83R1289 JJT-F
 
  By: Patrick S.B. No. 101
 
 
 
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 the 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 the 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 product of the amount
  of appropriations from those sources in the current state fiscal
  biennium and the sum of one and that negative number. [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 state fiscal 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 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 previous 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 began 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 in
  appropriations and the use of unencumbered surplus state revenues
  to provide for a rebate of state franchise taxes, to reduce public
  school district property taxes, and to fund the state's rainy day
  fund takes effect.  If that amendment is not approved by the voters,
  this Act has no effect.