88R2725 KJE-D
 
  By: Raymond H.B. No. 561
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an annual state budget and legislative budget sessions
  in even-numbered years and to political contributions made during a
  legislative session.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 301.001, Government Code, is amended to
  read as follows:
         Sec. 301.001.  TIME AND PLACE OF MEETING. (a) In each
  odd-numbered year, the [The] legislature shall convene at the seat
  of government in regular session at 12 noon on the second Tuesday in
  January [of each odd-numbered year].
         (b)  In each even-numbered year, the legislature shall
  convene at the seat of government in budget session at 12 noon on
  the third Tuesday in April.
         SECTION 2.  Sections 316.001(a), (b), and (c), Government
  Code, are amended to read as follows:
         (a)  For purposes of this subchapter, "consolidated general
  revenue appropriations" means appropriations from:
               (1)  the general revenue fund in the state treasury;
               (2)  a dedicated account in the general revenue fund in
  the state treasury; or
               (3)  a general revenue-related fund in the state
  treasury as identified in the annual [biennial] statement required
  of the comptroller under Section 49a, Article III, Texas
  Constitution.
         (b)  The rate of growth of appropriations in a state fiscal
  year [biennium] from state tax revenues not dedicated by the
  constitution may not exceed the estimated rate of growth of the
  state's economy.
         (c)  The rate of growth of consolidated general revenue
  appropriations in a state fiscal year [biennium] may not exceed the
  estimated average annual [biennial] rate of growth of this state's
  population during the state fiscal year [biennium] preceding the
  year [biennium] for which appropriations are made and during the
  state fiscal year [biennium] for which appropriations are made,
  adjusted by the estimated average annual [biennial] rate of
  monetary inflation in this state during the same period, as
  determined under Section 316.002.
         SECTION 3.  Sections 316.002(a), (b), (d), (e), and (g),
  Government Code, are amended to read as follows:
         (a)  Before the Legislative Budget Board transmits the
  budget for the next state fiscal year [biennium] as prescribed by
  Section 322.008(c), the board shall establish:
               (1)  the limit on the rate of growth of appropriations
  from state tax revenues not dedicated by the constitution for that
  state fiscal year [biennium], as compared to the previous state
  fiscal year [biennium], based on the estimated rate of growth of the
  state's economy from the current state fiscal year [biennium] to
  the next state fiscal year [biennium]; and
               (2)  the limit on the rate of growth of consolidated
  general revenue appropriations for that state fiscal year
  [biennium], as compared to the previous state fiscal year
  [biennium], by subtracting one from the product of:
                     (A)  the sum of one and the estimated average
  annual [biennial] rate of growth of this state's population during
  the state fiscal year [biennium] preceding the year [biennium] for
  which appropriations are made and during the state fiscal year
  [biennium] for which appropriations are made; and
                     (B)  the sum of one and the estimated average
  annual [biennial] rate of monetary inflation during the state
  fiscal year [biennium] preceding the year [biennium] for which
  appropriations are made and during the state fiscal year [biennium]
  for which appropriations are made.
         (b)  Except as provided by Subsection (c), the board shall
  determine the estimated rate of growth of the state's economy for
  purposes of Subsection (a)(1) by dividing the estimated Texas total
  personal income for the next state fiscal year [biennium] by the
  estimated Texas total personal income for the current state fiscal
  year [biennium].  Using standard statistical methods, the board
  shall make the estimate by projecting through the year [biennium]
  the estimated Texas total personal income reported by the United
  States Department of Commerce or its successor in function.
         (d)  Except as provided by Subsection (e), the board shall
  determine for the next state fiscal year [biennium] a limit on the
  amount of:
               (1)  appropriations from state tax revenues not
  dedicated by the constitution by multiplying the amount of
  appropriations from state tax revenues not dedicated by the
  constitution for the current state fiscal year [biennium] by the
  sum of one and the limit on the rate of growth of appropriations
  from state tax revenues not dedicated by the constitution
  established by the board under Subsection (a)(1); and
               (2)  consolidated general revenue appropriations by
  multiplying the amount of consolidated general revenue
  appropriations for the current state fiscal year [biennium] by the
  sum of one and the limit on the rate of growth of consolidated
  general revenue appropriations established by the board under
  Subsection (a)(2).
         (e)  If the rate determined under Subsection (a)(2) is a
  negative number, the amount of consolidated general revenue
  appropriations for the next state fiscal year [biennium] may not
  exceed the amount of consolidated general revenue appropriations in
  the current state fiscal year [biennium].
         (g)  In the absence of an action by the Legislative Budget
  Board to adopt the limits as provided by this section:
               (1)  for purposes of Section 316.001(b):
                     (A)  the estimated rate of growth of the state's
  economy from the current state fiscal year [biennium] to the next
  state fiscal year [biennium] shall be treated as if it were zero;
  and
                     (B)  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 of the state's
  economy shall be the same as the amount of those appropriations for
  the current state fiscal year [biennium]; and
               (2)  for purposes of Section 316.001(c):
                     (A)  the estimated average annual [biennial]
  rates of growth of this state's population and of monetary
  inflation shall be treated as if they were zero; and
                     (B)  the amount of consolidated general revenue
  appropriations that could be appropriated within the limit
  established by that subsection shall be the same as the amount of
  those appropriations for the current state fiscal year [biennium].
         SECTION 4.  Section 316.008(a), Government Code, is amended
  to read as follows:
         (a)  Unless the legislature adopts a resolution under
  Section 22, Article VIII, Texas Constitution, raising the proposed
  limit on appropriations from state tax revenues not dedicated by
  the constitution, the proposed limit is binding on the legislature
  with respect to all appropriations for the next state fiscal year
  [biennium] made from those revenues.  The proposed limit on
  consolidated general revenue appropriations is binding on the
  legislature with respect to all appropriations for the next state
  fiscal year [biennium] made from those sources unless the
  legislature adopts a resolution raising the proposed limit that is
  approved by a record vote of three-fifths of the members of each
  house of the legislature.  The resolution must find that an
  emergency exists, identify the nature of the emergency, and specify
  the amount authorized.  The excess amount authorized under this
  subsection may not exceed the amount specified in the resolution.
         SECTION 5.  Section 316.045, Government Code, is amended to
  read as follows:
         Sec. 316.045.  REDUCTION IN CERTAIN AGENCY FEES. (a) Each
  state agency that sets the fees charged by that agency in amounts
  that are reasonable and necessary to cover the administrative costs
  of the agency shall review the amounts charged as fees on an annual
  [a biennial] basis. The agency shall review the fees before the
  beginning of each state fiscal year [biennium] and incorporate its
  recommendations based on that review in its budget request
  submitted to the Legislative Budget Board and the budget division
  of the governor's office.
         (b)  If the agency determines that the fees are set at a level
  that exceeds the administrative costs of the agency as of the date
  of the review, the agency shall reduce the amount of the affected
  fees to the appropriate level and shall charge the reduced fees
  during the subsequent fiscal year [biennium]. Each agency shall
  give specific recognition to reductions in salary expenses
  resulting from statutorily directed employee attrition.
         SECTION 6.  Section 316.092(a), Government Code, is amended
  to read as follows:
         (a)  For the purposes of adjusting the allocations of
  transfers in accordance with Section 49-g(c-2), Article III, Texas
  Constitution, and Section 316.093 for a state fiscal year
  [biennium], the comptroller shall determine and adopt for the state
  fiscal year [biennium] an amount equal to seven percent of the
  certified general revenue-related appropriations made for that
  state fiscal year [biennium].
         SECTION 7.  Sections 316.093(a), (b), and (c), Government
  Code, are amended to read as follows:
         (a)  Before the comptroller makes transfers for a state
  fiscal year in accordance with Section 49-g(c), Article III, Texas
  Constitution, the comptroller shall determine whether the sum of
  the balance of the fund on the preceding August 31, any projected
  transfer to the fund under Section 49-g(b) of that article, and any
  projected transfer to the fund under Section 49-g(c) of that
  article in accordance with the allocations for the transfer as
  provided by Section 49-g(c-1) of that article is less than the
  amount determined under Section 316.092 for that state fiscal year
  [biennium].
         (b)  If the sum described by Subsection (a) is less than the
  amount determined under Section 316.092 for that state fiscal year
  [biennium], the comptroller shall reduce the allocation to the
  state highway fund provided by Section 49-g(c), Article III, Texas
  Constitution, and increase the allocation to the economic
  stabilization fund, in an equal amount, until the amount determined
  under Section 316.092 for that state fiscal year [biennium] would
  be achieved by the transfer to the fund or the total amount of the
  sum described by Section 49-g(c), Article III, Texas Constitution,
  is allocated to the fund, whichever occurs first.
         (c)  For the purposes of Section 49-g(c-2), Article III,
  Texas Constitution, the comptroller shall adjust the allocation
  provided by Section 49-g(c-1) of that article of amounts to be
  transferred to the fund and to the state highway fund under Section
  49-g(c) of that article in a state fiscal year beginning on or after
  September 1, 2035, so that the total of those amounts is transferred
  to the economic stabilization fund, except that the comptroller
  shall reduce a transfer made under this subsection as necessary to
  prevent the amount in the fund from exceeding the limit in effect
  for that fiscal year [biennium] under Section 49-g(g) of that
  article.
         SECTION 8.  Section 317.003(a), Government Code, is amended
  to read as follows:
         (a)  The governor or Legislative Budget Board may make a
  proposal at any time except during a [regular or special] session of
  the legislature. A proposal may apply to an appropriation that has
  been made for any specified fiscal year that has not ended at the
  time the proposal is made.
         SECTION 9.  Sections 322.008(a), (c), and (d), Government
  Code, are amended to read as follows:
         (a)  The director, under the direction of the board, shall
  prepare the general appropriations bill for introduction at each
  regular and budget [legislative] session of the legislature.
         (c)  Not later than the fifth day after a regular or budget
  [legislative] session convenes, the director shall transmit a copy
  of the budget of estimated appropriations prepared by the director
  to the governor and each member of the legislature.
         (d)  Not later than the seventh day after a regular or budget
  [legislative] session convenes, the director shall transmit a copy
  of the general appropriations bill to the governor and each member
  of the legislature.
         SECTION 10.  Chapter 322, Government Code, is amended by
  adding Section 322.021 to read as follows:
         Sec. 322.021.  STUDY TO IMPLEMENT ANNUAL BUDGET. (a) The
  board, with the assistance of the Texas Legislative Council, shall:
               (1)  examine the laws and operations of state
  government to determine how the implementation of an annual state
  budget may affect those laws and operations; and
               (2)  adopt recommendations for legislative and
  administrative action necessary to implement an annual state budget
  as effectively as practicable.
         (b)  The board shall make its initial recommendations under
  this section not later than November 1, 2024.
         SECTION 11.  Section 403.121(a), Government Code, is amended
  to read as follows:
         (a)  In the statement required by Section 49a, Article III,
  [Section 49a, of the] Texas Constitution, the comptroller shall
  list outstanding appropriations that may exist after the end of the
  current fiscal year but may not deduct them from the cash condition
  of the treasury or the anticipated revenues of the next fiscal year
  [biennium] for the purpose of certification. The comptroller shall
  base the reports, estimates, and certifications of available funds
  on the actual or estimated cash condition of the treasury and shall
  consider outstanding and undisbursed appropriations at the end of
  each fiscal year [biennium] as probable disbursements of the
  succeeding fiscal year [biennium] in the same manner that earned
  but uncollected income of a current fiscal year [biennium] is
  considered in probable receipts of the succeeding fiscal year
  [biennium]. The comptroller shall consider as probable
  disbursements warrants that will be issued by the state before the
  end of the fiscal year.
         SECTION 12.  The heading to Section 253.034, Election Code,
  is amended to read as follows:
         Sec. 253.034.  RESTRICTIONS ON CONTRIBUTIONS DURING AND
  FOLLOWING REGULAR OR BUDGET [LEGISLATIVE] SESSION OF LEGISLATURE.
         SECTION 13.  Section 253.034, Election Code, is amended by
  amending Subsections (a), (b), and (c) and adding Subsection (a-1)
  to read as follows:
         (a)  During the period beginning on the 30th day before the
  date a regular [legislative] session of the legislature convenes
  and continuing through the 20th day after the date of final
  adjournment of that regular session, a person may not knowingly
  make a political contribution to:
               (1)  a statewide officeholder;
               (2)  a member of the legislature; or
               (3)  a specific-purpose committee for supporting,
  opposing, or assisting a statewide officeholder or member of the
  legislature.
         (a-1)  During a budget session of the legislature, a person
  may not knowingly make a political contribution to:
               (1)  the governor or lieutenant governor;
               (2)  a member of or a candidate for election to the
  legislature; or
               (3)  a specific-purpose committee for supporting,
  opposing, or assisting the governor, the lieutenant governor, or a
  member of or a candidate for election to the legislature.
         (b)  A statewide officeholder, a member of or a candidate for
  election to the legislature, or a specific-purpose committee for
  supporting, opposing, or assisting a statewide officeholder or a
  member of or a candidate for election to the legislature may not
  knowingly accept a political contribution, and shall refuse a
  political contribution that is received, during a [the] period
  prescribed by Subsection (a) or (a-1), as applicable. A political
  contribution that is received and refused during that period shall
  be returned to the contributor not later than the 30th day after the
  date of receipt. A contribution made by United States mail or by
  common or contract carrier is not considered received during a
  [that] period if it was properly addressed and placed with postage
  or carrier charges prepaid or prearranged in the mail or delivered
  to the contract carrier before the beginning of the period. The
  date indicated by the post office cancellation mark or the common or
  contract carrier documents is considered to be the date the
  contribution was placed in the mail or delivered to the common or
  contract carrier unless proven otherwise.
         (c)  This section does not apply to a political contribution
  that was made and accepted with the intent that it be used:
               (1)  in an election held or ordered during a [the]
  period prescribed by Subsection (a) or (a-1) in which the person
  accepting the contribution is a candidate if the contribution was
  made after the person appointed a campaign treasurer with the
  appropriate authority and before the person was sworn in for that
  office;
               (2)  to defray expenses incurred in connection with an
  election contest; or
               (3)  by a person who holds a state office or a member of
  the legislature or by a specific-purpose political committee that
  supports or assists only that person or member if the contribution
  was made during the period prescribed by Subsection (a) and the
  person or member was defeated at the general election held
  immediately before the regular session is convened [or by a
  specific-purpose political committee that supports or assists only
  that person or member].
         SECTION 14.  The heading to Section 253.0341, Election Code,
  is amended to read as follows:
         Sec. 253.0341.  RESTRICTIONS ON CONTRIBUTIONS TO
  LEGISLATIVE CAUCUSES DURING AND FOLLOWING REGULAR OR BUDGET
  [LEGISLATIVE] SESSION OF LEGISLATURE.
         SECTION 15.  Sections 253.0341(a) and (b), Election Code,
  are amended to read as follows:
         (a)  During the period beginning on the 30th day before the
  date a regular [legislative] session of the legislature convenes
  and continuing through the 20th day after the date of final
  adjournment, or at any time during a budget session of the
  legislature, a person not a member of the caucus may not knowingly
  make a contribution to a legislative caucus.
         (b)  A legislative caucus may not knowingly accept from a
  nonmember a contribution, and shall refuse a contribution from a
  nonmember that is received, during a [the] period prescribed by
  Subsection (a). A contribution that is received and refused during
  a [that] period prescribed by Subsection (a) shall be returned to
  the contributor not later than the 30th day after the date of
  receipt. A contribution made by United States mail or by common or
  contract carrier is not considered received during a [that] period
  if it was properly addressed and placed with postage or carrier
  charges prepaid or prearranged in the mail or delivered to the
  contract carrier before the beginning of the period. The date
  indicated by the post office cancellation mark or the common or
  contract carrier documents is considered to be the date the
  contribution was placed in the mail or delivered to the common or
  contract carrier unless proven otherwise.
         SECTION 16.  The changes in law made by this Act do not
  affect the validity of an appropriation made before September 1,
  2025, for a period that ends on or before August 31, 2027.
         SECTION 17.  (a) This Act takes effect as provided by
  Subsection (b) of this section, but only if the constitutional
  amendment proposed by the 88th Legislature, Regular Session, 2023,
  providing for an annual state budget and annual legislative
  sessions for budget purposes is approved by the voters. If that
  proposed constitutional amendment is not approved by the voters,
  this Act has no effect.
         (b)  Subject to Subsection (a) of this section:
               (1)  except as provided by Subdivision (2) of this
  subsection, this Act takes effect September 1, 2025; and
               (2)  this section and Section 10 of this Act take effect
  January 1, 2024.