Texas 2015 - 84th Regular

Texas House Bill HB2981 Compare Versions

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

Old	New	Differences
1	1	84R13990 CJC-D
2	2	By: Schofield H.B. No. 2981
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.
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) In a state fiscal biennium, the
13	13	[The] rate of growth of appropriations subject to certification by
14	14	the comptroller under Section 49a(b), Article III, Texas
15	15	Constitution, [in a biennium from state tax revenues not dedicated
16	16	by the constitution] may not exceed a rate determined by adding the
17	17	rate of the increase or decrease in this state's population during
18	18	the preceding state fiscal biennium and the rate of inflation or
19	19	deflation in this state during that preceding biennium [the
20	20	estimated rate of growth of the state's economy].
21	21	(b) For purposes of this subchapter, an appropriation to pay
22	22	for a rebate of state taxes must be excluded from computations used
23	23	to determine whether appropriations exceed the amount authorized by
24	24	Subsection (a).
25	25	(c) The Legislative Budget Board shall determine the rates
26	26	described by Subsection (a) using the most recent information
27	27	available from sources the board considers reliable, including the
28	28	Federal Reserve Bank of Dallas.
29	29	Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
30	30	Before the Legislative Budget Board transmits [submits] the budget
31	31	for the next state fiscal biennium as prescribed by Section
32	32	322.008(c), the board shall establish:
33	33	(1) the maximum allowable rate of growth of
34	34	appropriations between the current state fiscal biennium and the
35	35	next state fiscal biennium, in accordance with Section 22, Article
36	36	VIII, Texas Constitution, expressed as a percentage, by adding the
37	37	following rates determined by the board in the manner provided by
38	38	Section 316.001(c):
39	39	(A) the rate of change of this state's population
40	40	during the current state fiscal biennium, expressed as a
41	41	percentage; and
42	42	(B) the rate of inflation or deflation in this
43	43	state during the current state fiscal biennium, expressed as a
44	44	percentage [estimated rate of growth of the state's economy from
45	45	the current biennium to the next biennium];
46	46	(2) the amount [level] of appropriations for the
47	47	current state fiscal biennium subject to certification by the
48	48	comptroller under Section 49a(b), Article III, Texas Constitution
49	49	[from state tax revenues not dedicated by the constitution]; and
50	50	(3) the amount of appropriations subject to
51	51	certification by the comptroller under Section 49a(b), Article III,
52	52	Texas Constitution, available [state tax revenues not dedicated by
53	53	the constitution that could be appropriated] for the next state
54	54	fiscal biennium within the limit established in accordance with the
55	55	maximum allowable rate of growth determined under Subdivision (1)
56	56	and the amount of appropriations for the current state fiscal
57	57	biennium determined under Subdivision (2) [by the estimated rate of
58	58	growth of the state's economy].
59	59	(b) If the sum of the rate of increase or decrease in this
60	60	state's population and the rate of inflation or deflation is a
61	61	negative number, the amount of appropriations for the next state
62	62	fiscal biennium subject to certification by the comptroller under
63	63	Section 49a(b), Article III, Texas Constitution, may not exceed the
64	64	amount of appropriations from those sources in the current state
65	65	fiscal biennium. [Except as provided by Subsection (c), the board
66	66	shall determine the estimated rate of growth of the state's economy
67	67	by dividing the estimated Texas total personal income for the next
68	68	biennium by the estimated Texas total personal income for the
69	69	current biennium. Using standard statistical methods, the board
70	70	shall make the estimate by projecting through the biennium the
71	71	estimated Texas total personal income reported by the United States
72	72	Department of Commerce or its successor in function.]
73	73	(c) [If a more comprehensive definition of the rate of
74	74	growth of the state's economy is developed and is approved by the
75	75	committee established by Section 316.005, the board may use that
76	76	definition in calculating the limit on appropriations.
77	77	[(d)] To ensure compliance with Section 22, Article VIII,
78	78	[Section 22, of the] Texas Constitution, the Legislative Budget
79	79	Board may not transmit in any form to the governor or the
80	80	legislature the budget as prescribed by Section 322.008(c) or the
81	81	general appropriations bill as prescribed by Section 322.008(d)
82	82	until the limit on the rate of growth of appropriations has been
83	83	adopted as required by this subchapter.
84	84	(d) [(e)] In the absence of an action by the Legislative
85	85	Budget Board to adopt a spending limit as provided by this section
86	86	[in Subsections (a) and (b)], the sum of the [estimated] rate of
87	87	population growth and the rate of inflation or deflation [in the
88	88	state's economy from the current biennium to the next biennium]
89	89	shall be treated as if that sum [it] were zero, and the amount of
90	90	appropriations subject to certification by the comptroller under
91	91	Section 49a(b), Article III, Texas Constitution, available for the
92	92	next state fiscal biennium [state tax revenues not dedicated by the
93	93	constitution that could be appropriated] within the limit
94	94	established by this section is [the estimated rate of growth in the
95	95	state's economy shall be] the same as the amount [level] of those
96	96	appropriations for the current state fiscal biennium.
97	97	Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
98	98	authorized by majority vote of the members of the board from each
99	99	house, the Legislative Budget Board budget recommendations
100	100	relating to the proposed appropriations subject to certification by
101	101	the comptroller under Section 49a(b), Article III, Texas
102	102	Constitution, [of state tax revenues not dedicated by the
103	103	constitution] may not exceed the limit adopted by the committee
104	104	under Section 316.005.
105	105	SECTION 2. Section 316.007(a), Government Code, is amended
106	106	to read as follows:
107	107	(a) The Legislative Budget Board shall include in its budget
108	108	recommendations the proposed limit of appropriations subject to
109	109	certification by the comptroller under Section 49a(b), Article III,
110	110	Texas Constitution [from state tax revenues not dedicated by the
111	111	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 subject to
119	119	certification by the comptroller under Section 49a(b), Article III,
120	120	Texas Constitution [made from state tax revenues not dedicated by
121	121	the constitution].
122	122	SECTION 4. The changes in law made by this Act apply only,
123	123	as applicable, in relation to appropriations made for the state
124	124	fiscal biennium beginning September 1, 2017, and subsequent state
125	125	fiscal bienniums. Appropriations for the state fiscal biennium
126	126	that begins September 1, 2015, are governed by Sections 316.001,
127	127	316.002, 316.006, 316.007, and 316.008, Government Code, as those
128	128	sections existed on December 1, 2014, and the former law is
129	129	continued in effect for that purpose.
130	130	SECTION 5. This Act takes effect on the date on which the
131	131	constitutional amendment proposed by the 84th Legislature, Regular
132	132	Session, 2015, concerning the limitation on the rate of growth in
133	133	appropriations takes effect. If that amendment is not approved by
134	134	the voters, this Act has no effect.