81R445 JRD-D
By: Howard of Fort Bend H.B. No. 1217
A BILL TO BE ENTITLED
AN ACT
relating to estimating the rate of growth of the state's economy for
purposes of the constitutional spending limit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 316.002(b), (c), and (e), Government
Code, are amended to read as follows:
(b) In determining [Except as provided by Subsection (c),
the board shall determine] the estimated rate of growth of the
state's economy, the board shall consider the estimated rate of
growth of the Texas gross state product and the estimated rate of
growth in Texas total personal income.
(c) The board shall determine the estimated rate of growth
of the Texas gross state product by dividing the estimated Texas
gross state product for the next biennium by the estimated Texas
gross state product for the current biennium. In determining the
estimated Texas gross state product for a biennium the board shall
consider information and analysis provided by the Bureau of
Economic Analysis of the United States Department of Commerce or
its successor in function and by other sources the board considers
reliable. The board shall determine the estimated rate of growth in
Texas total personal income by dividing the estimated Texas total
personal income for the next biennium by the estimated Texas total
personal income for the current biennium. Using standard
statistical methods, the board shall make the personal income
estimate by projecting through the biennium the estimated Texas
total personal income reported by the United States Department of
Commerce or its successor in function. The board shall adopt the
lesser of those two rates as the estimated rate of growth of the
state's economy.
[(c) If a more comprehensive definition of the rate of
growth of the state's economy is developed and is approved by the
committee established by Section 316.005, the board may use that
definition in calculating the limit on appropriations.]
(e) In the absence of an action by the Legislative Budget
Board to adopt a spending limit as provided in Subsections (a),
[and] (b), and (c), the estimated rate of growth in the state's
economy from the current biennium to the next biennium shall be
treated as if it were zero, and the amount of state tax revenues not
dedicated by the constitution that could be appropriated within the
limit established by the estimated rate of growth in the state's
economy shall be the same as the level of appropriations for the
current biennium.
SECTION 2. The change in law made by this Act applies only
in relation to appropriations made for the state fiscal biennium
beginning September 1, 2011, and subsequent state fiscal bienniums.
Appropriations for the state fiscal biennium that begins September
1, 2009, are governed by Subchapter A, Chapter 316, Government
Code, as it existed on January 1, 2009, and the former law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.