Texas 2015 - 84th Regular

Texas House Bill HB531 Compare Versions

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11 84R1333 JJT-F
22 By: Bonnen of Galveston H.B. No. 531
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the constitutional limit on the rate of growth of
88 appropriations.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Sections 316.001 and 316.002, Government Code,
1111 are amended to read as follows:
1212 Sec. 316.001. LIMIT. (a) The rate of growth of
1313 appropriations in a state fiscal biennium from state tax revenues
1414 not dedicated by the constitution may not exceed a rate determined
1515 by adding the estimated rate of the increase or decrease in the
1616 state's population during the preceding state fiscal biennium and
1717 the estimated rate of monetary inflation or deflation in this state
1818 during that preceding biennium [the estimated rate of growth of the
1919 state's economy].
2020 (b) If the sum of the estimated rates described by
2121 Subsection (a) is a negative number, the amount of appropriations
2222 authorized for the next state fiscal biennium from state tax
2323 revenues not dedicated by the constitution must decrease as
2424 prescribed by this subchapter.
2525 Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
2626 Before the Legislative Budget Board submits the budget for the next
2727 state fiscal biennium as prescribed by Section 322.008(c), the
2828 board shall establish:
2929 (1) the maximum allowable rate of growth of
3030 appropriations between the current state fiscal biennium and the
3131 next state fiscal biennium, in accordance with Section 22, Article
3232 VIII, Texas Constitution, expressed as a percentage, by adding the
3333 following estimated rates, as determined by the board:
3434 (A) the estimated rate of change of the state's
3535 population during the current state fiscal biennium, expressed as a
3636 percentage; and
3737 (B) the estimated rate of monetary inflation or
3838 deflation in this state during the current state fiscal [estimated
3939 rate of growth of the state's economy from the current biennium to
4040 the next] biennium, expressed as a percentage;
4141 (2) the estimated amount [level] of appropriations for
4242 the current state fiscal biennium from state tax revenues not
4343 dedicated by the constitution; and
4444 (3) the amount of state tax revenues not dedicated by
4545 the constitution that could be appropriated for the next state
4646 fiscal biennium within the limit established in accordance with the
4747 maximum allowable rate of growth determined under Subdivision (1)
4848 and the estimated amount of appropriations for the current state
4949 fiscal biennium determined under Subdivision (2) [by the estimated
5050 rate of growth of the state's economy].
5151 (b) If the sum of the estimated rate of increase or decrease
5252 in the state's population and the estimated rate of monetary
5353 inflation or deflation in this state is a negative number, the
5454 amount of appropriations authorized for the next state fiscal
5555 biennium from state tax revenues not dedicated by the constitution
5656 may not exceed the amount of appropriations from those revenues in
5757 the current state fiscal biennium reduced by the product of that
5858 amount and the additive inverse of the sum of those rates. [Except
5959 as provided by Subsection (c), the board shall determine the
6060 estimated rate of growth of the state's economy by dividing the
6161 estimated Texas total personal income for the next biennium by the
6262 estimated Texas total personal income for the current biennium.
6363 Using standard statistical methods, the board shall make the
6464 estimate by projecting through the biennium the estimated Texas
6565 total personal income reported by the United States Department of
6666 Commerce or its successor in function.]
6767 (c) [If a more comprehensive definition of the rate of
6868 growth of the state's economy is developed and is approved by the
6969 committee established by Section 316.005, the board may use that
7070 definition in calculating the limit on appropriations.
7171 [(d)] To ensure compliance with Section 22, Article VIII,
7272 [Section 22, of the] Texas Constitution, the Legislative Budget
7373 Board may not transmit in any form to the governor or the
7474 legislature the budget as prescribed by Section 322.008(c) or the
7575 general appropriations bill as prescribed by Section 322.008(d)
7676 until the limit on the rate of growth of appropriations has been
7777 adopted as required by this subchapter.
7878 (d) [(e)] In the absence of an action by the Legislative
7979 Budget Board to adopt a spending limit as provided by this section
8080 [in Subsections (a) and (b)], the sum of the estimated rate of
8181 population growth and the estimated rate of inflation [in the
8282 state's economy from the current biennium to the next biennium]
8383 shall be treated as if that rate [it] were zero, and the amount of
8484 state tax revenues not dedicated by the constitution that could be
8585 appropriated for the next state fiscal biennium is [within the
8686 limit established by the estimated rate of growth in the state's
8787 economy shall be] the same as the amount [level] of appropriations
8888 from those revenues for the current biennium.
8989 SECTION 2. Section 316.008(a), Government Code, is amended
9090 to read as follows:
9191 (a) Unless the legislature adopts a resolution under
9292 Section 22, Article VIII, [Section 22(b), of the] Texas
9393 Constitution, raising the proposed limit on appropriations, the
9494 proposed limit is binding on the legislature with respect to all
9595 appropriations for the next state fiscal biennium made from state
9696 tax revenues not dedicated by the constitution.
9797 SECTION 3. The changes in law made by this Act apply only,
9898 as applicable, in relation to appropriations made for the state
9999 fiscal biennium beginning September 1, 2017, and subsequent state
100100 fiscal bienniums. Appropriations for the state fiscal biennium
101101 that begins September 1, 2015, are governed by Sections 316.001,
102102 316.002, and 316.008, Government Code, as those sections provided
103103 on January 1, 2015, and the former law is continued in effect for
104104 that purpose.
105105 SECTION 4. This Act takes effect on the date on which the
106106 constitutional amendment proposed by the 84th Legislature, Regular
107107 Session, 2015, concerning the limitation on the rate of growth of
108108 state appropriations takes effect. If that amendment is not
109109 approved by the voters, this Act has no effect.