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.