84R30821 CJC-D
 
  By: Hancock, et al. S.B. No. 9
 
  (Otto, Bonnen of Galveston, Ashby, Burkett,
 
  Gonzales) 
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to limitations on the rate of growth of appropriations for
  certain categories of spending.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 316, Government Code, is amended by
  adding Subchapter A-1 to read as follows:
  SUBCHAPTER A-1. ADDITIONAL LIMIT ON GROWTH OF APPROPRIATIONS FROM
  STATE FUNDS
         Sec. 316.0101.  LIMIT. In a state fiscal biennium, the rate
  of growth of appropriations from all sources of revenue other than
  the federal government may not exceed a rate determined as provided
  under Section 316.0102(a) for each of the following categories of
  spending:
               (1)  transportation;
               (2)  public primary and secondary education;
               (3)  higher education;
               (4)  health care;
               (5)  public safety and corrections; and
               (6)  other general government.
         Sec. 316.0102.  DUTIES OF LEGISLATIVE BUDGET BOARD.
  (a)  Before the Legislative Budget Board transmits the budget for
  the next state fiscal biennium as prescribed by Section 322.008(c),
  the board shall establish a limit on the rate of growth of
  appropriations from all sources of revenue other than the federal
  government for each spending category described by Section 316.0101
  for that biennium, as compared to the previous state fiscal
  biennium, by subtracting one from the product of:
               (1)  the sum of one and the estimated rate of growth in
  the population served by expenditures in that spending category
  during the biennium for which appropriations are made; and
               (2)  the sum of one and the estimated rate of inflation
  in a representative set of goods and services for which
  appropriations are made for that spending category during the
  biennium.
         (b)  The board shall determine the rates described by
  Subsection (a) using information available from any source the
  board considers reliable.
         (c)  Except as provided by Subsection (d) and subject to
  Subsection (g), the board shall establish for the next state fiscal
  biennium a limit on the amount of appropriations from all sources of
  revenue other than the federal government for each spending
  category described by Section 316.0101 by multiplying the amount of
  appropriations for each spending category for the then current
  state fiscal biennium by the sum of one and the limit on the rate of
  growth of appropriations for that spending category determined by
  the board under Subsection (a).
         (d)  If the rate determined under Subsection (a) for any
  spending category described by Section 316.0101 is a negative
  number, the amount of appropriations from all sources of revenue
  other than the federal government for that spending category
  available for the next state fiscal biennium is the same as the
  amount of those appropriations for the then current state fiscal
  biennium.
         (e)  To ensure compliance with this subchapter, the 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 the limit on the rate of growth of appropriations from
  all sources of revenue other than the federal government for that
  biennium for each spending category described by Section 316.0101.
         (f)  In the absence of an action by the board to adopt the
  limits required under this subchapter, the amount of appropriations
  from all sources of revenue other than the federal government for
  each spending category described by Section 316.0101 available for
  the next state fiscal biennium is the same as the amount of those
  appropriations for the current state fiscal biennium.
         (g)  Notwithstanding any other law, for purposes of
  calculations used to establish, in regard to a spending category
  described by Section 316.0101, the limit on the rate of growth under
  Subsection (a) and the limit on the amount of appropriations as
  provided under Subsection (c), if the legislature by law exempts an
  appropriation from the application of this subchapter for the next
  state fiscal biennium, the board shall exclude then current or
  previous appropriations that, as determined by the board, are of a
  nature similar to the exempted appropriation as if those similar
  appropriations also had been exempted by law.
         Sec. 316.0103.  PUBLICATION. Before the Legislative Budget
  Board approves the items of information required by Section
  316.0102, the board shall publish in the Texas Register the
  proposed items of information and a description of the methodology
  and sources used in the calculations.
         Sec. 316.0104.  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 calculations
  required by Section 316.0102.
         Sec. 316.0105.  LIMIT ON BUDGET RECOMMENDATIONS. Unless
  authorized by majority vote of the members of the Legislative
  Budget Board from each house, the board's budget recommendations
  relating to appropriations from all sources of revenue other than
  the federal government for each spending category described by
  Section 316.0101 may not exceed the limit adopted by the board under
  Section 316.0102.
         Sec. 316.0106.  INCLUSION IN BUDGET RECOMMENDATIONS. The
  Legislative Budget Board shall include in its budget
  recommendations the proposed limit of appropriations from all
  sources of revenue other than the federal government for each
  spending category described by Section 316.0101.
         Sec. 316.0107.  EFFECT OF LIMIT; ENFORCEMENT. (a) The
  proposed limit on appropriations from all sources of revenue other
  than the federal government for each spending category described by
  Section 316.0101 is binding on the legislature with respect to
  those appropriations for the next state fiscal biennium unless the
  legislature adopts a resolution raising the proposed limit that is
  approved by a record vote of a majority 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 authorized under this subsection may
  not exceed the amount specified in the resolution.
         (b)  The rules of the house of representatives and senate
  shall provide for enforcement of Subsection (a).
         SECTION 2.  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, 2017, and subsequent state
  fiscal bienniums. Appropriations for the state fiscal biennium
  that begins September 1, 2015, are governed by the law in effect at
  the time those appropriations were made, and the former law is
  continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2015.