BILL ANALYSIS



C.S.H.B. 3050
By: Junell
03-30-95
Committee Report (Substituted)


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.  In addition, Section 403.095,
Government Code, provides that dedicated revenues that, at the end
of a biennium, exceed the amount appropriated are available for
general governmental purposes.  This provision lists certain
exceptions to this sweep of funds.

PURPOSE

HB 3050 exempts certain accounts and funds from the funds
consolidation and funds sweep provisions of Sections 403.094 and
403.095 of the Government Code.

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. Recreates the listed funds and special accounts as
special accounts in the general revenue fund; exempts those
accounts from funds consolidation and funds sweep; and dedicates
revenue to purposes designated by law.

SECTION 2. Creates or re-creates the listed funds and special
accounts as special accounts in the general revenue fund; exempts
those accounts from funds dedication; and dedicates revenue to
purposes designated by law.

SECTION 3. Re-creates the state lease fund as a special account in
the general revenue fund; exempts the state lease fund from funds
consolidation; provides that the fund is to be used only for the
purposes designated by law; and provides for the balances in excess
of funds needed for debt service to be transferred to GR at the end
of each biennium.

SECTION 4. Creates or re-creates the listed funds as special funds
in the state treasury outside the general revenue fund; exempts the
special funds from funds consolidation; provides that the funds are
to be used only for the purposes designated by law.

SECTION 5. Creates or re-creates the listed funds as trust funds
in the state treasury outside the general revenue fund; exempts the
trust funds from funds consolidation; provides that the trust funds
are to be used only for the purposes designated by law.

SECTION 6. Creates the Water Development Board operating fund for
state revolving funds as a special fund outside the state treasury;
exempts the fund from funds consolidation; provides that the fund
may be used only for the purposes designated by law.

SECTION 7. Exempts the listed revenue from funds consolidation;
provides that the revenue may be used only for purposes designated
by law.

SECTION 8. Contingent upon passage of HB 2185, exempts revenue
collected as court costs and dedicated to the listed funds and
special accounts from funds consolidation; provides that the funds
and special accounts may be used only for the purposes designated
by law.

SECTION 9. Exempts revenue collected as maintenance tax imposed
under the Insurance Code and allocated for the operation of the
Department of Insurance from funds consolidation; provides revenue
may be used only for purposes designated by law.

SECTION 10.  Exempts bond proceeds authorized by the 74th
Legislature from funds consolidation and funds sweep.

SECTION 11.    Emergency clause.  Effective date:  upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

HB 3050 began as a shell bill which rededicated only the
compensation to victims of crime fund, the compensation to victims
of crime auxiliary fund, the state highway fund, the public
transportation fund, the traffic safety fund, the Texas highway
beautification, the aviation trust fund, the sexual assault program
fund, the children's trust fund and the Children's Trust Fund of
Texas Council operating fund.  The substitute includes
approximately 40 funds or accounts, which, with a few exceptions,
fall into a few policy guidelines:  funds consisting of gifts,
grants and donations; constitutionally or federally mandated funds;
trust funds; bond proceeds or loan guaranties; special funds
outside GR; and certain funds outside the treasury.  The substitute
recreates some accounts and exempts them from funds sweep; creates
new accounts which have no balances to be swept; re-creates the
state lease fund and provides for the fund to be swept at the end
of each biennium; creates special funds outside GR; creates or re-creates trust funds outside GR; creates a special fund outside the
treasury; and exempts certain revenue from loss of dedication.

SUMMARY OF COMMITTEE ACTION

HB 3050 was considered in a public hearing on April 5, 1995.  The
following person testified for the bill:  G.K. Sprinkle, TX
Association Against Sexual Assault.  The bill was referred to
subcommittee.  The bill was scheduled for a subcommittee public
hearing on April 11, 1995.  The meeting was cancelled.  The bill
was scheduled for a subcommittee public hearing on April 18, 1995. 
The meeting was cancelled.

HB 3050 was posted for consideration in a subcommittee public
hearing on April 25, 1995.  No action was taken on the bill, but
testimony was taken on the issue of dedicated funds.  The following
people testified on the issue:  Karey Barton and Lita Gonzalez,
Comptroller's Office; Laurel Kelly and Christine Taylor, Attorney
General's Office; Mary Boyd, Advisory Commission on State Emergency
Communications; Anne Schwartz and Lee Deviney, Public Finance
Authority; Dale Craymer, Governor's Office; Curtis Tunnell and Stan
Graves, Historical Commission; Elaine Powell, Incentive and
Productivity Commission; Dealey Herndon, State Preservation Board;
Janie Fields, Children's Trust Fund; and Phil Strickland for the
Children's Trust Fund.

The bill was posted for consideration again in a subcommittee
public hearing on April 27, 1995.  No action was taken on the bill,
but testimony was taken on the issue of dedicated funds.  The
following people testified on the issue:  Karey Barton, Lita
Gonzalez and Kathie Griswold, Comptroller's Office; Cassie Reed and
Frank Smith, Department of Transportation; Jayna Burgdorf, Parks
and Wildlife; Representative Saunders for Parks and Wildlife funds;
Representative Giddings for Higher Education Coordinating Board
funds; Glen Provost, Ron Mansolo, and Norma Nance, Department of
Health; G.K. Sprinkle, TX Association Against Sexual Assault for
the Department of Health;  Burton Raiford, Department of Human
Services; Michelle Willhelm and William Monroe, Central Education
Agency; Representative Pitts for Central Education Agency funds;
Sally Anderson, Department of Mental Health and Mental Retardation;
Martin Anisman and Gerald Williams, Sam Houston University.

The bill was considered in a subcommittee public hearing in the
morning of May 2, 1995.  The following people testified on the
bill:  Lita Gonzalez, Karey Barton and Kathie Griswold,
Comptroller's Office; Barry Williamson, Railroad Commission; John
Bell, Treasurer's Office; Don Brown and James McWhorter, Higher
Education Coordinating Board; James Butler, A&M University System;
Bill McCray, Department of Criminal Justice; Wayne Green,
Commission on Law Enforcement Officer Standards and Education; Tom
Haas, Department of Public Safety; John Franks, Texas Youth
Commission; Glenna Hastings, Department of Agriculture; Jeff Frank,
General Land Office; Steve Minick, Natural Resource Conservation
Commission; Craig Pederson, Water Development Board; Steve Hudson
and Michael West, Department of Commerce; Jim Hine, Employment
Commission; Parisrice Robinson and Natalie Sanchez, Department of
Housing and Community Affairs; Robert Rogers, Credit Union
Department.  The bill was left pending in subcommittee.

The bill was considered again in a public hearing in the evening of
May 2, 1995.  The following people testified on the bill:  Lita
Gonzalez and Karey Barton, Comptroller' Office; Leslie Pettijohn,
Office of Consumer Credit Union; Dick Strader, Cosmetology
Commission; Woody Pogue, Department of Insurance; Russ Oliver,
Workers' Compensation Commission; James Brush, Department of
Licensing and Regulation; John Speed, Board of Registration for
Professional Engineers; David Freeman and Suzy Beightler, Racing
Commission; Vickie Schubert.  The bill was left pending in
subcommittee.

The bill was scheduled for a subcommittee public hearing on May 4,
1995.  The meeting was cancelled.

In a full committee public hearing on May 6, 1995, the Chairman
called HB 3050 from subcommittee.  A committee substitute was
offered.  A committee amendment to the substitute was offered and
adopted to include the Alternative Fuels Research and Education
Fund Account to Section 1.  Six other committee amendments to the
substitute were offered and adopted to make clarifying changes; to
allow for the state lease fund to be swept at the end of each
biennium;  to rededicate revenue statutorily dedicated to the
Department of Insurance operating fund; to rededicate revenue
statutorily dedicated to the state highway fund; to rededicate
revenue statutorily dedicated to the Racing Commission for
operation and allocation; and to exempt new funds consisting of
bond proceeds from consolidation.  Staff was directed to roll the
amendments into the substitute.  The motion to report the complete
committee substitute favorably to the Local and Consent Calendar
carried with a vote of 23 Ayes, 0 Nays, 0 PNV and 4 Absent.