By: Estes S.B. No. 361
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to limitations 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, 316.003, 316.004, and
  316.006, 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:
               1) all state revenues and 
               2) all sources of revenue, including the federal
  government,
         [state tax revenues not dedicated by the constitution] may
  not exceed the estimated rate of growth of the state's economy.
         (b)  For the purposes of subsection (a), the rate of growth
  of the state's economy is the lesser of the following rates,
  calculated for the two fiscal years immediately preceding the
  regular biennial legislative session:
               (1)  a rate equal to the sum of:
                     (A)  the rate of growth of this state's
  population; and
                     (B)  the rate of monetary inflation in this state;
               (2)  the rate of growth of personal income of this
  state's residents; or
               (3)  the rate of growth of this state's gross state
  product.
         Sec. 316.002.  DUTIES OF LEGISLATIVE BUDGET BOARD.
  (a)  Before the Legislative Budget Board transmits [submits] the
  budget as prescribed by Section 322.008(c), the board shall
  determine [establish]:
               (1)  the estimated rate of growth of the state's economy
  from the current fiscal biennium to the next fiscal biennium as
  determined in Section 316.001 (b);
               (2)  the [level of] appropriations for the current
  fiscal biennium from:
                           1) all state [tax] revenues and 
                           2) all revenues, including federal revenue
  [not dedicated by the constitution]; and
               (3)  the amount of:
                     (A)  all state [tax] revenues and
                     (B)  all revenues, including federal
  revenues,[not dedicated by the constitution]
                     that could be appropriated for the next fiscal
  biennium within the limit established
                     [by the estimated rate of growth of the state's
  economy].
         (b)  The [Except as provided by Subsection (c), the] board
  shall use information [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, or by other reliable state, federal, or private sources,
  to determine the estimated rate of growth of the state's economy.
         (c)  For purposes of this section, in determining the total
  appropriations made in a state fiscal biennium, the Legislative
  Budget Board must consider all appropriations made for that
  biennium, including an appropriation made for that biennium during
  a subsequent called or regular session of the legislature [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 this subchapter and 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 board adopts the limit on the rate of
  growth of appropriations of [tax] revenues [not dedicated by the
  constitution] under Section 316.001(a)] under Section 316.001(a)
         [has been adopted as required by this subchapter].
         (e)  In the absence of an action by the Legislative Budget
  Board to adopt the limitations [a spending limit as] provided in
  Subsection[s] (a) [and (b),] the estimated rate of growth in the
  state's economy from the current fiscal biennium to the next fiscal
  biennium shall be treated as if it were zero;[,] and
                     (B)  the amount of both all state [tax] revenues
  and all revenues, including federal revenue,[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 level of appropriations for the current
  fiscal biennium.
         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].
         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.
         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 limit on appropriations of 
               1) all state [tax] revenues and 
               2) all revenues, including federal revenue,[not
  dedicated by the constitution],],
         adopted by the committee under Section 316.005, and may not
  exceed the limit on appropriations of revenue from all sources,
  including the federal government, adopted by the committee under
  that section [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:
               (1)  the proposed limit of appropriations from all
  state [tax] revenues [not dedicated by the constitution]; and
               (2)  the proposed limit of appropriations from all
  sources of revenue, including the federal government.
         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 appropriations from all
  state [tax] revenues [not dedicated by the constitution], the
  proposed limit is binding on the legislature with respect to all
  appropriations for the next fiscal biennium made from those [state
  tax] revenues [not dedicated by the constitution]. The limits on
  appropriations in Section 316.001 (a) are binding on the
  legislature with respect to all appropriations for the next fiscal
  biennium made from those revenues 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.
         SECTION 4.  (a) The changes in law made by this Act apply
  only in relation to an appropriation made for a state fiscal
  biennium beginning on or after September 1, 2017.
         (b)  Appropriations for the state fiscal biennium that
  begins September 1, 2015, 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 5.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution. If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2015.