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.