Texas 2021 - 87th Regular

Texas House Bill HB594 Compare Versions

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

Old	New	Differences
1	1	87R4255 KJE-D
2	2	By: Krause H.B. No. 594
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 to pay for a rebate of state
36	36	taxes;
37	37	(2) an appropriation for a purpose that provides tax
38	38	relief; or
39	39	(3) an appropriation to pay costs associated with
40	40	natural disaster recovery.
41	41	(e) The Legislative Budget Board shall determine the rates
42	42	described by Subsection (c) using the most recent information
43	43	available from sources the board considers reliable, including the
44	44	United States Bureau of Labor Statistics Consumer Price Index and
45	45	the Texas Demographic Center.
46	46	Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
47	47	Before the Legislative Budget Board transmits [submits] the budget
48	48	for the next state fiscal biennium as prescribed by Section
49	49	322.008(c), the board shall establish:
50	50	(1) the limit on the rate of growth of appropriations
51	51	from state tax revenues not dedicated by the constitution for that
52	52	state fiscal biennium, as compared to the previous state fiscal
53	53	biennium, based on the estimated rate of growth of the state's
54	54	economy from the current state fiscal biennium to the next state
55	55	fiscal biennium; and
56	56	(2) the limit on the rate of growth of consolidated
57	57	general revenue appropriations for that state fiscal biennium, as
58	58	compared to the previous state fiscal biennium, by subtracting one
59	59	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 [the level of appropriations for the current biennium from
70	70	state tax revenues not dedicated by the constitution; and
71	71	[(3) the amount of state tax revenues not dedicated by
72	72	the constitution that could be appropriated for the next biennium
73	73	within the limit established by the estimated rate of growth of the
74	74	state's economy].
75	75	(b) Except as provided by Subsection (c), the board shall
76	76	determine the estimated rate of growth of the state's economy for
77	77	purposes of Subsection (a)(1) by dividing the estimated Texas total
78	78	personal income for the next state fiscal biennium by the estimated
79	79	Texas total personal income for the current state fiscal biennium.
80	80	Using standard statistical methods, the board shall make the
81	81	estimate by projecting through the biennium the estimated Texas
82	82	total personal income reported by the United States Department of
83	83	Commerce or its successor in function.
84	84	(c) If a more comprehensive definition of the rate of growth
85	85	of the state's economy is developed and is approved by the committee
86	86	established by Section 316.005, the board may use that definition
87	87	in calculating the limit on the rate of growth of appropriations
88	88	from state tax revenues not dedicated by the constitution under
89	89	Subsection (a)(1).
90	90	(d) Except as provided by Subsection (e), the board shall
91	91	determine for the next state fiscal biennium a limit on the amount
92	92	of:
93	93	(1) appropriations from state tax revenues not
94	94	dedicated by the constitution by multiplying the amount of
95	95	appropriations from state tax revenues not dedicated by the
96	96	constitution for the current state fiscal biennium by the sum of one
97	97	and the limit on the rate of growth of appropriations from state tax
98	98	revenues not dedicated by the constitution established by the board
99	99	under Subsection (a)(1); and
100	100	(2) consolidated general revenue appropriations by
101	101	multiplying the amount of consolidated general revenue
102	102	appropriations for the current state fiscal biennium by the sum of
103	103	one and the limit on the rate of growth of consolidated general
104	104	revenue appropriations established by the board under Subsection
105	105	(a)(2).
106	106	(e) If the rate determined under Subsection (a)(1) is a
107	107	negative number, the amount of appropriations from state tax
108	108	revenues not dedicated by the constitution for the next state
109	109	fiscal biennium may not exceed the amount of appropriations from
110	110	state tax revenues not dedicated by the constitution in the current
111	111	state fiscal biennium. If the rate determined under Subsection
112	112	(a)(2) is a negative number, the amount of consolidated general
113	113	revenue appropriations for the next state fiscal biennium may not
114	114	exceed the amount of consolidated general revenue appropriations in
115	115	the current state fiscal biennium.
116	116	(f) To ensure compliance with this subchapter and Section
117	117	22, Article VIII, [Section 22, of the] Texas Constitution, the
118	118	Legislative Budget Board may not transmit in any form to the
119	119	governor or the legislature the budget as prescribed by Section
120	120	322.008(c) or the general appropriations bill as prescribed by
121	121	Section 322.008(d) until the board adopts:
122	122	(1) the limit on the rate of growth of appropriations
123	123	from state tax revenues not dedicated by the constitution under
124	124	Section 316.001(b); and
125	125	(2) the limit on the rate of growth of consolidated
126	126	general revenue appropriations under Section 316.001(c) [has been
127	127	adopted as required by this subchapter].
128	128	(g) [(e)] In the absence of an action by the Legislative
129	129	Budget Board to adopt the limits [a spending limit] as provided by
130	130	this section:
131	131	(1) for purposes of Section 316.001(b):
132	132	(A) [in Subsections (a) and (b),] the estimated
133	133	rate of growth of [in] the state's economy from the current state
134	134	fiscal biennium to the next state fiscal biennium shall be treated
135	135	as if it were zero; [,] and
136	136	(B) the amount of state tax revenues not
137	137	dedicated by the constitution that could be appropriated within the
138	138	limit established by the estimated rate of growth of [in] the
139	139	state's economy shall be the same as the amount [level] of those
140	140	appropriations for the current state fiscal biennium; and
141	141	(2) for purposes of Section 316.001(c):
142	142	(A) the estimated average biennial rates of
143	143	growth of this state's population and of monetary inflation shall
144	144	be treated as if they were zero; and
145	145	(B) the amount of consolidated general revenue
146	146	appropriations that could be appropriated within the limit
147	147	established by that subsection shall be the same as the amount of
148	148	those appropriations for the current state fiscal biennium.
149	149	Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
150	150	authorized by majority vote of the members of the board from each
151	151	house, the Legislative Budget Board budget recommendations:
152	152	(1) relating to the proposed appropriations from [of]
153	153	state tax revenues not dedicated by the constitution may not exceed
154	154	the limit on appropriations from those sources adopted by the
155	155	committee under Section 316.005; and
156	156	(2) relating to the proposed consolidated general
157	157	revenue appropriations may not exceed the limit on appropriations
158	158	from those sources adopted by the committee under Section 316.005.
159	159	SECTION 2. Section 316.007(a), Government Code, is amended
160	160	to read as follows:
161	161	(a) The Legislative Budget Board shall include in its budget
162	162	recommendations:
163	163	(1) the proposed limit of appropriations from state
164	164	tax revenues not dedicated by the constitution; and
165	165	(2) the proposed limit of consolidated general revenue
166	166	appropriations.
167	167	SECTION 3. Section 316.008(a), Government Code, is amended
168	168	to read as follows:
169	169	(a) Unless the legislature adopts a resolution under
170	170	Section 22, Article VIII, [Section 22(b), of the] Texas
171	171	Constitution, raising the proposed limit on appropriations from
172	172	state tax revenues not dedicated by the constitution, the proposed
173	173	limit is binding on the legislature with respect to all
174	174	appropriations for the next state fiscal biennium made from those
175	175	[state tax] revenues [not dedicated by the constitution]. The
176	176	proposed limit on consolidated general revenue appropriations is
177	177	binding on the legislature with respect to all appropriations for
178	178	the next state fiscal biennium made from those sources unless the
179	179	legislature adopts a resolution raising the proposed limit that is
180	180	approved by a record vote of three-fifths of the members of each
181	181	house of the legislature. The resolution must find that an
182	182	emergency exists, identify the nature of the emergency, and specify
183	183	the amount authorized. The excess amount authorized under this
184	184	subsection may not exceed the amount specified in the resolution.
185	185	SECTION 4. The changes in law made by this Act apply only in
186	186	relation to appropriations made for the state fiscal biennium
187	187	beginning September 1, 2023, and subsequent state fiscal bienniums.
188	188	Appropriations for the state fiscal biennium beginning September 1,
189	189	2021, are governed by Sections 316.001, 316.002, 316.006, 316.007,
190	190	and 316.008, Government Code, as those sections existed on
191	191	September 1, 2020, and the former law is continued in effect for
192	192	that purpose.
193	193	SECTION 5. This Act takes effect September 1, 2021.