87R3490 BRG-D
	By: Eckhardt	S.B. No. 309

	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 second Tuesday in January.
	SECTION 2.  Section 316.001, Government Code, is amended to
	read as follows:
	Sec. 316.001.  LIMIT. 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.
	SECTION 3.  Sections 316.002(a), (b), 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 estimated rate of growth of the state's economy
	from the current fiscal year [biennium] to the next fiscal year
	[biennium];
	(2)  the level of appropriations for the current fiscal
	year [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 fiscal
	year [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 the estimated rate of growth of the state's economy by
	dividing the estimated Texas total personal income for the next
	fiscal year [biennium] by the estimated Texas total personal income
	for the current fiscal year [biennium]. Using standard statistical
	methods, the board shall make the estimate by projecting through
	the fiscal year [biennium] the estimated Texas total personal
	income reported by the United States Department of Commerce or its
	successor in function.
	(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 estimated rate of growth in the state's economy from the
	current fiscal year [biennium] to the next fiscal year [biennium]
	shall be treated as if it were zero, and 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 year [biennium].
	SECTION 4.  Section 316.004, Government Code, is amended to
	read as follows:
	Sec. 316.004.  PUBLIC HEARING. Not later than December 1 of
	each [even-numbered] year, the Legislative Budget Board shall hold
	a public hearing to solicit testimony regarding the proposed items
	of information and the methodology used in making the calculations
	required by Section 316.002.
	SECTION 5.  Section 316.008(a), Government Code, is amended
	to read as follows:
	(a)  Unless the legislature adopts a resolution under
	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
	fiscal year [biennium] made from state tax revenues not dedicated
	by the constitution.
	SECTION 6.  Section 316.009, Government Code, is amended to
	read as follows:
	Sec. 316.009.  SUBMISSION OF BILL BY GOVERNOR. The governor
	may prepare a general appropriation bill and submit printed copies
	of it to the lieutenant governor, the speaker of the house of
	representatives, and each member of the legislature. The bill must
	be submitted not later than:
	(1)  the 30th day of the legislature's regular session,
	except that if a person is inaugurated as governor who was not
	governor preceding the inauguration, the bill must be submitted not
	later than the 20th day after the date of that inauguration; or
	(2)  the 30th day of the legislature's budget session.
	SECTION 7.  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 8.  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 9.  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 10.  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 11.  Section 317.007, Government Code, is amended to
	read as follows:
	Sec. 317.007.  EXPIRATION OF PROPOSAL OR CONTINGENT ORDER.
	A proposal made by the governor or board under this chapter expires
	if the other entity does not adopt an order ratifying or changing
	the proposal before the 31st day after the date the proposal is
	published in the Texas Register. A contingent order adopted by the
	governor or board under this chapter expires if the other entity
	does not approve the order before the 31st day after the date the
	proposal on which the order is based is published in the Texas
	Register. A proposal or contingent order of either entity also
	expires if a regular, budget, or special session of the legislature
	begins before, respectively, the other entity has ratified the
	proposal or has approved the contingent order.
	SECTION 12.  Section 317.008(b), Government Code, is amended
	to read as follows:
	(b)  An order adopted under this chapter expires at the end
	of the fiscal year to which by its terms it applies, except that an
	order may specify an earlier expiration date [or a later date that
	does not extend beyond the end of the biennium containing each
	fiscal year to which the order applies].
	SECTION 13.  Section 317.052(c), Government Code, is amended
	to read as follows:
	(c)  After the hearing, if any, the board shall determine
	whether the application shows to the satisfaction of the board
	that:
	(1)  the necessity of the computer equipment was
	reasonably unforeseen when the current General Appropriations Act
	was being considered and passed, or that sufficient appropriations
	to purchase the equipment were inadvertently or erroneously omitted
	from that Act;
	(2)  the applicant's current appropriations are
	inadequate or unavailable to purchase the equipment;
	(3)  the applicant has obtained the approvals required
	by law; and
	(4)  the applicant will not be required to make any
	payments during the current state fiscal year [biennium] on the
	interest and principal of the obligations issued by the Texas
	Public Finance Authority.
	SECTION 14.  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 15.  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
	examine the laws and operations of state government to determine
	how the implementation of annual state budgets may affect those
	laws and operations and shall adopt recommendations for legislative
	and administrative action necessary to implement an annual budget
	as effectively as practicable.
	(b)  The board shall make its initial recommendations under
	this section not later than November 1, 2022.
	SECTION 16.  Section 403.121(a), Government Code, is amended
	to read as follows:
	(a)  In the statement required by 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 17.  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 18.  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 an applicable [the]
	period prescribed by Subsection (a) or (a-1). 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 19.  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 20.  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 21.  Section 317.010, Government Code, is repealed.
	SECTION 22.  The changes in law made by this Act do not
	affect the validity of an appropriation made before September 1,
	2023, for any part of the two consecutive state fiscal years ending
	August 31, 2025.
	SECTION 23.  (a) This Act takes effect as provided by
	Subsection (b) of this section, but only if the constitutional
	amendment proposed by the 87th Legislature, Regular Session, 2021,
	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)  This section and Section 322.021, Government Code, as
	added by this Act, take effect January 1, 2022. The other
	provisions of this Act take effect September 1, 2023.