BILL ANALYSIS



H.B. 1277
By: Turner of Harris
05-08-95
Committee Report (Unamended)


BACKGROUND

Historically, dedications of revenue for particular purposes have
limited the Legislature's flexibility in appropriating funds based
on budgetary need and in utilizing the balances for other
governmental purposes.  In response to these concerns, the 72nd
Legislature enacted Section 403.094, Government Code, which
consolidated funds in existence before August 31, 1993, and
abolished dedications in existence prior to August 31, 1995, unless
otherwise expressly exempted.  To date, 281 funds have been
consolidated and become general revenue accounts.  87 consolidated
accounts were exempted by the 73rd Legislature from loss of
dedication.  

The 72nd Legislature (Government Code, 403.096) also established a
Funds Review Advisory Committee, consisting of the following
members or their designates: the governor, the comptroller, the
state treasurer, the state auditor, and the director of the
Legislative Budget Board.  This committee was charged with
presenting reports on existing funds, accounts, and dedicated
revenue and to recommend to the legislature elimination or
consolidation of such items.  The scope of the committee's
consideration has been limited to statutory funds and dedications. 



PURPOSE

To require the Funds Review Advisory Committee to review all
constitutionally dedicated funds and make recommendations to the
75th Legislature about the status of such funds.


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. Section 403.096, Government Code is amended by the
addition of Subsection (j) directing the Funds Review Advisory
Committee to review all constitutionally dedicated funds for the
75th Legislature.  The Committee's report is due on or before
November 1, 1996, and shall include recommendations on whether such
funds should be altered or abolished and information to assist the
legislature in making that determination.  This subsection expires
on September 1, 1997.  

SECTION 2. Emergency Clause.  This Act is effective upon passage.


SUMMARY OF COMMITTEE ACTION

On April 5, 1995, the Appropriations Committee convened in a public
hearing and the Chair recognized Rep. Turner to lay out H.B. 1277. 
No one testified for, on or against H.B. 1277.  The bill was
referred to subcommittee.  

H.B. 1277 was scheduled for a public hearing in subcommittee on
April 11, 1995.  No action was taken in subcommittee.  


On May 8, 1995, the Chair recalled H.B. 1277 from subcommittee and
recognized Rep. Johnson to explain the bill.  Rep. Gray moved that
H.B. 1277 do pass and be reported to the Committee on Local and
Consent Calendars.  The motion passed with a vote of 16 Ayes, 0
Nayes, 0 PNV, 11 Absent.