Texas 2021 - 87th Regular

Texas House Bill HB910 Compare Versions

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

Old	New	Differences
1	1	87R4259 KJE-D
2	2	By: Parker H.B. No. 910
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	and to appropriations of constitutionally dedicated revenue.
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) The rate of growth of
13	13	appropriations in a state fiscal biennium from state tax revenues
14	14	not dedicated by the constitution may not exceed the estimated rate
15	15	of growth of the state's economy.
16	16	(b) The rate of growth of appropriations from all sources of
17	17	revenue other than the federal government in a state fiscal
18	18	biennium may not exceed the estimated average biennial rate of
19	19	growth of this state's population during the state fiscal biennium
20	20	preceding the biennium for which appropriations are made and during
21	21	the state fiscal biennium for which appropriations are made,
22	22	adjusted by the estimated average biennial rate of monetary
23	23	inflation in this state during the same period, as determined under
24	24	Section 316.002.
25	25	(c) For purposes of this subchapter, an appropriation to pay
26	26	for a rebate of state taxes must be excluded from computations used
27	27	to determine whether appropriations exceed the amount authorized by
28	28	Subsection (b).
29	29	(d) The Legislative Budget Board shall determine the rates
30	30	described by Subsection (b) using the most recent information
31	31	available from sources the board considers reliable, including the
32	32	United States Bureau of Labor Statistics and the Texas Demographic
33	33	Center.
34	34	Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
35	35	Before the Legislative Budget Board transmits [submits] the budget
36	36	for the next state fiscal biennium as prescribed by Section
37	37	322.008(c), the board shall establish:
38	38	(1) the limit on the rate of growth of appropriations
39	39	from state tax revenues not dedicated by the constitution for that
40	40	state fiscal biennium, as compared to the previous state fiscal
41	41	biennium, based on the estimated rate of growth of the state's
42	42	economy from the current state fiscal biennium to the next state
43	43	fiscal biennium; and
44	44	(2) the limit on the rate of growth of appropriations
45	45	from all sources of revenue other than the federal government for
46	46	that state fiscal biennium, as compared to the previous state
47	47	fiscal biennium, by subtracting one from the product of:
48	48	(A) the sum of one and the estimated average
49	49	biennial rate of growth of this state's population during the state
50	50	fiscal biennium for which appropriations are made; and
51	51	(B) the sum of one and the estimated average
52	52	biennial rate of monetary inflation during the state fiscal
53	53	biennium for which appropriations are made [the level of
54	54	appropriations for the current biennium from state tax revenues not
55	55	dedicated by the constitution; and
56	56	[(3) the amount of state tax revenues not dedicated by
57	57	the constitution that could be appropriated for the next biennium
58	58	within the limit established by the estimated rate of growth of the
59	59	state's economy].
60	60	(b) Except as provided by Subsection (c), the board shall
61	61	determine the estimated rate of growth of the state's economy for
62	62	purposes of Subsection (a)(1) by dividing the estimated Texas total
63	63	personal income for the next state fiscal biennium by the estimated
64	64	Texas total personal income for the current state fiscal biennium.
65	65	Using standard statistical methods, the board shall make the
66	66	estimate by projecting through the biennium the estimated Texas
67	67	total personal income reported by the United States Department of
68	68	Commerce or its successor in function.
69	69	(c) If a more comprehensive definition of the rate of growth
70	70	of the state's economy is developed and is approved by the committee
71	71	established by Section 316.005, the board may use that definition
72	72	in calculating the limit on the rate of growth of appropriations
73	73	from state tax revenues not dedicated by the constitution under
74	74	Subsection (a)(1).
75	75	(d) Except as provided by Subsection (e), the board shall
76	76	determine for the next state fiscal biennium a limit on the amount
77	77	of:
78	78	(1) appropriations from state tax revenues not
79	79	dedicated by the constitution by multiplying the amount of
80	80	appropriations from state tax revenues not dedicated by the
81	81	constitution for the current state fiscal biennium by the sum of one
82	82	and the limit on the rate of growth of appropriations from state tax
83	83	revenues not dedicated by the constitution established by the board
84	84	under Subsection (a)(1); and
85	85	(2) appropriations from all sources of revenue other
86	86	than the federal government by multiplying the amount of
87	87	appropriations from all sources of revenue other than the federal
88	88	government for the current state fiscal biennium by the sum of one
89	89	and the limit on the rate of growth of appropriations from all
90	90	sources of revenue other than the federal government established by
91	91	the board under Subsection (a)(2).
92	92	(e) If the rate determined under Subsection (a)(2) is a
93	93	negative number, the amount of appropriations from all sources of
94	94	revenue other than the federal government for the next state fiscal
95	95	biennium may not exceed the amount of appropriations from all
96	96	sources of revenue other than the federal government in the current
97	97	state fiscal biennium.
98	98	(f) To ensure compliance with this subchapter and Section
99	99	22, Article VIII, [Section 22, of the] Texas Constitution, the
100	100	Legislative Budget Board may not transmit in any form to the
101	101	governor or the legislature the budget as prescribed by Section
102	102	322.008(c) or the general appropriations bill as prescribed by
103	103	Section 322.008(d) until the board adopts:
104	104	(1) the limit on the rate of growth of appropriations
105	105	from state tax revenues not dedicated by the constitution under
106	106	Section 316.001(a); and
107	107	(2) the limit on the rate of growth of appropriations
108	108	from all sources of revenue other than the federal government under
109	109	Section 316.001(b) [has been adopted as required by this
110	110	subchapter].
111	111	(g) [(e)] In the absence of an action by the Legislative
112	112	Budget Board to adopt the limits [a spending limit] as provided by
113	113	this section:
114	114	(1) for purposes of Section 316.001(a):
115	115	(A) [in Subsections (a) and (b),] the estimated
116	116	rate of growth of [in] the state's economy from the current state
117	117	fiscal biennium to the next state fiscal biennium shall be treated
118	118	as if it were zero; [,] and
119	119	(B) the amount of state tax revenues not
120	120	dedicated by the constitution that could be appropriated within the
121	121	limit established by the estimated rate of growth of [in] the
122	122	state's economy shall be the same as the amount [level] of those
123	123	appropriations for the current state fiscal biennium; and
124	124	(2) for purposes of Section 316.001(b):
125	125	(A) the estimated average biennial rates of
126	126	growth of this state's population and of monetary inflation shall
127	127	be treated as if they were zero; and
128	128	(B) the amount of appropriations from all sources
129	129	of revenue other than the federal government that could be
130	130	appropriated within the limit established by that subsection shall
131	131	be the same as the amount of those appropriations for the current
132	132	state fiscal biennium.
133	133	Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
134	134	authorized by majority vote of the members of the board from each
135	135	house, the Legislative Budget Board budget recommendations:
136	136	(1) relating to the proposed appropriations from [of]
137	137	state tax revenues not dedicated by the constitution may not exceed
138	138	the limit on appropriations from those sources adopted by the
139	139	committee under Section 316.005; and
140	140	(2) relating to the proposed appropriations from all
141	141	sources of revenue other than the federal government may not exceed
142	142	the limit on appropriations from those sources adopted by the
143	143	committee under Section 316.005.
144	144	SECTION 2. Section 316.007(a), Government Code, is amended
145	145	to read as follows:
146	146	(a) The Legislative Budget Board shall include in its budget
147	147	recommendations:
148	148	(1) the proposed limit of appropriations from state
149	149	tax revenues not dedicated by the constitution; and
150	150	(2) the proposed limit of appropriations from all
151	151	sources of revenue other than the federal government.
152	152	SECTION 3. Section 316.008(a), Government Code, is amended
153	153	to read as follows:
154	154	(a) Unless the legislature adopts a resolution under
155	155	Section 22, Article VIII, [Section 22(b), of the] Texas
156	156	Constitution, raising the proposed limit on appropriations from
157	157	state tax revenues not dedicated by the constitution, the proposed
158	158	limit is binding on the legislature with respect to all
159	159	appropriations for the next state fiscal biennium made from those
160	160	[state tax] revenues [not dedicated by the constitution]. The
161	161	proposed limit on appropriations from all sources of revenue other
162	162	than the federal government is binding on the legislature with
163	163	respect to all appropriations for the next state fiscal biennium
164	164	made from those sources unless the legislature adopts a resolution
165	165	raising the proposed limit that is approved by a record vote of
166	166	three-fifths of the members of each house of the legislature. The
167	167	resolution must find that an emergency exists, identify the nature
168	168	of the emergency, and specify the amount authorized. The excess
169	169	amount authorized under this subsection may not exceed the amount
170	170	specified in the resolution.
171	171	SECTION 4. Chapter 316, Government Code, is amended by
172	172	adding Subchapter I to read as follows:
173	173	SUBCHAPTER I. APPROPRIATION OF CONSTITUTIONALLY DEDICATED REVENUE
174	174	Sec. 316.151. LEGISLATIVE INTENT. It is the intent of the
175	175	legislature that, to the extent practicable under Section 316.001
176	176	and other law, all revenue dedicated by the Texas Constitution for a
177	177	particular purpose be appropriated in each state fiscal biennium
178	178	for that purpose.
179	179	SECTION 5. The changes in law made by this Act apply only in
180	180	relation to appropriations made for the state fiscal biennium
181	181	beginning September 1, 2023, and subsequent state fiscal bienniums.
182	182	Appropriations for the state fiscal biennium beginning September 1,
183	183	2021, are governed by Sections 316.001, 316.002, 316.006, 316.007,
184	184	and 316.008, Government Code, as those sections existed on
185	185	September 1, 2020, and the former law is continued in effect for
186	186	that purpose.
187	187	SECTION 6. This Act takes effect September 1, 2021.