85R1818 MAW-D     By: Raymond H.J.R. No. 53       A JOINT RESOLUTION   proposing a constitutional amendment providing for an annual state   budget and annual legislative sessions for budget purposes.          BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 5(a), Article III, Texas Constitution,   is amended to read as follows:          (a)  The Legislature shall meet every odd-numbered year in   regular session and every even-numbered year in budget session [two   years] at such times [time] as may be provided by law.  The   Legislature also shall meet [and] at other times when convened by   the Governor.          SECTION 2.  Section 24(a), Article III, Texas Constitution,   is amended to read as follows:          (a)  Members of the Legislature shall receive from the Public   Treasury a salary of Six Hundred Dollars ($600) per month, unless a   greater amount is recommended by the Texas Ethics Commission and   approved by the voters of this State in which case the salary is   that amount. Each member shall also receive a per diem set by the   Texas Ethics Commission for each day during each Regular, Budget,    and Special Session of the Legislature.          SECTION 3.  Article III, Texas Constitution, is amended by   adding Section 40a to read as follows:          Sec. 40a.  (a) A budget session of the legislature may not   exceed 60 days in duration, except that the legislature by majority   vote of the membership of each house may extend a budget session by   not more than 30 days.  When convened in budget session, a house of   the legislature may not consider a bill or proposed constitutional   amendment on a matter other than:                (1)  appropriations, transfers of state money among   funds and accounts, or state revenue; or                (2)  an emergency matter submitted by the governor in a   special message to the legislature.          (b)  Except as otherwise provided by this constitution, a   budget session is treated in the same manner as a special session of   the legislature for purposes of this constitution.          (c)  Unless otherwise provided by general law, a budget   session shall be convened at noon on the third Tuesday in April.          SECTION 4.  Section 49(c), Article III, Texas Constitution,   is amended to read as follows:          (c)  The legislature may call an election during any regular   session or budget session of the legislature or during any special   session of the legislature in which the subject of the election is   designated in the governor's proclamation for that special session.   The election may be held on any date, and notice of the election   shall be given for the period and in the manner required for   amending this constitution. The election shall be held in each   county in the manner provided by law for other statewide elections.          SECTION 5.  Subsection (a), Section 49a, Article III, Texas   Constitution, is amended to read as follows:          (a)  It shall be the duty of the Comptroller of Public   Accounts in advance of each Regular Session and Budget Session of   the Legislature to prepare and submit to the Governor and to the   Legislature upon its convening a statement under oath showing fully   the financial condition of the State Treasury at the close of the   last fiscal period and an estimate of the probable receipts and   disbursements for the then current fiscal year. There shall also be   contained in said statement an itemized estimate of the anticipated   revenue based on the laws then in effect that will be received by   and for the State from all sources showing the fund accounts to be   credited during each of the next two fiscal years, [the succeeding   biennium] and said statement shall contain such other information   as may be required by law. Supplemental statements shall be   submitted at any Special Session of the Legislature and at such   other times as may be necessary to show probable changes.          SECTION 6.  Subsections (b), (c), (g), (h), (j), (k), and   (l), Section 49-g, Article III, Texas Constitution, are amended to   read as follows:          (b)  The comptroller shall, not later than the 90th day of   each fiscal year [biennium], transfer to the economic stabilization   fund one-half of any unencumbered positive balance of general   revenues on the last day of the preceding fiscal year [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 fiscal year [biennium] under Subsection (g) of this   section.          (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 Subsections   (c-1) and (c-2) of this section.  However, if necessary and   notwithstanding the allocations prescribed by 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 fiscal year [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.          (g)  During each fiscal year [biennium], the amount in the   economic stabilization fund may not exceed an amount equal to 10   percent of the total amount, excluding investment income, interest   income, and amounts borrowed from special funds, deposited in   general revenue during the preceding two fiscal years [biennium].          (h)  In preparing an estimate of anticipated revenues for a   succeeding fiscal year [biennium] as required by Article III,   Section 49a, of this constitution, the comptroller shall estimate   the amount of the transfers that will be made under Subsections (b),   (d), and (e) of 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.          (j)  The comptroller may transfer money from the economic   stabilization fund to general revenue to prevent or eliminate a   temporary cash deficiency in general revenue. The comptroller   shall return the amount transferred to the economic stabilization   fund as soon as practicable, but not later than August 31 of the   fiscal year in which the transfer is made [each odd-numbered year].   The comptroller shall allocate the depository interest as if the   transfers had not been made. If the comptroller submits a statement   to the governor and the legislature under Article III, Section 49a,   of this constitution when money from the economic stabilization   fund is in general revenue, the comptroller shall state that the   transferred money is not available for appropriation from general   revenue.          (k)  Amounts from the economic stabilization fund may be   appropriated during a regular or budget [legislative] session only   for a purpose for which an appropriation from general revenue was   made for the current fiscal year [by the preceding legislature] and   may be appropriated in a special session only for a purpose for   which an appropriation from general revenue was made in a preceding   legislative session of the same legislature. An appropriation from   the economic stabilization fund may be made under this subsection    only if the comptroller certifies that appropriations from general   revenue made for the current fiscal year [by the preceding   legislature for the current biennium] exceed available general   revenues and cash balances for the remainder of that fiscal year   [biennium]. The amount of the [an] appropriation [from the   economic stabilization fund] may not exceed the difference between   the comptroller's estimate of general revenue for the current   fiscal year [biennium] at the time the comptroller receives for   certification the bill making the appropriation and the amount of   general revenue appropriations for that fiscal year [biennium]   previously certified by the comptroller. Appropriations from the   economic stabilization fund under this subsection may not extend   beyond the last day of the current fiscal year [biennium]. An   appropriation from the economic stabilization fund under this   subsection must be approved by a three-fifths vote of the members   present in each house of the legislature.          (l)  If an estimate of anticipated revenues for the [a]   succeeding fiscal year [biennium] prepared by the comptroller   pursuant to Article III, Section 49a, of this constitution is less   than the revenues that are estimated at the same time by the   comptroller to be available for the current fiscal year [biennium],   the legislature may, by a three-fifths vote of the members present   in each house, appropriate for the succeeding fiscal year   [biennium] from the economic stabilization fund an amount not to   exceed this difference. Following each fiscal year, the actual   amount of revenue shall be computed, and if the estimated   difference exceeds the actual difference, the comptroller shall   transfer the amount necessary from general revenue to the economic   stabilization fund so that the actual difference shall not be   exceeded. If all or a portion of the difference in revenue from one   fiscal year [biennium] to the next results, at least in part, from a   change in a tax rate or base adopted by the legislature, the   computation of revenue difference shall be adjusted to the amount   that would have been available had the rate or base not been   changed.          SECTION 7.  Subsection (b), Section 51-a, Article III, Texas   Constitution, is amended to read as follows:          (b)  The Legislature may provide by General Law for medical   care, rehabilitation and other similar services for needy persons.   The Legislature may prescribe such other eligibility requirements   for participation in these programs as it deems appropriate and may   make appropriations out of state funds for such purposes. The   maximum amount paid out of state funds for assistance grants to or   on behalf of needy dependent children and their caretakers shall   not exceed one percent of the state budget. The Legislature by   general statute shall provide for the means for determining the   state budget amounts, including state and other funds appropriated   by the Legislature, to be used in establishing the [biennial] limit   for a fiscal year.          SECTION 8.  Section 5(a), Article VII, Texas Constitution,   is amended to read as follows:          (a)  The permanent school fund consists of all land   appropriated for public schools by this constitution or the other   laws of this state, other properties belonging to the permanent   school fund, and all revenue derived from the land or other   properties. The available school fund consists of the distributions   made to it from the total return on all investment assets of the   permanent school fund, the taxes authorized by this constitution or   general law to be part of the available school fund, and   appropriations made to the available school fund by the   legislature. The total amount distributed from the permanent school   fund to the available school fund:                (1)  in [each year of] a state fiscal year [biennium]   must be an amount that is not more than six percent of the average of   the market value of the permanent school fund, excluding real   property belonging to the fund that is managed, sold, or acquired   under Section 4 of this article, but including discretionary real   assets investments and cash in the state treasury derived from   property belonging to the fund, on the last day of each of the 16   state fiscal quarters preceding the regular or budget session of   the legislature, as applicable, that begins before that state   fiscal year [biennium], in accordance with the rate adopted by:                      (A)  a vote of two-thirds of the total membership   of the State Board of Education, taken before that [the] regular or   budget session of the legislature convenes; or                      (B)  the legislature by general law or   appropriation, if the State Board of Education does not adopt a rate   as provided by Paragraph (A) of this subdivision; and                (2)  over the 10-year period consisting of the current   state fiscal year and the nine preceding state fiscal years may not   exceed the total return on all investment assets of the permanent   school fund over the same 10-year period.          SECTION 9.  Sections 20(d), (e), (f), and (g), Article VII,   Texas Constitution, are amended to read as follows:          (d)  In each state fiscal year [biennium], the legislature   may appropriate as provided by Subsection (f) of this section all or   a portion of the total return on all investment assets of the fund   to carry out the purposes for which the fund is established.          (e)  The legislature annually [biennially] shall allocate   the amounts appropriated under this section, or shall provide for   an annual [a biennial] allocation of those amounts, to eligible   state universities to carry out the purposes of the fund. The money   shall be allocated based on an equitable formula established by the   legislature or an agency designated by the legislature. The   legislature shall review and as appropriate adjust, or provide for   a review and adjustment, of the allocation formula at the end of   each state fiscal year [biennium].          (f)  The portion of the total return on investment assets of   the fund that is available for appropriation in a state fiscal year   [biennium] under this section is the portion determined by the   legislature, or an agency designated by the legislature, as   necessary to provide as nearly as practicable a stable and   predictable stream of annual distributions to eligible state   universities and to maintain over time the purchasing power of fund   investment assets. If the purchasing power of fund investment   assets for any rolling 10-year period is not preserved, the   distributions may not be increased until the purchasing power of   the fund investment assets is restored. The amount appropriated   from the fund in any fiscal year may not exceed an amount equal to   seven percent of the average net fair market value of the investment   assets of the fund, as determined by law. Until the fund has been   invested for a period of time sufficient to determine the   purchasing power over a 10-year period, the legislature may provide   by law for means of preserving the purchasing power of the fund.          (g)  The legislature shall establish criteria by which a   state university may become eligible to receive a portion of the   distributions from the fund. A state university that becomes   eligible to receive a portion of the distributions from the fund in   a state fiscal year [biennium] remains eligible to receive   additional distributions from the fund in any subsequent state   fiscal year [biennium]. The University of Texas at Austin and Texas   A&M University are not eligible to receive money from the fund.          SECTION 10.  Section 6, Article VIII, Texas Constitution, is   amended to read as follows:          Sec. 6.  No money shall be drawn from the Treasury but in   pursuance of specific appropriations made by law; nor shall any   appropriation of money be made for a longer term than one year [two   years].          SECTION 11.  Section 22(a), Article VIII, Texas   Constitution, is amended to read as follows:          (a)  In no fiscal year [biennium] shall the rate of growth of   appropriations from state tax revenues not dedicated by this   constitution exceed the estimated rate of growth of the state's   economy. The legislature shall provide by general law procedures   to implement this subsection.          SECTION 12.  The following temporary provision is added to   the Texas Constitution:          TEMPORARY PROVISION.  (a)  The constitutional amendment   proposed by the 85th Legislature, Regular Session, 2017, providing   for an annual state budget and annual legislative sessions for   budget purposes takes effect September 1, 2019.          (b)  The amendment does not affect the validity of an   appropriation made before that date for any part of the two   consecutive state fiscal years ending August 31, 2021.          (c)  This temporary provision expires January 1, 2022.          SECTION 13.  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 an annual   state budget and annual legislative sessions for budget purposes."