BILL ANALYSIS C.S.H.B. 982 By: McDonald 04-06-95 Committee Report (Substituted) BACKGROUND The Children's Trust Fund of Texas was established by statute in 1985 to provide financial support for community-based efforts to address child abuse and neglect. The Children's Trust Fund was made a state agency in 1991. The Trust Fund and its operating fund are part of the State Treasury and are funded by: $12.50 from each marriage license fee (Sec. 118.022, Local Government Code), grants from the Federal Prevention Grant Program of the National Center on Child Abuse, and from private contributions. PURPOSE C.S.H.B. 982 would require an annual schedule of transfers from the Trust Fund to the operating fund. The bill would allow the use of more funds for actual program, distributed via the operating fund, by allowing transfer of greater sums from the trust to the operating fund. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sec. 74.003, subsection (a), Human Resources Code to specify that transfers of trust fund money to the operating fund shall be made on an annual schedule. SECTION 2. Amends Sec. 74.005, subsection (a), Human Resources Code, to provide that, during any fiscal year, administrative costs may not exceed fifty percent of the interest credited in the preceding fiscal year. SECTION 3. Amends Sec. 74.006, subsection (c), Human Resources Code, to specify that in any fiscal year, the council may not transfer from the trust fund to the operating fund more money than was deposited to the credit of the fund in the previous fiscal year. This replaces the previous limit of fifty percent of the money that was in the trust on the first day of the fiscal year. Amends Sec. 74.006, subsection (d), to provide that interest earned on the trust fund shall be deposited to the credit of the trust fund. SECTION 4. Amends Sec. 74.007(b), Human Resources Code, to delete provisions requiring that after September 1, 1996, interest on the Trust Fund shall be deposited into the operating fund while any interest earned before September 1, 1996 is to remain in the trust fund. Provides that costs allowed under Sec. 74.005 shall be taken from the operating fund. SECTION 5. Amends Sec. 74.010(b), Human Resources Code, to allow the council to extend the time period of a grant beyond the three-year maximum if the council determines that circumstances require the extension. SECTION 6. Effective date: September 1, 1995. SECTION 10. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 982 requires an annual schedule of transfers from the Trust Fund to the operating fund and allows the use of up to fifty. The substitute would allow the use of more funds for actual program, distributed via the operating fund, by allowing transfer of greater sums from the trust to the operating fund. The original bill would also have allowed the council to provide grants for family support programs and for public education and awareness. The council would have been authorized to contract with any public or private person to carry out any council duties. The original bill would also have exempted the Children's Trust Fund and its operating fund from funds sweep and consolidation. SUMMARY OF COMMITTEE ACTION H.B. 982 was posted for consideration in public hearing on April 12, 1985. Representative McDonald laid out a proposed committee substitute. There was no public testimony on, for, or against the bill. H.B. 982 was referred to subcommittee. On May 8, 1995, the Chair called H.B. 982 up from subcommittee and the bill was considered in public hearing on that day. The Chair moved to lay out a committee substitute. There being no objection, the substitute was adopted. Jack Fields, Executive Director of the Children's Trust Fund testified on the bill. There was no testimony for or against the bill. The bill was left pending. The bill was considered in public meeting on May 8, 1995. Representative McDonald laid out a new committee substitute, which was adopted without objection. The motion to report the committee substitute favorably to the Committee on Calendars carried with a vote of 18 Ayes, 0 Nays, 0 PNV and 9 Absent.