By: Hancock, et al. S.B. No. 9     A BILL TO BE ENTITLED   AN ACT   relating to the constitutional limit on the rate of growth of   appropriations.          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)  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 biennial statement required of the   comptroller under Section 49a, Article III, Texas Constitution.          (b)  The rate of growth of appropriations in a state fiscal   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 biennium may not exceed the   estimated rate of growth of the state's economy.          (d)  For purposes of this subchapter, the estimated rate of   growth of the state's economy is the average biennial rate of growth   of this state's population during the state fiscal biennium   preceding the biennium for which appropriations are made and during   the state fiscal biennium for which appropriations are made,   adjusted by the average biennial rate of monetary inflation in this   state during the same period, as determined under Section 316.002.          (e)  The legislature finds that, for purposes of Section 22,   Article VIII, Texas Constitution, the average biennial rate of   growth of this state's population during the state fiscal biennium   preceding the biennium for which appropriations are made and during   the state fiscal biennium for which appropriations are made,   adjusted by the average biennial rate of monetary inflation in this   state during the same period, is an appropriate measure of the   estimated rate of growth of this state's economy.          (f)  For purposes of this subchapter, an appropriation to pay   for a rebate of state taxes must be excluded from computations used   to determine whether appropriations exceed the amount authorized by   Subsection (b) or (c).          (g)  The Legislative Budget Board shall determine the rates   described by Subsection (d) using the most recent information   available from sources the board considers reliable, including the   United States Bureau of Labor Statistics' Consumer Price Index and   the Texas Demographic Center.          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 limit on the rate of growth of appropriations   of state tax revenues not dedicated by the constitution for that   state fiscal biennium, as compared to the previous state fiscal   biennium, by subtracting one from the product of:                      (A)  the sum of one and the estimated average   biennial rate of growth of this state's population during the state   fiscal biennium preceding the biennium for which appropriations are   made and during the state fiscal biennium for which appropriations   are made; and                      (B)  the sum of one and the estimated average   biennial rate of monetary inflation during the state fiscal   biennium preceding the biennium for which appropriations are made   and during the state fiscal biennium for which appropriations are   made; and                (2)  the limit in the rate of growth in consolidated   general revenue appropriations for that state fiscal biennium, as   compared to the previous state fiscal biennium, by subtracting one   from the product of:                      (A)  the sum of one and the estimated average   biennial rate of growth of this state's population during the state   fiscal biennium preceding the biennium for which appropriations are   made and during the state fiscal biennium for which appropriations   are made; and                      (B)  the sum of one and the estimated average   biennial rate of monetary inflation during the state fiscal   biennium preceding the biennium for which appropriations are made   and during the state fiscal biennium for which appropriations are   made [the state's economy from the current biennium to the next   biennium;                [(2)     the level of appropriations for the current   biennium from state tax revenues not dedicated by the constitution;   and                [(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 the estimated rate of growth of the   state's economy].          (b)  Except as provided by Subsection (c), the board shall   determine for the next state fiscal biennium a limit on the amount   of:                (1)  appropriations of state tax revenues not dedicated   by the constitution by multiplying the amount of appropriations of   state tax revenues not dedicated by the constitution for the then   current state fiscal biennium by the sum of one and the limit on the   rate of growth of appropriations of state tax revenues not   dedicated by the constitution determined by the board under   Subsection (a)(1); and                (2)  consolidated general revenue appropriations by   multiplying the amount of consolidated general revenue   appropriations for the then current state fiscal biennium by the   sum of one and the limit on the rate of growth of consolidated   general revenue appropriations determined by the board under   Subsection (a)(2) [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 the rate determined under Subsection (a)(1) is a   negative number, the amount of appropriations of state tax revenues   not dedicated by the constitution for the next state fiscal   biennium may not exceed the amount of appropriations of state tax   revenues not dedicated by the constitution in the current state   fiscal biennium.  If the rate determined under Subsection (a)(2) is   a negative number, the amount of consolidated general revenue   appropriations for the next state fiscal biennium may not exceed   the amount of consolidated general revenue appropriations in the   current state fiscal biennium [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 this subchapter and 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 board adopts:                (1)  the limit on the rate of growth of appropriations   of state tax revenues not dedicated by the constitution under   Section 316.001(b); and                (2)  the limit on the rate of growth of consolidated   general revenue appropriations under Section 316.001(c) [has been   adopted as required by this subchapter].          (e)  In the absence of an action by the Legislative Budget   Board to adopt the limits [a spending limit] as provided by this   section:                (1)  for purposes of Section 316.001(b):                      (A)  [in Subsections (a) and (b),] the estimated   rate of growth in the state's economy from the current fiscal   biennium to the next fiscal 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 in the state's   economy shall be the same as the level of appropriations for the   current fiscal biennium; and                (2)  for purposes of Section 316.001(c):                      (A)  the estimated rate of growth in the state's   economy from the current fiscal biennium to the next fiscal   biennium shall be treated as if it 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 level of   appropriations for the current fiscal 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:                (1)  relating to the proposed appropriations of state   tax revenues not dedicated by the constitution may not exceed the   limit on appropriations from those sources adopted by the committee   under Section 316.005; and                (2)  relating to the proposed consolidated general   revenue appropriations may not exceed the limit on appropriations   from those sources 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:                (1)  the proposed limit of appropriations from state   tax revenues not dedicated by the constitution; and                (2)  the proposed limit of consolidated general revenue   appropriations.          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 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 fiscal biennium made from those [state   tax] revenues [not dedicated by the constitution]. The proposed   limit on consolidated general revenue appropriations is binding on   the legislature with respect to all appropriations for the next   fiscal 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 authorized under this subsection may not   exceed the amount specified in the resolution.          SECTION 4.  The changes in law made by this Act apply only in   relation to appropriations made for the state fiscal biennium   beginning September 1, 2019, and subsequent state fiscal bienniums.     Appropriations for the state fiscal biennium that begins September   1, 2017, are governed by Sections 316.001, 316.002, 316.006,   316.007, and 316.008, Government Code, as those sections existed on   December 1, 2016, and the former law is continued in effect for that   purpose.          SECTION 5.  This Act takes effect September 1, 2017.