85S12289 CJC-D
By: Hancock, et al. S.B. No. 9
(Parker)
Substitute the following for S.B. No. 9: No.
A BILL TO BE ENTITLED
AN ACT
relating to the constitutional limit on the rate of growth of
appropriations and appropriations of constitutionally dedicated
revenue.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 316.001, 316.002, and 316.006,
Government Code, are amended to read as follows:
Sec. 316.001. LIMIT. (a) The rate of growth of
appropriations in a state fiscal biennium from state tax revenues
not dedicated by the constitution may not exceed the estimated rate
of growth of the state's economy.
(b) The rate of growth of appropriations from all sources of
revenue other than the federal government in a state fiscal
biennium may not exceed the estimated rate of growth of the state's
economy.
(c) For purposes of this subchapter, the estimated rate of
growth of the state's economy is the estimated average biennial
rate of growth of this state's population during the state fiscal
biennium for which appropriations are made, adjusted by the
estimated average biennial rate of monetary inflation in this state
during the same period, as determined under Section 316.002.
(d) The legislature finds that, for purposes of Section 22,
Article VIII, Texas Constitution, the estimated average biennial
rate of growth of this state's population during the state fiscal
biennium for which appropriations are made, adjusted by the
estimated average biennial rate of monetary inflation in this state
during the same period, is an appropriate measure of the estimated
rate of growth of the state's economy.
(e) For purposes of this subchapter, an appropriation to pay
for a rebate of state taxes must be excluded from computations used
to determine whether appropriations exceed the amount authorized by
Subsection (a) or (b).
(f) The Legislative Budget Board shall determine the rates
described by Subsection (c) using the most recent information
available from sources the board considers reliable, including the
United States Bureau of Labor Statistics and the Texas Demographic
Center.
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 establish:
(1) the limit on the rate of growth of appropriations
from state tax revenues not dedicated by the constitution for that
state fiscal biennium, as compared to the previous state fiscal
biennium, by subtracting one from the product of:
(A) the sum of one and the estimated average
biennial rate of growth of this state's population during the state
fiscal biennium for which appropriations are made; and
(B) the sum of one and the estimated average
biennial rate of monetary inflation in this state during the state
fiscal biennium for which appropriations are made; and
(2) the limit on the rate of growth of appropriations
from all sources of revenue other than the federal government for
that state fiscal biennium, as compared to the previous state
fiscal biennium, by subtracting one from the product of:
(A) the sum of one and the estimated average
biennial rate of growth of this state's population during the state
fiscal biennium for which appropriations are made; and
(B) the sum of one and the estimated average
biennial rate of monetary inflation in this state during the state
fiscal biennium for which appropriations are made [the state's
economy from the current biennium to the next biennium;
[(2) the level of appropriations for the current
biennium from state tax revenues not dedicated by the constitution;
and
[(3) the amount of state tax revenues not dedicated by
the constitution that could be appropriated for the next biennium
within the limit established by the estimated rate of growth of the
state's economy].
(b) Except as provided by Subsection (c), the board shall
establish for the next state fiscal biennium a limit on the amount
of:
(1) appropriations from state tax revenues not
dedicated by the constitution by multiplying the amount of
appropriations from state tax revenues not dedicated by the
constitution for the current state fiscal biennium by the sum of one
and the limit on the rate of growth of appropriations from state tax
revenues not dedicated by the constitution established by the board
under Subsection (a)(1); and
(2) appropriations from all sources of revenue other
than the federal government by multiplying the amount of
appropriations from all sources of revenue other than the federal
government for the current state fiscal biennium by the sum of one
and the limit on the rate of growth of appropriations from all
sources of revenue other than the federal government established by
the board under Subsection (a)(2) [determine the estimated rate of
growth of the state's economy by dividing the estimated Texas total
personal income for the next biennium by the estimated Texas total
personal income for the current biennium. Using standard
statistical methods, the board shall make the estimate by
projecting through the biennium the estimated Texas total personal
income reported by the United States Department of Commerce or its
successor in function].
(c) If the rate determined under Subsection (a)(1) 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
state tax revenues not dedicated by the constitution for the
current state fiscal biennium. If the rate determined under
Subsection (a)(2) is a negative number, the amount of
appropriations from all sources of revenue other than the federal
government for the next state fiscal biennium may not exceed the
amount of appropriations from all sources of revenue other than the
federal government for the current state fiscal biennium [If a more
comprehensive definition of the rate of growth of the state's
economy is developed and is approved by the committee established
by Section 316.005, the board may use that definition in
calculating the limit on appropriations].
(d) To ensure compliance with this subchapter and 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 board establishes:
(1) the limit on the rate of growth of appropriations
from state tax revenues not dedicated by the constitution under
Section 316.001(a); and
(2) the limit on the rate of growth of appropriations
from all sources of revenue other than the federal government under
Section 316.001(b) [has been adopted as required by this
subchapter].
(e) In the absence of an action by the Legislative Budget
Board to establish the limits [adopt a spending limit] as provided
by this section:
(1) for purposes of Section 316.001(a):
(A) [in Subsections (a) and (b),] the estimated
rate of growth of [in] the state's economy from the current fiscal
biennium to the next fiscal biennium shall be treated as if it were
zero; [,] and
(B) the amount of state tax revenues not
dedicated by the constitution that could be appropriated within the
limit established by the estimated rate of growth of [in] the
state's economy shall be the same as the level of appropriations for
the current fiscal biennium; and
(2) for purposes of Section 316.001(b):
(A) the estimated rate of growth of the state's
economy from the current fiscal biennium to the next fiscal
biennium shall be treated as if it were zero; and
(B) the amount of appropriations from all sources
of revenue other than the federal government that could be
appropriated within the limit established by that subsection shall
be the same as the level of appropriations for the current fiscal
biennium.
Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
authorized by majority vote of the members of the board from each
house, the Legislative Budget Board budget recommendations:
(1) relating to the proposed appropriations from [of]
state tax revenues not dedicated by the constitution may not exceed
the limit on appropriations from those sources adopted by the
committee under Section 316.005; and
(2) relating to the proposed appropriations from all
sources of revenue other than the federal government may not exceed
the limit on appropriations from those sources adopted by the
committee under Section 316.005.
SECTION 2. Section 316.007(a), Government Code, is amended
to read as follows:
(a) The Legislative Budget Board shall include in its budget
recommendations:
(1) the proposed limit of appropriations from state
tax revenues not dedicated by the constitution; and
(2) the proposed limit of appropriations from all
sources of revenue other than the federal government.
SECTION 3. 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 from
state tax revenues not dedicated by the constitution, the proposed
limit is binding on the legislature with respect to all
appropriations for the next fiscal biennium made from those [state
tax] revenues [not dedicated by the constitution]. The proposed
limit on appropriations from all sources of revenue other than the
federal government is binding on the legislature with respect to
all appropriations for the next fiscal biennium made from those
sources unless the legislature adopts a resolution raising the
proposed limit that is approved by a record vote of three-fifths of
the members of each house of the legislature. The resolution must
find that an emergency exists, identify the nature of the
emergency, and specify the amount authorized. The excess amount
authorized under this subsection may not exceed the amount
specified in the resolution.
SECTION 4. Chapter 316, Government Code, is amended by
adding Subchapter I to read as follows:
SUBCHAPTER I. APPROPRIATION OF CONSTITUTIONALLY DEDICATED REVENUE
Sec. 316.151. LEGISLATIVE INTENT. It is the intent of the
legislature that, to the extent practicable under Section 316.001
and other law, all revenue dedicated by the Texas Constitution for a
particular purpose be appropriated in each state fiscal biennium
for that purpose.
SECTION 5. The changes in law made by this Act to Sections
316.001, 316.002, 316.006, 316.007, and 316.008, Government Code,
apply only in relation to appropriations made for the state fiscal
biennium beginning September 1, 2019, and subsequent state fiscal
bienniums. Appropriations for the state fiscal biennium beginning
September 1, 2017, are governed by Sections 316.001, 316.002,
316.006, 316.007, and 316.008, Government Code, as those sections
existed on July 1, 2017, and the former law is continued in effect
for that purpose.
SECTION 6. This Act takes effect December 1, 2017.