By Heflin                                             H.B. No. 3302

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the limit on the growth of appropriations under Chapter

 1-3     316 of the Government Code.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter A of Chapter 316, Government Code, is

 1-6     amended to read as follows:

 1-7       SUBCHAPTER A.  LIMIT ON GROWTH OF [APPROPRIATIONS] EXPENDITURES

 1-8           Sec. 316.001.  Limit.  The rate of growth of [appropriations]

 1-9     expenditures from state tax revenues not dedicated by the

1-10     constitution may not exceed the estimated rate of growth of the

1-11     state's economy.

1-12           Sec. 316.002.  Duties of the Legislative Budget Board.

1-13     (a)  Before the Legislative Budget Board submits the budget as

1-14     prescribed by Section 322.008(b), the board shall establish:

1-15                 (1)  the estimated rate of growth of the state's

1-16     economy from the current biennium to the next biennium;

1-17                 (2)  the level of [appropriations] expenditures for the

1-18     current biennium from state tax revenues not dedicated by the

1-19     constitution; and

1-20                 (3)  the amount of state tax revenues not dedicated by

1-21     the constitution that could be [appropriated] expended for the next

1-22     biennium within the limit established by the estimated rate of

 2-1     growth of the state's economy.

 2-2           (b)  Except as provided by Subsection (c), the board shall

 2-3     determine the estimated rate of growth of the state's economy by

 2-4     dividing the estimated Texas total personal income for the next

 2-5     biennium by the estimated Texas total personal income for the

 2-6     current biennium.  Using standard statistical methods, the board

 2-7     shall make the estimate by projecting through the biennium the

 2-8     estimated Texas total personal income reported by the United States

 2-9     Department of Commerce or its successor in function.

2-10           (c)  If a more comprehensive definition of the rate of growth

2-11     of the state's economy is developed and is approved by the

2-12     committee established by Section 316.005, the board may use that

2-13     definition in calculating the limit on [appropriations]

2-14     expenditures.

2-15           (d)  To ensure compliance with Article VIII, Section 22, of

2-16     the Texas Constitution, the Legislative Budget Board may not

2-17     transmit in any form to the governor or the legislature the budget

2-18     as prescribed by Section 322.008(c) or the general appropriations

2-19     bill as prescribed by Section 322.008(d) until the limit on the

2-20     rate of growth of [appropriations] expenditures has been adopted by

2-21     this subchapter.

2-22           (e)  In the absence of an action by the Legislative Budget

2-23     Board to adopt a spending limit as provided in Subsections (a) and

2-24     (b) of this section, the estimated rate of growth in the state's

2-25     economy from the current biennium to the next biennium shall be

2-26     treated as if it were zero, and the amount of state tax revenues

2-27     not dedicated by the constitution that could be [appropriated]

 3-1     expended within the limit established by the estimated rate of

 3-2     growth in the state's economy shall be the same as the level of

 3-3     appropriations for the current biennium.

 3-4           Sec. 316.003.  Publication.  Before the Legislative Budget

 3-5     Board approves the items of information required by Section

 3-6     316.002, the board shall establish in the Texas Register the

 3-7     proposed items of information and a description of the methodology

 3-8     and sources used in the calculations.

 3-9           Sec. 316.004.  Public Hearing.  Not later than December 1 of

3-10     each even-numbered year, the Legislative Budget Board shall hold a

3-11     public hearing to solicit testimony regarding the proposed items of

3-12     information and the methodology used in making the calculations

3-13     required by Section 316.002.

3-14           Sec. 316.005.  Adoption by Committee.  (a)  After the

3-15     Legislative Budget Board approves the items of information required

3-16     by Section 316.002, the board shall submit the information to a

3-17     committee composed of the governor, lieutenant governor, speaker of

3-18     the house of representatives, and comptroller of public accounts.

3-19           (b)  Not later than the 10th day after the date on which the

3-20     board submits the items, the committee shall meet and finally adopt

3-21     the items, either as submitted by the board or as amended by the

3-22     committee.

3-23           (c)  If the committee fails to act within the 10-day period

3-24     prescribed by Subsection (b), the items of information submitted by

3-25     the board are treated as if the committee had adopted them as

3-26     submitted.

3-27           Sec. 316.006.  Limit on Budget Recommendations.  Unless

 4-1     authorized by majority vote of the members of the board from each

 4-2     house, the Legislative Budget Board budget recommendations relating

 4-3     to the proposed appropriations of state tax revenues not dedicated

 4-4     by the constitution may not exceed the limit adopted by the

 4-5     committee under Section 316.005.

 4-6           Sec. 316.007.  Transmission of Recommendations.  (a)  The

 4-7     Legislative Budget Board shall include in its budget

 4-8     recommendations the proposed limit of [appropriations] expenditures

 4-9     from state tax revenues not dedicated by the constitution.

4-10           (b)  The board shall transmit the recommendations to the

4-11     governor and to each member of the legislature.

4-12           Sec. 316.008.  Effect of Limit; Enforcement.  (a)  Unless the

4-13     legislature adopts a resolution under Article VII, Section 22(b),

4-14     of the Texas Constitution raising the proposed limit on

4-15     [appropriations] expenditures, the proposed limit is binding on the

4-16     legislature with respect to all [appropriations] expenditures for

4-17     the next biennium from state tax revenues not dedicated by the

4-18     constitution.

4-19           (b)  The rules of the house of representatives and senate

4-20     shall provide for enforcement of Subsection (a), subject to any

4-21     voting majority prescribed in the constitution.

4-22           SECTION 2.  This Act takes effect January 1, 1998.

4-23           SECTION 3.  The importance of this legislation and the

4-24     crowded condition of the calendars in both houses create an

4-25     emergency and an imperative public necessity that the

4-26     constitutional rule requiring bills to be read on three several

4-27     days in each house be suspended, and this rule is hereby suspended.