83R8812 JJT-D
	By: Hughes	H.B. No. 1609

	A BILL TO BE ENTITLED
	AN ACT
	relating to the limit on the rate of growth in appropriations and to
	the authority of the comptroller to reduce the state sales tax rate
	for designated periods.
	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 all available sources of revenue except the
	federal government [state tax revenues not dedicated by the
	constitution] may not exceed the average biennial rate of growth of
	this state's population during the three previous state fiscal
	bienniums adjusted by the average biennial rate of monetary
	inflation over the same period, as determined under Section 316.002
	[estimated rate of growth of the state's economy].
	SECTION 2.  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 shall establish[:
	[(1)]  the limit on the rate of growth in
	appropriations for that state fiscal biennium, as compared to the
	previous state fiscal biennium, by subtracting one from the product
	of:
	(1)  the sum of one and the estimated average biennial
	rate of growth of this state's population during the three previous
	fiscal bienniums; and
	(2)  the sum of one and the estimated average biennial
	rate of monetary inflation during the three previous fiscal
	bienniums [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 the maximum
	permissible amount of appropriations from all available sources of
	revenue except the federal government by multiplying the amount of
	appropriations from those sources of revenue for the then current
	biennium by the sum of one and the limit on the rate of growth of
	appropriations determined by the board under Subsection (a) [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 effective method of computing the average
	biennial [comprehensive definition of the] rate of growth of the
	state's population adjusted for monetary inflation [economy] is
	developed and is approved by the committee established by Section
	316.005, the board may use that alternative method in computing
	[definition in calculating] the limit on appropriations.
	(e)  In the absence of an action by the Legislative Budget
	Board to adopt a spending limit as provided in Subsections (a) and
	(b), the limit on the [estimated] rate of growth of appropriations
	for the [in the state's economy from the current biennium to the]
	next state fiscal biennium is [shall be treated as if it were] zero,
	and the amount of revenue from all available sources except the
	federal government appropriated for the next state fiscal biennium
	may not exceed [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 amount [level] of appropriations from
	those sources for the then current biennium.
	SECTION 3.  Section 151.051, Tax Code, is amended to read as
	follows:
	Sec. 151.051.  SALES TAX IMPOSED. (a)  A tax is imposed on
	each sale of a taxable item in this state at a rate determined by the
	comptroller as provided by this section.
	(b)  Except as provided by this section, the [The] sales tax
	rate is 6-1/4 percent of the sales price of the taxable item sold.
	(c)  Each odd-numbered year, the comptroller shall determine
	whether the amount of undedicated unencumbered anticipated revenue
	is sufficient to permit, without resulting in a shortfall of
	revenue, a reduction of the sales tax rate by at least one-tenth of
	one percent for a period of two calendar years.
	(d)  If the comptroller determines under Subsection (c) that
	the rate may be reduced, then not later than November 1 of that year
	the comptroller shall declare a reduced sales tax rate for the next
	two calendar years that is at least one-tenth of one percent lower
	than the rate otherwise provided by Subsection (b). The
	comptroller shall publish the declaration in the Texas Register,
	shall mail notice of the declaration to each permit holder, and may
	provide notice by other means the comptroller determines prudent.
	The reduced rate applies beginning January 1 of the following year
	through December 31 of the second following year, except as
	provided by Subsection (e).
	(e)  Not later than November 1 of the first year of the period
	in which the reduced sales tax rate applies, the comptroller shall
	determine from then current available information whether the
	amount of undedicated unencumbered anticipated revenue is
	sufficient to maintain the reduced sales tax rate for the second
	year of the period without resulting in a shortfall of revenue. If
	the comptroller determines that a revenue shortfall is likely to
	occur, the comptroller shall declare the reduced rate rescinded for
	the following year. The comptroller shall publish the declaration
	in the Texas Register, shall mail notice of the declaration to each
	permit holder, and may provide notice by other means the
	comptroller determines prudent. For the period from January 1 to
	December 31 of the year following a declaration under this
	subsection, the sales tax rate is the rate otherwise provided by
	Subsection (b).
	(f)  The comptroller shall adopt rules to implement this
	section.
	SECTION 4.  This Act takes effect on the date on which the
	constitutional amendment proposed by the 83rd Legislature, Regular
	Session, 2013, to limit the rate of growth of appropriations from
	all sources of revenue except the federal government and to
	authorize the legislature to appropriate money for tax rebates
	takes effect. If that amendment is not approved by the voters, this
	Act has no effect.