Texas 2021 - 87th Regular

Texas House Bill HB2304 Compare Versions

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

Old	New	Differences
1	1	87R3922 SRA-D
2	2	By: Schofield H.B. No. 2304
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 estimated average biennial
29	29	rate of growth of this state's population during the state fiscal
30	30	biennium preceding the biennium for which appropriations are made
31	31	and during the state fiscal biennium for which appropriations are
32	32	made, adjusted by the estimated average biennial rate of monetary
33	33	inflation in this state during the same period, as determined under
34	34	Section 316.002.
35	35	(e) The legislature finds that, for purposes of Section 22,
36	36	Article VIII, Texas Constitution, the estimated average biennial
37	37	rate of growth of this state's population during the state fiscal
38	38	biennium preceding the biennium for which appropriations are made
39	39	and during the state fiscal biennium for which appropriations are
40	40	made, adjusted by the estimated average biennial rate of monetary
41	41	inflation in this state during the same period, is an appropriate
42	42	measure of the estimated rate of growth of this state's economy.
43	43	(f) For purposes of this subchapter, an appropriation to pay
44	44	for a rebate of state taxes must be excluded from computations used
45	45	to determine whether appropriations exceed the amount authorized by
46	46	Subsection (b) or (c).
47	47	(g) The Legislative Budget Board shall determine the rates
48	48	described by Subsection (d) using the most recent information
49	49	available from sources the board considers reliable, including the
50	50	United States Bureau of Labor Statistics Consumer Price Index and
51	51	the Texas Demographic Center.
52	52	Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
53	53	Before the Legislative Budget Board transmits [submits] the budget
54	54	for the next state fiscal biennium as prescribed by Section
55	55	322.008(c), the board shall establish:
56	56	(1) the limit on the rate of growth of appropriations
57	57	from state tax revenues not dedicated by the constitution for that
58	58	state fiscal biennium, as compared to the previous state fiscal
59	59	biennium, by subtracting one from the product of:
60	60	(A) the sum of one and the estimated average
61	61	biennial rate of growth of this state's population during the state
62	62	fiscal biennium preceding the biennium for which appropriations are
63	63	made and during the state fiscal biennium for which appropriations
64	64	are made; and
65	65	(B) the sum of one and the estimated average
66	66	biennial rate of monetary inflation during the state fiscal
67	67	biennium preceding the biennium for which appropriations are made
68	68	and during the state fiscal biennium for which appropriations are
69	69	made; and
70	70	(2) the limit on the rate of growth of consolidated
71	71	general revenue appropriations for that state fiscal biennium, as
72	72	compared to the previous state fiscal biennium, by subtracting one
73	73	from the product of:
74	74	(A) the sum of one and the estimated average
75	75	biennial rate of growth of this state's population during the state
76	76	fiscal biennium preceding the biennium for which appropriations are
77	77	made and during the state fiscal biennium for which appropriations
78	78	are made; and
79	79	(B) the sum of one and the estimated average
80	80	biennial rate of monetary inflation during the state fiscal
81	81	biennium preceding the biennium for which appropriations are made
82	82	and during the state fiscal biennium for which appropriations are
83	83	made [the state's economy from the current biennium to the next
84	84	biennium;
85	85	[(2) the level of appropriations for the current
86	86	biennium from state tax revenues not dedicated by the constitution;
87	87	and
88	88	[(3) the amount of state tax revenues not dedicated by
89	89	the constitution that could be appropriated for the next biennium
90	90	within the limit established by the estimated rate of growth of the
91	91	state's economy].
92	92	(b) Except as provided by Subsection (c), the board shall
93	93	determine for the next state fiscal biennium a limit on the amount
94	94	of:
95	95	(1) appropriations from state tax revenues not
96	96	dedicated by the constitution by multiplying the amount of
97	97	appropriations from state tax revenues not dedicated by the
98	98	constitution for the current state fiscal biennium by the sum of one
99	99	and the limit on the rate of growth of appropriations from state tax
100	100	revenues not dedicated by the constitution established by the board
101	101	under Subsection (a)(1); and
102	102	(2) consolidated general revenue appropriations by
103	103	multiplying the amount of consolidated general revenue
104	104	appropriations for the current state fiscal biennium by the sum of
105	105	one and the limit on the rate of growth of consolidated general
106	106	revenue appropriations established by the board under Subsection
107	107	(a)(2) [the estimated rate of growth of the state's economy by
108	108	dividing the estimated Texas total personal income for the next
109	109	biennium by the estimated Texas total personal income for the
110	110	current biennium. Using standard statistical methods, the board
111	111	shall make the estimate by projecting through the biennium the
112	112	estimated Texas total personal income reported by the United States
113	113	Department of Commerce or its successor in function].
114	114	(c) If the rate determined under Subsection (a)(1) is a
115	115	negative number, the amount of appropriations from state tax
116	116	revenues not dedicated by the constitution for the next state
117	117	fiscal biennium may not exceed the amount of appropriations from
118	118	state tax revenues not dedicated by the constitution in the current
119	119	state fiscal biennium. If the rate determined under Subsection
120	120	(a)(2) is a negative number, the amount of consolidated general
121	121	revenue appropriations for the next state fiscal biennium may not
122	122	exceed the amount of consolidated general revenue appropriations in
123	123	the current state fiscal biennium [If a more comprehensive
124	124	definition of the rate of growth of the state's economy is developed
125	125	and is approved by the committee established by Section 316.005,
126	126	the board may use that definition in calculating the limit on
127	127	appropriations].
128	128	(d) To ensure compliance with this subchapter and Section
129	129	22, Article VIII, [Section 22, of the] Texas Constitution, the
130	130	Legislative Budget Board may not transmit in any form to the
131	131	governor or the legislature the budget as prescribed by Section
132	132	322.008(c) or the general appropriations bill as prescribed by
133	133	Section 322.008(d) until the board adopts:
134	134	(1) the limit on the rate of growth of appropriations
135	135	from state tax revenues not dedicated by the constitution under
136	136	Section 316.001(b); and
137	137	(2) the limit on the rate of growth of consolidated
138	138	general revenue appropriations under Section 316.001(c) [has been
139	139	adopted as required by this subchapter].
140	140	(e) In the absence of an action by the Legislative Budget
141	141	Board to adopt the limits [a spending limit] as provided by this
142	142	section:
143	143	(1) for purposes of Section 316.001(b):
144	144	(A) [in Subsections (a) and (b),] the estimated
145	145	rate of growth of [in] the state's economy from the current state
146	146	fiscal biennium to the next state fiscal biennium shall be treated
147	147	as if it were zero; [,] and
148	148	(B) the amount of state tax revenues not
149	149	dedicated by the constitution that could be appropriated within the
150	150	limit established by the estimated rate of growth of [in] the
151	151	state's economy shall be the same as the amount [level] of those
152	152	appropriations for the current state fiscal biennium; and
153	153	(2) for purposes of Section 316.001(c):
154	154	(A) the estimated rate of growth of the state's
155	155	economy from the current state fiscal biennium to the next state
156	156	fiscal biennium shall be treated as if it were zero; and
157	157	(B) the amount of consolidated general revenue
158	158	appropriations that could be appropriated within the limit
159	159	established by that subsection shall be the same as the amount of
160	160	those appropriations for the current state fiscal biennium.
161	161	Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
162	162	authorized by majority vote of the members of the board from each
163	163	house, the Legislative Budget Board budget recommendations:
164	164	(1) relating to the proposed appropriations from [of]
165	165	state tax revenues not dedicated by the constitution may not exceed
166	166	the limit on appropriations from those sources adopted by the
167	167	committee under Section 316.005; and
168	168	(2) relating to the proposed consolidated general
169	169	revenue appropriations may not exceed the limit on appropriations
170	170	from those sources adopted by the committee under Section 316.005.
171	171	SECTION 2. Section 316.007(a), Government Code, is amended
172	172	to read as follows:
173	173	(a) The Legislative Budget Board shall include in its budget
174	174	recommendations:
175	175	(1) the proposed limit of appropriations from state
176	176	tax revenues not dedicated by the constitution; and
177	177	(2) the proposed limit of consolidated general revenue
178	178	appropriations.
179	179	SECTION 3. Section 316.008(a), Government Code, is amended
180	180	to read as follows:
181	181	(a) Unless the legislature adopts a resolution under
182	182	Section 22, Article VIII, [Section 22(b), of the] Texas
183	183	Constitution, raising the proposed limit on appropriations from
184	184	state tax revenues not dedicated by the constitution, the proposed
185	185	limit is binding on the legislature with respect to all
186	186	appropriations for the next state fiscal biennium made from those
187	187	[state tax] revenues [not dedicated by the constitution]. The
188	188	proposed limit on consolidated general revenue appropriations is
189	189	binding on the legislature with respect to all appropriations for
190	190	the next state fiscal biennium made from those sources unless the
191	191	legislature adopts a resolution raising the proposed limit that is
192	192	approved by a record vote of three-fifths of the members of each
193	193	house of the legislature. The resolution must find that an
194	194	emergency exists, identify the nature of the emergency, and specify
195	195	the amount authorized. The excess amount authorized under this
196	196	subsection may not exceed the amount specified in the resolution.
197	197	SECTION 4. The changes in law made by this Act apply only in
198	198	relation to appropriations made for the state fiscal biennium
199	199	beginning September 1, 2023, and subsequent state fiscal bienniums.
200	200	Appropriations for the state fiscal biennium beginning September 1,
201	201	2021, are governed by Sections 316.001, 316.002, 316.006, 316.007,
202	202	and 316.008, Government Code, as those sections existed on
203	203	September 1, 2020, and the former law is continued in effect for
204	204	that purpose.
205	205	SECTION 5. This Act takes effect September 1, 2021.