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."