82R174 JJT-F
By: Callegari H.B. No. 380
A BILL TO BE ENTITLED
AN ACT
relating to the constitutional limit on the rate of growth of
appropriations and the use of surplus state revenues.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 316.001, 316.002, and 316.006,
Government Code, are amended to read as follows:
Sec. 316.001. LIMIT. (a) The rate of growth of
appropriations in a state fiscal biennium from all sources of
revenue other than the federal government [state tax revenues not
dedicated by the constitution] may not exceed a rate determined by
adding the estimated rate of the increase or decrease in the state's
population during the preceding state fiscal biennium and the
estimated rate of inflation or deflation during that preceding
biennium in this state in the prices of a set of goods determined to
be representative of this [the estimated rate of growth of the]
state's economy as a whole.
(b) If the sum of the estimated rates described by
Subsection (a) is a negative number, appropriations for the state
fiscal biennium from all sources of revenue other than the federal
government must decrease as prescribed by this subchapter.
Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
Before the Legislative Budget Board submits the budget for the next
state fiscal biennium as prescribed by Section 322.008
[322.008(b)], the board shall establish:
(1) the maximum allowable rate of growth of
appropriations between the current state fiscal biennium and the
next state fiscal biennium, in accordance with Section 22, Article
VIII, Texas Constitution, expressed as a percentage, by adding the
following estimated rates, as determined by the board:
(A) the estimated rate of change of the state's
population during the current state fiscal biennium, expressed as a
percentage; and
(B) the estimated rate of inflation or deflation
in this state during the current state fiscal biennium in the price
of a set of goods determined by the board to be representative of
this state's economy as a whole during that [estimated rate of
growth of the state's economy from the current biennium to the next]
biennium, expressed as a percentage;
(2) the amount [level] of appropriations for the
current state fiscal biennium from all sources of revenue except
the federal government [state tax revenues not dedicated by the
constitution]; and
(3) the amount of revenue from all sources except the
federal government [state tax revenues not dedicated by the
constitution] that could be appropriated for the next state fiscal
biennium within the limit established in accordance with the
maximum allowable rate of growth determined under Subdivision (1)
and the amount of appropriations for the current state fiscal
biennium determined under Subdivision (2) [by the estimated rate of
growth of the state's economy].
(b) If the sum of the estimated rate of increase or decrease
in the state's population and the estimated rate of inflation or
deflation is a negative number, the amount of appropriations for
the next state fiscal biennium from all sources of revenue other
than the federal government may not exceed the amount of
appropriations from those sources in the current state fiscal
biennium reduced by the product of that amount and the sum of those
rates. [Except as provided by Subsection (c), the board shall
determine the estimated rate of growth of the state's economy 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 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.]
(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.
[(d)] To ensure compliance with Section 22, Article VIII,
[Section 22, of the] Texas Constitution, the Legislative Budget
Board may not transmit in any form to the governor or the
legislature the budget as prescribed by Section 322.008(c) or the
general appropriations bill as prescribed by Section 322.008(d)
until the limit on the rate of growth of appropriations has been
adopted as required by this subchapter.
(d) [(e)] In the absence of an action by the Legislative
Budget Board to adopt a spending limit as provided by this section
[in Subsections (a) and (b)], the sum of the estimated rate of
population growth and the estimated rate of inflation [in the
state's economy from the current biennium to the next biennium]
shall be treated as if that rate [it] were zero, and the amount of
revenue from all sources other than the federal government that may
[state tax revenues not dedicated by the constitution that could]
be appropriated for the next state fiscal biennium is [within the
limit established by the estimated rate of growth in the state's
economy shall be] the same as the amount [level] of appropriations
from those revenues for the current biennium.
Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
authorized by majority vote of the members of the board from each
house, the Legislative Budget Board budget recommendations
relating to the proposed appropriations of revenue from all sources
except the federal government [state tax revenues not dedicated by
the constitution] may not exceed the limit adopted by the committee
under Section 316.005.
SECTION 2. Section 316.007(a), Government Code, is amended
to read as follows:
(a) The Legislative Budget Board shall include in its budget
recommendations the proposed limit of appropriations from all
sources of revenue except the federal government [state tax
revenues not dedicated by the constitution].
SECTION 3. Section 316.008(a), Government Code, is amended
to read as follows:
(a) Unless the legislature adopts a resolution under
Section 22, Article VIII, [Section 22(b), of the] Texas
Constitution, raising the proposed limit on appropriations, the
proposed limit is binding on the legislature with respect to all
appropriations for the next state fiscal biennium made from all
sources of revenue except the federal government [state tax
revenues not dedicated by the constitution].
SECTION 4. Chapter 171, Tax Code, is amended by adding
Subchapter K to read as follows:
SUBCHAPTER K. SURPLUS REVENUE: REBATE OF FRANCHISE TAXES
Sec. 171.551. ISSUANCE OF INDIVIDUAL REBATES. (a) Not
later than the 180th day of each state fiscal biennium, the
comptroller shall issue to each payer of the franchise tax during
the previous state fiscal biennium a rebate as provided by this
section if the comptroller has determined under Subsection (a),
Section 49-g-1, Article III, Texas Constitution, that there remains
an unencumbered positive balance of general revenues from the
preceding state fiscal biennium.
(b) The comptroller shall compute for each payer of the
franchise tax during the preceding state fiscal biennium the
fractional share of the franchise taxes to be rebated by dividing
that franchise tax payer's total franchise taxes paid during the
preceding state fiscal biennium by the total of all franchise taxes
paid under this chapter during that preceding state fiscal
biennium.
(c) The comptroller shall issue to each payer of the
franchise tax during the preceding state fiscal biennium a rebate
of franchise taxes paid in an amount equal to one-third of the
amount of the unencumbered positive balance of general revenues
determined under Subsection (a), Section 49-g-1, Article III, Texas
Constitution, to be remaining after the economic stabilization fund
transfer multiplied by the fraction determined for that payer under
Subsection (b).
(d) The comptroller may issue a payer's rebate by warrant or
by electronic funds transfer, as provided by rules of the
comptroller.
SECTION 5. The changes in law made by this Act apply only,
as applicable, in relation to appropriations made for the state
fiscal biennium beginning September 1, 2013, and subsequent state
fiscal bienniums. Appropriations for the state fiscal biennium
that began September 1, 2011, are governed by Sections 316.001,
316.002, 316.006, 316.007, and 316.008, Government Code, as those
sections existed on December 1, 2010, and the former law is
continued in effect for that purpose.
SECTION 6. This Act takes effect on the date on which the
constitutional amendment proposed by the 82nd Legislature, Regular
Session, 2011, regarding the limitation on the rate of growth in
appropriations and the use of unencumbered surplus state revenues
to provide for a rebate of state franchise taxes, to reduce public
school district property taxes, and to fund the state's rainy day
fund takes effect. If that amendment is not approved by the voters,
this Act has no effect.