Texas 2015 - 84th Regular

Texas House Bill HB290 Compare Versions

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

Old	New	Differences
1	1	84R1007 CJC-D
2	2	By: Leach H.B. No. 290
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the constitutional limit on the rate of growth of
8	8	appropriations and the use of surplus state revenues.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 316.001, 316.002, and 316.006,
11	11	Government Code, are amended to read as follows:
12	12	Sec. 316.001. LIMIT. (a) The rate of growth of
13	13	appropriations in a state fiscal biennium from all sources of
14	14	revenue other than the federal government [state tax revenues not
15	15	dedicated by the constitution] may not exceed a rate determined by
16	16	adding the estimated rate of the increase or decrease in this
17	17	state's population during the preceding state fiscal biennium and
18	18	the estimated rate of inflation or deflation during that preceding
19	19	biennium in this state [the estimated rate of growth of the state's
20	20	economy].
21	21	(b) The Legislative Budget Board shall:
22	22	(1) base the estimated rate of increase or decrease in
23	23	this state's population on the most recent estimates published by
24	24	the United States Census Bureau; and
25	25	(2) base the estimated rate of inflation or deflation
26	26	in this state on the rate of change during the preceding two years
27	27	of the effective consumer price index for this state.
28	28	(c) If the sum of the estimated rates described by
29	29	Subsection (a) is a negative number, appropriations for the state
30	30	fiscal biennium from all sources of revenue other than the federal
31	31	government must decrease as prescribed by this subchapter.
32	32	Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
33	33	Before the Legislative Budget Board transmits [submits] the budget
34	34	for the next state fiscal biennium as prescribed by Section
35	35	322.008(c), the board shall establish:
36	36	(1) the maximum allowable rate of growth of
37	37	appropriations between the current state fiscal biennium and the
38	38	next state fiscal biennium, in accordance with Section 22, Article
39	39	VIII, Texas Constitution, expressed as a percentage, by adding the
40	40	following estimated rates determined by the board in the manner
41	41	provided by Section 316.001(b):
42	42	(A) the estimated rate of change of this state's
43	43	population during the current state fiscal biennium, expressed as a
44	44	percentage; and
45	45	(B) the estimated rate of inflation or deflation
46	46	in this state during the current state fiscal biennium, expressed
47	47	as a percentage [estimated rate of growth of the state's economy
48	48	from the current biennium to the next biennium];
49	49	(2) the amount [level] of appropriations for the
50	50	current state fiscal biennium from all sources of revenue except
51	51	the federal government [state tax revenues not dedicated by the
52	52	constitution]; and
53	53	(3) the amount of revenue from all sources except the
54	54	federal government [state tax revenues not dedicated by the
55	55	constitution] that could be appropriated for the next state fiscal
56	56	biennium within the limit established in accordance with the
57	57	maximum allowable rate of growth determined under Subdivision (1)
58	58	and the amount of appropriations for the current state fiscal
59	59	biennium determined under Subdivision (2) [by the estimated rate of
60	60	growth of the state's economy].
61	61	(b) If the sum of the estimated rate of increase or decrease
62	62	in this state's population and the estimated rate of inflation or
63	63	deflation is a negative number, the amount of appropriations for
64	64	the next state fiscal biennium from all sources of revenue other
65	65	than the federal government may not exceed the product of the amount
66	66	of appropriations from those sources in the current state fiscal
67	67	biennium and the sum of one and that negative number. [Except as
68	68	provided by Subsection (c), the board shall determine the estimated
69	69	rate of growth of the state's economy by dividing the estimated
70	70	Texas total personal income for the next biennium by the estimated
71	71	Texas total personal income for the current biennium. Using
72	72	standard statistical methods, the board shall make the estimate by
73	73	projecting through the biennium the estimated Texas total personal
74	74	income reported by the United States Department of Commerce or its
75	75	successor in function.]
76	76	(c) [If a more comprehensive definition of the rate of
77	77	growth of the state's economy is developed and is approved by the
78	78	committee established by Section 316.005, the board may use that
79	79	definition in calculating the limit on appropriations.
80	80	[(d)] To ensure compliance with Section 22, Article VIII,
81	81	[Section 22, of the] Texas Constitution, the Legislative Budget
82	82	Board may not transmit in any form to the governor or the
83	83	legislature the budget as prescribed by Section 322.008(c) or the
84	84	general appropriations bill as prescribed by Section 322.008(d)
85	85	until the limit on the rate of growth of appropriations has been
86	86	adopted as required by this subchapter.
87	87	(d) [(e)] In the absence of an action by the Legislative
88	88	Budget Board to adopt a spending limit as provided by this section
89	89	[in Subsections (a) and (b)], the sum of the estimated rate of
90	90	population growth and the estimated rate of inflation [in the
91	91	state's economy from the current biennium to the next biennium]
92	92	shall be treated as if that sum [it] were zero, and the amount of
93	93	revenue from all sources other than the federal government that may
94	94	[state tax revenues not dedicated by the constitution that could]
95	95	be appropriated for the next state fiscal biennium is [within the
96	96	limit established by the estimated rate of growth in the state's
97	97	economy shall be] the same as the amount [level] of appropriations
98	98	from those revenues for the current biennium.
99	99	Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
100	100	authorized by majority vote of the members of the board from each
101	101	house, the Legislative Budget Board budget recommendations
102	102	relating to the proposed appropriations of revenue from all sources
103	103	except the federal government [state tax revenues not dedicated by
104	104	the constitution] may not exceed the limit adopted by the committee
105	105	under Section 316.005.
106	106	SECTION 2. Section 316.007(a), Government Code, is amended
107	107	to read as follows:
108	108	(a) The Legislative Budget Board shall include in its budget
109	109	recommendations the proposed limit of appropriations from all
110	110	sources of revenue except the federal government [state tax
111	111	revenues not dedicated by the constitution].
112	112	SECTION 3. Section 316.008(a), Government Code, is amended
113	113	to read as follows:
114	114	(a) Unless the legislature adopts a resolution under
115	115	Section 22, Article VIII, [Section 22(b), of the] Texas
116	116	Constitution, raising the proposed limit on appropriations, the
117	117	proposed limit is binding on the legislature with respect to all
118	118	appropriations for the next state fiscal biennium made from all
119	119	sources of revenue except the federal government [state tax
120	120	revenues not dedicated by the constitution].
121	121	SECTION 4. Chapter 171, Tax Code, is amended by adding
122	122	Subchapter K to read as follows:
123	123	SUBCHAPTER K. SURPLUS REVENUE: REBATE OF FRANCHISE TAXES
124	124	Sec. 171.551. ISSUANCE OF INDIVIDUAL REBATES. (a) Not
125	125	later than the 180th day of each state fiscal biennium, the
126	126	comptroller shall issue to each payer of the franchise tax during
127	127	the previous state fiscal biennium a rebate as provided by this
128	128	section if the comptroller has determined under Subsection (a),
129	129	Section 49-g-1, Article III, Texas Constitution, that there remains
130	130	an unencumbered positive balance of general revenues from the
131	131	preceding state fiscal biennium.
132	132	(b) The comptroller shall compute for each payer of the
133	133	franchise tax during the preceding state fiscal biennium the
134	134	fractional share of the franchise taxes to be rebated by dividing
135	135	that franchise tax payer's total franchise taxes paid during the
136	136	preceding state fiscal biennium by the total of all franchise taxes
137	137	paid under this chapter during that preceding state fiscal
138	138	biennium.
139	139	(c) The comptroller shall issue to each payer of the
140	140	franchise tax during the preceding state fiscal biennium a rebate
141	141	of franchise taxes paid in an amount equal to the fraction
142	142	determined for that payer under Subsection (b) multiplied by the
143	143	total amount of rebates to be issued under Subsection (b)(1),
144	144	Section 49-g-1, Article III, Texas Constitution.
145	145	(d) The comptroller may issue a payer's rebate by warrant or
146	146	by electronic funds transfer, as provided by rules of the
147	147	comptroller.
148	148	SECTION 5. The changes in law made by this Act apply only,
149	149	as applicable, in relation to appropriations made for the state
150	150	fiscal biennium beginning September 1, 2017, and subsequent state
151	151	fiscal bienniums. Appropriations for the state fiscal biennium
152	152	that begins September 1, 2015, are governed by Sections 316.001,
153	153	316.002, 316.006, 316.007, and 316.008, Government Code, as those
154	154	sections existed on December 1, 2014, and the former law is
155	155	continued in effect for that purpose.
156	156	SECTION 6. This Act takes effect on the date on which the
157	157	constitutional amendment proposed by the 84th Legislature, Regular
158	158	Session, 2015, concerning the limitation on the rate of growth in
159	159	appropriations and the use of unencumbered surplus state revenues
160	160	to provide for a rebate of state franchise taxes, to reduce public
161	161	school district property taxes, and to fund the state's rainy day
162	162	fund takes effect. If that amendment is not approved by the voters,
163	163	this Act has no effect.