Texas 2017 - 85th Regular

Texas House Bill HB541 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R952 CJC-F
2	2	By: Metcalf H.B. No. 541
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the constitutional limit on the rate of growth of
8	8	appropriations.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 316.001, 316.002, 316.003, and 316.004,
11	11	Government Code, are amended to read as follows:
12	12	Sec. 316.001. LIMIT. (a) The rate of growth of
13	13	appropriations [in a biennium] from state tax revenues not
14	14	dedicated by the constitution from one state fiscal biennium to the
15	15	next state fiscal biennium may not exceed the lesser of the
16	16	following rates:
17	17	(1) a rate equal to the sum of the estimated rates of:
18	18	(A) increase or decrease in the state's
19	19	population during the current state fiscal biennium; and
20	20	(B) monetary inflation or deflation in the state
21	21	during the current state fiscal biennium; or
22	22	(2) the estimated rate of growth of the state's economy
23	23	as determined under Section 316.002.
24	24	(b) If the lesser of the rates described by Subsection (a)
25	25	is a negative number, the amount of appropriations from state tax
26	26	revenues not dedicated by the constitution for the next state
27	27	fiscal biennium may not exceed the amount of appropriations from
28	28	those revenues in the current state fiscal biennium reduced by the
29	29	product of that amount and the additive inverse of that negative
30	30	number.
31	31	Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD.
32	32	(a) Before the Legislative Budget Board transmits [submits] the
33	33	budget for the next state fiscal biennium as prescribed by Section
34	34	322.008(c), the board shall determine [establish]:
35	35	(1) the estimated rate of growth of the state's economy
36	36	from the current state fiscal biennium to the next state fiscal
37	37	biennium;
38	38	(2) a rate equal to the sum of the estimated rates of:
39	39	(A) increase or decrease in the state's
40	40	population during the current state fiscal biennium; and
41	41	(B) monetary inflation or deflation in the state
42	42	during the current state fiscal biennium;
43	43	(3) the amount [level] of appropriations for the
44	44	current state fiscal biennium from state tax revenues not dedicated
45	45	by the constitution; and
46	46	(4) [(3)] the amount of appropriations of state tax
47	47	revenues not dedicated by the constitution that could be
48	48	appropriated for the next state fiscal biennium within the limit
49	49	established by Section 316.001 [the estimated rate of growth of the
50	50	state's economy].
51	51	(b) Except as provided by Subsection (c), the board shall
52	52	determine the estimated rate of growth of the state's economy by
53	53	dividing the estimated Texas total personal income for the next
54	54	state fiscal biennium by the estimated Texas total personal income
55	55	for the current state fiscal biennium. Using standard statistical
56	56	methods, the board shall make the estimate by projecting through
57	57	the state fiscal biennium the estimated Texas total personal income
58	58	reported by the United States Department of Commerce or its
59	59	successor in function.
60	60	(c) If a more comprehensive definition of the rate of growth
61	61	of the state's economy is developed and is approved by the committee
62	62	established under [by] Section 316.005, the board may use that
63	63	definition in calculating the limit on appropriations.
64	64	(d) To ensure compliance with Section 22, Article VIII,
65	65	[Section 22, of the] Texas Constitution, the Legislative Budget
66	66	Board may not transmit in any form to the governor or the
67	67	legislature the budget as prescribed by Section 322.008(c) or the
68	68	general appropriations bill as prescribed by Section 322.008(d)
69	69	until the limit on the rate of growth of appropriations for the next
70	70	state fiscal biennium has been adopted as required by this
71	71	subchapter.
72	72	(e) In the absence of an action by the Legislative Budget
73	73	Board to adopt a rate of growth of appropriations for the next state
74	74	fiscal biennium [spending limit] as provided by this section, that
75	75	rate [in Subsections (a) and (b), the estimated rate of growth in
76	76	the state's economy from the current biennium to the next biennium]
77	77	shall be treated as if it were zero, and the amount of state tax
78	78	revenues not dedicated by the constitution that could be
79	79	appropriated for the next state fiscal biennium is [within the
80	80	limit established by the estimated rate of growth in the state's
81	81	economy shall be] the same as the amount [level] of appropriations
82	82	from those revenues for the current state fiscal biennium.
83	83	Sec. 316.003. PUBLICATION. Before the Legislative Budget
84	84	Board approves the items of information required by Section
85	85	316.002, the board shall publish in the Texas Register the proposed
86	86	items of information and a description of the methodology and
87	87	sources used in the determinations [calculations].
88	88	Sec. 316.004. PUBLIC HEARING. Not later than December 1 of
89	89	each even-numbered year, the Legislative Budget Board shall hold a
90	90	public hearing to solicit testimony regarding the proposed items of
91	91	information and the methodology used in making the determinations
92	92	[calculations] required by Section 316.002.
93	93	SECTION 2. Section 316.008(a), Government Code, is amended
94	94	to read as follows:
95	95	(a) Unless the legislature adopts a resolution under
96	96	Section 22, Article VIII, [Section 22(b), of the] Texas
97	97	Constitution, raising the proposed limit on appropriations for the
98	98	next state fiscal biennium, the proposed limit is binding on the
99	99	legislature with respect to all appropriations for the next state
100	100	fiscal biennium made from state tax revenues not dedicated by the
101	101	constitution.
102	102	SECTION 3. (a) The changes in law made by this Act apply
103	103	only in relation to appropriations made for the state fiscal
104	104	biennium beginning September 1, 2019, and subsequent state fiscal
105	105	bienniums.
106	106	(b) Appropriations for the state fiscal biennium that
107	107	begins September 1, 2017, are governed by Subchapter A, Chapter
108	108	316, Government Code, as that subchapter provided immediately
109	109	before the effective date of this Act, and the former law is
110	110	continued in effect for that purpose.
111	111	SECTION 4. This Act takes effect on the effective date of
112	112	the constitutional amendment proposed by the 85th Legislature,
113	113	Regular Session, 2017, regarding the limitation on the rate of
114	114	growth of appropriations. If that amendment is not approved by the
115	115	voters, this Act has no effect.