transfer.
         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 (c), (c-1), (c-2), (d), and (e)
  and adding Subsections (c-3), (c-4), (c-5), and (c-6) to read as
  follows:
         (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 and the state
  highway fund the sum of the amounts described by Subsections (d) and
  (e) of this section, to be allocated as provided by Subsection 
  [Subsections] (c-1) [and (c-2)] of this section.  However, if
  necessary and notwithstanding the allocation [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 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 shall allocate one-half to the economic stabilization
  fund and the remainder to the state highway fund[, except as
  provided by Subsection (c-2) of this section].
         (c-2)  If the ending balance in the economic stabilization
  fund for the preceding fiscal year was not greater than 10 percent
  of the prior fiscal year's total net general revenue related
  collections, the rate of tax imposed on oil production and the rate
  of tax imposed on gas production in the current fiscal year shall be
  as provided by the legislature under general law  [The legislature
  by general law shall provide for a procedure by which the allocation
  of the sum of the amounts described by Subsections (d) and (e) of
  this section may be adjusted to provide for a transfer to the
  economic stabilization fund of an amount greater than the
  allocation provided for under Subsection (c-1) of this section with
  the remainder of that sum, if any, allocated for transfer to the
  state highway fund.  The allocation made as provided by that general
  law is binding on the comptroller for the purposes of the transfers
  required by Subsection (c) of this section].
         (c-3)  If the ending balance in the economic stabilization
  fund for the preceding fiscal year was greater than 10 percent of
  the prior fiscal year's total net general revenue related
  collections, the comptroller shall not transfer any general revenue
  to the economic stabilization fund during the current fiscal year
  but shall transfer to the state highway fund under Subsection (c) of
  this section and retain as general revenue under Subsections (d)
  and (e) of this section the amounts that would have been transferred
  or retained had the ending balance been less than 10 percent of the
  prior fiscal year's total net general revenue related collections.
         (c-4)  In this section:
         (1)  "Tax relief set-aside" means the net amount of general
  revenue, as appropriate, that would have been transferred to the
  economic stabilization fund in the preceding fiscal year under
  Subsection (c) of this section had the ending balance in the fund
  for that fiscal year been not greater than 10 percent of the prior
  fiscal year's total net general revenue related collections.
         (2)  "Tax-rate-cut factor" means the quotient of the tax
  relief set-aside divided by the net amount of oil production tax or
  gas production tax, as appropriate, that the comptroller estimates
  under Article III, Section 49a(a), of this constitution will be
  collected in the current fiscal year.
         (c-5)  If the ending balance in the economic stabilization
  fund for the preceding fiscal year was greater than 10 percent of
  the prior fiscal year's total net general revenue related
  collections, the rate of tax imposed on oil production for the
  current fiscal year shall be calculated by subtracting the
  tax-rate-cut factor from one and multiplying the remainder by the
  tax rate for oil production provided by the legislature under
  general law.  The comptroller shall establish the rate of oil
  production tax not later than the 90th day of each fiscal year.
         (c-6)  If the ending balance in the economic stabilization
  fund for the preceding fiscal year was greater than 10 percent of
  the prior fiscal year's total net general revenue related
  collections, the rate of tax imposed on gas production for the
  current fiscal year shall be calculated by subtracting the
  tax-rate-cut factor from one and multiplying the remainder by the
  tax rate for gas production provide by the legislature under
  general law.  The comptroller shall establish the rate of gas
  production tax not later than the 90th day of each fiscal year.
         (d)  If in the preceding fiscal 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, and the ending balance in the economic
  stabilization fund for the preceding fiscal year was not greater
  than 10 percent of the prior fiscal year's total net general revenue
  related collections, the comptroller shall transfer under
  Subsection (c) of this section and allocate in accordance with
  Subsection [Subsections] (c-1) [and (c-2)] of this section an
  amount equal to 75 percent of the difference between those amounts.  
  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.
         (e)  If in the preceding fiscal 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, and the ending balance in the economic
  stabilization fund for the preceding fiscal year was not greater
  than 10 percent of the prior fiscal year's total net general revenue
  related collections, the comptroller shall transfer under
  Subsection (c) of this section and allocate in accordance with
  Subsection [Subsections] (c-1) [and (c-2)] of this section an
  amount equal to 75 percent of the difference between those amounts.  
  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 computation of
  revenues to reflect only 12 months of collection.
         SECTION 2.  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 foregoing the transfer of oil
  and gas production tax revenue to the economic stabilization fund
  if the ending fund balance for the preceding fiscal year is greater
  than 10 percent of the prior fiscal year's total net general revenue
  related collections and for reducing the rates of oil and gas
  production taxes by amounts sufficient to equal the foregone
  transfer.
         (b)  The amendments to Section 49-g, Article III, of this
  constitution take effect January 1, 2020, and apply only to oil
  production taxes and gas production taxes imposed for a fiscal year
  beginning after that date.
         (c)  This temporary provision expires January 1, 2020.
         SECTION 3.  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
  foregoing the transfer of oil and gas production tax revenue to the
  economic stabilization fund if the ending fund balance for the
  preceding fiscal year is greater than $5 billion and for reducing
  the rates of oil and gas production taxes by amounts sufficient to
  equal the foregone transfer."