84R13990 CJC-D
 
  By: Hancock S.B. No. 9
 
 
 
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)  In a state fiscal biennium, the  
  [The] rate of growth of appropriations subject to certification by
  the comptroller under Section 49a(b), Article III, Texas
  Constitution, [in a biennium from state tax revenues not dedicated
  by the constitution] may not exceed a rate determined by adding the
  rate of the increase or decrease in this state's population during
  the preceding state fiscal biennium and the rate of inflation or
  deflation in this state during that preceding biennium [the
  estimated rate of growth of the state's economy].
         (b)  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 (a).
         (c)  The Legislative Budget Board shall determine the rates
  described by Subsection (a) using the most recent information
  available from sources the board considers reliable, including the
  Federal Reserve Bank of Dallas.
         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 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 rates determined by the board in the manner provided by
  Section 316.001(c):
                     (A)  the rate of change of this state's population
  during the current state fiscal biennium, expressed as a
  percentage; and
                     (B)  the rate of inflation or deflation in this
  state during the current state fiscal biennium, expressed as a
  percentage [estimated rate of growth of the state's economy from
  the current biennium to the next biennium];
               (2)  the amount [level] of appropriations for the
  current state fiscal biennium subject to certification by the
  comptroller under Section 49a(b), Article III, Texas Constitution
  [from state tax revenues not dedicated by the constitution]; and
               (3)  the amount of appropriations subject to
  certification by the comptroller under Section 49a(b), Article III,
  Texas Constitution, available [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 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 rate of increase or decrease in this
  state's population and the rate of inflation or deflation is a
  negative number, the amount of appropriations for the next state
  fiscal biennium subject to certification by the comptroller under
  Section 49a(b), Article III, Texas Constitution, may not exceed the
  amount of appropriations from those sources in the current state
  fiscal biennium. [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 rate of inflation or deflation [in the
  state's economy from the current biennium to the next biennium]
  shall be treated as if that sum [it] were zero, and the amount of
  appropriations subject to certification by the comptroller under
  Section 49a(b), Article III, Texas Constitution, 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 those 
  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 appropriations subject to certification by
  the comptroller under Section 49a(b), Article III, Texas
  Constitution, [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 of appropriations subject to
  certification by the comptroller under Section 49a(b), Article III,
  Texas Constitution [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 appropriations, the
  proposed limit is binding on the legislature with respect to all
  appropriations for the next state fiscal biennium subject to
  certification by the comptroller under Section 49a(b), Article III,
  Texas Constitution [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.