Texas 2009 - 81st Regular

Texas House Bill HB994 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R3885 JJT-D
2	2	By: Paxton H.B. No. 994
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the limitation on the rate of growth in appropriations
8	8	from state tax revenues.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 316.001, Government Code, is amended to
11	11	read as follows:
12	12	Sec. 316.001. LIMIT. The rate of growth of appropriations
13	13	in a biennium from state tax revenues not dedicated by the
14	14	constitution may not exceed the lesser of the following rates:
15	15	(1) the estimated rate of growth of the state's
16	16	economy; and
17	17	(2) a rate equal to the sum of:
18	18	(A) the estimated biennial rate of growth of the
19	19	state's population; and
20	20	(B) the estimated biennial rate of monetary
21	21	inflation in the state.
22	22	SECTION 2. Sections 316.002(a), (b), (c), and (e),
23	23	Government Code, are amended to read as follows:
24	24	(a) Before the Legislative Budget Board submits the budget
25	25	as prescribed by Section 322.008 [322.008(b)], the board shall
26	26	establish:
27	27	(1) the estimated rate of growth of the state's economy
28	28	from the current biennium to the next biennium as determined under
29	29	Subsection (b);
30	30	(2) a rate equal to the sum of:
31	31	(A) the estimated biennial rate of growth of the
32	32	state's population as determined under Subsection (c); and
33	33	(B) the estimated biennial rate of monetary
34	34	inflation in the state as determined under Subsection (c);
35	35	(3) the level of appropriations for the current
36	36	biennium from state tax revenues not dedicated by the constitution;
37	37	and
38	38	(4) [(3)] the amount of state tax revenues not
39	39	dedicated by the constitution that could be appropriated for the
40	40	next biennium within the limit established by applying the lesser
41	41	of:
42	42	(A) the estimated rate of growth of the state's
43	43	economy as determined under Subsection (b); and
44	44	(B) a rate equal to the sum of:
45	45	(i) the estimated biennial rate of growth
46	46	of the state's population as determined under Subsection (c); and
47	47	(ii) the estimated biennial rate of
48	48	monetary inflation in the state as determined under Subsection (c).
49	49	(b) The [Except as provided by Subsection (c), the] board
50	50	shall determine the estimated rate of growth of the state's economy
51	51	by dividing the estimated Texas total personal income for the next
52	52	biennium by the estimated Texas total personal income for the
53	53	current biennium. Using standard statistical methods, the board
54	54	shall make the estimate by projecting through the biennium the
55	55	estimated Texas total personal income reported by the United States
56	56	Department of Commerce or its successor in function.
57	57	(c) The board shall determine a rate equal to the sum of the
58	58	estimated biennial rate of growth of the state's population and the
59	59	estimated biennial rate of monetary inflation in the state as
60	60	provided by this subsection. The board shall determine the
61	61	estimated biennial rate of growth of the state's population based
62	62	on the average rate of growth during the preceding six years
63	63	according to United States Census Bureau estimates as certified by
64	64	the comptroller. The board shall determine the estimated biennial
65	65	rate of monetary inflation in the state based on the average rate of
66	66	change during the preceding six years of the effective consumer
67	67	price index for the state. For purposes of this subsection, the
68	68	effective consumer price index for the state is the average of the
69	69	consumer price indexes as determined by the United States
70	70	Department of Labor for the Houston metropolitan area and for the
71	71	Dallas/Fort Worth metropolitan area. [If a more comprehensive
72	72	definition of the rate of growth of the state's economy is developed
73	73	and is approved by the committee established by Section 316.005,
74	74	the board may use that definition in calculating the limit on
75	75	appropriations.]
76	76	(e) In the absence of an action by the Legislative Budget
77	77	Board to adopt a spending limit as provided by this section, the
78	78	spending limit considered adopted under this subchapter is [in
79	79	Subsections (a) and (b), the estimated rate of growth in the state's
80	80	economy from the current biennium to the next biennium shall be
81	81	treated as if it were] zero, and the amount of state tax revenues
82	82	not dedicated by the constitution that may [could] be appropriated
83	83	for the next biennium [within the limit established by the
84	84	estimated rate of growth in the state's economy] shall be the same
85	85	as the level of appropriations for the current biennium.
86	86	SECTION 3. Section 316.008, Government Code, is amended to
87	87	read as follows:
88	88	Sec. 316.008. EFFECT OF LIMIT; ENFORCEMENT. (a) In this
89	89	section:
90	90	(1) "Constitutional limit on the rate of growth of
91	91	appropriations" means the limit on the rate of growth of
92	92	appropriations determined by the Legislative Budget Board under
93	93	Section 316.002(b) as finally adopted by the committee under
94	94	Section 316.005(b) or the limit as considered adopted under Section
95	95	316.002(e) or 316.005(c).
96	96	(2) "Statutory limit on the rate of growth of
97	97	appropriations" means the limit on the rate of growth of
98	98	appropriations determined by the Legislative Budget Board under
99	99	Section 316.002(c) as finally adopted by the committee under
100	100	Section 316.005(b) or the limit as considered adopted under Section
101	101	316.002(e) or 316.005(c).
102	102	(b) With respect to the constitutional limit on the rate of
103	103	growth of appropriations, unless [Unless] the legislature adopts a
104	104	resolution under Article VIII, Section 22(b), of the Texas
105	105	Constitution raising the proposed constitutional limit on
106	106	appropriations, the proposed constitutional limit is binding on the
107	107	legislature with respect to all appropriations for the next
108	108	biennium made from state tax revenues not dedicated by the
109	109	constitution.
110	110	(c) [(b)] The rules of the house of representatives and
111	111	senate shall provide for enforcement of Subsection (b) [(a)].
112	112	(d) When the statutory limit on the rate of growth of
113	113	appropriations is lower than the constitutional limit on the rate
114	114	of growth of appropriations or is lower than the constitutional
115	115	limit as raised by a resolution described by Subsection (b), the
116	116	proposed statutory limit is binding on the legislature with respect
117	117	to all appropriations for the next biennium made from state tax
118	118	revenues not dedicated by the constitution unless the legislature
119	119	by general law provides that the statutory limit does not apply to
120	120	appropriations for that biennium.
121	121	SECTION 4. The changes in law made by this Act apply only
122	122	with respect to appropriations for the state fiscal biennium
123	123	beginning September 1, 2011, and subsequent state fiscal bienniums.
124	124	SECTION 5. This Act takes effect September 1, 2009.