Texas 2021 - 87th Regular

Texas House Bill HB3548 Compare Versions

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

Old	New	Differences
1	1	87R5268 KJE-D
2	2	By: Bonnen H.B. No. 3548
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a limit on the rate of growth of certain appropriations.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Sections 316.001, 316.002, and 316.006,
10	10	Government Code, are amended to read as follows:
11	11	Sec. 316.001. LIMIT. (a) For purposes of this subchapter,
12	12	"consolidated general revenue appropriations" means appropriations
13	13	from:
14	14	(1) the general revenue fund in the state treasury;
15	15	(2) a dedicated account in the general revenue fund in
16	16	the state treasury; or
17	17	(3) a general revenue-related fund in the state
18	18	treasury as identified in the biennial statement required of the
19	19	comptroller under Section 49a, Article III, Texas Constitution.
20	20	(b) The rate of growth of appropriations in a state fiscal
21	21	biennium from state tax revenues not dedicated by the constitution
22	22	may not exceed the estimated rate of growth of the state's economy.
23	23	(c) The rate of growth of consolidated general revenue
24	24	appropriations in a state fiscal biennium may not exceed the
25	25	estimated average biennial rate of growth of this state's
26	26	population during the state fiscal biennium preceding the biennium
27	27	for which appropriations are made and during the state fiscal
28	28	biennium for which appropriations are made, adjusted by the
29	29	estimated average biennial rate of monetary inflation in this state
30	30	during the same period, as determined under Section 316.002.
31	31	(d) For purposes of this subchapter, the following
32	32	appropriations must be excluded from computations used to determine
33	33	whether appropriations exceed the amount authorized by Subsection
34	34	(c):
35	35	(1) an appropriation for a purpose that provides tax
36	36	relief; or
37	37	(2) an appropriation to pay costs associated with
38	38	disaster recovery.
39	39	(e) The Legislative Budget Board shall determine the rates
40	40	described by Subsection (c) using the most recent information
41	41	available from sources the board considers reliable, including the
42	42	United States Bureau of Labor Statistics Consumer Price Index and
43	43	the Texas Demographic Center.
44	44	Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
45	45	Before the Legislative Budget Board transmits [submits] the budget
46	46	for the next state fiscal biennium as prescribed by Section
47	47	322.008(c), the board shall establish:
48	48	(1) the limit on the rate of growth of appropriations
49	49	from state tax revenues not dedicated by the constitution for that
50	50	state fiscal biennium, as compared to the previous state fiscal
51	51	biennium, based on the estimated rate of growth of the state's
52	52	economy from the current state fiscal biennium to the next state
53	53	fiscal biennium; and
54	54	(2) the limit on the rate of growth of consolidated
55	55	general revenue appropriations for that state fiscal biennium, as
56	56	compared to the previous state fiscal biennium, by subtracting one
57	57	from the product of:
58	58	(A) the sum of one and the estimated average
59	59	biennial rate of growth of this state's population during the state
60	60	fiscal biennium preceding the biennium for which appropriations are
61	61	made and during the state fiscal biennium for which appropriations
62	62	are made; and
63	63	(B) the sum of one and the estimated average
64	64	biennial rate of monetary inflation during the state fiscal
65	65	biennium preceding the biennium for which appropriations are made
66	66	and during the state fiscal biennium for which appropriations are
67	67	made [the level of appropriations for the current biennium from
68	68	state tax revenues not dedicated by the constitution; and
69	69	[(3) the amount of state tax revenues not dedicated by
70	70	the constitution that could be appropriated for the next biennium
71	71	within the limit established by the estimated rate of growth of the
72	72	state's economy].
73	73	(b) Except as provided by Subsection (c), the board shall
74	74	determine the estimated rate of growth of the state's economy for
75	75	purposes of Subsection (a)(1) by dividing the estimated Texas total
76	76	personal income for the next state fiscal biennium by the estimated
77	77	Texas total personal income for the current state fiscal biennium.
78	78	Using standard statistical methods, the board shall make the
79	79	estimate by projecting through the biennium the estimated Texas
80	80	total personal income reported by the United States Department of
81	81	Commerce or its successor in function.
82	82	(c) If a more comprehensive definition of the rate of growth
83	83	of the state's economy is developed and is approved by the committee
84	84	established by Section 316.005, the board may use that definition
85	85	in calculating the limit on the rate of growth of appropriations
86	86	from state tax revenues not dedicated by the constitution under
87	87	Subsection (a)(1).
88	88	(d) Except as provided by Subsection (e), the board shall
89	89	determine for the next state fiscal biennium a limit on the amount
90	90	of:
91	91	(1) appropriations from state tax revenues not
92	92	dedicated by the constitution by multiplying the amount of
93	93	appropriations from state tax revenues not dedicated by the
94	94	constitution for the current state fiscal biennium by the sum of one
95	95	and the limit on the rate of growth of appropriations from state tax
96	96	revenues not dedicated by the constitution established by the board
97	97	under Subsection (a)(1); and
98	98	(2) consolidated general revenue appropriations by
99	99	multiplying the amount of consolidated general revenue
100	100	appropriations for the current state fiscal biennium by the sum of
101	101	one and the limit on the rate of growth of consolidated general
102	102	revenue appropriations established by the board under Subsection
103	103	(a)(2).
104	104	(e) If the rate determined under Subsection (a)(2) is a
105	105	negative number, the amount of consolidated general revenue
106	106	appropriations for the next state fiscal biennium may not exceed
107	107	the amount of consolidated general revenue appropriations in the
108	108	current state fiscal biennium.
109	109	(f) To ensure compliance with this subchapter and Section
110	110	22, Article VIII, [Section 22, of the] Texas Constitution, the
111	111	Legislative Budget Board may not transmit in any form to the
112	112	governor or the legislature the budget as prescribed by Section
113	113	322.008(c) or the general appropriations bill as prescribed by
114	114	Section 322.008(d) until the board adopts:
115	115	(1) the limit on the rate of growth of appropriations
116	116	from state tax revenues not dedicated by the constitution under
117	117	Section 316.001(b); and
118	118	(2) the limit on the rate of growth of consolidated
119	119	general revenue appropriations under Section 316.001(c) [has been
120	120	adopted as required by this subchapter].
121	121	(g) [(e)] In the absence of an action by the Legislative
122	122	Budget Board to adopt the limits [a spending limit] as provided by
123	123	this section:
124	124	(1) for purposes of Section 316.001(b):
125	125	(A) [in Subsections (a) and (b),] the estimated
126	126	rate of growth of [in] the state's economy from the current state
127	127	fiscal biennium to the next state fiscal biennium shall be treated
128	128	as if it were zero; [,] and
129	129	(B) the amount of state tax revenues not
130	130	dedicated by the constitution that could be appropriated within the
131	131	limit established by the estimated rate of growth of [in] the
132	132	state's economy shall be the same as the amount [level] of those
133	133	appropriations for the current state fiscal biennium; and
134	134	(2) for purposes of Section 316.001(c):
135	135	(A) the estimated average biennial rates of
136	136	growth of this state's population and of monetary inflation shall
137	137	be treated as if they were zero; and
138	138	(B) the amount of consolidated general revenue
139	139	appropriations that could be appropriated within the limit
140	140	established by that subsection shall be the same as the amount of
141	141	those appropriations for the current state fiscal biennium.
142	142	Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
143	143	authorized by majority vote of the members of the board from each
144	144	house, the Legislative Budget Board budget recommendations:
145	145	(1) relating to the proposed appropriations from [of]
146	146	state tax revenues not dedicated by the constitution may not exceed
147	147	the limit on appropriations from those sources adopted by the
148	148	committee under Section 316.005; and
149	149	(2) relating to the proposed consolidated general
150	150	revenue appropriations may not exceed the limit on appropriations
151	151	from those sources adopted by the committee under Section 316.005.
152	152	SECTION 2. Section 316.007(a), Government Code, is amended
153	153	to read as follows:
154	154	(a) The Legislative Budget Board shall include in its budget
155	155	recommendations:
156	156	(1) the proposed limit of appropriations from state
157	157	tax revenues not dedicated by the constitution; and
158	158	(2) the proposed limit of consolidated general revenue
159	159	appropriations.
160	160	SECTION 3. Section 316.008(a), Government Code, is amended
161	161	to read as follows:
162	162	(a) Unless the legislature adopts a resolution under
163	163	Section 22, Article VIII, [Section 22(b), of the] Texas
164	164	Constitution, raising the proposed limit on appropriations from
165	165	state tax revenues not dedicated by the constitution, the proposed
166	166	limit is binding on the legislature with respect to all
167	167	appropriations for the next state fiscal biennium made from those
168	168	[state tax] revenues [not dedicated by the constitution]. The
169	169	proposed limit on consolidated general revenue appropriations is
170	170	binding on the legislature with respect to all appropriations for
171	171	the next state fiscal biennium made from those sources unless the
172	172	legislature adopts a resolution raising the proposed limit that is
173	173	approved by a record vote of three-fifths of the members of each
174	174	house of the legislature. The resolution must find that an
175	175	emergency exists, identify the nature of the emergency, and specify
176	176	the amount authorized. The excess amount authorized under this
177	177	subsection may not exceed the amount specified in the resolution.
178	178	SECTION 4. The changes in law made by this Act apply only in
179	179	relation to appropriations made for the state fiscal biennium
180	180	beginning September 1, 2023, and subsequent state fiscal bienniums.
181	181	Appropriations for the state fiscal biennium beginning September 1,
182	182	2021, are governed by Sections 316.001, 316.002, 316.006, 316.007,
183	183	and 316.008, Government Code, as those sections existed on
184	184	September 1, 2020, and the former law is continued in effect for
185	185	that purpose.
186	186	SECTION 5. This Act takes effect September 1, 2021.