By: Estes	S.B. No. 361

	A BILL TO BE ENTITLED
	AN ACT
	relating to limitations 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, 316.003, 316.004, and
	316.006, Government Code, are amended to read as follows:
	Sec. 316.001.  LIMIT. (a) The rate of growth of
	appropriations in a state fiscal biennium from:
	1) all state revenues and
	2) all sources of revenue, including the federal
	government,
	[state tax revenues not dedicated by the constitution] may
	not exceed the estimated rate of growth of the state's economy.
	(b)  For the purposes of subsection (a), the rate of growth
	of the state's economy is the lesser of the following rates,
	calculated for the two fiscal years immediately preceding the
	regular biennial legislative session:
	(1)  a rate equal to the sum of:
	(A)  the rate of growth of this state's
	population; and
	(B)  the rate of monetary inflation in this state;
	(2)  the rate of growth of personal income of this
	state's residents; or
	(3)  the rate of growth of this state's gross state
	product.
	Sec. 316.002.  DUTIES OF LEGISLATIVE BUDGET BOARD.
	(a)  Before the Legislative Budget Board transmits [submits] the
	budget as prescribed by Section 322.008(c), the board shall
	determine [establish]:
	(1)  the estimated rate of growth of the state's economy
	from the current fiscal biennium to the next fiscal biennium as
	determined in Section 316.001 (b);
	(2)  the [level of] appropriations for the current
	fiscal biennium from:
	1) all state [tax] revenues and
	2) all revenues, including federal revenue
	[not dedicated by the constitution]; and
	(3)  the amount of:
	(A)  all state [tax] revenues and
	(B)  all revenues, including federal
	revenues,[not dedicated by the constitution]
	that could be appropriated for the next fiscal
	biennium within the limit established
	[by the estimated rate of growth of the state's
	economy].
	(b)  The [Except as provided by Subsection (c), the] board
	shall use information [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, or by other reliable state, federal, or private sources,
	to determine the estimated rate of growth of the state's economy.
	(c)  For purposes of this section, in determining the total
	appropriations made in a state fiscal biennium, the Legislative
	Budget Board must consider all appropriations made for that
	biennium, including an appropriation made for that biennium during
	a subsequent called or regular session of the legislature [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 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 the limit on the rate of
	growth of appropriations of [tax] revenues [not dedicated by the
	constitution] under Section 316.001(a)] under Section 316.001(a)
	[has been adopted as required by this subchapter].
	(e)  In the absence of an action by the Legislative Budget
	Board to adopt the limitations [a spending limit as] provided in
	Subsection[s] (a) [and (b),] the estimated rate of growth in the
	state's economy from the current fiscal biennium to the next fiscal
	biennium shall be treated as if it were zero;[,] and
	(B)  the amount of both all state [tax] revenues
	and all revenues, including federal revenue,[not dedicated by the
	constitution] that could be appropriated 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
	fiscal biennium.
	Sec. 316.003.  PUBLICATION. Before the Legislative Budget
	Board approves the items of information required by Section
	316.002, the board shall publish in the Texas Register the proposed
	items of information and a description of the methodology and
	sources used in the determinations [calculations].
	Sec. 316.004.  PUBLIC HEARING. Not later than December 1 of
	each even-numbered year, the Legislative Budget Board shall hold a
	public hearing to solicit testimony regarding the proposed items of
	information and the methodology used in making the determinations
	[calculations] required by Section 316.002.
	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 from the state treasury for
	the next fiscal biennium [of state tax revenues not dedicated by the
	constitution] may not exceed the limit on appropriations of
	1) all state [tax] revenues and
	2) all revenues, including federal revenue,[not
	dedicated by the constitution],],
	adopted by the committee under Section 316.005, and may not
	exceed the limit on appropriations of revenue from all sources,
	including the federal government, adopted by the committee under
	that section [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 all
	state [tax] revenues [not dedicated by the constitution]; and
	(2)  the proposed limit of appropriations from all
	sources of revenue, including the federal government.
	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 all
	state [tax] revenues [not dedicated by the constitution], the
	proposed limit is binding on the legislature with respect to all
	appropriations for the next fiscal biennium made from those [state
	tax] revenues [not dedicated by the constitution]. The limits on
	appropriations in Section 316.001 (a) are binding on the
	legislature with respect to all appropriations for the next fiscal
	biennium made from those revenues unless the legislature adopts a
	resolution raising the proposed limit that is approved by a record
	vote of a majority 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 authorized under this subsection may not exceed the amount
	specified in the resolution.
	SECTION 4.  (a) The changes in law made by this Act apply
	only in relation to an appropriation made for a state fiscal
	biennium beginning on or after September 1, 2017.
	(b)  Appropriations for the state fiscal biennium that
	begins September 1, 2015, are governed by Subchapter A, Chapter
	316, Government Code, as that subchapter existed immediately before
	the effective date of this Act, and the former law is continued in
	effect for that purpose.
	SECTION 5.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2015.