84R13990 CJC-D
By: Hancock S.B. No. 9
A BILL TO BE ENTITLED
AN ACT
relating to the constitutional limit 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, and 316.006,
Government Code, are amended to read as follows:
Sec. 316.001. LIMIT. (a) In a state fiscal biennium, the
[The] rate of growth of appropriations subject to certification by
the comptroller under Section 49a(b), Article III, Texas
Constitution, [in a biennium from state tax revenues not dedicated
by the constitution] may not exceed a rate determined by adding the
rate of the increase or decrease in this state's population during
the preceding state fiscal biennium and the rate of inflation or
deflation in this state during that preceding biennium [the
estimated rate of growth of the state's economy].
(b) For purposes of this subchapter, an appropriation to pay
for a rebate of state taxes must be excluded from computations used
to determine whether appropriations exceed the amount authorized by
Subsection (a).
(c) The Legislative Budget Board shall determine the rates
described by Subsection (a) using the most recent information
available from sources the board considers reliable, including the
Federal Reserve Bank of Dallas.
Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
Before the Legislative Budget Board transmits [submits] the budget
for the next state fiscal biennium as prescribed by Section
322.008(c), the board shall establish:
(1) the maximum allowable rate of growth of
appropriations between the current state fiscal biennium and the
next state fiscal biennium, in accordance with Section 22, Article
VIII, Texas Constitution, expressed as a percentage, by adding the
following rates determined by the board in the manner provided by
Section 316.001(c):
(A) the rate of change of this state's population
during the current state fiscal biennium, expressed as a
percentage; and
(B) the rate of inflation or deflation in this
state during the current state fiscal biennium, expressed as a
percentage [estimated rate of growth of the state's economy from
the current biennium to the next biennium];
(2) the amount [level] of appropriations for the
current state fiscal biennium subject to certification by the
comptroller under Section 49a(b), Article III, Texas Constitution
[from state tax revenues not dedicated by the constitution]; and
(3) the amount of appropriations subject to
certification by the comptroller under Section 49a(b), Article III,
Texas Constitution, available [state tax revenues not dedicated by
the constitution that could be appropriated] for the next state
fiscal biennium within the limit established in accordance with the
maximum allowable rate of growth determined under Subdivision (1)
and the amount of appropriations for the current state fiscal
biennium determined under Subdivision (2) [by the estimated rate of
growth of the state's economy].
(b) If the sum of the rate of increase or decrease in this
state's population and the rate of inflation or deflation is a
negative number, the amount of appropriations for the next state
fiscal biennium subject to certification by the comptroller under
Section 49a(b), Article III, Texas Constitution, may not exceed the
amount of appropriations from those sources in the current state
fiscal biennium. [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
biennium by the estimated Texas total personal income for the
current biennium. Using standard statistical methods, the board
shall make the estimate by projecting through the biennium the
estimated Texas total personal income reported by the United States
Department of Commerce or its successor in function.]
(c) [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 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.
(d) [(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 sum of the [estimated] rate of
population growth and the rate of inflation or deflation [in the
state's economy from the current biennium to the next biennium]
shall be treated as if that sum [it] were zero, and the amount of
appropriations subject to certification by the comptroller under
Section 49a(b), Article III, Texas Constitution, available for the
next state fiscal biennium [state tax revenues not dedicated by the
constitution that could be appropriated] within the limit
established by this section is [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. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
authorized by majority vote of the members of the board from each
house, the Legislative Budget Board budget recommendations
relating to the proposed appropriations subject to certification by
the comptroller under Section 49a(b), Article III, Texas
Constitution, [of state tax revenues not dedicated by the
constitution] may not exceed the limit adopted by the committee
under Section 316.005.
SECTION 2. Section 316.007(a), Government Code, is amended
to read as follows:
(a) The Legislative Budget Board shall include in its budget
recommendations the proposed limit of appropriations subject to
certification by the comptroller under Section 49a(b), Article III,
Texas Constitution [from state tax revenues not dedicated by the
constitution].
SECTION 3. Section 316.008(a), Government Code, is amended
to read as follows:
(a) Unless the legislature adopts a resolution under
Section 22, Article VIII, [Section 22(b), of the] Texas
Constitution, raising the proposed limit on appropriations, the
proposed limit is binding on the legislature with respect to all
appropriations for the next state fiscal biennium subject to
certification by the comptroller under Section 49a(b), Article III,
Texas Constitution [made from state tax revenues not dedicated by
the constitution].
SECTION 4. The changes in law made by this Act apply only,
as applicable, in relation to appropriations made for the state
fiscal biennium beginning September 1, 2017, and subsequent state
fiscal bienniums. Appropriations for the state fiscal biennium
that begins September 1, 2015, are governed by Sections 316.001,
316.002, 316.006, 316.007, and 316.008, Government Code, as those
sections existed on December 1, 2014, and the former law is
continued in effect for that purpose.
SECTION 5. This Act takes effect on the date on which the
constitutional amendment proposed by the 84th Legislature, Regular
Session, 2015, concerning the limitation on the rate of growth in
appropriations takes effect. If that amendment is not approved by
the voters, this Act has no effect.