83R8118 JJT-D
 
  By: King of Parker H.B. No. 1870
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the limitation on the rate of growth in appropriations
  from state tax revenues.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 316.001, Government Code, is amended to
  read as follows:
         Sec. 316.001.  LIMIT. The rate of growth of appropriations
  in a biennium from state tax revenues not dedicated by the
  constitution may not exceed the lesser of the following rates:
               (1)  the estimated rate of growth of this [the] state's
  economy; and
               (2)  a rate equal to the sum of:
                     (A)  the estimated biennial rate of growth of this
  state's population; and
                     (B)  the estimated biennial rate of monetary
  inflation in this state.
         SECTION 2.  The heading to Section 316.002, Government Code,
  is amended to read as follows:
         Sec. 316.002.  DUTIES OF LEGISLATIVE BUDGET BOARD AND
  GOVERNOR.
         SECTION 3.  Sections 316.002(a), (b), (c), and (e),
  Government Code, are amended to read as follows:
         (a)  Before the Legislative Budget Board submits the budget
  as prescribed by Section 322.008(c), the board and the governor
  jointly shall establish:
               (1)  the estimated rate of growth of this [the] state's
  economy from the current biennium to the next biennium as
  determined under Subsection (b);
               (2)  a rate equal to the sum of:
                     (A)  the estimated biennial rate of growth of this
  state's population as determined under Subsection (c); and
                     (B)  the estimated biennial rate of monetary
  inflation in this state as determined under Subsection (c);
               (3)  the level of appropriations for the current
  biennium from state tax revenues not dedicated by the constitution;
  and
               (4) [(3)]  the amount of state tax revenues not
  dedicated by the constitution that could be appropriated for the
  next biennium within the limit established by applying the lesser
  of:
                     (A)  the estimated rate of growth of this [the]
  state's economy as determined under Subsection (b); and
                     (B)  a rate equal to the sum of:
                           (i)  the estimated biennial rate of growth
  of this state's population as determined under Subsection (c); and
                           (ii)  the estimated biennial rate of
  monetary inflation in this state as determined under Subsection
  (c).
         (b)  The [Except as provided by Subsection (c), the] board
  and governor shall determine the estimated rate of growth of this 
  [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 and governor 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)  The board and governor shall determine a rate equal to
  the sum of the estimated biennial rate of growth of this state's
  population and the estimated biennial rate of monetary inflation in
  this state as provided by this subsection. The board and governor
  shall determine the estimated biennial rate of growth of this
  state's population based on the average rate of growth during the
  preceding six years according to United States Census Bureau
  estimates as certified by the comptroller. The board and governor
  shall determine the estimated biennial rate of monetary inflation
  in this state based on the average rate of change during the
  preceding six years of the effective consumer price index for this
  state. For purposes of this subsection, the effective consumer
  price index for this state is the average of the consumer price
  indexes as determined by the United States Department of Labor for
  the Corpus Christi metropolitan area and for the Dallas/Fort Worth
  metropolitan area. [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 and governor 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 amount of
  state tax revenues not dedicated by the constitution that may 
  [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 level of appropriations for the current
  biennium.
         SECTION 4.  Sections 316.003, 316.004, and 316.005,
  Government Code, are amended to read as follows:
         Sec. 316.003.  PUBLICATION. Before the Legislative Budget
  Board and governor jointly approve [approves] the items of
  information as required by Section 316.002, the board and governor
  jointly shall publish in the Texas Register the proposed items of
  information and a description of the methodology and sources used
  in the calculations.
         Sec. 316.004.  PUBLIC HEARING. Not later than December 1 of
  each even-numbered year, the Legislative Budget Board and governor
  jointly shall hold a public hearing to solicit testimony regarding
  the proposed items of information and the methodology used in
  making the calculations required by Section 316.002.
         Sec. 316.005.  ADOPTION BY COMMITTEE. (a) After the
  Legislative Budget Board and governor jointly approve [approves]
  the items of information required by Section 316.002, the board and
  governor jointly shall submit the information to a committee
  composed of the [governor,] lieutenant governor, speaker of the
  house of representatives, and comptroller of public accounts.
         (b)  Not later than the 10th day after the date on which the
  board and governor jointly submit [submits] the items of
  information, the committee shall meet and finally adopt the items
  of information, either as submitted by the board and governor or as
  amended by the committee.
         (c)  If the committee fails to act within the 10-day period
  prescribed by Subsection (b), the items of information submitted by
  the board and governor are treated as if the committee had adopted
  them as submitted.
         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 and
  316.002, 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 maximum rate of growth of
  appropriations takes effect.  If that amendment is not approved by
  the voters, this Act has no effect.