HJR35 - Proposing a constitutional amendment providing for the creation of and use of money in the Grow Texas fund and allocating certain general revenues to that fund, the economic stabilization fund, and the state highway fund.

  89R808 CJC-D     By: Craddick H.J.R. No. 35       A JOINT RESOLUTION   proposing a constitutional amendment providing for the creation of   and use of money in the Grow Texas fund and allocating certain   general revenues to that fund, the economic stabilization 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 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 , and the Grow Texas 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) , and (c-3)   of this section. However, if necessary and notwithstanding the   allocations prescribed by Subsections (c-1) , [ and ] (c-2) , and (c-3)   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 Subsections [ Subsection ] (c-2) and (c-3) of this section.          (c-2)  The legislature by general law shall provide for a   procedure by which the allocations prescribed by Subsections (c-1)   and (c-3) [ 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 allocations [ allocation ] provided for under those   subsections [ Subsection (c-1) of this section with the remainder of   that sum, if any, allocated for transfer to the state highway fund ].   The allocations [ allocation ] made as provided by that general law   are [ is ] binding on the comptroller for the purposes of the   transfers required by Subsection (c) of this section.           (c-3)     Each time the comptroller determines the amount of   general revenue to be allocated for transfer to the economic   stabilization fund under Subsection (c-1) of this section, the   comptroller shall reduce by 12 percent the amount of that transfer   and at the same time transfer to the credit of the Grow Texas fund an   amount of general revenue equal to the amount by which the   comptroller reduced the amount of the transfer to the economic   stabilization fund, provided that the total amount transferred to   the Grow Texas fund under this subsection may not exceed $250   million in a state fiscal biennium. For purposes of determining the   amount of the transfer to the Grow Texas fund under this subsection,   the comptroller may not consider any amount by which the amount   transferred to the economic stabilization fund is increased under   Subsection (c-2) 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 Grow Texas fund is established as a   fund in the state treasury.           (b)  The Grow Texas 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)     money received from the federal government that   may be used for a purpose for which money in the fund may be used and   that is transferred or deposited to the credit of the fund by the   legislature;                 (5)  gifts or grants contributed to the fund; and                 (6)     investment earnings and interest earned on amounts   credited to the fund.           (c)     The legislature may appropriate money from the Grow   Texas fund only for use in areas of the state from which oil and gas   are produced and only to address infrastructure needs in the manner   provided by general law in areas of the state determined by the   legislature to be significantly affected by oil and gas production.   General law enacted under this subsection may provide for the   appropriation of money in the fund to make grants to state agencies   and political subdivisions of the state for a purpose authorized by   this subsection.           (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 Grow Texas fund on that   date to the economic stabilization fund.           (e)     The Grow Texas fund commission is created to administer   money appropriated from the fund and to advise the legislature on   making appropriations from the fund. The commission consists of   seven members who serve four-year terms beginning September 1 of   each odd-numbered year. The lieutenant governor shall appoint two   members of the senate to the commission. The speaker of the house   of representatives shall appoint two members of the house of   representatives to the commission. The governor shall appoint   three members of the public to the commission and shall designate   the presiding officer of the commission. A vacancy on the   commission shall be filled in the same manner as the original   appointment for the unexpired term. Members of the commission are   not entitled to compensation for service on the commission but are   entitled to reimbursement of expenses incurred while performing   duties as commission members.          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 89th Legislature,   Regular Session, 2025, providing for the creation of the Grow Texas   fund, dedicating the money in that fund to benefit areas of the   state from which oil and gas are produced, and providing for the   transfer of certain general revenues to that fund, the economic   stabilization fund, and the state highway fund.           (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, 2027.           (c)  This temporary provision expires September 1, 2028.          SECTION 4.  This proposed constitutional amendment shall be   submitted to the voters at an election to be held November 4, 2025.   The ballot shall be printed to permit voting for or against the   proposition: "The constitutional amendment providing for the   creation of the Grow Texas fund, dedicating the money in that fund   to benefit areas of the state from which oil and gas are produced,   and providing for the transfer of certain general revenues to that   fund, the economic stabilization fund, and the state highway fund."