Texas 2017 - 85th 1st C.S.

Texas Senate Bill SB9 Compare Versions

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Old	New		Differences
1		-	85S12289 CJC-D
2	1		By: Hancock, et al. S.B. No. 9
3		-	(Parker)
4		-	Substitute the following for S.B. No. 9: No.
5	2
6	3
7	4		A BILL TO BE ENTITLED
8	5		AN ACT
9	6		relating to the constitutional limit on the rate of growth of
10		-	appropriations and appropriations of constitutionally dedicated
11		-	revenue.
	7	+	appropriations.
12	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	9		SECTION 1. Sections 316.001, 316.002, and 316.006,
14	10		Government Code, are amended to read as follows:
15		-	Sec. 316.001. LIMIT. (a) The rate of growth of
16		-	appropriations in a state fiscal biennium from state tax revenues
17		-	not dedicated by the constitution may not exceed the estimated rate
18		-	of growth of the state's economy.
19		-	(b) The rate of growth of appropriations from all sources of
20		-	revenue other than the federal government in a state fiscal
21		-	biennium may not exceed the estimated rate of growth of the state's
22		-	economy.
23		-	(c) For purposes of this subchapter, the estimated rate of
24		-	growth of the state's economy is the estimated average biennial
25		-	rate of growth of this state's population during the state fiscal
26		-	biennium for which appropriations are made, adjusted by the
27		-	estimated average biennial rate of monetary inflation in this state
28		-	during the same period, as determined under Section 316.002.
29		-	(d) The legislature finds that, for purposes of Section 22,
30		-	Article VIII, Texas Constitution, the estimated average biennial
31		-	rate of growth of this state's population during the state fiscal
32		-	biennium for which appropriations are made, adjusted by the
33		-	estimated average biennial rate of monetary inflation in this state
34		-	during the same period, is an appropriate measure of the estimated
35		-	rate of growth of the state's economy.
36		-	(e) For purposes of this subchapter, an appropriation to pay
	11	+	Sec. 316.001. LIMIT. (a) For purposes of this subchapter,
	12	+	"consolidated general revenue appropriations" means appropriations
	13	+	from:
	14	+	(1) the general revenue fund in the state treasury;
	15	+	(2) a dedicated account in the general revenue fund in
	16	+	the state treasury; or
	17	+	(3) a general revenue-related fund in the state
	18	+	treasury as identified in the biennial statement required of the
	19	+	comptroller under Section 49a, Article III, Texas Constitution.
	20	+	(b) The rate of growth of appropriations in a state fiscal
	21	+	biennium from state tax revenues not dedicated by the constitution
	22	+	may not exceed the estimated rate of growth of the state's economy.
	23	+	(c) The rate of growth of consolidated general revenue
	24	+	appropriations in a state fiscal biennium may not exceed the
	25	+	estimated rate of growth of the state's economy.
	26	+	(d) For purposes of this subchapter, the estimated rate of
	27	+	growth of the state's economy is the average biennial rate of growth
	28	+	of this state's population during the state fiscal biennium
	29	+	preceding the biennium for which appropriations are made and during
	30	+	the state fiscal biennium for which appropriations are made,
	31	+	adjusted by the average biennial rate of monetary inflation in this
	32	+	state during the same period, as determined under Section 316.002.
	33	+	(e) The legislature finds that, for purposes of Section 22,
	34	+	Article VIII, Texas Constitution, the average biennial rate of
	35	+	growth of this state's population during the state fiscal biennium
	36	+	preceding the biennium for which appropriations are made and during
	37	+	the state fiscal biennium for which appropriations are made,
	38	+	adjusted by the average biennial rate of monetary inflation in this
	39	+	state during the same period, is an appropriate measure of the
	40	+	estimated rate of growth of this state's economy.
	41	+	(f) For purposes of this subchapter, an appropriation to pay
37	42		for a rebate of state taxes must be excluded from computations used
38	43		to determine whether appropriations exceed the amount authorized by
39		-	Subsection (a) or (b).
40		-	(f) The Legislative Budget Board shall determine the rates
41		-	described by Subsection (c) using the most recent information
	44	+	Subsection (b) or (c).
	45	+	(g) The Legislative Budget Board shall determine the rates
	46	+	described by Subsection (d) using the most recent information
42	47		available from sources the board considers reliable, including the
43		-	United States Bureau of Labor Statistics and ~~the Texas Demographic~~
44		-	Center.
45		-	Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. ~~(a)~~
46		-	Before the Legislative Budget Board transmits [submits] the ~~budget~~
47		-	for the next state fiscal biennium as prescribed by Section
	48	+	United States Bureau of Labor Statistics Consumer Price Index and
	49	+	the Texas Demographic Center.
	50	+	Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD.
	51	+	(a) Before the Legislative Budget Board transmits [submits] the
	52	+	budget for the next state fiscal biennium as prescribed by Section
48	53		322.008(c), the board shall establish:
49	54		(1) the limit on the rate of growth of appropriations
50		-	~~from~~ state tax revenues not dedicated by the constitution for that
	55	+	of state tax revenues not dedicated by the constitution for that
51	56		state fiscal biennium, as compared to the previous state fiscal
52	57		biennium, by subtracting one from the product of:
53	58		(A) the sum of one and the estimated average
54	59		biennial rate of growth of this state's population during the state
55		-	fiscal biennium for which appropriations are made; and
	60	+	fiscal biennium preceding the biennium for which appropriations are
	61	+	made and during the state fiscal biennium for which appropriations
	62	+	are made; and
56	63		(B) the sum of one and the estimated average
57		-	biennial rate of monetary inflation in this state during the state
58		-	fiscal biennium for which appropriations are made; and
59		-	(2) the limit on the rate of growth of appropriations
60		-	from all sources of revenue other than the federal government for
61		-	that state fiscal biennium, as compared to the previous state
62		-	fiscal biennium, by subtracting one from the product of:
	64	+	biennial rate of monetary inflation during the state fiscal
	65	+	biennium preceding the biennium for which appropriations are made
	66	+	and during the state fiscal biennium for which appropriations are
	67	+	made; and
	68	+	(2) the limit on the rate of growth in consolidated
	69	+	general revenue appropriations for that state fiscal biennium, as
	70	+	compared to the previous state fiscal biennium, by subtracting one
	71	+	from the product of:
63	72		(A) the sum of one and the estimated average
64	73		biennial rate of growth of this state's population during the state
65		-	fiscal biennium for which appropriations are made; and
	74	+	fiscal biennium preceding the biennium for which appropriations are
	75	+	made and during the state fiscal biennium for which appropriations
	76	+	are made; and
66	77		(B) the sum of one and the estimated average
67		-	biennial rate of monetary inflation in this state during the state
68		-	fiscal biennium for which appropriations are made [the state's
69		-	economy from the current biennium to the next biennium;
	78	+	biennial rate of monetary inflation during the state fiscal
	79	+	biennium preceding the biennium for which appropriations are made
	80	+	and during the state fiscal biennium for which appropriations are
	81	+	made [the state's economy from the current biennium to the next
	82	+	biennium;
70	83		[(2) the level of appropriations for the current
71	84		biennium from state tax revenues not dedicated by the constitution;
72	85		and
73	86		[(3) the amount of state tax revenues not dedicated by
74	87		the constitution that could be appropriated for the next biennium
75	88		within the limit established by the estimated rate of growth of the
76	89		state's economy].
77	90		(b) Except as provided by Subsection (c), the board shall
78		-	~~establish~~ for the next state fiscal biennium a limit on the amount
	91	+	determine for the next state fiscal biennium a limit on the amount
79	92		of:
80		-	(1) appropriations from state tax revenues not
81		-	dedicated by the constitution by multiplying the amount of
82		-	appropriations from state tax revenues not dedicated by the
83		-	constitution for the current state fiscal biennium by the sum of one
84		-	and the limit on the rate of growth of appropriations from state tax
85		-	revenues not dedicated by the constitution established by the board
86		-	under Subsection (a)(1); and
87		-	(2) appropriations from all sources of revenue other
88		-	than the federal government by multiplying the amount of
89		-	appropriations from all sources of revenue other than the federal
90		-	government for the current state fiscal biennium by the sum of one
91		-	and the limit on the rate of growth of appropriations from all
92		-	sources of revenue other than the federal government established by
93		-	the board under Subsection (a)(2) [determine the estimated rate of
94		-	growth of the state's economy by dividing the estimated Texas total
95		-	personal income for the next biennium by the estimated Texas total
96		-	personal income for the current biennium. Using standard
97		-	statistical methods, the board shall make the estimate by
98		-	projecting through the biennium the estimated Texas total personal
99		-	income reported by the United States Department of Commerce or its
100		-	successor in function].
	93	+	(1) appropriations of state tax revenues not dedicated
	94	+	by the constitution by multiplying the amount of appropriations of
	95	+	state tax revenues not dedicated by the constitution for the then
	96	+	current state fiscal biennium by the sum of one and the limit on the
	97	+	rate of growth of appropriations of state tax revenues not
	98	+	dedicated by the constitution established by the board under
	99	+	Subsection (a)(1); and
	100	+	(2) consolidated general revenue appropriations by
	101	+	multiplying the amount of consolidated general revenue
	102	+	appropriations for the then current state fiscal biennium by the
	103	+	sum of one and the limit on the rate of growth of consolidated
	104	+	general revenue appropriations established by the board under
	105	+	Subsection (a)(2) [the estimated rate of growth of the state's
	106	+	economy by dividing the estimated Texas total personal income for
	107	+	the next biennium by the estimated Texas total personal income for
	108	+	the current biennium. Using standard statistical methods, the
	109	+	board shall make the estimate by projecting through the biennium
	110	+	the estimated Texas total personal income reported by the United
	111	+	States Department of Commerce or its successor in function].
101	112		(c) If the rate determined under Subsection (a)(1) is a
102		-	negative number, the amount of appropriations from state tax
103		-	revenues not dedicated by the constitution for the next state
104		-	fiscal biennium may not exceed the amount of appropriations from
105		-	state tax revenues not dedicated by the constitution for the
106		-	current state fiscal biennium. If the rate determined under
107		-	Subsection (a)(2) is a negative number, the amount of
108		-	appropriations from all sources of revenue other than the federal
109		-	government for the next state fiscal biennium may not exceed the
110		-	amount of appropriations from all sources of revenue other than the
111		-	federal government for the current state fiscal biennium [If a more
112		-	comprehensive definition of the rate of growth of the state's
113		-	economy is developed and is approved by the committee established
114		-	by Section 316.005, the board may use that definition in
115		-	calculating the limit on appropriations].
	113	+	negative number, the amount of appropriations of state tax revenues
	114	+	not dedicated by the constitution for the next state fiscal
	115	+	biennium may not exceed the amount of appropriations of state tax
	116	+	revenues not dedicated by the constitution in the current state
	117	+	fiscal biennium. If the rate determined under Subsection (a)(2) is
	118	+	a negative number, the amount of consolidated general revenue
	119	+	appropriations for the next state fiscal biennium may not exceed
	120	+	the amount of consolidated general revenue appropriations in the
	121	+	current state fiscal biennium [If a more comprehensive definition
	122	+	of the rate of growth of the state's economy is developed and is
	123	+	approved by the committee established by Section 316.005, the board
	124	+	may use that definition in calculating the limit on
	125	+	appropriations].
116	126		(d) To ensure compliance with this subchapter and Section
117	127		22, Article VIII, [Section 22, of the] Texas Constitution, the
118	128		Legislative Budget Board may not transmit in any form to the
119	129		governor or the legislature the budget as prescribed by Section
120	130		322.008(c) or the general appropriations bill as prescribed by
121		-	Section 322.008(d) until the board ~~establishes~~:
	131	+	Section 322.008(d) until the board adopts:
122	132		(1) the limit on the rate of growth of appropriations
123		-	from state tax revenues not dedicated by the constitution under
124		-	Section 316.001(a); and
125		-	(2) the limit on the rate of growth of appropriations
126		-	from all sources of revenue other than the federal government under
127		-	Section 316.001(b) [has been adopted as required by this
128		-	subchapter].
	133	+	of state tax revenues not dedicated by the constitution under
	134	+	Section 316.001(b); and
	135	+	(2) the limit on the rate of growth of consolidated
	136	+	general revenue appropriations under Section 316.001(c) [has been
	137	+	adopted as required by this subchapter].
129	138		(e) In the absence of an action by the Legislative Budget
130		-	Board to ~~establish~~ the limits [~~adopt~~ a spending limit] as provided
131		-	~~by this~~ section:
132		-	(1) for purposes of Section 316.001(a):
	139	+	Board to adopt the limits [a spending limit] as provided by this
	140	+	section:
	141	+	(1) for purposes of Section 316.001(b):
133	142		(A) [in Subsections (a) and (b),] the estimated
134		-	rate of growth ~~of [~~in] the state's economy from the current fiscal
	143	+	rate of growth in the state's economy from the current fiscal
135	144		biennium to the next fiscal biennium shall be treated as if it were
136	145		zero;[,] and
137	146		(B) the amount of state tax revenues not
138	147		dedicated by the constitution that could be appropriated within the
139		-	limit established by the estimated rate of growth ~~of [~~in] the
140		-	~~state's~~ economy shall be the same as the level of appropriations for
141		-	~~the~~ current fiscal biennium; and
142		-	(2) for purposes of Section 316.001(b):
143		-	(A) the estimated rate of growth of the state's
	148	+	limit established by the estimated rate of growth in the state's
	149	+	economy shall be the same as the level of appropriations for the
	150	+	current fiscal biennium; and
	151	+	(2) for purposes of Section 316.001(c):
	152	+	(A) the estimated rate of growth in the state's
144	153		economy from the current fiscal biennium to the next fiscal
145	154		biennium shall be treated as if it were zero; and
146		-	(B) the amount of appropriations from all sources
147		-	of revenue other than the federal government that could be
148		-	appropriated within the limit established by that subsection shall
149		-	be the same as the level of appropriations for the current fiscal
150		-	biennium.
	155	+	(B) the amount of consolidated general revenue
	156	+	appropriations that could be appropriated within the limit
	157	+	established by that subsection shall be the same as the level of
	158	+	appropriations for the current fiscal biennium.
151	159		Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
152	160		authorized by majority vote of the members of the board from each
153	161		house, the Legislative Budget Board budget recommendations:
154		-	(1) relating to the proposed appropriations from [of]
155		-	state tax revenues not dedicated by the constitution may not exceed
156		-	the limit on appropriations from those sources adopted by the
157		-	committee under Section 316.005; and
158		-	(2) relating to the proposed appropriations from all
159		-	sources of revenue other than the federal government may not exceed
160		-	the limit on appropriations from those sources adopted by the
161		-	committee under Section 316.005.
	162	+	(1) relating to the proposed appropriations of state
	163	+	tax revenues not dedicated by the constitution may not exceed the
	164	+	limit on appropriations from those sources adopted by the committee
	165	+	under Section 316.005; and
	166	+	(2) relating to the proposed consolidated general
	167	+	revenue appropriations may not exceed the limit on appropriations
	168	+	from those sources adopted by the committee under Section 316.005.
162	169		SECTION 2. Section 316.007(a), Government Code, is amended
163	170		to read as follows:
164	171		(a) The Legislative Budget Board shall include in its budget
165	172		recommendations:
166	173		(1) the proposed limit of appropriations from state
167	174		tax revenues not dedicated by the constitution; and
168		-	(2) the proposed limit of ~~appropriations from all~~
169		-	~~sources of revenue other than the federal government~~.
	175	+	(2) the proposed limit of consolidated general revenue
	176	+	appropriations.
170	177		SECTION 3. Section 316.008(a), Government Code, is amended
171	178		to read as follows:
172	179		(a) Unless the legislature adopts a resolution under
173	180		Section 22, Article VIII, [Section 22(b), of the] Texas
174	181		Constitution, raising the proposed limit on appropriations from
175	182		state tax revenues not dedicated by the constitution, the proposed
176	183		limit is binding on the legislature with respect to all
177	184		appropriations for the next fiscal biennium made from those [state
178	185		tax] revenues [not dedicated by the constitution]. The proposed
179		-	limit on appropriations from all sources of revenue other than the
180		-	federal government is binding on the legislature with respect to
181		-	all appropriations for the next fiscal biennium made from those
182		-	sources unless the legislature adopts a resolution raising the
183		-	proposed limit that is approved by a record vote of three-fifths of
184		-	the members of each house of the legislature. The resolution must
185		-	find that an emergency exists, identify the nature of the
186		-	emergency, and specify the amount authorized. The excess amount
187		-	authorized under this subsection may not exceed the amount
188		-	specified in the resolution.
189		-	SECTION 4. Chapter 316, Government Code, is amended by
190		-	adding Subchapter I to read as follows:
191		-	SUBCHAPTER I. APPROPRIATION OF CONSTITUTIONALLY DEDICATED REVENUE
192		-	Sec. 316.151. LEGISLATIVE INTENT. It is the intent of the
193		-	legislature that, to the extent practicable under Section 316.001
194		-	and other law, all revenue dedicated by the Texas Constitution for a
195		-	particular purpose be appropriated in each state fiscal biennium
196		-	for that purpose.
197		-	SECTION 5. The changes in law made by this Act to Sections
198		-	316.001, 316.002, 316.006, 316.007, and 316.008, Government Code,
199		-	apply only in relation to appropriations made for the state fiscal
200		-	biennium beginning September 1, 2019, and subsequent state fiscal
201		-	bienniums. Appropriations for the state fiscal biennium beginning
202		-	September 1, 2017, are governed by Sections 316.001, 316.002,
203		-	316.006, 316.007, and 316.008, Government Code, as those sections
204		-	existed on July 1, 2017, and the former law is continued in effect
205		-	for that purpose.
206		-	SECTION 6. This Act takes effect December 1, 2017.
	186	+	limit on consolidated general revenue appropriations is binding on
	187	+	the legislature with respect to all appropriations for the next
	188	+	fiscal biennium made from those sources unless the legislature
	189	+	adopts a resolution raising the proposed limit that is approved by a
	190	+	record vote of three-fifths of the members of each house of the
	191	+	legislature. The resolution must find that an emergency exists,
	192	+	identify the nature of the emergency, and specify the amount
	193	+	authorized. The excess authorized under this subsection may not
	194	+	exceed the amount specified in the resolution.
	195	+	SECTION 4. The changes in law made by this Act apply only in
	196	+	relation to appropriations made for the state fiscal biennium
	197	+	beginning September 1, 2019, and subsequent state fiscal bienniums.
	198	+	Appropriations for the state fiscal biennium beginning September 1,
	199	+	2017, are governed by Sections 316.001, 316.002, 316.006, 316.007,
	200	+	and 316.008, Government Code, as those sections existed on December
	201	+	1, 2016, and the former law is continued in effect for that purpose.
	202	+	SECTION 5. This Act takes effect December 1, 2017.