By: Hancock, Birdwell, Creighton  S.B. No. 9
         (In the Senate - Filed March 10, 2015; March 10, 2015, read
  first time and referred to Committee on Finance; April 7, 2015,
  reported adversely, with favorable Committee Substitute by the
  following vote:  Yeas 9, Nays 5; April 7, 2015, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 9 By:  Hancock
 
 
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, 316.002, and 316.006,
  Government Code, are amended to read as follows:
         Sec. 316.001.  LIMIT. (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 biennial statement required of the
  comptroller under Section 49a, Article III, Texas Constitution.
         (b)  The rate of growth of consolidated general revenue
  appropriations in a state fiscal biennium [from state tax revenues
  not dedicated by the constitution] may not exceed the average
  biennial rate of growth of this state's population during the state
  fiscal biennium preceding the biennium for which appropriations are
  made and during the state fiscal biennium for which appropriations
  are made adjusted by the average biennial rate of monetary
  inflation in this state during the same period, as determined under
  Section 316.002 [estimated rate of growth of the state's economy].
         (c)  For purposes of this subchapter, an appropriation to pay
  for a rebate of state taxes must be excluded from computations used
  to determine whether appropriations exceed the amount authorized by
  Subsection (b).
         (d)  The Legislative Budget Board shall determine the rates
  described by Subsection (b) using the most recent information
  available from sources the board considers reliable, including the
  Federal Reserve Bank of Dallas and the Texas State Data Center.
         Sec. 316.002.  DUTIES OF LEGISLATIVE BUDGET BOARD.
  (a)  Before the Legislative Budget Board transmits [submits] the
  budget for the next state fiscal biennium as prescribed by Section
  322.008(c), the board shall establish[:
               [(1)]  the limit on the rate of growth in consolidated
  general revenue appropriations for that state fiscal biennium, as
  compared to the previous state fiscal biennium, by subtracting one
  from the product of:
               (1)  the sum of one and the estimated average biennial
  rate of growth of this state's population during the state fiscal
  biennium preceding the biennium for which appropriations are made
  and during the state fiscal biennium for which appropriations are
  made; and
               (2)  the sum of one and the estimated average biennial
  rate of monetary inflation during the state fiscal biennium
  preceding the biennium for which appropriations are made and during
  the state fiscal biennium for which appropriations are made [the
  state's economy from the current biennium to the next biennium;
               [(2)     the level of appropriations for the current
  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 biennium
  within the limit established by the estimated rate of growth of the
  state's economy].
         (b)  Except as provided by Subsection (c), the board shall
  determine for the next state fiscal biennium a limit on the amount
  of consolidated general revenue appropriations by multiplying the
  amount of consolidated general revenue appropriations for the then
  current state fiscal biennium by the sum of one and the limit on the
  rate of growth of consolidated general revenue appropriations
  determined by the board under Subsection (a) [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 the rate determined under Subsection (a) is a
  negative number, the amount of consolidated general revenue
  appropriations for the next state fiscal biennium may not exceed
  the amount of consolidated general revenue appropriations in the
  current state fiscal biennium [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.
         (e)  In the absence of an action by the Legislative Budget
  Board to adopt a [spending] limit on consolidated general revenue
  appropriations as provided by this section, [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 consolidated general revenue
  appropriations available for the next state fiscal biennium [state
  tax revenues not dedicated by the constitution that could be
  appropriated] within the limit established by this section is [the
  estimated rate of growth in the state's economy shall be] the same
  as the amount [level] of consolidated general revenue 
  appropriations for the current state fiscal biennium.
         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 consolidated general revenue 
  appropriations [of state tax revenues not dedicated by the
  constitution] may not exceed the limit adopted by the committee
  under Section 316.005.
         SECTION 2.  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 limit on consolidated general revenue 
  [of] appropriations [from state tax revenues not dedicated by the
  constitution].
         SECTION 3.  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 consolidated general
  revenue appropriations, the proposed limit is binding on the
  legislature with respect to all consolidated general revenue 
  appropriations for the next state fiscal biennium [made from state
  tax revenues not dedicated by the constitution].
         SECTION 4.  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 Sections 316.001,
  316.002, 316.006, 316.007, and 316.008, Government Code, as those
  sections existed on December 1, 2014, and the former law is
  continued in effect for that purpose.
         SECTION 5.  This Act takes effect on the date on which the
  constitutional amendment proposed by the 84th Legislature, Regular
  Session, 2015, concerning the limitation on the rate of growth in
  appropriations takes effect.  If that amendment is not approved by
  the voters, this Act has no effect.
 
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