Texas 2017 - 85th Regular

Texas House Bill HB1025 Compare Versions

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1	1	By: Leach H.B. No. 1025
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the constitutional limit on the rate of growth of
7	7	appropriations.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Sections 316.001, 316.002, and 316.006,
10	10	Government Code, are amended to read as follows:
11	11	Sec. 316.001. LIMIT. (a) For purposes of this subchapter,
12	12	"consolidated general revenue appropriations" means appropriations
13	13	from:
14	14	(1) the general revenue fund in the state treasury;
15	15	(2) a dedicated account in the general revenue fund in
16	16	the state treasury; or
17	17	(3) a general revenue-related fund in the state
18	18	treasury as identified in the biennial statement required of the
19	19	comptroller under Section 49a, Article III, Texas Constitution.
20	20	(b) The rate of growth of appropriations in a state fiscal
21	21	biennium from state tax revenues not dedicated by the constitution
22	22	may not exceed the estimated rate of growth of the state's economy.
23	23	(c) The rate of growth of consolidated general revenue
24	24	appropriations in a state fiscal biennium may not exceed the
25	25	estimated rate of growth of the state's economy.
26	26	(d) For purposes of this subchapter, the estimated rate of
27	27	growth of the state's economy is the average biennial rate of growth
28	28	of this state's population during the state fiscal biennium
29	29	preceding the biennium for which appropriations are made and during
30	30	the state fiscal biennium for which appropriations are made,
31	31	adjusted by the average biennial rate of monetary inflation in this
32	32	state during the same period, as determined under Section 316.002.
33	33	(e) The legislature finds that, for purposes of Section 22,
34	34	Article VIII, Texas Constitution, the average biennial rate of
35	35	growth of this state's population during the state fiscal biennium
36	36	preceding the biennium for which appropriations are made and during
37	37	the state fiscal biennium for which appropriations are made,
38	38	adjusted by the average biennial rate of monetary inflation in this
39	39	state during the same period, is an appropriate measure of the
40	40	estimated rate of growth of this state's economy.
41	41	(f) For purposes of this subchapter, an appropriation to pay
42	42	for a rebate of state taxes must be excluded from computations used
43	43	to determine whether appropriations exceed the amount authorized by
44	44	Subsection (b) or (c).
45	45	(g) The Legislative Budget Board shall determine the rates
46	46	described by Subsection (d) using the most recent information
47	47	available from sources the board considers reliable, including the
48	48	United States Bureau of Labor Statistics' Consumer Price Index and
49	49	the Texas Demographic Center.
50	50	Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
51	51	Before the Legislative Budget Board transmits [submits] the budget
52	52	for the next state fiscal biennium as prescribed by Section
53	53	322.008(c), the board shall establish:
54	54	(1) the limit on the rate of growth of appropriations
55	55	of state tax revenues not dedicated by the constitution for that
56	56	state fiscal biennium, as compared to the previous state fiscal
57	57	biennium, by subtracting one from the product of:
58	58	(A) the sum of one and the estimated average
59	59	biennial rate of growth of this state's population during the state
60	60	fiscal biennium preceding the biennium for which appropriations are
61	61	made and during the state fiscal biennium for which appropriations
62	62	are made; and
63	63	(B) the sum of one and the estimated average
64	64	biennial rate of monetary inflation during the state fiscal
65	65	biennium preceding the biennium for which appropriations are made
66	66	and during the state fiscal biennium for which appropriations are
67	67	made; and
68	68	(2) the limit in the rate of growth in consolidated
69	69	general revenue appropriations for that state fiscal biennium, as
70	70	compared to the previous state fiscal biennium, by subtracting one
71	71	from the product of:
72	72	(A) the sum of one and the estimated average
73	73	biennial rate of growth of this state's population during the state
74	74	fiscal biennium preceding the biennium for which appropriations are
75	75	made and during the state fiscal biennium for which appropriations
76	76	are made; and
77	77	(B) the sum of one and the estimated average
78	78	biennial rate of monetary inflation during the state fiscal
79	79	biennium preceding the biennium for which appropriations are made
80	80	and during the state fiscal biennium for which appropriations are
81	81	made [the state's economy from the current biennium to the next
82	82	biennium;
83	83	[(2) the level of appropriations for the current
84	84	biennium from state tax revenues not dedicated by the constitution;
85	85	and
86	86	[(3) the amount of state tax revenues not
87	87	dedicated by the constitution that could be appropriated for the
88	88	next biennium within the limit established by the estimated rate of
89	89	growth of the state's economy].
90	90	(b) Except as provided by Subsection (c), the board shall
91	91	determine for the next state fiscal biennium a limit on the amount
92	92	of:
93	93	(1) appropriations of state tax revenues not dedicated
94	94	by the constitution by multiplying the amount of appropriations of
95	95	state tax revenues not dedicated by the constitution for the then
96	96	current state fiscal biennium by the sum of one and the limit on the
97	97	rate of growth of appropriations of state tax revenues not
98	98	dedicated by the constitution determined by the board under
99	99	Subsection (a)(1); and
100	100	(2) consolidated general revenue appropriations by
101	101	multiplying the amount of consolidated general revenue
102	102	appropriations for the then current state fiscal biennium by the
103	103	sum of one and the limit on the rate of growth of consolidated
104	104	general revenue appropriations determined by the board under
105	105	Subsection (a)(2) [the estimated rate of growth of the state's
106	106	economy by dividing the estimated Texas total personal income for
107	107	the next biennium by the estimated Texas total personal income for
108	108	the current biennium. Using standard statistical methods, the
109	109	board shall make the estimate by projecting through the biennium
110	110	the estimated Texas total personal income reported by the United
111	111	States Department of Commerce or its successor in function].
112	112	(c) If the rate determined under Subsection (a)(1) is a
113	113	negative number, the amount of appropriations of state tax revenues
114	114	not dedicated by the constitution for the next state fiscal
115	115	biennium may not exceed the amount of appropriations of state tax
116	116	revenues not dedicated by the constitution in the current state
117	117	fiscal biennium. If the rate determined under Subsection (a)(2) is
118	118	a negative number, the amount of consolidated general revenue
119	119	appropriations for the next state fiscal biennium may not exceed
120	120	the amount of consolidated general revenue appropriations in the
121	121	current state fiscal biennium [If a more comprehensive definition
122	122	of the rate of growth of the state's economy is developed and is
123	123	approved by the committee established by Section 316.005, the board
124	124	may use that definition in calculating the limit on
125	125	appropriations].
126	126	(d) To ensure compliance with this subchapter and Section
127	127	22, Article VIII, [Section 22, of the] Texas Constitution, the
128	128	Legislative Budget Board may not transmit in any form to the
129	129	governor or the legislature the budget as prescribed by Section
130	130	322.008(c) or the general appropriations bill as prescribed by
131	131	Section 322.008(d) until the board adopts:
132	132	(1) the limit on the rate of growth of appropriations
133	133	of state tax revenues not dedicated by the constitution under
134	134	Section 316.001(b); and
135	135	(2) the limit on the rate of growth of consolidated
136	136	general revenue appropriations under Section 316.001(c) [has been
137	137	adopted as required by this subchapter].
138	138	(e) In the absence of an action by the Legislative Budget
139	139	Board to adopt the limits [a spending limit] as provided by this
140	140	section:
141	141	(1) for purposes of Section 316.001(b):
142	142	(A) [in Subsections (a) and (b),] the estimated
143	143	rate of growth in the state's economy from the current fiscal
144	144	biennium to the next fiscal biennium shall be treated as if it were
145	145	zero;[,] and
146	146	(B) the amount of state tax revenues not
147	147	dedicated by the constitution that could be appropriated within the
148	148	limit established by the estimated rate of growth in the state's
149	149	economy shall be the same as the level of appropriations for the
150	150	current fiscal biennium; and
151	151	(2) for purposes of Section 316.001(c):
152	152	(A) the estimated rate of growth in the state's
153	153	economy from the current fiscal biennium to the next fiscal
154	154	biennium shall be treated as if it were zero; and
155	155	(B) the amount of consolidated general revenue
156	156	appropriations that could be appropriated within the limit
157	157	established by that subsection shall be the same as the level of
158	158	appropriations for the current fiscal biennium.
159	159	Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
160	160	authorized by majority vote of the members of the board from each
161	161	house, the Legislative Budget Board budget recommendations:
162	162	(1) relating to the proposed appropriations of state
163	163	tax revenues not dedicated by the constitution may not exceed the
164	164	limit on appropriations from those sources adopted by the committee
165	165	under Section 316.005; and
166	166	(2) relating to the proposed consolidated general
167	167	revenue appropriations may not exceed the limit on appropriations
168	168	from those sources adopted by the committee under Section 316.005.
169	169	SECTION 2. Section 316.007(a), Government Code, is amended
170	170	to read as follows:
171	171	(a) The Legislative Budget Board shall include in its budget
172	172	recommendations:
173	173	(1) the proposed limit of appropriations from state
174	174	tax revenues not dedicated by the constitution; and
175	175	(2) the proposed limit of consolidated general revenue
176	176	appropriations.
177	177	SECTION 3. Section 316.008(a), Government Code, is amended
178	178	to read as follows:
179	179	(a) Unless the legislature adopts a resolution under
180	180	Section 22, Article VIII, [Section 22(b), of the] Texas
181	181	Constitution, raising the proposed limit on appropriations from
182	182	state tax revenues not dedicated by the constitution, the proposed
183	183	limit is binding on the legislature with respect to all
184	184	appropriations for the next fiscal biennium made from those [state
185	185	tax] revenues [not dedicated by the constitution]. The proposed
186	186	limit on consolidated general revenue appropriations is binding on
187	187	the legislature with respect to all appropriations for the next
188	188	fiscal biennium made from those sources unless the legislature
189	189	adopts a resolution raising the proposed limit that is approved by a
190	190	record vote of three-fifths of the members of each house of the
191	191	legislature. The resolution must find that an emergency exists,
192	192	identify the nature of the emergency, and specify the amount
193	193	authorized. The excess authorized under this subsection may not
194	194	exceed the amount specified in the resolution.
195	195	SECTION 4. The changes in law made by this Act apply only in
196	196	relation to appropriations made for the state fiscal biennium
197	197	beginning September 1, 2019, and subsequent state fiscal bienniums.
198	198	Appropriations for the state fiscal biennium that begins September
199	199	1, 2017, are governed by Sections 316.001, 316.002, 316.006,
200	200	316.007, and 316.008, Government Code, as those sections existed on
201	201	December 1, 2016, and the former law is continued in effect for that
202	202	purpose.
203	203	SECTION 5. This Act takes effect September 1, 2017.