79S30557 JJT-D
By: Callegari H.B. No. 175
A BILL TO BE ENTITLED
AN ACT
relating to the constitutional limit on the rate of growth of
appropriations and the use of surplus state revenues.
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 biennium from all sources of revenue other than
the federal government [state tax revenues not dedicated by the
constitution] may not exceed a rate determined by adding the
estimated rate of the increase or decrease in the state's
population during the preceding state fiscal biennium and the
estimated rate of inflation or deflation during that preceding
biennium in the prices of a set of goods determined to be
representative of this [the estimated rate of growth of the]
state's economy as a whole.
(b) If the sum of the estimated rates described by
Subsection (a) is a negative number, appropriations for the
biennium from all sources of revenue other than the federal
government must decrease as prescribed by this subchapter.
Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
Before the Legislative Budget Board submits the budget for the next
state fiscal biennium as prescribed by Section 322.008
[322.008(b)], the board shall establish:
(1) the maximum allowable rate of growth of
appropriations between the current state fiscal biennium and the
next state fiscal biennium, in accordance with Section 22, Article
VIII, Texas Constitution, expressed as a percentage, by adding the
following estimated rates, as determined by the board:
(A) the estimated rate of change of the state's
population during the current state fiscal biennium, expressed as a
percentage; and
(B) the estimated rate of inflation or deflation
during the current state fiscal biennium in the price of a set of
goods determined by the board to be representative of this state's
economy as a whole during that [estimated rate of growth of the
state's economy from the current biennium to the next] biennium,
expressed as a percentage;
(2) the amount [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 revenue from all sources except the
federal government [state tax revenues not dedicated by the
constitution] that could be appropriated for the next biennium
within the limit established in accordance with the maximum rate of
growth determined under Subdivision (1) and the amount of
appropriations for the current biennium determined under
Subdivision (2) [by the estimated rate of growth of the state's
economy].
(b) If the sum of the estimated rate of increase or decrease
in the state's population and the estimated rate of inflation or
deflation is a negative number, the amount of appropriations in the
next biennium from all sources of revenue other than the federal
government may not exceed the amount of appropriations from those
sources in the current biennium reduced by the product of that
amount and the sum of those rates. [Except as provided by Subsection
(c), the board shall 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 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 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 limit on the rate of growth of appropriations has been
adopted as required by this subchapter.
(d) [(e)] In the absence of an action by the Legislative
Budget Board to adopt a spending limit as provided by this section
[in Subsections (a) and (b)], the sum of the estimated rate of
population growth and the estimated rate of inflation [in the
state's economy from the current biennium to the next biennium]
shall be treated as if that rate [it] were zero, and the amount of
revenue from all sources other than the federal government that may
[state tax revenues not dedicated by the constitution that could]
be appropriated for the next biennium is [within the limit
established by the estimated rate of growth in the state's economy
shall be] the same as the amount [level] of appropriations from
those revenues 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.
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 the proposed limit of appropriations from all
sources of revenue except the federal government [state tax
revenues not dedicated by the constitution].
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, 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].
SECTION 4. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.327 to read as follows:
Sec. 151.327. CONSUMER GOODS VALUED AT LESS THAN $500 FOR
DECLARED PERIOD. (a) In this section:
(1) "Board" means the Legislative Budget Board.
(2) "Fund" means the tax holiday fund.
(b) The board may declare a limited period during which the
sale of tangible personal property, the sales price of which is less
than $500, is exempted from the taxes imposed by this chapter. In
considering whether to declare a period under this subsection, the
board must:
(1) determine the balance of the fund as of December 1
of the calendar year during which the period may be declared; and
(2) estimate the number of days in December of that
calendar year during which the suspension of the collection of
taxes imposed by this chapter on tangible personal property
described by this subsection will result in an amount of forgone
state tax revenues that will not exceed 90 percent of the balance of
the fund.
(c) The board may declare more than one period if the number
of days estimated under Subsection (b)(2) is three or more.
(d) The period or periods:
(1) may not extend for more days than the number
estimated under Subsection (b)(2);
(2) must fall between the first day of December and the
third Thursday of December of the calendar year during which the
board declares the period;
(3) must fall on weekend days only; and
(4) must apply to sales made during the 24-hour period
beginning immediately after midnight of each applicable day.
(e) On declaring a period under this section, the board
shall notify the comptroller of the dates of the declared period or
periods and the amount of state tax revenues that the board
estimates this state will forgo during those days. On the day after
the last day of the period or periods, the comptroller shall
transfer out of the fund to the general revenue fund an amount equal
to the estimated forgone revenues.
SECTION 5. The changes in law made by this Act apply only,
as applicable, in relation to appropriations made for the state
fiscal biennium beginning September 1, 2007, and subsequent state
fiscal bienniums. Appropriations for the state fiscal biennium
that began September 1, 2005, are governed by Sections 316.001,
316.002, 316.006, 316.007, and 316.008, Government Code, as those
sections existed on January 1, 2005, and the former law is continued
in effect for that purpose.
SECTION 6. This Act takes effect on the date on which the
constitutional amendment proposed by the 79th Legislature, 3rd
Called Session, 2006, regarding the limitation on the rate of
growth in appropriations and the use of unencumbered surplus state
revenues to finance a state sales tax holiday takes effect. If that
amendment is not approved by the voters, this Act has no effect.