| |
| |
|
|
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 state fiscal 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 this |
|
|
state's population during the preceding state fiscal biennium and |
|
|
the estimated rate of inflation or deflation during that preceding |
|
|
biennium in this state 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 state |
|
|
fiscal 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 transmits [submits] the budget |
|
|
for the next state fiscal biennium as prescribed by Section |
|
|
322.008(c), 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 this state's |
|
|
population during the current state fiscal biennium, expressed as a |
|
|
percentage; and |
|
|
(B) the estimated rate of inflation or deflation |
|
|
in this state 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 state fiscal 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 state fiscal |
|
|
biennium within the limit established in accordance with the |
|
|
maximum allowable rate of growth determined under Subdivision (1) |
|
|
and the amount of appropriations for the current state fiscal |
|
|
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 for |
|
|
the next state fiscal biennium from all sources of revenue other |
|
|
than the federal government may not exceed the amount of |
|
|
appropriations from those sources in the current state fiscal |
|
|
biennium reduced by an amount equal to the product of that amount |
|
|
and the additive inverse of 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 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 maximum 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 state fiscal biennium is an amount |
|
|
equal to 90 percent of [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 state fiscal biennium made from all |
|
|
sources of revenue except the federal government [state tax
|
|
|
revenues not dedicated by the constitution]. |
|
|
SECTION 4. Chapter 171, Tax Code, is amended by adding |
|
|
Subchapter K to read as follows: |
|
|
SUBCHAPTER K. SURPLUS REVENUE: REBATE OF FRANCHISE TAXES |
|
|
Sec. 171.551. ISSUANCE OF INDIVIDUAL REBATES. (a) Not |
|
|
later than the 180th day of each state fiscal biennium, the |
|
|
comptroller shall issue to each payer of the franchise tax during |
|
|
the preceding state fiscal biennium a rebate as provided by this |
|
|
section if the comptroller has determined under Subsection (a), |
|
|
Section 49-g-1, Article III, Texas Constitution, that there remains |
|
|
an unencumbered positive balance of general revenues from the |
|
|
preceding state fiscal biennium. |
|
|
(b) The comptroller shall compute for each payer of the |
|
|
franchise tax during the preceding state fiscal biennium the |
|
|
fractional share of the franchise taxes to be rebated by dividing |
|
|
that franchise tax payer's total franchise taxes paid during the |
|
|
preceding state fiscal biennium by the total of all franchise taxes |
|
|
paid under this chapter during that preceding state fiscal |
|
|
biennium. |
|
|
(c) The comptroller shall issue to each payer of the |
|
|
franchise tax during the preceding state fiscal biennium a rebate |
|
|
of franchise taxes paid in an amount equal to the fraction |
|
|
determined for that payer under Subsection (b), multiplied by the |
|
|
total amount of rebates to be issued under Subsection (b)(1), |
|
|
Section 49-g-1, Article III, Texas Constitution. |
|
|
(d) The comptroller may issue a payer's rebate by warrant or |
|
|
by electronic funds transfer, as provided by rules of the |
|
|
comptroller. |
|
|
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, 2015, and subsequent state |
|
|
fiscal bienniums. Appropriations for the state fiscal biennium |
|
|
that begins September 1, 2013, are governed by Sections 316.001, |
|
|
316.002, 316.006, 316.007, and 316.008, Government Code, as those |
|
|
sections existed on December 1, 2012, 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 83rd Legislature, Regular |
|
|
Session, 2013, concerning the limitation on the rate of growth of |
|
|
state appropriations and the use of unencumbered surplus state |
|
|
revenues to provide for a rebate of state franchise taxes and to |
|
|
reduce public school district property taxes takes effect. If that |
|
|
amendment is not approved by the voters, this Act has no effect. |