Texas 2017 - 85th 1st C.S.

Texas House Bill HB127 Compare Versions

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

Old	New	Differences
1	1	85S10015 CJC-D
2	2	By: Leach H.B. No. 127
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, and 316.006,
11	11	Government Code, are amended to read as follows:
12	12	Sec. 316.001. LIMIT. (a) For purposes of this subchapter,
13	13	"consolidated general revenue appropriations" means appropriations
14	14	from:
15	15	(1) the general revenue fund in the state treasury;
16	16	(2) a dedicated account in the general revenue fund in
17	17	the state treasury; or
18	18	(3) a general revenue-related fund in the state
19	19	treasury as identified in the biennial statement required of the
20	20	comptroller under Section 49a, Article III, Texas Constitution.
21	21	(b) The rate of growth of appropriations in a state fiscal
22	22	biennium from state tax revenues not dedicated by the constitution
23	23	may not exceed the estimated rate of growth of the state's economy.
24	24	(c) The rate of growth of consolidated general revenue
25	25	appropriations in a state fiscal biennium may not exceed the
26	26	estimated rate of growth of the state's economy.
27	27	(d) For purposes of this subchapter, the estimated rate of
28	28	growth of the state's economy is the average biennial rate of growth
29	29	of this state's population during the state fiscal biennium
30	30	preceding the biennium for which appropriations are made and during
31	31	the state fiscal biennium for which appropriations are made,
32	32	adjusted by the average biennial rate of monetary inflation in this
33	33	state during the same period, as determined under Section 316.002.
34	34	(e) The legislature finds that, for purposes of Section 22,
35	35	Article VIII, Texas Constitution, the average biennial rate of
36	36	growth of this state's population during the state fiscal biennium
37	37	preceding the biennium for which appropriations are made and during
38	38	the state fiscal biennium for which appropriations are made,
39	39	adjusted by the average biennial rate of monetary inflation in this
40	40	state during the same period, is an appropriate measure of the
41	41	estimated rate of growth of this state's economy.
42	42	(f) For purposes of this subchapter, an appropriation to pay
43	43	for a rebate of state taxes must be excluded from computations used
44	44	to determine whether appropriations exceed the amount authorized by
45	45	Subsection (b) or (c).
46	46	(g) The Legislative Budget Board shall determine the rates
47	47	described by Subsection (d) using the most recent information
48	48	available from sources the board considers reliable, including the
49	49	United States Bureau of Labor Statistics Consumer Price Index and
50	50	the Texas Demographic Center.
51	51	Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
52	52	Before the Legislative Budget Board transmits [submits] the budget
53	53	for the next state fiscal biennium as prescribed by Section
54	54	322.008(c), the board shall establish:
55	55	(1) the limit on the rate of growth of appropriations
56	56	of state tax revenues not dedicated by the constitution for that
57	57	state fiscal biennium, as compared to the previous state fiscal
58	58	biennium, by subtracting one from the product of:
59	59	(A) the sum of one and the estimated average
60	60	biennial rate of growth of this state's population during the state
61	61	fiscal biennium preceding the biennium for which appropriations are
62	62	made and during the state fiscal biennium for which appropriations
63	63	are made; and
64	64	(B) the sum of one and the estimated average
65	65	biennial rate of monetary inflation during the state fiscal
66	66	biennium preceding the biennium for which appropriations are made
67	67	and during the state fiscal biennium for which appropriations are
68	68	made; and
69	69	(2) the limit on the rate of growth in consolidated
70	70	general revenue appropriations for that state fiscal biennium, as
71	71	compared to the previous state fiscal biennium, by subtracting one
72	72	from the product of:
73	73	(A) the sum of one and the estimated average
74	74	biennial rate of growth of this state's population during the state
75	75	fiscal biennium preceding the biennium for which appropriations are
76	76	made and during the state fiscal biennium for which appropriations
77	77	are made; and
78	78	(B) the sum of one and the estimated average
79	79	biennial rate of monetary inflation during the state fiscal
80	80	biennium preceding the biennium for which appropriations are made
81	81	and during the state fiscal biennium for which appropriations are
82	82	made [the state's economy from the current biennium to the next
83	83	biennium;
84	84	[(2) the level of appropriations for the current
85	85	biennium from state tax revenues not dedicated by the constitution;
86	86	and
87	87	[(3) the amount of state tax revenues not dedicated by
88	88	the constitution that could be appropriated for the next biennium
89	89	within the limit established by the estimated rate of growth of the
90	90	state's economy].
91	91	(b) Except as provided by Subsection (c), the board shall
92	92	determine for the next state fiscal biennium a limit on the amount
93	93	of:
94	94	(1) appropriations of state tax revenues not dedicated
95	95	by the constitution by multiplying the amount of appropriations of
96	96	state tax revenues not dedicated by the constitution for the then
97	97	current state fiscal biennium by the sum of one and the limit on the
98	98	rate of growth of appropriations of state tax revenues not
99	99	dedicated by the constitution established by the board under
100	100	Subsection (a)(1); and
101	101	(2) consolidated general revenue appropriations by
102	102	multiplying the amount of consolidated general revenue
103	103	appropriations for the then current state fiscal biennium by the
104	104	sum of one and the limit on the rate of growth of consolidated
105	105	general revenue appropriations established by the board under
106	106	Subsection (a)(2) [the estimated rate of growth of the state's
107	107	economy by dividing the estimated Texas total personal income for
108	108	the next biennium by the estimated Texas total personal income for
109	109	the current biennium. Using standard statistical methods, the
110	110	board shall make the estimate by projecting through the biennium
111	111	the estimated Texas total personal income reported by the United
112	112	States Department of Commerce or its successor in function].
113	113	(c) If the rate determined under Subsection (a)(1) is a
114	114	negative number, the amount of appropriations of state tax revenues
115	115	not dedicated by the constitution for the next state fiscal
116	116	biennium may not exceed the amount of appropriations of state tax
117	117	revenues not dedicated by the constitution in the current state
118	118	fiscal biennium. If the rate determined under Subsection (a)(2) is
119	119	a negative number, the amount of consolidated general revenue
120	120	appropriations for the next state fiscal biennium may not exceed
121	121	the amount of consolidated general revenue appropriations in the
122	122	current state fiscal biennium [If a more comprehensive definition
123	123	of the rate of growth of the state's economy is developed and is
124	124	approved by the committee established by Section 316.005, the board
125	125	may use that definition in calculating the limit on
126	126	appropriations].
127	127	(d) To ensure compliance with this subchapter and Section
128	128	22, Article VIII, [Section 22, of the] Texas Constitution, the
129	129	Legislative Budget Board may not transmit in any form to the
130	130	governor or the legislature the budget as prescribed by Section
131	131	322.008(c) or the general appropriations bill as prescribed by
132	132	Section 322.008(d) until the board adopts:
133	133	(1) the limit on the rate of growth of appropriations
134	134	of state tax revenues not dedicated by the constitution under
135	135	Section 316.001(b); and
136	136	(2) the limit on the rate of growth of consolidated
137	137	general revenue appropriations under Section 316.001(c) [has been
138	138	adopted as required by this subchapter].
139	139	(e) In the absence of an action by the Legislative Budget
140	140	Board to adopt the limits [a spending limit] as provided by this
141	141	section:
142	142	(1) for purposes of Section 316.001(b):
143	143	(A) [in Subsections (a) and (b),] the estimated
144	144	rate of growth in the state's economy from the current fiscal
145	145	biennium to the next fiscal biennium shall be treated as if it were
146	146	zero; [,] and
147	147	(B) the amount of state tax revenues not
148	148	dedicated by the constitution that could be appropriated within the
149	149	limit established by the estimated rate of growth in the state's
150	150	economy shall be the same as the level of appropriations for the
151	151	current fiscal biennium; and
152	152	(2) for purposes of Section 316.001(c):
153	153	(A) the estimated rate of growth in the state's
154	154	economy from the current fiscal biennium to the next fiscal
155	155	biennium shall be treated as if it were zero; and
156	156	(B) the amount of consolidated general revenue
157	157	appropriations that could be appropriated within the limit
158	158	established by that subsection shall be the same as the level of
159	159	appropriations for the current fiscal biennium.
160	160	Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
161	161	authorized by majority vote of the members of the board from each
162	162	house, the Legislative Budget Board budget recommendations:
163	163	(1) relating to the proposed appropriations of state
164	164	tax revenues not dedicated by the constitution may not exceed the
165	165	limit on appropriations from those sources adopted by the committee
166	166	under Section 316.005; and
167	167	(2) relating to the proposed consolidated general
168	168	revenue appropriations may not exceed the limit on appropriations
169	169	from those sources adopted by the committee under Section 316.005.
170	170	SECTION 2. Section 316.007(a), Government Code, is amended
171	171	to read as follows:
172	172	(a) The Legislative Budget Board shall include in its budget
173	173	recommendations:
174	174	(1) the proposed limit of appropriations from state
175	175	tax revenues not dedicated by the constitution; and
176	176	(2) the proposed limit of consolidated general revenue
177	177	appropriations.
178	178	SECTION 3. Section 316.008(a), Government Code, is amended
179	179	to read as follows:
180	180	(a) Unless the legislature adopts a resolution under
181	181	Section 22, Article VIII, [Section 22(b), of the] Texas
182	182	Constitution, raising the proposed limit on appropriations from
183	183	state tax revenues not dedicated by the constitution, the proposed
184	184	limit is binding on the legislature with respect to all
185	185	appropriations for the next fiscal biennium made from those [state
186	186	tax] revenues [not dedicated by the constitution]. The proposed
187	187	limit on consolidated general revenue appropriations is binding on
188	188	the legislature with respect to all appropriations for the next
189	189	fiscal biennium made from those sources unless the legislature
190	190	adopts a resolution raising the proposed limit that is approved by a
191	191	record vote of three-fifths of the members of each house of the
192	192	legislature. The resolution must find that an emergency exists,
193	193	identify the nature of the emergency, and specify the amount
194	194	authorized. The excess authorized under this subsection may not
195	195	exceed the amount specified in the resolution.
196	196	SECTION 4. The changes in law made by this Act apply only in
197	197	relation to appropriations made for the state fiscal biennium
198	198	beginning September 1, 2019, and subsequent state fiscal bienniums.
199	199	Appropriations for the state fiscal biennium beginning September 1,
200	200	2017, are governed by Sections 316.001, 316.002, 316.006, 316.007,
201	201	and 316.008, Government Code, as those sections existed on December
202	202	1, 2016, and the former law is continued in effect for that purpose.
203	203	SECTION 5. This Act takes effect December 1, 2017.