1 | 1 | | 81R6058 JJT-F |
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2 | 2 | | By: Callegari H.B. No. 3291 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the constitutional limit on the rate of growth of |
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8 | 8 | | appropriations and the use of surplus state revenues. |
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9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 10 | | SECTION 1. Sections 316.001, 316.002, and 316.006, |
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11 | 11 | | Government Code, are amended to read as follows: |
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12 | 12 | | Sec. 316.001. LIMIT. (a) The rate of growth of |
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13 | 13 | | appropriations in a state fiscal biennium from all sources of |
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14 | 14 | | revenue other than the federal government [state tax revenues not |
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15 | 15 | | dedicated by the constitution] may not exceed a rate determined by |
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16 | 16 | | adding the estimated rate of the increase or decrease in the state's |
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17 | 17 | | population during the preceding state fiscal biennium and the |
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18 | 18 | | estimated rate of inflation or deflation during that preceding |
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19 | 19 | | biennium in this state in the prices of a set of goods determined to |
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20 | 20 | | be representative of this [the estimated rate of growth of the] |
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21 | 21 | | state's economy as a whole. |
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22 | 22 | | (b) If the sum of the estimated rates described by |
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23 | 23 | | Subsection (a) is a negative number, appropriations for the state |
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24 | 24 | | fiscal biennium from all sources of revenue other than the federal |
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25 | 25 | | government must decrease as prescribed by this subchapter. |
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26 | 26 | | Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a) |
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27 | 27 | | Before the Legislative Budget Board submits the budget for the next |
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28 | 28 | | state fiscal biennium as prescribed by Section 322.008 |
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29 | 29 | | [322.008(b)], the board shall establish: |
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30 | 30 | | (1) the maximum allowable rate of growth of |
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31 | 31 | | appropriations between the current state fiscal biennium and the |
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32 | 32 | | next state fiscal biennium, in accordance with Section 22, Article |
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33 | 33 | | VIII, Texas Constitution, expressed as a percentage, by adding the |
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34 | 34 | | following estimated rates, as determined by the board: |
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35 | 35 | | (A) the estimated rate of change of the state's |
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36 | 36 | | population during the current state fiscal biennium, expressed as a |
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37 | 37 | | percentage; and |
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38 | 38 | | (B) the estimated rate of inflation or deflation |
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39 | 39 | | in this state during the current state fiscal biennium in the price |
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40 | 40 | | of a set of goods determined by the board to be representative of |
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41 | 41 | | this state's economy as a whole during that [estimated rate of |
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42 | 42 | | growth of the state's economy from the current biennium to the next] |
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43 | 43 | | biennium, expressed as a percentage; |
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44 | 44 | | (2) the amount [level] of appropriations for the |
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45 | 45 | | current state fiscal biennium from all sources of revenue except |
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46 | 46 | | the federal government [state tax revenues not dedicated by the |
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47 | 47 | | constitution]; and |
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48 | 48 | | (3) the amount of revenue from all sources except the |
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49 | 49 | | federal government [state tax revenues not dedicated by the |
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50 | 50 | | constitution] that could be appropriated for the next state fiscal |
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51 | 51 | | biennium within the limit established in accordance with the |
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52 | 52 | | maximum allowable rate of growth determined under Subdivision (1) |
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53 | 53 | | and the amount of appropriations for the current state fiscal |
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54 | 54 | | biennium determined under Subdivision (2) [by the estimated rate of |
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55 | 55 | | growth of the state's economy]. |
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56 | 56 | | (b) If the sum of the estimated rate of increase or decrease |
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57 | 57 | | in the state's population and the estimated rate of inflation or |
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58 | 58 | | deflation is a negative number, the amount of appropriations for |
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59 | 59 | | the next state fiscal biennium from all sources of revenue other |
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60 | 60 | | than the federal government may not exceed the amount of |
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61 | 61 | | appropriations from those sources in the current state fiscal |
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62 | 62 | | biennium reduced by the product of that amount and the sum of those |
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63 | 63 | | rates. [Except as provided by Subsection (c), the board shall |
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64 | 64 | | determine the estimated rate of growth of the state's economy by |
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65 | 65 | | dividing the estimated Texas total personal income for the next |
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66 | 66 | | biennium by the estimated Texas total personal income for the |
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67 | 67 | | current biennium. Using standard statistical methods, the board |
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68 | 68 | | shall make the estimate by projecting through the biennium the |
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69 | 69 | | estimated Texas total personal income reported by the United States |
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70 | 70 | | Department of Commerce or its successor in function.] |
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71 | 71 | | (c) [If a more comprehensive definition of the rate of |
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72 | 72 | | growth of the state's economy is developed and is approved by the |
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73 | 73 | | committee established by Section 316.005, the board may use that |
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74 | 74 | | definition in calculating the limit on appropriations. |
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75 | 75 | | [(d)] To ensure compliance with Section 22, Article VIII, |
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76 | 76 | | [Section 22, of the] Texas Constitution, the Legislative Budget |
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77 | 77 | | Board may not transmit in any form to the governor or the |
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78 | 78 | | legislature the budget as prescribed by Section 322.008(c) or the |
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79 | 79 | | general appropriations bill as prescribed by Section 322.008(d) |
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80 | 80 | | until the limit on the rate of growth of appropriations has been |
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81 | 81 | | adopted as required by this subchapter. |
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82 | 82 | | (d) [(e)] In the absence of an action by the Legislative |
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83 | 83 | | Budget Board to adopt a spending limit as provided by this section |
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84 | 84 | | [in Subsections (a) and (b)], the sum of the estimated rate of |
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85 | 85 | | population growth and the estimated rate of inflation [in the |
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86 | 86 | | state's economy from the current biennium to the next biennium] |
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87 | 87 | | shall be treated as if that rate [it] were zero, and the amount of |
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88 | 88 | | revenue from all sources other than the federal government that may |
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89 | 89 | | [state tax revenues not dedicated by the constitution that could] |
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90 | 90 | | be appropriated for the next state fiscal biennium is [within the |
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91 | 91 | | limit established by the estimated rate of growth in the state's |
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92 | 92 | | economy shall be] the same as the amount [level] of appropriations |
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93 | 93 | | from those revenues for the current biennium. |
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94 | 94 | | Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless |
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95 | 95 | | authorized by majority vote of the members of the board from each |
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96 | 96 | | house, the Legislative Budget Board budget recommendations |
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97 | 97 | | relating to the proposed appropriations of revenue from all sources |
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98 | 98 | | except the federal government [state tax revenues not dedicated by |
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99 | 99 | | the constitution] may not exceed the limit adopted by the committee |
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100 | 100 | | under Section 316.005. |
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101 | 101 | | SECTION 2. Section 316.007(a), Government Code, is amended |
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102 | 102 | | to read as follows: |
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103 | 103 | | (a) The Legislative Budget Board shall include in its budget |
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104 | 104 | | recommendations the proposed limit of appropriations from all |
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105 | 105 | | sources of revenue except the federal government [state tax |
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106 | 106 | | revenues not dedicated by the constitution]. |
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107 | 107 | | SECTION 3. Section 316.008(a), Government Code, is amended |
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108 | 108 | | to read as follows: |
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109 | 109 | | (a) Unless the legislature adopts a resolution under |
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110 | 110 | | Section 22, Article VIII, [Section 22(b), of the] Texas |
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111 | 111 | | Constitution, raising the proposed limit on appropriations, the |
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112 | 112 | | proposed limit is binding on the legislature with respect to all |
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113 | 113 | | appropriations for the next state fiscal biennium made from all |
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114 | 114 | | sources of revenue except the federal government [state tax |
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115 | 115 | | revenues not dedicated by the constitution]. |
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116 | 116 | | SECTION 4. Chapter 171, Tax Code, is amended by adding |
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117 | 117 | | Subchapter K to read as follows: |
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118 | 118 | | SUBCHAPTER K. SURPLUS REVENUE: REBATE OF FRANCHISE TAXES |
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119 | 119 | | Sec. 171.551. ISSUANCE OF INDIVIDUAL REBATES. (a) Not |
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120 | 120 | | later than the 180th day of each state fiscal biennium, the |
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121 | 121 | | comptroller shall issue to each payer of the franchise tax during |
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122 | 122 | | the previous state fiscal biennium a rebate as provided by this |
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123 | 123 | | section if the comptroller has determined under Subsection (a), |
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124 | 124 | | Section 49-g-1, Article III, Texas Constitution, that there remains |
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125 | 125 | | an unencumbered positive balance of general revenues from the |
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126 | 126 | | preceding state fiscal biennium. |
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127 | 127 | | (b) The comptroller shall compute for each payer of the |
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128 | 128 | | franchise tax during the preceding state fiscal biennium the |
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129 | 129 | | fractional share of the franchise taxes to be rebated by dividing |
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130 | 130 | | that franchise tax payer's total franchise taxes paid during the |
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131 | 131 | | preceding state fiscal biennium by the total of all franchise taxes |
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132 | 132 | | paid under this chapter during that preceding state fiscal |
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133 | 133 | | biennium. |
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134 | 134 | | (c) The comptroller shall issue to each payer of the |
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135 | 135 | | franchise tax during the preceding state fiscal biennium a rebate |
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136 | 136 | | of franchise taxes paid in an amount equal to one-third of the |
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137 | 137 | | amount of the unencumbered positive balance of general revenues |
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138 | 138 | | determined under Subsection (a), Section 49-g-1, Article III, Texas |
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139 | 139 | | Constitution, to be remaining after the economic stabilization fund |
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140 | 140 | | transfer multiplied by the fraction determined for that payer under |
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141 | 141 | | Subsection (b). |
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142 | 142 | | (d) The comptroller may issue a payer's rebate by warrant or |
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143 | 143 | | by electronic funds transfer, as provided by rules of the |
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144 | 144 | | comptroller. |
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145 | 145 | | SECTION 5. The changes in law made by this Act apply only, |
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146 | 146 | | as applicable, in relation to appropriations made for the state |
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147 | 147 | | fiscal biennium beginning September 1, 2011, and subsequent state |
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148 | 148 | | fiscal bienniums. Appropriations for the state fiscal biennium |
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149 | 149 | | that began September 1, 2009, are governed by Sections 316.001, |
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150 | 150 | | 316.002, 316.006, 316.007, and 316.008, Government Code, as those |
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151 | 151 | | sections existed on January 1, 2009, and the former law is continued |
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152 | 152 | | in effect for that purpose. |
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153 | 153 | | SECTION 6. This Act takes effect on the date on which the |
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154 | 154 | | constitutional amendment proposed by the 81st Legislature, Regular |
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155 | 155 | | Session, 2009, regarding the limitation on the rate of growth in |
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156 | 156 | | appropriations and the use of unencumbered surplus state revenues |
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157 | 157 | | to provide for a rebate of state franchise taxes, to reduce public |
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158 | 158 | | school district property taxes, and to fund the state's rainy day |
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159 | 159 | | fund takes effect. If that amendment is not approved by the voters, |
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160 | 160 | | this Act has no effect. |
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