Texas 2019 - 86th Regular

Texas Senate Bill SB1891 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Hancock, et al. S.B. No. 1891
	2	+	(In the Senate - Filed March 7, 2019; March 18, 2019, read
	3	+	first time and referred to Committee on Finance; April 3, 2019,
	4	+	reported favorably by the following vote: Yeas 12, Nays 3;
	5	+	April 3, 2019, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
4	9		A BILL TO BE ENTITLED
5	10		AN ACT
6	11		relating to a limit on the rate of growth of certain appropriations.
7	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	13		SECTION 1. Sections 316.001, 316.002, and 316.006,
9	14		Government Code, are amended to read as follows:
10	15		Sec. 316.001. LIMIT. (a) For purposes of this subchapter,
11	16		"consolidated general revenue appropriations" means appropriations
12	17		from:
13	18		(1) the general revenue fund in the state treasury;
14	19		(2) a dedicated account in the general revenue fund in
15	20		the state treasury; or
16	21		(3) a general revenue-related fund in the state
17	22		treasury as identified in the biennial statement required of the
18	23		comptroller under Section 49a, Article III, Texas Constitution.
19	24		(b) The rate of growth of appropriations in a state fiscal
20	25		biennium from state tax revenues not dedicated by the constitution
21	26		may not exceed the estimated rate of growth of the state's economy.
22	27		(c) The rate of growth of consolidated general revenue
23	28		appropriations in a state fiscal biennium may not exceed the
24	29		estimated average biennial rate of growth of this state's
25	30		population during the state fiscal biennium preceding the biennium
26	31		for which appropriations are made and during the state fiscal
27	32		biennium for which appropriations are made, adjusted by the
28	33		estimated average biennial rate of monetary inflation in this state
29	34		during the same period, as determined under Section 316.002.
30	35		(d) For purposes of this subchapter, the following
31	36		appropriations must be excluded from computations used to determine
32	37		whether appropriations exceed the amount authorized by Subsection
33	38		(c):
34	39		(1) an appropriation to pay for a rebate of state
35	40		taxes;
36	41		(2) an appropriation for a purpose that provides tax
37	42		relief; or
38	43		(3) an appropriation to pay costs associated with
39	44		natural disaster recovery.
40	45		(e) The Legislative Budget Board shall determine the rates
41	46		described by Subsection (c) using the most recent information
42	47		available from sources the board considers reliable, including the
43	48		United States Bureau of Labor Statistics Consumer Price Index and
44	49		the Texas Demographic Center.
45	50		Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD.
46	51		(a) Before the Legislative Budget Board transmits [submits] the
47	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	55		from 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, based on the estimated rate of growth of the state's
53	58		economy from the current state fiscal biennium to the next state
54	59		fiscal biennium; and
55	60		(2) the limit on the rate of growth of consolidated
56	61		general revenue appropriations for that state fiscal biennium, as
57	62		compared to the previous state fiscal biennium, by subtracting one
58	63		from the product of:
59	64		(A) the sum of one and the estimated average
60	65		biennial rate of growth of this state's population during the state
61	66		fiscal biennium preceding the biennium for which appropriations are
62	67		made and during the state fiscal biennium for which appropriations
63	68		are made; and
64	69		(B) the sum of one and the estimated average
65	70		biennial rate of monetary inflation during the state fiscal
66	71		biennium preceding the biennium for which appropriations are made
67	72		and during the state fiscal biennium for which appropriations are
68	73		made [the level of appropriations for the current biennium from
69	74		state tax revenues not dedicated by the constitution; and
70	75		[(3) the amount of state tax revenues not dedicated by
71	76		the constitution that could be appropriated for the next biennium
72	77		within the limit established by the estimated rate of growth of the
73	78		state's economy].
74	79		(b) Except as provided by Subsection (c), the board shall
75	80		determine the estimated rate of growth of the state's economy for
76	81		purposes of Subsection (a)(1) by dividing the estimated Texas total
77	82		personal income for the next state fiscal biennium by the estimated
78	83		Texas total personal income for the current state fiscal biennium.
79	84		Using standard statistical methods, the board shall make the
80	85		estimate by projecting through the biennium the estimated Texas
81	86		total personal income reported by the United States Department of
82	87		Commerce or its successor in function.
83	88		(c) If a more comprehensive definition of the rate of growth
84	89		of the state's economy is developed and is approved by the committee
85	90		established by Section 316.005, the board may use that definition
86	91		in calculating the limit on the rate of growth of appropriations
87	92		from state tax revenues not dedicated by the constitution under
88	93		Subsection (a)(1).
89	94		(d) Except as provided by Subsection (e), the board shall
90	95		determine for the next state fiscal biennium a limit on the amount
91	96		of:
92	97		(1) appropriations from state tax revenues not
93	98		dedicated by the constitution by multiplying the amount of
94	99		appropriations from state tax revenues not dedicated by the
95	100		constitution for the current state fiscal biennium by the sum of one
96	101		and the limit on the rate of growth of appropriations from state tax
97	102		revenues not dedicated by the constitution established by the board
98	103		under Subsection (a)(1); and
99	104		(2) consolidated general revenue appropriations by
100	105		multiplying the amount of consolidated general revenue
101	106		appropriations for the current state fiscal biennium by the sum of
102	107		one and the limit on the rate of growth of consolidated general
103	108		revenue appropriations established by the board under Subsection
104	109		(a)(2).
105	110		(e) If the rate determined under Subsection (a)(1) is a
106	111		negative number, the amount of appropriations from state tax
107	112		revenues not dedicated by the constitution for the next state
108	113		fiscal biennium may not exceed the amount of appropriations from
109	114		state tax revenues not dedicated by the constitution in the current
110	115		state fiscal biennium. If the rate determined under Subsection
111	116		(a)(2) is a negative number, the amount of consolidated general
112	117		revenue appropriations for the next state fiscal biennium may not
113	118		exceed the amount of consolidated general revenue appropriations in
114	119		the current state fiscal biennium.
115	120		(f) To ensure compliance with this subchapter and Section
116	121		22, Article VIII, [Section 22, of the] Texas Constitution, the
117	122		Legislative Budget Board may not transmit in any form to the
118	123		governor or the legislature the budget as prescribed by Section
119	124		322.008(c) or the general appropriations bill as prescribed by
120	125		Section 322.008(d) until the board adopts:
121	126		(1) the limit on the rate of growth of appropriations
122	127		from state tax revenues not dedicated by the constitution under
123	128		Section 316.001(b); and
124	129		(2) the limit on the rate of growth of consolidated
125	130		general revenue appropriations under Section 316.001(c) [has been
126	131		adopted as required by this subchapter].
127	132		(g) [(e)] In the absence of an action by the Legislative
128	133		Budget Board to adopt the limits [a spending limit] as provided by
129	134		this section:
130	135		(1) for purposes of Section 316.001(b):
131	136		(A) [in Subsections (a) and (b),] the estimated
132	137		rate of growth of [in] the state's economy from the current state
133	138		fiscal biennium to the next state fiscal biennium shall be treated
134	139		as if it were zero;[,] and
135	140		(B) the amount of state tax revenues not
136	141		dedicated by the constitution that could be appropriated within the
137	142		limit established by the estimated rate of growth of [in] the
138	143		state's economy shall be the same as the amount [level] of those
139	144		appropriations for the current state fiscal biennium; and
140	145		(2) for purposes of Section 316.001(c):
141	146		(A) the estimated average biennial rates of
142	147		growth of this state's population and of monetary inflation shall
143	148		be treated as if they were zero; and
144	149		(B) the amount of consolidated general revenue
145	150		appropriations that could be appropriated within the limit
146	151		established by that subsection shall be the same as the amount of
147	152		those appropriations for the current state fiscal biennium.
148	153		Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
149	154		authorized by majority vote of the members of the board from each
150	155		house, the Legislative Budget Board budget recommendations:
151	156		(1) relating to the proposed appropriations from [of]
152	157		state tax revenues not dedicated by the constitution may not exceed
153	158		the limit on appropriations from those sources adopted by the
154	159		committee under Section 316.005; and
155	160		(2) relating to the proposed consolidated general
156	161		revenue appropriations may not exceed the limit on appropriations
157	162		from those sources adopted by the committee under Section 316.005.
158	163		SECTION 2. Section 316.007(a), Government Code, is amended
159	164		to read as follows:
160	165		(a) The Legislative Budget Board shall include in its budget
161	166		recommendations:
162	167		(1) the proposed limit of appropriations from state
163	168		tax revenues not dedicated by the constitution; and
164	169		(2) the proposed limit of consolidated general revenue
165	170		appropriations.
166	171		SECTION 3. Section 316.008(a), Government Code, is amended
167	172		to read as follows:
168	173		(a) Unless the legislature adopts a resolution under
169	174		Section 22, Article VIII, [Section 22(b), of the] Texas
170	175		Constitution, raising the proposed limit on appropriations from
171	176		state tax revenues not dedicated by the constitution, the proposed
172	177		limit is binding on the legislature with respect to all
173	178		appropriations for the next state fiscal biennium made from those
174	179		[state tax] revenues [not dedicated by the constitution]. The
175	180		proposed limit on consolidated general revenue appropriations is
176	181		binding on the legislature with respect to all appropriations for
177	182		the next state fiscal biennium made from those sources unless the
178	183		legislature adopts a resolution raising the proposed limit that is
179	184		approved by a record vote of three-fifths of the members of each
180	185		house of the legislature. The resolution must find that an
181	186		emergency exists, identify the nature of the emergency, and specify
182	187		the amount authorized. The excess amount authorized under this
183	188		subsection may not exceed the amount specified in the resolution.
184	189		SECTION 4. The changes in law made by this Act apply only in
185	190		relation to appropriations made for the state fiscal biennium
186	191		beginning September 1, 2021, and subsequent state fiscal bienniums.
187	192		Appropriations for the state fiscal biennium beginning September 1,
188	193		2019, are governed by Sections 316.001, 316.002, 316.006, 316.007,
189	194		and 316.008, Government Code, as those sections existed on
190	195		September 1, 2018, and the former law is continued in effect for
191	196		that purpose.
192	197		SECTION 5. This Act takes effect September 1, 2019.
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