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A BILL TO BE ENTITLED
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AN ACT
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relating to the limitation on the rate of growth of appropriations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 316.001, 316.002, 316.003, 316.004, and |
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316.008, Government Code, are amended to read as follows: |
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Sec. 316.001. LIMIT. The rate of growth of appropriations |
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in a state fiscal biennium from state tax revenues not dedicated by |
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the constitution may not exceed the least of the following rates |
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determined as provided by Section 316.002: |
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(1) the estimated rate of growth of the state's |
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economy; |
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(2) a rate equal to the sum of: |
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(A) the rate of growth of this state's |
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population; and |
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(B) the rate of monetary inflation in this state; |
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or |
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(3) the rate of growth of this state's gross state |
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product. |
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Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. |
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(a) Before the Legislative Budget Board transmits [submits] the |
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budget as prescribed by Section 322.008(c), the board shall |
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determine [establish]: |
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(1) the estimated rate of growth of the state's economy |
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from the current state fiscal biennium to the next state fiscal |
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biennium determined as provided by Subsection (b); |
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(2) the rates determined as provided by Subsection |
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(c); |
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(3) the amount [level] of appropriations for the |
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current state fiscal biennium from state tax revenues not dedicated |
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by the constitution; and |
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(4) [(3)] the amount of state tax revenues not |
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dedicated by the constitution that could be appropriated for the |
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next state fiscal biennium within the limit established by Section |
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316.001 [the estimated rate of growth of the state's economy]. |
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(b) The [Except as provided by Subsection (c), the] board |
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shall determine the estimated rate of growth of the state's economy |
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by dividing the estimated Texas total personal income for the next |
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state fiscal biennium by the estimated Texas total personal income |
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for the current state fiscal biennium. Using standard statistical |
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methods, the board shall make the estimate by projecting through |
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the state fiscal biennium the estimated Texas total personal income |
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reported by the United States Department of Commerce or its |
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successor in function. |
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(c) The board shall use information reported by the United |
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States Department of Labor or its successor in function, the state |
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demographer or the demographer's successor in function, the United |
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States Census Bureau or its successor in function, and other |
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relevant sources the board considers reliable to determine the |
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following rates, calculated for the preceding state fiscal |
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biennium: |
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(1) a rate equal to the sum of: |
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(A) the rate of growth of this state's |
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population; and |
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(B) the rate of monetary inflation in this state; |
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and |
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(2) the rate of growth of this state's gross state |
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product [If a more comprehensive definition of the rate of growth
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of the state's economy is developed and is approved by the committee
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established by Section 316.005, the board may use that definition
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in calculating the limit on appropriations]. |
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(d) To ensure compliance with this subchapter and Section |
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22, Article VIII, [Section 22, of the] Texas Constitution, the |
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Legislative Budget Board may not transmit in any form to the |
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governor or the legislature the budget as prescribed by Section |
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322.008(c) or the general appropriations bill as prescribed by |
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Section 322.008(d) until the limit on the rate of growth of |
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appropriations has been adopted as required by this subchapter. |
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(e) In the absence of an action by the Legislative Budget |
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Board to adopt a spending limit as provided by this section [in
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Subsections (a) and (b)], the limit on the rate of growth of |
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appropriations under this subchapter is [estimated rate of growth
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in the state's economy from the current biennium to the next
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biennium shall be treated as if it were] zero, and the amount of |
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state tax revenues not dedicated by the constitution that may |
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[could] be appropriated within the limit is [established by the
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estimated rate of growth in the state's economy shall be] the same |
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as the amount [level] of those appropriations for the current state |
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fiscal biennium. |
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Sec. 316.003. PUBLICATION. Before the Legislative Budget |
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Board approves the items of information required by Section |
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316.002, the board shall publish in the Texas Register the proposed |
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items of information and a description of the methodology and |
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sources used in the determinations [calculations]. |
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Sec. 316.004. PUBLIC HEARING. Not later than December 1 of |
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each even-numbered year, the Legislative Budget Board shall hold a |
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public hearing to solicit testimony regarding the proposed items of |
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information and the methodology used in making the determinations |
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[calculations] required by Section 316.002. |
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Sec. 316.008. EFFECT OF LIMIT; ENFORCEMENT. (a) In this |
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section: |
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(1) "Constitutional limit on the rate of growth of |
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appropriations" means the limit on the rate of growth of |
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appropriations determined by the Legislative Budget Board under |
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Section 316.002(b) as finally adopted by the committee under |
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Section 316.005(b) or as considered adopted under Section |
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316.005(c). |
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(2) "Statutory limit on the rate of growth of |
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appropriations" means the limit on the rate of growth of |
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appropriations determined by the Legislative Budget Board under |
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Section 316.002(c) as finally adopted by the committee under |
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Section 316.005(b) or as considered adopted under Section |
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316.005(c). |
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(b) With respect to the constitutional limit on the rate of |
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growth of appropriations, unless [Unless] the legislature adopts a |
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resolution under Section 22, Article VIII, [Section 22(b), of the] |
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Texas Constitution, raising the proposed constitutional limit on |
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appropriations, the proposed constitutional limit is binding on the |
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legislature with respect to all appropriations for the next state |
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fiscal biennium made from state tax revenues not dedicated by the |
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constitution. |
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(c) [(b)] The rules of the house of representatives and |
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senate shall provide for enforcement of Subsection (b) [(a)]. |
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(d) When the statutory limit on the rate of growth of |
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appropriations is lower than the constitutional limit on the rate |
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of growth of appropriations or is lower than the constitutional |
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limit as raised by a resolution described by Subsection (b), the |
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proposed statutory limit is binding on the legislature with respect |
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to all appropriations for the next state fiscal biennium made from |
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state tax revenues not dedicated by the constitution unless the |
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legislature by general law provides that the statutory limit does |
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not apply to appropriations for that state fiscal biennium. |
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(e) If the Legislative Budget Board does not adopt a |
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spending limit as provided by Section 316.002, both the |
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constitutional limit on the rate of growth of appropriations and |
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the statutory limit on the rate of growth of appropriations are |
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considered to be zero. |
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SECTION 2. (a) The changes in law made by this Act apply |
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only in relation to an appropriation made for a state fiscal |
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biennium beginning on or after September 1, 2017. |
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(b) Appropriations for the state fiscal biennium that |
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begins September 1, 2015, are governed by Subchapter A, Chapter |
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316, Government Code, as that subchapter existed immediately before |
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the effective date of this Act, and the former law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2015. |