81R445 JRD-D

By: Howard of Fort Bend H.B. No. 1217

A BILL TO BE ENTITLED

AN ACT

relating to estimating the rate of growth of the state's economy for purposes of the constitutional spending limit.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 316.002(b), (c), and (e), Government Code, are amended to read as follows:

(b) In determining [Except as provided by Subsection (c), the board shall determine] the estimated rate of growth of the state's economy, the board shall consider the estimated rate of growth of the Texas gross state product and the estimated rate of growth in Texas total personal income.

(c) The board shall determine the estimated rate of growth of the Texas gross state product by dividing the estimated Texas gross state product for the next biennium by the estimated Texas gross state product for the current biennium. In determining the estimated Texas gross state product for a biennium the board shall consider information and analysis provided by the Bureau of Economic Analysis of the United States Department of Commerce or its successor in function and by other sources the board considers reliable. The board shall determine the estimated rate of growth in Texas total personal income 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 personal income 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. The board shall adopt the lesser of those two rates as the estimated rate of growth of the state's economy.

[(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.]

(e) In the absence of an action by the Legislative Budget Board to adopt a spending limit as provided in Subsections (a), [and] (b), and (c), 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 could be appropriated within the limit established by the estimated rate of growth in the state's economy shall be the same as the level of appropriations for the current biennium.

SECTION 2. The change in law made by this Act applies only in relation to appropriations made for the state fiscal biennium beginning September 1, 2011, and subsequent state fiscal bienniums. Appropriations for the state fiscal biennium that begins September 1, 2009, are governed by Subchapter A, Chapter 316, Government Code, as it existed on January 1, 2009, and the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2009.