BILL ANALYSIS C.S.H.B. 735 By: Craddick (Zaffirini) Finance 05-22-95 Senate Committee Report (Substituted) 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 balance that can only serve Texans every four years. PURPOSE As proposed, C.S.H.B. 735 creates the Governor's Endowment Fund and the Lieutenant Governor's Endowment Fund from the surplus balance of the inaugural fund exceeding $100,000, plus any amounts necessary to cover fund obligations. 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 Chapter 401A, Government Code, by adding Section 401.011, as follows: Sec. 401.011. INAUGURAL ENDOWMENT FUND. (a) Requires, on the date the inaugural committee is dissolved, the balance in the inaugural fund to be transferred to an account in the general revenue fund to be known as the inaugural endowment fund to the extent that the balance of the inaugural fund exceeds $100,000 plus the amount necessary to cover fund obligations. Requires the fund to be administered and expended in accordance with this section. (b) Authorizes the fund to be expended for decorating, furnishing, preserving, or improving the Capitol, the Governor's Mansion, or other state property of historical significance or for grants in support of public schools or public libraries at the discretion of the inaugural endowment fund committee. (c) Sets forth the composition of inaugural endowment fund committee (committee). (d) Sets forth terms and expiration dates of appointed committee members. (e) Prohibits operations of the committee from being conducted at state expense, and prohibits committee functions from being carried out through the use of state personnel or equipment. (f) Requires the committee to file a report by October 1 of each year with the secretary of state detailing contributions received and expenditures made during the 12 months ending on the September 1 preceding the report. Requires the secretary to publish each report in the Texas Register. (g) Provides that the committee is a governmental body for purposes of Chapters 551 and 552 but is not subject to Chapter 2001. (h) Provides that Sections 403.094 and 403.095 do not apply to the inaugural endowment fund. (i) Provides that this section expires September 1, 1999. SECTION 2. Appropriates the balance of the inaugural endowment fund to the committee established pursuant to Section 401.011, Government Code, as added by this Act, for the purposes provided by that section. SECTION 3. Emergency clause. Effective date: upon passage.