Texas 2017 - 85th Regular

Texas Senate Bill SB943 Compare Versions

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

Old	New	Differences
1	1	85R4924 CJC-F
2	2	By: Taylor of Collin S.B. No. 943
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to limitations on the rate of growth of appropriations.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Sections 316.001, 316.002, 316.003, 316.004, and
10	10	316.006, Government Code, are amended to read as follows:
11	11	Sec. 316.001. LIMIT. (a) The rate of growth of
12	12	appropriations in a state fiscal biennium from state tax revenues
13	13	not dedicated by the constitution may not exceed the estimated rate
14	14	of growth of the state's economy.
15	15	(b) The rate of growth of appropriations in a state fiscal
16	16	biennium from all sources of revenue, including the federal
17	17	government, may not exceed the least of the following rates,
18	18	calculated for the preceding state fiscal biennium:
19	19	(1) a rate equal to the sum of:
20	20	(A) the rate of growth of this state's
21	21	population; and
22	22	(B) the rate of monetary inflation in this state;
23	23	(2) the rate of growth of personal income of this
24	24	state's residents; or
25	25	(3) the rate of growth of this state's gross state
26	26	product.
27	27	Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
28	28	Before the Legislative Budget Board transmits [submits] the budget
29	29	as prescribed by Section 322.008(c), the board shall determine
30	30	[establish]:
31	31	(1) for purposes of Section 316.001(a):
32	32	(A) the estimated rate of growth of the state's
33	33	economy from the current state fiscal biennium to the next state
34	34	fiscal biennium;
35	35	(B) [(2)] the [level of] appropriations for the
36	36	current state fiscal biennium from state tax revenues not dedicated
37	37	by the constitution; and
38	38	(C) [(3)] the amount of state tax revenues not
39	39	dedicated by the constitution that could be appropriated for the
40	40	next state fiscal biennium within the limit established under that
41	41	subsection; and
42	42	(2) for purposes of Section 316.001(b):
43	43	(A) the lesser of the rates calculated as
44	44	provided under that subsection;
45	45	(B) the appropriations for the current state
46	46	fiscal biennium from all sources of revenue, including the federal
47	47	government; and
48	48	(C) the amount of revenue from all sources,
49	49	including the federal government, that could be appropriated for
50	50	the next state fiscal biennium within the limit established under
51	51	that subsection [by the estimated rate of growth of the state's
52	52	economy].
53	53	(b) Except as otherwise provided by this subsection
54	54	[Subsection (c)], for purposes of Section 316.001(a), the board
55	55	shall determine the estimated rate of growth of the state's economy
56	56	by dividing the estimated Texas total personal income for the next
57	57	state fiscal biennium by the estimated Texas total personal income
58	58	for the current state fiscal biennium. Using standard statistical
59	59	methods, the board shall make the estimate by projecting through
60	60	the state fiscal biennium the estimated Texas total personal income
61	61	reported by the United States Department of Commerce or its
62	62	successor in function. [(c)] If a more comprehensive method
63	63	[definition] of determining the rate of growth of the state's
64	64	economy is developed and is approved by the committee established
65	65	by Section 316.005, the board may use that method for purposes of
66	66	Section 316.001(a) [definition in calculating the limit on
67	67	appropriations].
68	68	(c) For purposes of Section 316.001(b), the board shall
69	69	determine:
70	70	(1) the rate of growth of this state's population
71	71	during the preceding state fiscal biennium using the most recent
72	72	estimates published by the United States Census Bureau;
73	73	(2) the rate of monetary inflation in this state
74	74	during the preceding state fiscal biennium using the effective
75	75	consumer price index for all items for this state as determined by
76	76	the board based on information published by the Bureau of Labor
77	77	Statistics of the United States Department of Labor; and
78	78	(3) the rate of growth of personal income of this
79	79	state's residents during the preceding state fiscal biennium and
80	80	the rate of growth of this state's gross state product during the
81	81	preceding state fiscal biennium using information provided by the
82	82	Bureau of Economic Analysis of the United States Department of
83	83	Commerce.
84	84	(d) To ensure compliance with this subchapter and Section
85	85	22, Article VIII, [Section 22, of the] Texas Constitution, the
86	86	Legislative Budget Board may not transmit in any form to the
87	87	governor or the legislature the budget as prescribed by Section
88	88	322.008(c) or the general appropriations bill as prescribed by
89	89	Section 322.008(d) until the board adopts:
90	90	(1) the limit on the rate of growth of appropriations
91	91	of state tax revenues not dedicated by the constitution under
92	92	Section 316.001(a); and
93	93	(2) the limit on the rate of growth of appropriations
94	94	from all sources of revenue, including the federal government,
95	95	under Section 316.001(b) [has been adopted as required by this
96	96	subchapter].
97	97	(e) In the absence of an action by the Legislative Budget
98	98	Board to adopt the limitations [a spending limit as] provided by
99	99	this section:
100	100	(1) for purposes of Section 316.001(a):
101	101	(A) [in Subsections (a) and (b),] the estimated
102	102	rate of growth in the state's economy from the current state fiscal
103	103	biennium to the next state fiscal biennium shall be treated as if it
104	104	were zero;[,] and
105	105	(B) the amount of state tax revenues not
106	106	dedicated by the constitution that could be appropriated within the
107	107	limit established by the estimated rate of growth in the state's
108	108	economy shall be the same as the level of appropriations for the
109	109	current state fiscal biennium; and
110	110	(2) for purposes of Section 316.001(b):
111	111	(A) the rate of growth shall be treated as if it
112	112	were zero; and
113	113	(B) the amount of revenue from all sources,
114	114	including the federal government, that could be appropriated within
115	115	the limit established by that subsection shall be the same as the
116	116	level of appropriations for the current state fiscal biennium.
117	117	Sec. 316.003. PUBLICATION. Before the Legislative Budget
118	118	Board approves the items of information required by Section
119	119	316.002, the board shall publish in the Texas Register the proposed
120	120	items of information and a description of the methodology and
121	121	sources used in the determinations [calculations].
122	122	Sec. 316.004. PUBLIC HEARING. Not later than December 1 of
123	123	each even-numbered year, the Legislative Budget Board shall hold a
124	124	public hearing to solicit testimony regarding the proposed items of
125	125	information and the methodology used in making the determinations
126	126	[calculations] required by Section 316.002.
127	127	Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
128	128	authorized by majority vote of the members of the board from each
129	129	house, the Legislative Budget Board budget recommendations
130	130	relating to the proposed appropriations from the state treasury for
131	131	the next state fiscal biennium [of state tax revenues not dedicated
132	132	by the constitution] may not exceed the limit on appropriations of
133	133	state tax revenues not dedicated by the constitution adopted by the
134	134	committee under Section 316.005 and may not exceed the limit on
135	135	appropriations of revenue from all sources, including the federal
136	136	government, adopted by the committee under that section [Section
137	137	316.005].
138	138	SECTION 2. Section 316.007(a), Government Code, is amended
139	139	to read as follows:
140	140	(a) The Legislative Budget Board shall include in its budget
141	141	recommendations:
142	142	(1) the proposed limit of appropriations from state
143	143	tax revenues not dedicated by the constitution; and
144	144	(2) the proposed limit of appropriations from all
145	145	sources of revenue, including the federal government.
146	146	SECTION 3. Section 316.008(a), Government Code, is amended
147	147	to read as follows:
148	148	(a) Unless the legislature adopts a resolution under
149	149	Section 22, Article VIII, [Section 22(b), of the] Texas
150	150	Constitution, raising the proposed limit on appropriations from
151	151	state tax revenues not dedicated by the constitution, the proposed
152	152	limit is binding on the legislature with respect to all
153	153	appropriations for the next state fiscal biennium made from those
154	154	[state tax] revenues [not dedicated by the constitution]. The
155	155	proposed limit on appropriations from all sources of revenue,
156	156	including the federal government, is binding on the legislature
157	157	with respect to all appropriations for the next state fiscal
158	158	biennium made from those revenues unless the legislature adopts a
159	159	resolution raising the proposed limit that is approved by a record
160	160	vote of two-thirds of the members of each house of the legislature.
161	161	A resolution described by this subsection must find that an
162	162	emergency exists, identify the nature of the emergency, and specify
163	163	the amount authorized. The excess authorized under this subsection
164	164	may not exceed the amount specified in the resolution.
165	165	SECTION 4. (a) The changes in law made by this Act apply
166	166	only in relation to an appropriation made for a state fiscal
167	167	biennium beginning on or after September 1, 2019.
168	168	(b) Appropriations for the state fiscal biennium that
169	169	begins September 1, 2017, are governed by Subchapter A, Chapter
170	170	316, Government Code, as that subchapter existed immediately before
171	171	the effective date of this Act, and the former law is continued in
172	172	effect for that purpose.
173	173	SECTION 5. This Act takes effect September 1, 2017.