Bill Text: TX SB9 | 2017 | 85th Legislature 1st Special Session | Comm Sub


Bill Title: Relating to the constitutional limit on the rate of growth of appropriations and appropriations of constitutionally dedicated revenue.

Spectrum: Partisan Bill (Republican 19-0)

Status: (Engrossed) 2017-08-14 - Committee report sent to Calendars [SB9 Detail]

Download: Texas-2017-SB9-Comm_Sub.html
  85S12289 CJC-D
 
  By: Hancock, et al. S.B. No. 9
 
  (Parker)
 
  Substitute the following for S.B. No. 9:  No.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the constitutional limit on the rate of growth of
  appropriations and appropriations of constitutionally dedicated
  revenue.
         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)  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.
         (b)  The rate of growth of appropriations from all sources of
  revenue other than the federal government in a state fiscal
  biennium may not exceed the estimated rate of growth of the state's
  economy.
         (c)  For purposes of this subchapter, the estimated rate of
  growth of the state's economy is the estimated average biennial
  rate of growth of this state's population 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)  The legislature finds that, for purposes of Section 22,
  Article VIII, Texas Constitution, the estimated average biennial
  rate of growth of this state's population 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, is an appropriate measure of the estimated
  rate of growth of the state's economy.
         (e)  For purposes of this subchapter, an appropriation to pay
  for a rebate of state taxes must be excluded from computations used
  to determine whether appropriations exceed the amount authorized by
  Subsection (a) or (b).
         (f)  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 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, 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 for which appropriations are made; and
                     (B)  the sum of one and the estimated average
  biennial rate of monetary inflation in this state during the state
  fiscal biennium for which appropriations are made; and
               (2)  the limit on the rate of growth of appropriations
  from all sources of revenue other than the federal government 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 for which appropriations are made; and
                     (B)  the sum of one and the estimated average
  biennial rate of monetary inflation in this state during the state
  fiscal biennium for which appropriations are made [the state's
  economy from the current biennium to the next biennium;
               [(2)     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
  establish 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)  appropriations from all sources of revenue other
  than the federal government by multiplying the amount of
  appropriations from all sources of revenue other than the federal
  government for the current state fiscal biennium by the sum of one
  and the limit on the rate of growth of appropriations from all
  sources of revenue other than the federal government established by
  the board under Subsection (a)(2) [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)  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 for the
  current state fiscal biennium.  If the rate determined under
  Subsection (a)(2) is a negative number, the amount of
  appropriations from all sources of revenue other than the federal
  government for the next state fiscal biennium may not exceed the
  amount of appropriations from all sources of revenue other than the
  federal government for the current state fiscal biennium [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 establishes:
               (1)  the limit on the rate of growth of appropriations
  from state tax revenues not dedicated by the constitution under
  Section 316.001(a); and
               (2)  the limit on the rate of growth of appropriations
  from all sources of revenue other than the federal government under
  Section 316.001(b) [has been adopted as required by this
  subchapter].
         (e)  In the absence of an action by the Legislative Budget
  Board to establish the limits [adopt a spending limit] as provided
  by this section:
               (1)  for purposes of Section 316.001(a):
                     (A)  [in Subsections (a) and (b),] the estimated
  rate of growth of [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 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 level of appropriations for
  the current fiscal biennium; and
               (2)  for purposes of Section 316.001(b):
                     (A)  the estimated rate of growth of 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 appropriations from all sources
  of revenue other than the federal government that could be
  appropriated within the limit established by that subsection shall
  be the same as the level of appropriations for the current 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 appropriations from all
  sources of revenue other than the federal government 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 appropriations from all
  sources of revenue other than 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
  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 proposed
  limit on appropriations from all sources of revenue other than the
  federal government is binding on the legislature with respect to
  all appropriations for the next 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.  Chapter 316, Government Code, is amended by
  adding Subchapter I to read as follows:
  SUBCHAPTER I. APPROPRIATION OF CONSTITUTIONALLY DEDICATED REVENUE
         Sec. 316.151.  LEGISLATIVE INTENT. It is the intent of the
  legislature that, to the extent practicable under Section 316.001
  and other law, all revenue dedicated by the Texas Constitution for a
  particular purpose be appropriated in each state fiscal biennium
  for that purpose.
         SECTION 5.  The changes in law made by this Act to Sections
  316.001, 316.002, 316.006, 316.007, and 316.008, Government Code,
  apply only in relation to appropriations made for the state fiscal
  biennium beginning September 1, 2019, and subsequent state fiscal
  bienniums.  Appropriations for the state fiscal biennium beginning
  September 1, 2017, are governed by Sections 316.001, 316.002,
  316.006, 316.007, and 316.008, Government Code, as those sections
  existed on July 1, 2017, and the former law is continued in effect
  for that purpose.
         SECTION 6.  This Act takes effect December 1, 2017.
feedback