82R7137 KLA-D

By: Watson S.B. No. 697

A BILL TO BE ENTITLED

AN ACT

relating to a state budgeting plan to foster this state's economic health.

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

SECTION 1. DEFINITION. In this Act, "committee" means the State Budgeting Plan Legislative Advisory Committee established under Section 2 of this Act.

SECTION 2. ESTABLISHMENT AND OPERATION OF STATE BUDGETING PLAN LEGISLATIVE ADVISORY COMMITTEE. (a) The State Budgeting Plan Legislative Advisory Committee is composed of 17 members as follows:

(1) the chair and vice chair of the Senate Committee on Finance;

(2) the chair of the House Appropriations Committee;

(3) the chair of the House Ways and Means Committee;

(4) one public member appointed by the lieutenant governor;

(5) one public member appointed by the speaker of the house of representatives; and

(6) 11 members appointed by the governor, as follows:

(A) three selected from a list of 10 names of persons recommended by the Metro 8 Chambers of Commerce;

(B) one selected from a list of five names of persons recommended by the Texas Medical Association;

(C) one selected from a list of five names of persons recommended by the Texas Hospital Association;

(D) one selected from a list of five names of persons recommended by the Texas Association of School Boards;

(E) one selected from a list of five names of persons recommended by the Texas affiliate of the American Federation of Teachers (Texas AFT);

(F) one selected from a list of five names of persons recommended by the United Ways of Texas;

(G) one selected from a list of five names of persons recommended as follows:

(i) one by the Texas Public Employees Association;

(ii) one by the Texas State Employees Union;

(iii) one by the Department of Public Safety Officers Association;

(iv) one by the American Federation of State, County and Municipal Employees; and

(v) one by the Retired State Employees Association; and

(H) two persons the governor determines are appropriate.

(b) Each entity specified by Subsection (a)(6) of this section to recommend a person or persons for consideration for an appointment shall make the recommendation not later than October 1, 2011.

(c) A person specified by Subsection (a) of this section to appoint a committee member shall make the appointment not later than November 1, 2011.

(d) The governor shall select one member of the committee to serve as the chair and another member to serve as the vice chair.

(e) The committee shall meet at the call of the chair.

(f) A committee member may not receive compensation for serving on the committee but is entitled to reimbursement of travel expenses incurred by the member while conducting the business of the committee as provided by the General Appropriations Act.

SECTION 3. STATE BUDGETING PLAN. (a) The committee shall develop a comprehensive state budgeting plan consisting of recommended state budgeting guidelines and processes the implementation of which are anticipated to foster this state's current and long-term economic health. At a minimum, the plan must provide guidelines and processes designed to:

(1) eliminate diversions of revenue realized from the taxes imposed by Chapter 162, Tax Code, from uses other than the construction and maintenance of roads and other transportation systems;

(2) eliminate diversions of other state revenue from the purposes for which the revenue is dedicated by law to general governmental purposes through the operation of Section 403.095, Government Code, or other mechanisms;

(3) address and eliminate, to the extent possible, the structural state budget deficit created by the fiscal decisions made in 2006 during the special session of the 79th Legislature;

(4) employ budget practices and initiatives and investment strategies the implementation of which would leverage all available funds and increase resources coming to this state from outside of this state;

(5) facilitate making investments that are vital to this state's immediate and future economic health and provide options for paying for those investments without unnecessarily or excessively burdening taxpayers and residents of this state; and

(6) modify and update budgeting practices to ensure that legislation and other initiatives offering significant potential for economic development and growth in this state's tax base are not hindered by legislative rules and practices regarding the types of legislation that may be considered and enacted by the legislature.

(b) The committee shall hold public hearings at locations throughout this state to hear testimony regarding the issues to be addressed in the state budgeting plan.

SECTION 4. SUBMISSION OF STATE BUDGETING PLAN. (a) The committee shall submit the state budgeting plan developed under Section 3 of this Act to the Senate Finance Committee, the House Appropriations Committee, and the Legislative Budget Board not later than June 1, 2012.

(b) The Senate Finance Committee and the House Appropriations Committee shall consider the state budgeting guidelines and processes recommended in the state budgeting plan in developing proposed state budgets for the state fiscal biennium beginning September 1, 2013, and future state fiscal bienniums.

SECTION 5. ABOLITION OF COMMITTEE. The committee is abolished September 1, 2013.

SECTION 6. EFFECTIVE DATE. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2011.