BILL ANALYSIS H.B. 735 By: Craddick February 15, 1995 Committee Report (Unamended) BACKGROUND Chapter 401.003, Government Code, creates the inaugural fund in the state treasury. Money in the fund may be appropriated only for expenditures "reasonably related to conducting inaugural ceremonies and related events." After the inauguration, the inaugural committee delivers to the state treasurer all unexpended non-appropriated funds, which are then deposited in the state treasury to the credit of the inaugural fund. Since money in the fund can only be used for inaugural ceremonies, there is a standing account that can only serve Texans every four years. PURPOSE The bill would create the "governor's endowment fund," and the "lieutenant governor's endowment fund," from the surplus balance of the inaugural fund. The funds may be used for improvements to state property, or educational, historical, or charitable purposes that benefit Texas and Texas' residents. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter A, Chapter 401, Government Code, by adding Section 401.011 GOVERNOR'S ENDOWMENT FUND; LIEUTENANT GOVERNOR'S ENDOWMENT FUND. (a) On the date the inaugural committee is dissolved, the balance that exceeds $100,000 plus the amount necessary to cover fund obligations shall be transferred into two accounts in the general revenue fund to be known as the governor's endowment fund, and the lieutenant governor's endowment fund. (b) The funds may be expended for educational, historical, or charitable purposes at the discretion of the governing committees. The funds may be used only for projects or purposes that solely or primarily benefit Texas and Texas residents. (c) The governor shall appoint three persons to the governor's endowment fund committee, and the lieutenant governor shall appoint three persons to the lieutenant governor's endowment committee. Notwithstanding other law, spouses of the governor or lieutenant governor may be appointed to the committee. (d) The governors shall designate the chairs of the committees. Members serve for terms of two years, and without compensation or reimbursement for travel or personal expenses. (e) In addition to the transfer from the inaugural fund, the committees may accept contributions of money or gifts of services in support of committee activities. (f) Each year, the committees shall publish a report detailing contributions received and expenditures made during the 12 months preceding the report. (g) Each committee is a governmental body for purposes of Chapters 551 (Open Meetings) and 552 (Open Records), but not subject to Chapter 2001 (Administrative Procedure), Government Code. (h) Sections 403.094 (Consolidation of Funds; Abolition of Dedications) and 403.095 (Use of Dedicated Revenue), Government Code, do not apply to the two endowment funds. SECTION 2. The balance of the two funds is appropriated to the respective committees starting with the biennium ending August 31, 1995. SECTION 3. Emergency clause; Effective Date: Upon passage. SUMMARY OF COMMITTEE ACTION Public notice was posted in accordance to the rules and a public hearing was held on February 14, 1995. By a record vote of 8 ayes, 0 nays, 0 present not voting and 3 absent, the committee voted to report H.B. 735 to the House without amendment with the recommendation that it do pass.