83R2917 JJT-F
 
  By: Creighton H.B. No. 715
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the constitutional limit on the rate of growth of
  appropriations.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 316.001 and 316.002, 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 a rate determined
  by adding the estimated rate of the increase or decrease in the
  state's population during the preceding state fiscal biennium and
  the estimated rate of monetary inflation or deflation in this state
  during that preceding biennium [the estimated rate of growth of the
  state's economy].
         (b)  If the sum of the estimated rates described by
  Subsection (a) is a negative number, the amount of appropriations
  authorized for the next state fiscal biennium from state tax
  revenues not dedicated by the constitution must decrease as
  prescribed by this subchapter.
         Sec. 316.002.  DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
  Before the Legislative Budget Board submits the budget for the next
  state fiscal biennium as prescribed by Section 322.008(c), the
  board shall establish:
               (1)  the maximum allowable rate of growth of
  appropriations between the current state fiscal biennium and the
  next state fiscal biennium, in accordance with Section 22, Article
  VIII, Texas Constitution, expressed as a percentage, by adding the
  following estimated rates, as determined by the board:
                     (A)  the estimated rate of change of the state's
  population during the current state fiscal biennium, expressed as a
  percentage; and
                     (B)  the estimated rate of monetary inflation or
  deflation in this state during the current state fiscal [estimated
  rate of growth of the state's economy from the current biennium to
  the next] biennium, expressed as a percentage;
               (2)  the estimated amount [level] of appropriations for
  the current state fiscal 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 state
  fiscal biennium within the limit established in accordance with the
  maximum allowable rate of growth determined under Subdivision (1)
  and the estimated amount of appropriations for the current state
  fiscal biennium determined under Subdivision (2) [by the estimated
  rate of growth of the state's economy].
         (b)  If the sum of the estimated rate of increase or decrease
  in the state's population and the estimated rate of monetary
  inflation or deflation in this state is a negative number, the
  amount of appropriations authorized for the next state fiscal
  biennium from state tax revenues not dedicated by the constitution
  may not exceed the amount of appropriations from those revenues in
  the current state fiscal biennium reduced by the product of that
  amount and the additive inverse of the sum of those rates. [Except
  as provided by Subsection (c), the board shall determine the
  estimated rate of growth of the state's economy by dividing the
  estimated Texas total personal income for the next biennium by the
  estimated Texas total personal income for the current 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 appropriations.
         [(d)]  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 limit on the rate of growth of appropriations has been
  adopted as required by this subchapter.
         (d) [(e)]  In the absence of an action by the Legislative
  Budget Board to adopt a spending limit as provided by this section
  [in Subsections (a) and (b)], the sum of the estimated rate of
  population growth and the estimated rate of inflation [in the
  state's economy from the current biennium to the next biennium]
  shall be treated as if that rate [it] were zero, and the amount of
  state tax revenues not dedicated by the constitution that could be
  appropriated for the next state fiscal biennium is [within the
  limit established by the estimated rate of growth in the state's
  economy shall be] the same as the amount [level] of appropriations
  from those revenues for the current biennium.
         SECTION 2.  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, the
  proposed limit is binding on the legislature with respect to all
  appropriations for the next state fiscal biennium made from state
  tax revenues not dedicated by the constitution.
         SECTION 3.  The changes in law made by this Act apply only,
  as applicable, in relation to appropriations made for the state
  fiscal biennium beginning September 1, 2015, and subsequent state
  fiscal bienniums. Appropriations for the state fiscal biennium
  that begins September 1, 2013, are governed by Sections 316.001,
  316.002, and 316.008, Government Code, as those sections existed on
  January 1, 2013, and the former law is continued in effect for that
  purpose.
         SECTION 4.  This Act takes effect on the date on which the
  constitutional amendment proposed by the 83rd Legislature, Regular
  Session, 2013, regarding the limitation on the rate of growth of
  appropriations takes effect. If that amendment is not approved by
  the voters, this Act has no effect.