87R5268 KJE-D
	By: Hancock, et al.	S.B. No. 1336

	A BILL TO BE ENTITLED
	AN ACT
	relating to a limit on the rate of growth of certain 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)  For purposes of this subchapter,
	"consolidated general revenue appropriations" means appropriations
	from:
	(1)  the general revenue fund in the state treasury;
	(2)  a dedicated account in the general revenue fund in
	the state treasury; or
	(3)  a general revenue-related fund in the state
	treasury as identified in the biennial statement required of the
	comptroller under Section 49a, Article III, Texas Constitution.
	(b)  The rate of growth of appropriations in a state fiscal
	biennium from state tax revenues not dedicated by the constitution
	may not exceed the estimated rate of growth of the state's economy.
	(c)  The rate of growth of consolidated general revenue
	appropriations in a state fiscal biennium may not exceed the
	estimated average biennial rate of growth of this state's
	population during the state fiscal biennium preceding the biennium
	for which appropriations are made and during the state fiscal
	biennium for which appropriations are made, adjusted by the
	estimated average biennial rate of monetary inflation in this state
	during the same period, as determined under Section 316.002.
	(d)  For purposes of this subchapter, the following
	appropriations must be excluded from computations used to determine
	whether appropriations exceed the amount authorized by Subsection
	(c):
	(1)  an appropriation for a purpose that provides tax
	relief; or
	(2)  an appropriation to pay costs associated with
	disaster recovery.
	(e)  The Legislative Budget Board shall determine the rates
	described by Subsection (c) using the most recent information
	available from sources the board considers reliable, including the
	United States Bureau of Labor Statistics Consumer Price Index and
	the Texas Demographic Center.
	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 limit on the rate of growth of appropriations
	from state tax revenues not dedicated by the constitution for that
	state fiscal biennium, as compared to the previous state fiscal
	biennium, based on the estimated rate of growth of the state's
	economy from the current state fiscal biennium to the next state
	fiscal biennium; and
	(2)  the limit on the rate of growth of consolidated
	general revenue appropriations for that state fiscal biennium, as
	compared to the previous state fiscal biennium, by subtracting one
	from the product of:
	(A)  the sum of one and the estimated average
	biennial rate of growth of this state's population during the state
	fiscal biennium preceding the biennium for which appropriations are
	made and during the state fiscal biennium for which appropriations
	are made; and
	(B)  the sum of one and the estimated average
	biennial rate of monetary inflation during the state fiscal
	biennium preceding the biennium for which appropriations are made
	and during the state fiscal biennium for which appropriations are
	made [the level of appropriations for the current biennium from
	state tax revenues not dedicated by the constitution; and
	[(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 the estimated rate of growth of the
	state's economy].
	(b)  Except as provided by Subsection (c), the board shall
	determine the estimated rate of growth of the state's economy for
	purposes of Subsection (a)(1) by dividing the estimated Texas total
	personal income for the next state fiscal biennium by the estimated
	Texas total personal income for the current state fiscal 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 the rate of growth of appropriations
	from state tax revenues not dedicated by the constitution under
	Subsection (a)(1).
	(d)  Except as provided by Subsection (e), the board shall
	determine for the next state fiscal biennium a limit on the amount
	of:
	(1)  appropriations from state tax revenues not
	dedicated by the constitution by multiplying the amount of
	appropriations from state tax revenues not dedicated by the
	constitution for the current state fiscal biennium by the sum of one
	and the limit on the rate of growth of appropriations from state tax
	revenues not dedicated by the constitution established by the board
	under Subsection (a)(1); and
	(2)  consolidated general revenue appropriations by
	multiplying the amount of consolidated general revenue
	appropriations for the current state fiscal biennium by the sum of
	one and the limit on the rate of growth of consolidated general
	revenue appropriations established by the board under Subsection
	(a)(2).
	(e)  If the rate determined under Subsection (a)(2) is a
	negative number, the amount of consolidated general revenue
	appropriations for the next state fiscal biennium may not exceed
	the amount of consolidated general revenue appropriations in the
	current state fiscal biennium.
	(f)  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:
	(1)  the limit on the rate of growth of appropriations
	from state tax revenues not dedicated by the constitution under
	Section 316.001(b); and
	(2)  the limit on the rate of growth of consolidated
	general revenue appropriations under Section 316.001(c) [has been
	adopted as required by this subchapter].
	(g)  [(e)]  In the absence of an action by the Legislative
	Budget Board to adopt the limits [a spending limit] as provided by
	this section:
	(1)  for purposes of Section 316.001(b):
	(A)  [in Subsections (a) and (b),] the estimated
	rate of growth of [in] the state's economy from the current state
	fiscal biennium to the next state fiscal biennium shall be treated
	as if it were zero; [,] and
	(B)  the amount of state tax revenues not
	dedicated by the constitution that could be appropriated within the
	limit established by the estimated rate of growth of [in] the
	state's economy shall be the same as the amount [level] of those
	appropriations for the current state fiscal biennium; and
	(2)  for purposes of Section 316.001(c):
	(A)  the estimated average biennial rates of
	growth of this state's population and of monetary inflation shall
	be treated as if they were zero; and
	(B)  the amount of consolidated general revenue
	appropriations that could be appropriated within the limit
	established by that subsection shall be the same as the amount 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:
	(1)  relating to the proposed appropriations from [of]
	state tax revenues not dedicated by the constitution may not exceed
	the limit on appropriations from those sources adopted by the
	committee under Section 316.005; and
	(2)  relating to the proposed consolidated general
	revenue appropriations may not exceed the limit on appropriations
	from those sources 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:
	(1)  the proposed limit of appropriations from state
	tax revenues not dedicated by the constitution; and
	(2)  the proposed limit of consolidated general revenue
	appropriations.
	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
	state tax revenues not dedicated by the constitution, the proposed
	limit is binding on the legislature with respect to all
	appropriations for the next state fiscal biennium made from those
	[state tax] revenues [not dedicated by the constitution]. The
	proposed limit on consolidated general revenue appropriations is
	binding on the legislature with respect to all appropriations for
	the next state fiscal biennium made from those sources unless the
	legislature adopts a resolution raising the proposed limit that is
	approved by a record vote of three-fifths 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 amount authorized under this
	subsection may not exceed the amount specified in the resolution.
	SECTION 4.  The changes in law made by this Act apply only in
	relation to appropriations made for the state fiscal biennium
	beginning September 1, 2023, and subsequent state fiscal bienniums.
	Appropriations for the state fiscal biennium beginning September 1,
	2021, are governed by Sections 316.001, 316.002, 316.006, 316.007,
	and 316.008, Government Code, as those sections existed on
	September 1, 2020, and the former law is continued in effect for
	that purpose.
	SECTION 5.  This Act takes effect September 1, 2021.