1 | 1 | | 84R1333 JJT-F |
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2 | 2 | | By: Bonnen of Galveston H.B. No. 531 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the constitutional limit on the rate of growth of |
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8 | 8 | | appropriations. |
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9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 10 | | SECTION 1. Sections 316.001 and 316.002, Government Code, |
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11 | 11 | | are amended to read as follows: |
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12 | 12 | | Sec. 316.001. LIMIT. (a) The rate of growth of |
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13 | 13 | | appropriations in a state fiscal biennium from state tax revenues |
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14 | 14 | | not dedicated by the constitution may not exceed a rate determined |
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15 | 15 | | by adding the estimated rate of the increase or decrease in the |
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16 | 16 | | state's population during the preceding state fiscal biennium and |
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17 | 17 | | the estimated rate of monetary inflation or deflation in this state |
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18 | 18 | | during that preceding biennium [the estimated rate of growth of the |
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19 | 19 | | state's economy]. |
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20 | 20 | | (b) If the sum of the estimated rates described by |
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21 | 21 | | Subsection (a) is a negative number, the amount of appropriations |
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22 | 22 | | authorized for the next state fiscal biennium from state tax |
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23 | 23 | | revenues not dedicated by the constitution must decrease as |
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24 | 24 | | prescribed by this subchapter. |
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25 | 25 | | Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a) |
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26 | 26 | | Before the Legislative Budget Board submits the budget for the next |
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27 | 27 | | state fiscal biennium as prescribed by Section 322.008(c), the |
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28 | 28 | | board shall establish: |
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29 | 29 | | (1) the maximum allowable rate of growth of |
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30 | 30 | | appropriations between the current state fiscal biennium and the |
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31 | 31 | | next state fiscal biennium, in accordance with Section 22, Article |
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32 | 32 | | VIII, Texas Constitution, expressed as a percentage, by adding the |
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33 | 33 | | following estimated rates, as determined by the board: |
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34 | 34 | | (A) the estimated rate of change of the state's |
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35 | 35 | | population during the current state fiscal biennium, expressed as a |
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36 | 36 | | percentage; and |
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37 | 37 | | (B) the estimated rate of monetary inflation or |
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38 | 38 | | deflation in this state during the current state fiscal [estimated |
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39 | 39 | | rate of growth of the state's economy from the current biennium to |
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40 | 40 | | the next] biennium, expressed as a percentage; |
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41 | 41 | | (2) the estimated amount [level] of appropriations for |
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42 | 42 | | the current state fiscal biennium from state tax revenues not |
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43 | 43 | | dedicated by the constitution; and |
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44 | 44 | | (3) the amount of state tax revenues not dedicated by |
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45 | 45 | | the constitution that could be appropriated for the next state |
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46 | 46 | | fiscal biennium within the limit established in accordance with the |
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47 | 47 | | maximum allowable rate of growth determined under Subdivision (1) |
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48 | 48 | | and the estimated amount of appropriations for the current state |
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49 | 49 | | fiscal biennium determined under Subdivision (2) [by the estimated |
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50 | 50 | | rate of growth of the state's economy]. |
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51 | 51 | | (b) If the sum of the estimated rate of increase or decrease |
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52 | 52 | | in the state's population and the estimated rate of monetary |
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53 | 53 | | inflation or deflation in this state is a negative number, the |
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54 | 54 | | amount of appropriations authorized for the next state fiscal |
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55 | 55 | | biennium from state tax revenues not dedicated by the constitution |
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56 | 56 | | may not exceed the amount of appropriations from those revenues in |
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57 | 57 | | the current state fiscal biennium reduced by the product of that |
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58 | 58 | | amount and the additive inverse of the sum of those rates. [Except |
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59 | 59 | | as provided by Subsection (c), the board shall determine the |
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60 | 60 | | estimated rate of growth of the state's economy by dividing the |
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61 | 61 | | estimated Texas total personal income for the next biennium by the |
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62 | 62 | | estimated Texas total personal income for the current biennium. |
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63 | 63 | | Using standard statistical methods, the board shall make the |
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64 | 64 | | estimate by projecting through the biennium the estimated Texas |
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65 | 65 | | total personal income reported by the United States Department of |
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66 | 66 | | Commerce or its successor in function.] |
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67 | 67 | | (c) [If a more comprehensive definition of the rate of |
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68 | 68 | | growth of the state's economy is developed and is approved by the |
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69 | 69 | | committee established by Section 316.005, the board may use that |
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70 | 70 | | definition in calculating the limit on appropriations. |
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71 | 71 | | [(d)] To ensure compliance with Section 22, Article VIII, |
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72 | 72 | | [Section 22, of the] Texas Constitution, the Legislative Budget |
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73 | 73 | | Board may not transmit in any form to the governor or the |
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74 | 74 | | legislature the budget as prescribed by Section 322.008(c) or the |
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75 | 75 | | general appropriations bill as prescribed by Section 322.008(d) |
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76 | 76 | | until the limit on the rate of growth of appropriations has been |
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77 | 77 | | adopted as required by this subchapter. |
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78 | 78 | | (d) [(e)] In the absence of an action by the Legislative |
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79 | 79 | | Budget Board to adopt a spending limit as provided by this section |
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80 | 80 | | [in Subsections (a) and (b)], the sum of the estimated rate of |
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81 | 81 | | population growth and the estimated rate of inflation [in the |
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82 | 82 | | state's economy from the current biennium to the next biennium] |
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83 | 83 | | shall be treated as if that rate [it] were zero, and the amount of |
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84 | 84 | | state tax revenues not dedicated by the constitution that could be |
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85 | 85 | | appropriated for the next state fiscal biennium is [within the |
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86 | 86 | | limit established by the estimated rate of growth in the state's |
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87 | 87 | | economy shall be] the same as the amount [level] of appropriations |
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88 | 88 | | from those revenues for the current biennium. |
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89 | 89 | | SECTION 2. Section 316.008(a), Government Code, is amended |
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90 | 90 | | to read as follows: |
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91 | 91 | | (a) Unless the legislature adopts a resolution under |
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92 | 92 | | Section 22, Article VIII, [Section 22(b), of the] Texas |
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93 | 93 | | Constitution, raising the proposed limit on appropriations, the |
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94 | 94 | | proposed limit is binding on the legislature with respect to all |
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95 | 95 | | appropriations for the next state fiscal biennium made from state |
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96 | 96 | | tax revenues not dedicated by the constitution. |
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97 | 97 | | SECTION 3. The changes in law made by this Act apply only, |
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98 | 98 | | as applicable, in relation to appropriations made for the state |
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99 | 99 | | fiscal biennium beginning September 1, 2017, and subsequent state |
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100 | 100 | | fiscal bienniums. Appropriations for the state fiscal biennium |
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101 | 101 | | that begins September 1, 2015, are governed by Sections 316.001, |
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102 | 102 | | 316.002, and 316.008, Government Code, as those sections provided |
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103 | 103 | | on January 1, 2015, and the former law is continued in effect for |
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104 | 104 | | that purpose. |
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105 | 105 | | SECTION 4. This Act takes effect on the date on which the |
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106 | 106 | | constitutional amendment proposed by the 84th Legislature, Regular |
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107 | 107 | | Session, 2015, concerning the limitation on the rate of growth of |
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108 | 108 | | state appropriations takes effect. If that amendment is not |
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109 | 109 | | approved by the voters, this Act has no effect. |
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