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.