84R3814 CJC-D
By: Taylor of Collin S.B. No. 403
A BILL TO BE ENTITLED
AN ACT
relating to the limitation on the rate of growth of appropriations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 316.001, 316.002, 316.003, 316.004, and
316.008, Government Code, are amended to read as follows:
Sec. 316.001. LIMIT. The rate of growth of appropriations
in a state fiscal biennium from state tax revenues not dedicated by
the constitution may not exceed the least of the following rates
determined as provided by Section 316.002:
(1) the estimated rate of growth of the state's
economy;
(2) a rate equal to the sum of:
(A) the rate of growth of this state's
population; and
(B) the rate of monetary inflation in this state;
or
(3) the rate of growth of this state's gross state
product.
Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD.
(a) Before the Legislative Budget Board transmits [submits] the
budget as prescribed by Section 322.008(c), the board shall
determine [establish]:
(1) the estimated rate of growth of the state's economy
from the current state fiscal biennium to the next state fiscal
biennium determined as provided by Subsection (b);
(2) the rates determined as provided by Subsection
(c);
(3) the amount [level] of appropriations for the
current state fiscal biennium from state tax revenues not dedicated
by the constitution; and
(4) [(3)] the amount of state tax revenues not
dedicated by the constitution that could be appropriated for the
next state fiscal biennium within the limit established by Section
316.001 [the estimated rate of growth of the state's economy].
(b) The [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
state fiscal biennium by the estimated Texas total personal income
for the current state fiscal biennium. Using standard statistical
methods, the board shall make the estimate by projecting through
the state fiscal biennium the estimated Texas total personal income
reported by the United States Department of Commerce or its
successor in function.
(c) The board shall use information reported by the United
States Department of Labor or its successor in function, the state
demographer or the demographer's successor in function, the United
States Census Bureau or its successor in function, and other
relevant sources the board considers reliable to determine the
following rates, calculated for the preceding state fiscal
biennium:
(1) a rate equal to the sum of:
(A) the rate of growth of this state's
population; and
(B) the rate of monetary inflation in this state;
and
(2) the rate of growth of this state's gross state
product [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 this subchapter and 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.
(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 limit on the rate of growth of
appropriations under this subchapter is [estimated rate of growth
in the state's economy from the current biennium to the next
biennium shall be treated as if it were] zero, and the amount of
state tax revenues not dedicated by the constitution that may
[could] be appropriated within the limit is [established by the
estimated rate of growth in the state's economy shall be] the same
as the amount [level] of those appropriations for the current state
fiscal biennium.
Sec. 316.003. PUBLICATION. Before the Legislative Budget
Board approves the items of information required by Section
316.002, the board shall publish in the Texas Register the proposed
items of information and a description of the methodology and
sources used in the determinations [calculations].
Sec. 316.004. PUBLIC HEARING. Not later than December 1 of
each even-numbered year, the Legislative Budget Board shall hold a
public hearing to solicit testimony regarding the proposed items of
information and the methodology used in making the determinations
[calculations] required by Section 316.002.
Sec. 316.008. EFFECT OF LIMIT; ENFORCEMENT. (a) In this
section:
(1) "Constitutional limit on the rate of growth of
appropriations" means the limit on the rate of growth of
appropriations determined by the Legislative Budget Board under
Section 316.002(b) as finally adopted by the committee under
Section 316.005(b) or as considered adopted under Section
316.005(c).
(2) "Statutory limit on the rate of growth of
appropriations" means the limit on the rate of growth of
appropriations determined by the Legislative Budget Board under
Section 316.002(c) as finally adopted by the committee under
Section 316.005(b) or as considered adopted under Section
316.005(c).
(b) With respect to the constitutional limit on the rate of
growth of appropriations, unless [Unless] the legislature adopts a
resolution under Section 22, Article VIII, [Section 22(b), of the]
Texas Constitution, raising the proposed constitutional limit on
appropriations, the proposed constitutional limit is binding on the
legislature with respect to all appropriations for the next state
fiscal biennium made from state tax revenues not dedicated by the
constitution.
(c) [(b)] The rules of the house of representatives and
senate shall provide for enforcement of Subsection (b) [(a)].
(d) When the statutory limit on the rate of growth of
appropriations is lower than the constitutional limit on the rate
of growth of appropriations or is lower than the constitutional
limit as raised by a resolution described by Subsection (b), the
proposed statutory limit is binding on the legislature with respect
to all appropriations for the next state fiscal biennium made from
state tax revenues not dedicated by the constitution unless the
legislature by general law provides that the statutory limit does
not apply to appropriations for that state fiscal biennium.
(e) If the Legislative Budget Board does not adopt a
spending limit as provided by Section 316.002, both the
constitutional limit on the rate of growth of appropriations and
the statutory limit on the rate of growth of appropriations are
considered to be zero.
SECTION 2. (a) The changes in law made by this Act apply
only in relation to an appropriation made for a state fiscal
biennium beginning on or after September 1, 2017.
(b) Appropriations for the state fiscal biennium that
begins September 1, 2015, are governed by Subchapter A, Chapter
316, Government Code, as that subchapter existed immediately before
the effective date of this Act, and the former law is continued in
effect for that purpose.
SECTION 3. This Act takes effect September 1, 2015.