2017S0275-1 02/21/17     By: Seliger S.J.R. No. 41       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 $5 billion 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 $5 billion,   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 $5 billion, the   comptroller shall not transfer any amount collected from oil   production tax or gas production tax 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 $5 billion or less. The amount that would have been   transferred to the economic stabilization fund shall be deposited   to the credit of the tax relief set-aside account in the general   revenue fund.          (c-4)  In this section:                (1)  "Tax relief set-aside" means the net amount of oil   production tax or gas production tax, 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 $5 billion.                (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 $5 billion, 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 $5 billion, 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   provided 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 $5 billion, 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 $5 billion, 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 85th Legislature,   Regular Session, 2017, 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.          (b)  The amendments to Section 49-g, Article III, of this   constitution take effect January 1, 2018, 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, 2018.          SECTION 3.  This proposed constitutional amendment shall be   submitted to the voters at an election to be held November 7, 2017.   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."