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A BILL TO BE ENTITLED
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AN ACT
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relating to the constitutional limit on the rate of growth of |
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appropriations and appropriations of constitutionally dedicated |
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revenue. |
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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, and 316.006, |
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Government Code, are amended to read as follows: |
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Sec. 316.001. LIMIT. (a) The rate of growth of |
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appropriations in a state fiscal biennium from state tax revenues |
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not dedicated by the constitution may not exceed the estimated rate |
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of growth of the state's economy. |
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(b) The rate of growth of appropriations from all sources of |
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revenue other than the federal government in a state fiscal |
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biennium may not exceed the estimated rate of growth of the state's |
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economy. |
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(c) For purposes of this subchapter, the estimated rate of |
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growth of the state's economy is the estimated average biennial |
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rate of growth of this state's population during the state fiscal |
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biennium for which appropriations are made, adjusted by the |
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estimated average biennial rate of monetary inflation in this state |
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during the same period, as determined under Section 316.002. |
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(d) The legislature finds that, for purposes of Section 22, |
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Article VIII, Texas Constitution, the estimated average biennial |
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rate of growth of this state's population during the state fiscal |
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biennium for which appropriations are made, adjusted by the |
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estimated average biennial rate of monetary inflation in this state |
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during the same period, is an appropriate measure of the estimated |
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rate of growth of the state's economy. |
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(e) For purposes of this subchapter, an appropriation to pay |
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for a rebate of state taxes must be excluded from computations used |
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to determine whether appropriations exceed the amount authorized by |
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Subsection (a) or (b). |
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(f) The Legislative Budget Board shall determine the rates |
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described by Subsection (c) using the most recent information |
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available from sources the board considers reliable, including the |
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United States Bureau of Labor Statistics and the Texas Demographic |
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Center. |
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Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a) |
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Before the Legislative Budget Board transmits [submits] the budget |
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for the next state fiscal biennium as prescribed by Section |
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322.008(c), the board shall establish: |
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(1) the limit on the rate of growth of appropriations |
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from state tax revenues not dedicated by the constitution for that |
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state fiscal biennium, as compared to the previous state fiscal |
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biennium, by subtracting one from the product of: |
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(A) the sum of one and the estimated average |
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biennial rate of growth of this state's population during the state |
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fiscal biennium for which appropriations are made; and |
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(B) the sum of one and the estimated average |
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biennial rate of monetary inflation in this state during the state |
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fiscal biennium for which appropriations are made; and |
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(2) the limit on the rate of growth of appropriations |
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from all sources of revenue other than the federal government for |
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that state fiscal biennium, as compared to the previous state |
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fiscal biennium, by subtracting one from the product of: |
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(A) the sum of one and the estimated average |
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biennial rate of growth of this state's population during the state |
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fiscal biennium for which appropriations are made; and |
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(B) the sum of one and the estimated average |
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biennial rate of monetary inflation in this state during the state |
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fiscal biennium for which appropriations are made [the state's
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economy from the current biennium to the next biennium;
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[(2)
the level of appropriations for the current
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biennium from state tax revenues not dedicated by the constitution;
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and
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[(3)
the amount of state tax revenues not dedicated by
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the constitution that could be appropriated for the next biennium
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within the limit established by the estimated rate of growth of the
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state's economy]. |
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(b) Except as provided by Subsection (c), the board shall |
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establish for the next state fiscal biennium a limit on the amount |
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of: |
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(1) appropriations from state tax revenues not |
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dedicated by the constitution by multiplying the amount of |
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appropriations from state tax revenues not dedicated by the |
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constitution for the current state fiscal biennium by the sum of one |
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and the limit on the rate of growth of appropriations from state tax |
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revenues not dedicated by the constitution established by the board |
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under Subsection (a)(1); and |
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(2) appropriations from all sources of revenue other |
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than the federal government by multiplying the amount of |
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appropriations from all sources of revenue other than the federal |
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government for the current state fiscal biennium by the sum of one |
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and the limit on the rate of growth of appropriations from all |
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sources of revenue other than the federal government established by |
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the board under Subsection (a)(2) [determine the estimated rate of
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growth of the state's economy by dividing the estimated Texas total
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personal income for the next biennium by the estimated Texas total
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personal income for the current biennium.
Using standard
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statistical methods, the board shall make the estimate by
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projecting through the biennium the estimated Texas total personal
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income reported by the United States Department of Commerce or its
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successor in function]. |
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(c) If the rate determined under Subsection (a)(1) is a |
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negative number, the amount of appropriations from state tax |
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revenues not dedicated by the constitution for the next state |
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fiscal biennium may not exceed the amount of appropriations from |
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state tax revenues not dedicated by the constitution for the |
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current state fiscal biennium. If the rate determined under |
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Subsection (a)(2) is a negative number, the amount of |
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appropriations from all sources of revenue other than the federal |
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government for the next state fiscal biennium may not exceed the |
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amount of appropriations from all sources of revenue other than the |
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federal government for the current state fiscal biennium [If a more
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comprehensive definition of the rate of growth of the state's
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economy is developed and is approved by the committee established
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by Section 316.005, the board may use that definition in
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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 board establishes: |
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(1) the limit on the rate of growth of appropriations |
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from state tax revenues not dedicated by the constitution under |
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Section 316.001(a); and |
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(2) the limit on the rate of growth of appropriations |
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from all sources of revenue other than the federal government under |
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Section 316.001(b) [has been adopted as required by this
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subchapter]. |
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(e) In the absence of an action by the Legislative Budget |
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Board to establish the limits [adopt a spending limit] as provided |
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by this section: |
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(1) for purposes of Section 316.001(a): |
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(A) [in Subsections (a) and (b),] the estimated |
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rate of growth of [in] the state's economy from the current fiscal |
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biennium to the next fiscal biennium shall be treated as if it were |
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zero; [,] and |
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(B) the amount of state tax revenues not |
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dedicated by the constitution that could be appropriated within the |
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limit established by the estimated rate of growth of [in] the |
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state's economy shall be the same as the level of appropriations for |
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the current fiscal biennium; and |
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(2) for purposes of Section 316.001(b): |
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(A) the estimated rate of growth of the state's |
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economy from the current fiscal biennium to the next fiscal |
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biennium shall be treated as if it were zero; and |
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(B) the amount of appropriations from all sources |
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of revenue other than the federal government that could be |
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appropriated within the limit established by that subsection shall |
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be the same as the level of appropriations for the current fiscal |
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biennium. |
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Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless |
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authorized by majority vote of the members of the board from each |
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house, the Legislative Budget Board budget recommendations: |
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(1) relating to the proposed appropriations from [of] |
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state tax revenues not dedicated by the constitution may not exceed |
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the limit on appropriations from those sources adopted by the |
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committee under Section 316.005; and |
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(2) relating to the proposed appropriations from all |
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sources of revenue other than the federal government may not exceed |
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the limit on appropriations from those sources adopted by the |
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committee under Section 316.005. |
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SECTION 2. Section 316.007(a), Government Code, is amended |
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to read as follows: |
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(a) The Legislative Budget Board shall include in its budget |
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recommendations: |
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(1) the proposed limit of appropriations from state |
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tax revenues not dedicated by the constitution; and |
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(2) the proposed limit of appropriations from all |
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sources of revenue other than the federal government. |
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SECTION 3. Section 316.008(a), Government Code, is amended |
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to read as follows: |
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(a) Unless the legislature adopts a resolution under |
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Section 22, Article VIII, [Section 22(b), of the] Texas |
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Constitution, raising the proposed limit on appropriations from |
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state tax revenues not dedicated by the constitution, the proposed |
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limit is binding on the legislature with respect to all |
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appropriations for the next fiscal biennium made from those [state
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tax] revenues [not dedicated by the constitution]. The proposed |
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limit on appropriations from all sources of revenue other than the |
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federal government is binding on the legislature with respect to |
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all appropriations for the next fiscal biennium made from those |
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sources unless the legislature adopts a resolution raising the |
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proposed limit that is approved by a record vote of three-fifths of |
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the members of each house of the legislature. The resolution must |
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find that an emergency exists, identify the nature of the |
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emergency, and specify the amount authorized. The excess amount |
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authorized under this subsection may not exceed the amount |
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specified in the resolution. |
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SECTION 4. Chapter 316, Government Code, is amended by |
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adding Subchapter I to read as follows: |
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SUBCHAPTER I. APPROPRIATION OF CONSTITUTIONALLY DEDICATED REVENUE |
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Sec. 316.151. LEGISLATIVE INTENT. It is the intent of the |
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legislature that, to the extent practicable under Section 316.001 |
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and other law, all revenue dedicated by the Texas Constitution for a |
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particular purpose be appropriated in each state fiscal biennium |
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for that purpose. |
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SECTION 5. The changes in law made by this Act to Sections |
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316.001, 316.002, 316.006, 316.007, and 316.008, Government Code, |
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apply only in relation to appropriations made for the state fiscal |
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biennium beginning September 1, 2019, and subsequent state fiscal |
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bienniums. Appropriations for the state fiscal biennium beginning |
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September 1, 2017, are governed by Sections 316.001, 316.002, |
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316.006, 316.007, and 316.008, Government Code, as those sections |
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existed on July 1, 2017, and the former law is continued in effect |
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for that purpose. |
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SECTION 6. This Act takes effect December 1, 2017. |