85R952 CJC-F
By: Metcalf H.B. No. 541
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, 316.003, and 316.004,
Government Code, are amended to read as follows:
Sec. 316.001. LIMIT. (a) The rate of growth of
appropriations [in a biennium] from state tax revenues not
dedicated by the constitution from one state fiscal biennium to the
next state fiscal biennium may not exceed the lesser of the
following rates:
(1) a rate equal to the sum of the estimated rates of:
(A) increase or decrease in the state's
population during the current state fiscal biennium; and
(B) monetary inflation or deflation in the state
during the current state fiscal biennium; or
(2) the estimated rate of growth of the state's economy
as determined under Section 316.002.
(b) If the lesser of the rates described by Subsection (a)
is a negative number, the amount of appropriations from state tax
revenues not dedicated by the constitution for the next state
fiscal biennium may not exceed the amount of appropriations from
those revenues in the current state fiscal biennium reduced by the
product of that amount and the additive inverse of that negative
number.
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 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;
(2) a rate equal to the sum of the estimated rates of:
(A) increase or decrease in the state's
population during the current state fiscal biennium; and
(B) monetary inflation or deflation in the state
during the current state fiscal biennium;
(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 appropriations 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) 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) If a more comprehensive definition of the rate of growth
of the state's economy is developed and is approved by the committee
established under [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 for the next
state fiscal biennium has been adopted as required by this
subchapter.
(e) In the absence of an action by the Legislative Budget
Board to adopt a rate of growth of appropriations for the next state
fiscal biennium [spending limit] as provided by this section, that
rate [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 state tax
revenues not dedicated by the constitution that could be
appropriated for the next state fiscal biennium is [within the
limit established by the estimated rate of growth in the state's
economy shall be] the same as the amount [level] of appropriations
from those revenues 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.
SECTION 2. 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 for the
next state fiscal biennium, the proposed 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.
SECTION 3. (a) The changes in law made by this Act apply
only in relation to appropriations made for the state fiscal
biennium beginning September 1, 2019, and subsequent state fiscal
bienniums.
(b) Appropriations for the state fiscal biennium that
begins September 1, 2017, are governed by Subchapter A, Chapter
316, Government Code, as that subchapter provided immediately
before the effective date of this Act, and the former law is
continued in effect for that purpose.
SECTION 4. This Act takes effect on the effective date of
the constitutional amendment proposed by the 85th Legislature,
Regular Session, 2017, regarding the limitation on the rate of
growth of appropriations. If that amendment is not approved by the
voters, this Act has no effect.