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Proposing a constitutional amendment providing for the creation of
the Texas legacy fund and the Texas legacy distribution fund,
dedicating earnings on 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.
HJR 10 proposes a constitutional amendment to create two new funds in the state treasury - the Texas Legacy Fund (TLF) and the Texas Legacy Distribution Fund (TLDF). The TLF would initially be funded by a $500 million transfer from the Economic Stabilization Fund (ESF).
This constitutional amendment would require the comptroller to transfer to the TLF unencumbered funds from General Revenue at the end of each biennium which would normally be transferred to the ESF, unless the unappropriated balance of the ESF is lower than the sufficient balance. In that case, the Comptroller would transfer enough funds to the ESF to reach its sufficient balance and transfer the rest to the TLF.
The Comptroller would be required to invest money in each of these three funds as provided by general law in accordance with prudent investor standards.
The TLF would grow each year by transferring unencumbered funds which would otherwise go to the ESF, plus income and interest earned.
The TLDF would be used to pay down certain long term debt obligations, fund the unfunded liabilities of the Employees Retirement System of Texas or the Teacher Retirement System, and fund certain infrastructure projects excluding transportation and higher education infrastructure projects.