Bill Text: TX HB237 | 2013-2014 | 83rd Legislature | Introduced

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Bill Title: Relating to the limitation on the rate of growth in appropriations from state tax revenues.

Sponsorship: Partisan Bill (Republican 10)

Status: (Introduced - Dead) 2013-02-07 - Referred to Appropriations [HB237 Detail]

Download: Texas-2013-HB237-Introduced.html

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83R157 JJT-D
By: King of Parker H.B. No. 237

A BILL TO BE ENTITLED
AN ACT
relating to the limitation on the rate of growth in appropriations
from state tax revenues.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 316.001, Government Code, is amended to
read as follows:
Sec. 316.001. LIMIT. The rate of growth of appropriations
in a biennium from state tax revenues not dedicated by the
constitution may not exceed the lesser of the following rates:
(1) the estimated rate of growth of the state's
economy; and
(2) a rate equal to the sum of:
(A) the estimated biennial rate of growth of the
state's population; and
(B) the estimated biennial rate of monetary
inflation in the state.
SECTION 2. Sections 316.002(a), (b), (c), and (e),
Government Code, are amended to read as follows:
(a) Before the Legislative Budget Board submits the budget
as prescribed by Section 322.008(c), the board shall establish:
(1) the estimated rate of growth of the state's economy
from the current biennium to the next biennium as determined under
Subsection (b);
(2) a rate equal to the sum of:
(A) the estimated biennial rate of growth of the
state's population as determined under Subsection (c); and
(B) the estimated biennial rate of monetary
inflation in the state as determined under Subsection (c);
(3) the level of appropriations for the current
biennium from state tax revenues not dedicated by the constitution;
and
(4) [(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 applying the lesser
of:
(A) the estimated rate of growth of the state's
economy as determined under Subsection (b); and
(B) a rate equal to the sum of:
(i) the estimated biennial rate of growth
of the state's population as determined under Subsection (c); and
(ii) the estimated biennial rate of
monetary inflation in the state as determined under Subsection (c).
(b) The [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) The board shall determine a rate equal to the sum of the
estimated biennial rate of growth of the state's population and the
estimated biennial rate of monetary inflation in the state as
provided by this subsection. The board shall determine the
estimated biennial rate of growth of the state's population based
on the average rate of growth during the preceding six years
according to United States Census Bureau estimates as certified by
the comptroller. The board shall determine the estimated biennial
rate of monetary inflation in the state based on the average rate of
change during the preceding six years of the effective consumer
price index for the state. For purposes of this subsection, the
effective consumer price index for the state is the average of the
consumer price indexes as determined by the United States
Department of Labor for the Houston metropolitan area and for the
Dallas/Fort Worth metropolitan area. [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.]
(e) In the absence of an action by the Legislative Budget
Board to adopt a spending limit as provided by this section, the
spending limit considered adopted under this subchapter is [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 state tax revenues
not dedicated by the constitution that may [could] be appropriated
for the next biennium [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 biennium.
SECTION 3. Section 316.008, Government Code, is amended to
read as follows:
Sec. 316.008. EFFECT OF LIMIT; ENFORCEMENT. (a) In this
section:
(1) "Constitutional limit on the rate of growth of
appropriations" means the limit on the rate of growth of
appropriations determined by the Legislative Budget Board under
Section 316.002(b):
(A) as finally adopted by the committee under
Section 316.005(b); or
(B) as considered adopted under Section
316.002(e) or 316.005(c).
(2) "Statutory limit on the rate of growth of
appropriations" means the limit on the rate of growth of
appropriations determined by the Legislative Budget Board under
Section 316.002(c):
(A) as finally adopted by the committee under
Section 316.005(b); or
(B) as considered adopted under Section
316.002(e) or 316.005(c).
(b) Unless the legislature adopts a resolution under
Article VIII, Section 22(b), of the Texas Constitution raising the
proposed constitutional limit on appropriations, the proposed
constitutional limit is binding on the legislature with respect to
all appropriations for the next biennium made from state tax
revenues not dedicated by the constitution.
(c) [(b)] The rules of the house of representatives and
senate shall provide for enforcement of Subsection (b) [(a)].
(d) When the statutory limit on the rate of growth of
appropriations is lower than the constitutional limit on the rate
of growth of appropriations or is lower than the constitutional
limit as raised by a resolution described by Subsection (b), the
statutory limit is binding on the legislature with respect to all
appropriations for the next biennium made from state tax revenues
not dedicated by the constitution unless the legislature by general
law provides that the statutory limit does not apply to
appropriations for that biennium.
SECTION 4. The changes in law made by this Act apply only
with respect to appropriations for the state fiscal biennium
beginning September 1, 2015, and subsequent state fiscal bienniums.
SECTION 5. This Act takes effect September 1, 2013.