88R2725 KJE-D
By: Raymond H.B. No. 561
A BILL TO BE ENTITLED
AN ACT
relating to an annual state budget and legislative budget sessions
in even-numbered years and to political contributions made during a
legislative session.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 301.001, Government Code, is amended to
read as follows:
Sec. 301.001. TIME AND PLACE OF MEETING. (a) In each
odd-numbered year, the [The] legislature shall convene at the seat
of government in regular session at 12 noon on the second Tuesday in
January [of each odd-numbered year].
(b) In each even-numbered year, the legislature shall
convene at the seat of government in budget session at 12 noon on
the third Tuesday in April.
SECTION 2. Sections 316.001(a), (b), and (c), Government
Code, are amended to read as follows:
(a) For purposes of this subchapter, "consolidated general
revenue appropriations" means appropriations from:
(1) the general revenue fund in the state treasury;
(2) a dedicated account in the general revenue fund in
the state treasury; or
(3) a general revenue-related fund in the state
treasury as identified in the annual [biennial] statement required
of the comptroller under Section 49a, Article III, Texas
Constitution.
(b) The rate of growth of appropriations in a state fiscal
year [biennium] from state tax revenues not dedicated by the
constitution may not exceed the estimated rate of growth of the
state's economy.
(c) The rate of growth of consolidated general revenue
appropriations in a state fiscal year [biennium] may not exceed the
estimated average annual [biennial] rate of growth of this state's
population during the state fiscal year [biennium] preceding the
year [biennium] for which appropriations are made and during the
state fiscal year [biennium] for which appropriations are made,
adjusted by the estimated average annual [biennial] rate of
monetary inflation in this state during the same period, as
determined under Section 316.002.
SECTION 3. Sections 316.002(a), (b), (d), (e), and (g),
Government Code, are amended to read as follows:
(a) Before the Legislative Budget Board transmits the
budget for the next state fiscal year [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 year [biennium], as compared to the previous state
fiscal year [biennium], based on the estimated rate of growth of the
state's economy from the current state fiscal year [biennium] to
the next state fiscal year [biennium]; and
(2) the limit on the rate of growth of consolidated
general revenue appropriations for that state fiscal year
[biennium], as compared to the previous state fiscal year
[biennium], by subtracting one from the product of:
(A) the sum of one and the estimated average
annual [biennial] rate of growth of this state's population during
the state fiscal year [biennium] preceding the year [biennium] for
which appropriations are made and during the state fiscal year
[biennium] for which appropriations are made; and
(B) the sum of one and the estimated average
annual [biennial] rate of monetary inflation during the state
fiscal year [biennium] preceding the year [biennium] for which
appropriations are made and during the state fiscal year [biennium]
for which appropriations are made.
(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 year [biennium] by the
estimated Texas total personal income for the current state fiscal
year [biennium]. Using standard statistical methods, the board
shall make the estimate by projecting through the year [biennium]
the estimated Texas total personal income reported by the United
States Department of Commerce or its successor in function.
(d) Except as provided by Subsection (e), the board shall
determine for the next state fiscal year [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 year [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) consolidated general revenue appropriations by
multiplying the amount of consolidated general revenue
appropriations for the current state fiscal year [biennium] by the
sum of one and the limit on the rate of growth of consolidated
general revenue appropriations established by the board under
Subsection (a)(2).
(e) If the rate determined under Subsection (a)(2) is a
negative number, the amount of consolidated general revenue
appropriations for the next state fiscal year [biennium] may not
exceed the amount of consolidated general revenue appropriations in
the current state fiscal year [biennium].
(g) In the absence of an action by the Legislative Budget
Board to adopt the limits as provided by this section:
(1) for purposes of Section 316.001(b):
(A) the estimated rate of growth of the state's
economy from the current state fiscal year [biennium] to the next
state fiscal year [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 the state's
economy shall be the same as the amount of those appropriations for
the current state fiscal year [biennium]; and
(2) for purposes of Section 316.001(c):
(A) the estimated average annual [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 consolidated general revenue
appropriations 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 year [biennium].
SECTION 4. Section 316.008(a), Government Code, is amended
to read as follows:
(a) Unless the legislature adopts a resolution under
Section 22, Article VIII, 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 year
[biennium] made from those revenues. The proposed limit on
consolidated general revenue appropriations is binding on the
legislature with respect to all appropriations for the next state
fiscal year [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 5. Section 316.045, Government Code, is amended to
read as follows:
Sec. 316.045. REDUCTION IN CERTAIN AGENCY FEES. (a) Each
state agency that sets the fees charged by that agency in amounts
that are reasonable and necessary to cover the administrative costs
of the agency shall review the amounts charged as fees on an annual
[a biennial] basis. The agency shall review the fees before the
beginning of each state fiscal year [biennium] and incorporate its
recommendations based on that review in its budget request
submitted to the Legislative Budget Board and the budget division
of the governor's office.
(b) If the agency determines that the fees are set at a level
that exceeds the administrative costs of the agency as of the date
of the review, the agency shall reduce the amount of the affected
fees to the appropriate level and shall charge the reduced fees
during the subsequent fiscal year [biennium]. Each agency shall
give specific recognition to reductions in salary expenses
resulting from statutorily directed employee attrition.
SECTION 6. Section 316.092(a), Government Code, is amended
to read as follows:
(a) For the purposes of adjusting the allocations of
transfers in accordance with Section 49-g(c-2), Article III, Texas
Constitution, and Section 316.093 for a state fiscal year
[biennium], the comptroller shall determine and adopt for the state
fiscal year [biennium] an amount equal to seven percent of the
certified general revenue-related appropriations made for that
state fiscal year [biennium].
SECTION 7. Sections 316.093(a), (b), and (c), Government
Code, are amended to read as follows:
(a) Before the comptroller makes transfers for a state
fiscal year in accordance with Section 49-g(c), Article III, Texas
Constitution, the comptroller shall determine whether the sum of
the balance of the fund on the preceding August 31, any projected
transfer to the fund under Section 49-g(b) of that article, and any
projected transfer to the fund under Section 49-g(c) of that
article in accordance with the allocations for the transfer as
provided by Section 49-g(c-1) of that article is less than the
amount determined under Section 316.092 for that state fiscal year
[biennium].
(b) If the sum described by Subsection (a) is less than the
amount determined under Section 316.092 for that state fiscal year
[biennium], the comptroller shall reduce the allocation to the
state highway fund provided by Section 49-g(c), Article III, Texas
Constitution, and increase the allocation to the economic
stabilization fund, in an equal amount, until the amount determined
under Section 316.092 for that state fiscal year [biennium] would
be achieved by the transfer to the fund or the total amount of the
sum described by Section 49-g(c), Article III, Texas Constitution,
is allocated to the fund, whichever occurs first.
(c) For the purposes of Section 49-g(c-2), Article III,
Texas Constitution, the comptroller shall adjust the allocation
provided by Section 49-g(c-1) of that article of amounts to be
transferred to the fund and to the state highway fund under Section
49-g(c) of that article in a state fiscal year beginning on or after
September 1, 2035, so that the total of those amounts is transferred
to the economic stabilization fund, except that the comptroller
shall reduce a transfer made under this subsection as necessary to
prevent the amount in the fund from exceeding the limit in effect
for that fiscal year [biennium] under Section 49-g(g) of that
article.
SECTION 8. Section 317.003(a), Government Code, is amended
to read as follows:
(a) The governor or Legislative Budget Board may make a
proposal at any time except during a [regular or special] session of
the legislature. A proposal may apply to an appropriation that has
been made for any specified fiscal year that has not ended at the
time the proposal is made.
SECTION 9. Sections 322.008(a), (c), and (d), Government
Code, are amended to read as follows:
(a) The director, under the direction of the board, shall
prepare the general appropriations bill for introduction at each
regular and budget [legislative] session of the legislature.
(c) Not later than the fifth day after a regular or budget
[legislative] session convenes, the director shall transmit a copy
of the budget of estimated appropriations prepared by the director
to the governor and each member of the legislature.
(d) Not later than the seventh day after a regular or budget
[legislative] session convenes, the director shall transmit a copy
of the general appropriations bill to the governor and each member
of the legislature.
SECTION 10. Chapter 322, Government Code, is amended by
adding Section 322.021 to read as follows:
Sec. 322.021. STUDY TO IMPLEMENT ANNUAL BUDGET. (a) The
board, with the assistance of the Texas Legislative Council, shall:
(1) examine the laws and operations of state
government to determine how the implementation of an annual state
budget may affect those laws and operations; and
(2) adopt recommendations for legislative and
administrative action necessary to implement an annual state budget
as effectively as practicable.
(b) The board shall make its initial recommendations under
this section not later than November 1, 2024.
SECTION 11. Section 403.121(a), Government Code, is amended
to read as follows:
(a) In the statement required by Section 49a, Article III,
[Section 49a, of the] Texas Constitution, the comptroller shall
list outstanding appropriations that may exist after the end of the
current fiscal year but may not deduct them from the cash condition
of the treasury or the anticipated revenues of the next fiscal year
[biennium] for the purpose of certification. The comptroller shall
base the reports, estimates, and certifications of available funds
on the actual or estimated cash condition of the treasury and shall
consider outstanding and undisbursed appropriations at the end of
each fiscal year [biennium] as probable disbursements of the
succeeding fiscal year [biennium] in the same manner that earned
but uncollected income of a current fiscal year [biennium] is
considered in probable receipts of the succeeding fiscal year
[biennium]. The comptroller shall consider as probable
disbursements warrants that will be issued by the state before the
end of the fiscal year.
SECTION 12. The heading to Section 253.034, Election Code,
is amended to read as follows:
Sec. 253.034. RESTRICTIONS ON CONTRIBUTIONS DURING AND
FOLLOWING REGULAR OR BUDGET [LEGISLATIVE] SESSION OF LEGISLATURE.
SECTION 13. Section 253.034, Election Code, is amended by
amending Subsections (a), (b), and (c) and adding Subsection (a-1)
to read as follows:
(a) During the period beginning on the 30th day before the
date a regular [legislative] session of the legislature convenes
and continuing through the 20th day after the date of final
adjournment of that regular session, a person may not knowingly
make a political contribution to:
(1) a statewide officeholder;
(2) a member of the legislature; or
(3) a specific-purpose committee for supporting,
opposing, or assisting a statewide officeholder or member of the
legislature.
(a-1) During a budget session of the legislature, a person
may not knowingly make a political contribution to:
(1) the governor or lieutenant governor;
(2) a member of or a candidate for election to the
legislature; or
(3) a specific-purpose committee for supporting,
opposing, or assisting the governor, the lieutenant governor, or a
member of or a candidate for election to the legislature.
(b) A statewide officeholder, a member of or a candidate for
election to the legislature, or a specific-purpose committee for
supporting, opposing, or assisting a statewide officeholder or a
member of or a candidate for election to the legislature may not
knowingly accept a political contribution, and shall refuse a
political contribution that is received, during a [the] period
prescribed by Subsection (a) or (a-1), as applicable. A political
contribution that is received and refused during that period shall
be returned to the contributor not later than the 30th day after the
date of receipt. A contribution made by United States mail or by
common or contract carrier is not considered received during a
[that] period if it was properly addressed and placed with postage
or carrier charges prepaid or prearranged in the mail or delivered
to the contract carrier before the beginning of the period. The
date indicated by the post office cancellation mark or the common or
contract carrier documents is considered to be the date the
contribution was placed in the mail or delivered to the common or
contract carrier unless proven otherwise.
(c) This section does not apply to a political contribution
that was made and accepted with the intent that it be used:
(1) in an election held or ordered during a [the]
period prescribed by Subsection (a) or (a-1) in which the person
accepting the contribution is a candidate if the contribution was
made after the person appointed a campaign treasurer with the
appropriate authority and before the person was sworn in for that
office;
(2) to defray expenses incurred in connection with an
election contest; or
(3) by a person who holds a state office or a member of
the legislature or by a specific-purpose political committee that
supports or assists only that person or member if the contribution
was made during the period prescribed by Subsection (a) and the
person or member was defeated at the general election held
immediately before the regular session is convened [or by a
specific-purpose political committee that supports or assists only
that person or member].
SECTION 14. The heading to Section 253.0341, Election Code,
is amended to read as follows:
Sec. 253.0341. RESTRICTIONS ON CONTRIBUTIONS TO
LEGISLATIVE CAUCUSES DURING AND FOLLOWING REGULAR OR BUDGET
[LEGISLATIVE] SESSION OF LEGISLATURE.
SECTION 15. Sections 253.0341(a) and (b), Election Code,
are amended to read as follows:
(a) During the period beginning on the 30th day before the
date a regular [legislative] session of the legislature convenes
and continuing through the 20th day after the date of final
adjournment, or at any time during a budget session of the
legislature, a person not a member of the caucus may not knowingly
make a contribution to a legislative caucus.
(b) A legislative caucus may not knowingly accept from a
nonmember a contribution, and shall refuse a contribution from a
nonmember that is received, during a [the] period prescribed by
Subsection (a). A contribution that is received and refused during
a [that] period prescribed by Subsection (a) shall be returned to
the contributor not later than the 30th day after the date of
receipt. A contribution made by United States mail or by common or
contract carrier is not considered received during a [that] period
if it was properly addressed and placed with postage or carrier
charges prepaid or prearranged in the mail or delivered to the
contract carrier before the beginning of the period. The date
indicated by the post office cancellation mark or the common or
contract carrier documents is considered to be the date the
contribution was placed in the mail or delivered to the common or
contract carrier unless proven otherwise.
SECTION 16. The changes in law made by this Act do not
affect the validity of an appropriation made before September 1,
2025, for a period that ends on or before August 31, 2027.
SECTION 17. (a) This Act takes effect as provided by
Subsection (b) of this section, but only if the constitutional
amendment proposed by the 88th Legislature, Regular Session, 2023,
providing for an annual state budget and annual legislative
sessions for budget purposes is approved by the voters. If that
proposed constitutional amendment is not approved by the voters,
this Act has no effect.
(b) Subject to Subsection (a) of this section:
(1) except as provided by Subdivision (2) of this
subsection, this Act takes effect September 1, 2025; and
(2) this section and Section 10 of this Act take effect
January 1, 2024.