Bill Text: TX SB1891 | 2019-2020 | 86th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to a limit on the rate of growth of certain appropriations.

Spectrum: Partisan Bill (Republican 19-0)

Status: (Engrossed) 2019-04-11 - Referred to Appropriations [SB1891 Detail]

Download: Texas-2019-SB1891-Introduced.html
  86R13052 KJE-D
 
  By: Hancock, et al. S.B. No. 1891
 
 
 
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 to pay for a rebate of state
  taxes;
               (2)  an appropriation for a purpose that provides tax
  relief; or
               (3)  an appropriation to pay costs associated with
  natural 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)(1) is a
  negative number, the amount of appropriations from state tax
  revenues not dedicated by the constitution for the next state
  fiscal biennium may not exceed the amount of appropriations from
  state tax revenues not dedicated by the constitution in the current
  state fiscal biennium.  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, 2021, and subsequent state fiscal bienniums.  
  Appropriations for the state fiscal biennium beginning September 1,
  2019, are governed by Sections 316.001, 316.002, 316.006, 316.007,
  and 316.008, Government Code, as those sections existed on
  September 1, 2018, and the former law is continued in effect for
  that purpose.
         SECTION 5.  This Act takes effect September 1, 2019.
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