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  83R1058 JJT-D
 
  By: Perry H.B. No. 228
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the maximum rate of growth of appropriations.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 316.001, Government Code, is amended to
  read as follows:
         Sec. 316.001.  APPROPRIATIONS LIMIT; RATE OF GROWTH. (a)  
  Unless a greater amount is authorized as provided by Section 22(e),
  Article VIII, Texas Constitution, the amount of appropriations from
  the state treasury for a fiscal biennium may not exceed the amount
  determined in accordance with this section.
         (b)  The maximum rate of growth of appropriations from the
  state treasury for a fiscal biennium, as compared to the preceding
  fiscal [in a] biennium, is the lesser of the following rates:
               (1)  [from state tax revenues not dedicated by the
  constitution may not exceed] the estimated rate of growth of
  personal income of this [the] state's residents; or
               (2)  a rate equal to the sum of:
                     (A)  the estimated biennial rate of growth of this
  state's population; and
                     (B)  the estimated biennial rate of monetary
  inflation in this state [economy].
         SECTION 2.  Section 316.002, Government Code, is amended to
  read as follows:
         Sec. 316.002.  DUTIES OF LEGISLATIVE BUDGET BOARD.
  (a)  Before the Legislative Budget Board submits the budget as
  prescribed by Section 322.008(c), the board shall determine
  [establish]:
               (1)  the estimated rate of growth of personal income of
  this [the] state's residents [economy] from the current fiscal 
  biennium to the next fiscal biennium, determined as provided by
  Subsection (b);
               (2)  a rate equal to the sum of:
                     (A)  the estimated biennial rate of growth of this
  state's population, determined as provided by Subsection (c); and
                     (B)  the estimated biennial rate of monetary
  inflation in this state, determined as provided by Subsection (d);
               (3)  the amount [level] of appropriations for the
  current fiscal biennium [from state tax revenues not dedicated by
  the constitution]; and
               (4) [(3)]  the maximum permissible amount of
  appropriations of revenue from the state treasury [state tax
  revenues not dedicated by the constitution that could be
  appropriated] for the next fiscal biennium [within the limit
  established] by multiplying the total amount of appropriations for
  the current fiscal biennium by the sum of one and the maximum rate
  of growth of appropriations as provided by Section 316.001 [the
  estimated rate of growth of the state's economy].
         (b)  The Legislative Budget Board [Except as provided by
  Subsection (c), the board] shall determine the estimated rate of
  growth of personal income of this [the] state's residents [economy]
  by dividing the estimated Texas total personal income for the next
  fiscal biennium by the estimated Texas total personal income for
  the current 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)  The Legislative Budget Board shall determine the
  estimated biennial rate of growth of this state's population
  according to estimates provided by the state demographer. [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 appropriations.]
         (d)  The Legislative Budget Board shall determine the
  estimated biennial rate of monetary inflation in this state based
  on the estimated rate of change during the preceding fiscal
  biennium of the effective consumer price index for this state.
         (e)  To ensure compliance with 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 maximum permissible amount [limit on the rate of growth]
  of appropriations for the next fiscal biennium has been adopted as
  required by this subchapter.
         (f) [(e)]  In the absence of an action by the Legislative
  Budget Board to adopt a maximum permissible amount of
  appropriations for the next fiscal biennium [spending limit] as
  provided by this section, the maximum permissible amount of
  appropriations for the next fiscal biennium is [in Subsections (a)
  and (b), the estimated rate of growth in the state's economy from
  the current biennium to the next biennium shall be treated as if it
  were zero, and 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 in the state's economy
  shall be] the same as the amount [level] of those appropriations for
  the current fiscal biennium, determined under Subsection (a)(3).
         SECTION 3.  Section 316.003, Government Code, is amended to
  read as follows:
         Sec. 316.003.  PUBLICATION. Before the Legislative Budget
  Board approves the items of information required by Section
  316.002, the board shall publish in the Texas Register the proposed
  items of information and a description of the methodology and
  sources used in the determinations [calculations].
         SECTION 4.  Section 316.004, Government Code, is amended to
  read as follows:
         Sec. 316.004.  PUBLIC HEARING. Not later than December 1 of
  each even-numbered year, the Legislative Budget Board shall hold a
  public hearing to solicit testimony regarding the proposed items of
  information and the methodology used in making the determinations
  [calculations] required by Section 316.002.
         SECTION 5.  Section 316.006, Government Code, is amended to
  read as follows:
         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
  relating to the proposed appropriations from the state treasury for
  the next fiscal biennium [of state tax revenues not dedicated by the
  constitution] may not exceed the maximum permissible amount of
  appropriations [limit] adopted by the committee under Section
  316.005.
         SECTION 6.  Section 316.007(a), Government Code, is amended
  to read as follows:
         (a)  The Legislative Budget Board shall include in its budget
  recommendations the proposed maximum permissible amount [limit] of
  appropriations from the state treasury for the next fiscal biennium
  [from state tax revenues not dedicated by the constitution].
         SECTION 7.  Section 316.008(a), Government Code, is amended
  to read as follows:
         (a)  Unless the legislature adopts a resolution under
  Section 22(e), Article VIII, [Section 22(b), of the] Texas
  Constitution, raising the proposed maximum permissible amount of
  [limit on] appropriations for the next fiscal biennium, the
  proposed maximum permissible amount [limit] is binding on the
  legislature with respect to all appropriations for the next fiscal 
  biennium made from the state treasury [state tax revenues not
  dedicated by the constitution].
         SECTION 8.  (a) The changes in law made by this Act apply
  only in relation to appropriations made for the state fiscal
  biennium beginning September 1, 2015, and subsequent state fiscal
  bienniums.
         (b)  Appropriations for the state fiscal biennium that
  begins September 1, 2013, are governed by Subchapter A, Chapter
  316, Government Code, as that subchapter existed immediately before
  the effective date of this Act, and the former law is continued in
  effect for that purpose.
         SECTION 9.  This Act takes effect on the date on which the
  constitutional amendment proposed by the 83rd Legislature, Regular
  Session, 2013, regarding the maximum amount of appropriations for a
  state fiscal biennium takes effect. If that amendment is not
  approved by the voters, this Act has no effect.