By: Hancock, Birdwell, Creighton S.B. No. 9
(In the Senate - Filed March 10, 2015; March 10, 2015, read
first time and referred to Committee on Finance; April 7, 2015,
reported adversely, with favorable Committee Substitute by the
following vote: Yeas 9, Nays 5; April 7, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 9 By: Hancock
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) For purposes of this subchapter,
"consolidated general revenue appropriations" means appropriations
from:
(1) the general revenue fund in the state treasury;
(2) a dedicated account in the general revenue fund in
the state treasury; or
(3) a general revenue-related fund in the state
treasury as identified in the biennial statement required of the
comptroller under Section 49a, Article III, Texas Constitution.
(b) The rate of growth of consolidated general revenue
appropriations in a state fiscal biennium [from state tax revenues
not dedicated by the constitution] may not exceed the average
biennial rate of growth of this state's population during the state
fiscal biennium preceding the biennium for which appropriations are
made and during the state fiscal biennium for which appropriations
are made adjusted by the average biennial rate of monetary
inflation in this state during the same period, as determined under
Section 316.002 [estimated rate of growth of the state's economy].
(c) 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 (b).
(d) The Legislative Budget Board shall determine the rates
described by Subsection (b) using the most recent information
available from sources the board considers reliable, including the
Federal Reserve Bank of Dallas and the Texas State Data Center.
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 limit on the rate of growth in consolidated
general revenue appropriations for that state fiscal biennium, as
compared to the previous state fiscal biennium, by subtracting one
from the product of:
(1) the sum of one and the estimated average biennial
rate of growth of this state's population during the state fiscal
biennium preceding the biennium for which appropriations are made
and during the state fiscal biennium for which appropriations are
made; and
(2) the sum of one and the estimated average biennial
rate of monetary inflation during the state fiscal biennium
preceding the biennium for which appropriations are made and during
the state fiscal biennium for which appropriations are made [the
state's economy from the current biennium to the next biennium;
[(2) the level of appropriations for the current
biennium from state tax revenues not dedicated by the constitution;
and
[(3) the amount of state tax revenues not dedicated by
the constitution that could be appropriated for the next biennium
within the limit established by the estimated rate of growth of the
state's economy].
(b) Except as provided by Subsection (c), the board shall
determine for the next state fiscal biennium a limit on the amount
of consolidated general revenue appropriations by multiplying the
amount of consolidated general revenue appropriations for the then
current state fiscal biennium by the sum of one and the limit on the
rate of growth of consolidated general revenue appropriations
determined by the board under Subsection (a) [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 the rate determined under Subsection (a) is a
negative number, the amount of consolidated general revenue
appropriations for the next state fiscal biennium may not exceed
the amount of consolidated general revenue appropriations in the
current state fiscal biennium [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.
(e) In the absence of an action by the Legislative Budget
Board to adopt a [spending] limit on consolidated general revenue
appropriations as provided by this section, [in Subsections (a) and
(b), the 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 consolidated general revenue
appropriations 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 consolidated general revenue
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 consolidated general revenue
appropriations [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 on consolidated general revenue
[of] appropriations [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 consolidated general
revenue appropriations, the proposed limit is binding on the
legislature with respect to all consolidated general revenue
appropriations for the next state fiscal biennium [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.
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