88R13554 KBB-F     By: Howard H.J.R. No. 203       A JOINT RESOLUTION   proposing a constitutional amendment providing for the creation of   the Texas legacy fund and the Texas legacy distribution fund,   dedicating 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 for [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 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.          (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 for a purpose   described by Subsection (d) of this section 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 88th Legislature,   Regular Session, 2023, providing for the creation of the Texas   legacy fund and the Texas legacy distribution fund, dedicating 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, 2024.          (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 $500 million 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, 2025.          SECTION 5.  This proposed constitutional amendment shall be   submitted to the voters at an election to be held November 7, 2023.   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 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."