83R2116 JJT-D
	By: Sanford	H.B. No. 783

	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 this
	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 this 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 amount of
	appropriations from those sources in the current state fiscal
	biennium reduced by an amount equal to the product of that amount
	and the additive inverse of the sum of those rates. [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 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 maximum 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 an amount
	equal to 90 percent of [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 preceding 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 begins 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 of
	state appropriations and the use of unencumbered surplus state
	revenues to provide for a rebate of state franchise taxes and to
	reduce public school district property taxes takes effect.  If that
	amendment is not approved by the voters, this Act has no effect.