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.