78R519 JJT-D
By: Isett H.B. No. 133
A BILL TO BE ENTITLED
AN ACT
relating to the constitutional limitation 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, 316.006, 316.007, and
316.008, Government Code, are amended to read as follows:
Sec. 316.001. LIMIT. The rate of growth of appropriations
in a biennium from all sources of revenue except the federal
government [state tax revenues not dedicated by the constitution]
may not exceed the estimated rate of growth of total personal income
in the state [the state's economy]. For purposes of this
subchapter, the base figure for determining the rate of growth of
appropriations is the lesser of:
(1) the amount of money appropriated for the current
biennium from all sources of revenue other than the federal
government, as cumulatively estimated by the comptroller at the
times the comptroller endorsed, in accordance with Section 49a,
Article III, Texas Constitution, the comptroller's certificate on
the bills making the appropriations; and
(2) the amount of money actually appropriated for the
current biennium from all sources of revenue other than the federal
government, as estimated by the comptroller at the request of the
Legislative Budget Board.
Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
Before the Legislative Budget Board submits the budget as
prescribed by Section 322.008 [322.008(b)], the board shall
establish:
(1) the estimated rate of growth of total personal
income in the state [the state's economy] from the current biennium
to the next biennium;
(2) the level of appropriations for the current
biennium from all sources of revenue except the federal government
[state tax revenues not dedicated by the constitution]; and
(3) the amount of state revenue from all sources
except the federal government [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
total personal income in the state [the state's economy].
(b) Except as provided by Subsection (c), the board shall
determine the estimated rate of growth of total personal income in
the state [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 a more comprehensive definition of the rate of growth
of total personal income in the state [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 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 limit on the rate
of growth of appropriations has been adopted as required by this
subchapter.
(e) In the absence of an action by the Legislative Budget
Board to adopt a spending limit as provided in Subsections (a) and
(b), the estimated rate of growth in total personal income in the
state [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 revenue from all sources except the federal government [tax
revenues not dedicated by the constitution] that could be
appropriated within the limit established by the estimated rate of
growth in total personal income in the state [the state's economy]
shall be the same as the level of appropriations for the current
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
relating to the proposed appropriations of revenue from all sources
except the federal government [state tax revenues not dedicated by
the constitution] may not exceed the limit adopted by the committee
under Section 316.005.
Sec. 316.007. TRANSMISSION OF RECOMMENDATIONS. (a) The
Legislative Budget Board shall include in its budget
recommendations the proposed limit of appropriations from all
sources of revenue except the federal government [state tax
revenues not dedicated by the constitution].
(b) The board shall transmit the recommendations to the
governor and to each member of the legislature.
Sec. 316.008. EFFECT OF LIMIT; ENFORCEMENT. (a) Unless the
legislature adopts a resolution under Article VIII, Section 22(b),
of the Texas Constitution raising the proposed limit on
appropriations, the proposed limit is binding on the legislature
with respect to all appropriations for the next biennium made from
all sources of revenue except the federal government [state tax
revenues not dedicated by the constitution].
(b) The rules of the house of representatives and senate
shall provide for enforcement of Subsection (a).
SECTION 2. The changes in law made by this Act apply only in
relation to appropriations made for the state fiscal biennium
beginning September 1, 2005, and subsequent state fiscal bienniums.
Appropriations for the state fiscal biennium that begins September
1, 2003, are governed by Sections 316.001, 316.002, 316.006,
316.007, and 316.008, Government Code, as those sections existed at
the time the General Appropriations Act for that biennium was
passed by the legislature, and the former law is continued in effect
for that purpose.
SECTION 3. This Act takes effect on the date on which the
constitutional amendment proposed by the 78th Legislature, Regular
Session, 2003, restricting the rate of growth of appropriations
from all sources of revenue except the federal government to the
estimated rate of growth of total personal income in this state,
takes effect. If that amendment is not approved by the voters, this
Act has no effect.