Proposing a constitutional amendment providing for the creation of the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund, dedicating the money in that fund to benefit areas of the state significantly affected by oil and gas production, and providing for the transfer of general revenue to that fund, the economic stabilization fund, and other funds used to construct roads, reduce the emission of air contaminants, regulate oil and gas development, and provide property tax relief.

The text as introduced · 1,206 words

90R3077 CS-D

By: Landgraf
H.J.R. No. 46

A JOINT RESOLUTION

proposing a constitutional amendment providing for the creation of

the Texas severance tax revenue and oil and natural gas (Texas

STRONG) defense fund, dedicating the money in that fund to benefit

areas of the state significantly affected by oil and gas

production, and providing for the transfer of general revenue to

that fund, the economic stabilization fund, and other funds used to

construct roads, reduce the emission of air contaminants, regulate

oil and gas development, and provide property tax relief.

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), and (c-2) and adding

Subsection (c-3) 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 oil and gas regulation and cleanup fund or a

successor fund, the Texas emissions reduction plan fund or a

successor fund, and the Texas severance tax revenue and oil and

natural gas (Texas STRONG) defense 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 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) Except as provided by Subsection (c-2) of this

section, the comptroller shall allocate [ 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 as follows:

(1) 38 percent [ , the comptroller shall allocate

one-half ] to the economic stabilization fund ;

(2) 10 percent to the Texas severance tax revenue and

oil and natural gas (Texas STRONG) defense fund, subject to

Subsection (c-3) of this section;

(3) one percent to the oil and gas regulation and

cleanup fund or a successor fund;

(4) one percent to the Texas emissions reduction plan

fund or a successor fund; and

(5) 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 the allocation prescribed by Subsection (c-1)

[ 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 that subsection [ Subsection (c-1) of

this section ] with the remainder of that sum, if any, allocated for

transfer to the other funds described by that subsection as

provided by general law [ 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 amount allocated to be transferred to the Texas

severance tax revenue and oil and natural gas (Texas STRONG)

defense fund for a state fiscal year under Subsection (c-1) or (c-2)

of this section would cause the total amount allocated for transfer

to the fund under those subsections for a state fiscal year to

exceed $500 million, the comptroller shall reduce the amount

allocated to be transferred to the fund under the applicable

subsection by the amount that would exceed $500 million for the

year. The amount by which the allocation is reduced under this

subsection is dedicated to the purpose of reducing school district

maintenance and operations ad valorem tax rates and may not be used

for any other purpose.

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 severance tax revenue and oil

and natural gas (Texas STRONG) defense fund is established as a fund

in the state treasury.

(b) The Texas severance tax revenue and oil and natural gas

(Texas STRONG) defense fund consists of:

(1) money transferred to the fund under Section 49-g

of this article;

(2) money appropriated to the fund by the legislature;

(3) money that the legislature by statute dedicates

for deposit to the credit of the fund;

(4) gifts or grants contributed to the fund; and

(5) investment earnings and interest earned on amounts

credited to the fund.

(c) The legislature may appropriate money from the Texas

severance tax revenue and oil and natural gas (Texas STRONG)

defense fund only for use in areas of the state that are

significantly affected by oil and gas production as determined by

the legislature. Money appropriated from the fund may be used as

provided by general law to fund grants to state agencies, political

subdivisions of the state, public institutions of higher education,

and nonprofit organizations to address public health and safety

concerns and workforce preparedness needs and to supplement

educational opportunities.

(d) On the last day of each state fiscal biennium, the

comptroller of public accounts shall transfer any unobligated and

unappropriated money that remains in the fund on that date to the

general revenue fund.

SECTION 3. The following temporary provision is added to

the Texas Constitution:

TEMPORARY PROVISION. (a) This temporary provision applies

to the constitutional amendment proposed by the 90th Legislature,

Regular Session, 2027, providing for the creation of the Texas

severance tax revenue and oil and natural gas (Texas STRONG)

defense fund, dedicating the money in that fund to benefit areas of

the state significantly affected by oil and gas production, and

providing for the transfer of general revenue to that fund, the

economic stabilization fund, and other funds used to construct

roads, reduce the emission of air contaminants, regulate oil and

gas development, and provide property tax relief.

(b) Section 49-g-1, Article III, of this constitution, as

added by the amendment, and the amendment to Section 49-g, Article

III, of this constitution, take effect September 1, 2029.

(c) This temporary provision expires September 1, 2030.

SECTION 4. This proposed constitutional amendment shall be

submitted to the voters at an election to be held November 2, 2027.

The ballot shall be printed to permit voting for or against the

proposition: "The constitutional amendment providing for the

creation of the Texas severance tax revenue and oil and natural gas

(Texas STRONG) defense fund, dedicating the money in that fund to

benefit areas of the state significantly affected by oil and gas

production, and providing for the transfer of general revenue to

that fund, the economic stabilization fund, and other funds used to

construct roads, reduce the emission of air contaminants, regulate

oil and gas development, and provide property tax relief."