87R4259 KJE-D
By: Parker H.B. No. 910
A BILL TO BE ENTITLED
AN ACT
relating to a limit on the rate of growth of certain appropriations
and to 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 average biennial rate of
growth of this state's population during the state fiscal biennium
preceding the biennium for which appropriations are made and 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.
(c) 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 (b).
(d) The Legislative Budget Board shall determine the rates
described by Subsection (b) 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, based on the estimated rate of growth of the state's
economy from the current state fiscal biennium to the next state
fiscal biennium; 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 during the state fiscal
biennium for which appropriations are made [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
determine the estimated rate of growth of the state's economy for
purposes of Subsection (a)(1) by dividing the estimated Texas total
personal income for the next state fiscal biennium by the estimated
Texas total personal income for the current state fiscal 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 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 the rate of growth of appropriations
from state tax revenues not dedicated by the constitution under
Subsection (a)(1).
(d) Except as provided by Subsection (e), the board shall
determine 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).
(e) 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 in the current
state fiscal biennium.
(f) 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 adopts:
(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].
(g) [(e)] In the absence of an action by the Legislative
Budget Board to adopt the limits [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 state
fiscal biennium to the next state 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 amount [level] of those
appropriations for the current state fiscal biennium; and
(2) for purposes of Section 316.001(b):
(A) the estimated average biennial rates of
growth of this state's population and of monetary inflation shall
be treated as if they 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 amount of those appropriations for the current
state 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 state 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 state 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 apply only in
relation to appropriations made for the state fiscal biennium
beginning September 1, 2023, and subsequent state fiscal bienniums.
Appropriations for the state fiscal biennium beginning September 1,
2021, are governed by Sections 316.001, 316.002, 316.006, 316.007,
and 316.008, Government Code, as those sections existed on
September 1, 2020, and the former law is continued in effect for
that purpose.
SECTION 6. This Act takes effect September 1, 2021.