By: Patrick	S.B. No. 6

	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.  Sections 316.001, 316.002, 316.003, 316.004, and
	316.006, Government Code, are 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, as compared to those appropriations made for the
	previous biennium, may not exceed the least of the following rates:
	(1)  the estimated rate of growth of this [the] state's
	economy;
	(2)  a rate equal to the sum of:
	(A)  the estimated biennial rate of growth of this
	state's population; and
	(B)  the estimated biennial rate of monetary
	inflation in this state; and
	(3)  the estimated biennial rate of growth of this
	state's gross state product.
	Sec. 316.002.  DUTIES OF LEGISLATIVE BUDGET BOARD.
	(a)  Before the Legislative Budget Board submits the budget as
	prescribed by Section 322.008(c), the board shall determine
	[establish]:
	(1)  the estimated rate of growth of this [the] state's
	economy from the current biennium to the next biennium as
	determined under Subsection (b);
	(2)  a rate, as determined under Subsection (c), equal
	to the sum of:
	(A)  the estimated biennial rate of growth of this
	state's population; and
	(B)  the estimated biennial rate of monetary
	inflation in this state;
	(3)  the estimated biennial rate of growth of this
	state's gross state product as determined under Subsection (d);
	(4)  the level of appropriations for the current
	biennium from state tax revenues not dedicated by the constitution;
	and
	(5) [(3)]  the maximum permissible amount of state tax
	revenues not dedicated by the constitution that may [could] be
	appropriated for the next biennium within the limit established by
	applying the least of:
	(A)  the estimated rate of growth of this [the]
	state's economy as determined under Subsection (b);
	(B)  the rate as determined under Subsection (c)
	from the rates of population growth and monetary inflation; and
	(C)  the estimated biennial rate of growth of this
	state's gross state product as determined under Subsection (d).
	(b)  The [Except as provided by Subsection (c), the] board
	shall determine the estimated rate of growth of this [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 this state's population and
	the estimated biennial rate of monetary inflation in this state as
	provided by this subsection. The board shall determine the
	estimated biennial rate of growth of this state's population based
	on the average rate of growth during the preceding five years
	according to estimates provided to the board by the state
	demographer. The board shall determine the estimated biennial rate
	of monetary inflation in this state based on the average rate of
	change during the preceding five years of the effective consumer
	price index for this state. For purposes of this subsection, the
	effective consumer price index for this 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.
	(d)  The board shall determine the estimated biennial rate of
	growth of this state's gross state product by dividing the
	estimated gross state product for the then current state fiscal
	year by the average of the gross state products for the preceding
	four state fiscal years. The board shall consider information and
	analysis provided by the comptroller and the Bureau of Economic
	Analysis of the United States Department of Commerce, or its
	successor in function. [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) [(d)]  To ensure compliance with 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 maximum permissible amount [limit on the rate of growth]
	of appropriations of state tax revenues not dedicated by the
	constitution that may be appropriated for the next biennium has
	been adopted as required by this subchapter.
	(f)  If [(e)  In the absence of an action by] the Legislative
	Budget Board does not [to] adopt a maximum permissible amount of
	appropriations of state tax revenues not dedicated by the
	constitution that may be appropriated for the next biennium [a
	spending limit] as provided by this section, the maximum
	permissible [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 considered adopted
	under this subchapter is [within the limit established by the
	estimated rate of growth in the state's economy shall be] the same
	as the level of those appropriations for the current 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 making 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 of state tax revenues not
	dedicated by the constitution may not exceed the maximum
	permissible amount of those appropriations [limit] 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 the
	board's [its] budget recommendations the proposed maximum
	permissible amount [limit] of appropriations from state tax
	revenues not dedicated by the constitution.
	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 this
	state's economy as 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(f) or 316.005(c).
	(2)  "Statutory limit on the rate of growth of
	appropriations" means the lower of the rates determined by the
	Legislative Budget Board under Section 316.002(c) or (d):
	(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
	Section 22(b), 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 on the 91st day after the
	last day of the legislative session.