BILL ANALYSIS


                                                    C.S.H.B. 3050
                                            By: Junell (Montford)
                                                          Finance
                                                         05-23-95
                            Senate 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 of the 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 of the
Government Code provides that dedicated revenues, at the end of a
biennium, exceed the amount appropriated are available for general
governmental purposes.

PURPOSE

As proposed, C.S.H.B. 3050 lists accounts and funds exempted from
consolidation or use for general governmental purposes; provides
for the re-creation of certain consolidated funds and dedication of
revenue.
 
RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Sets forth funds and special accounts in the state
treasury that are exempt from Sections 403.094 and 403.095,
Government Code, and are re-created as special accounts in the
general revenue fund to be assigned only for purposes designated by
law, effective August 30, 1995.

SECTION 2. Sets forth funds and special accounts in the state
treasury that are exempt from Section 403.095, Government Code, and
are created or re-created, as appropriate, as special accounts in
the general revenue fund to be used only for purposes designated by
law, effective September 1, 1995.

SECTION 3. Provides that the state lease fund in the state treasury
is exempt from Section 403.094, Government Code, and is re-created
as a special account in the general revenue fund to be used only
for purposes designated by law, effective September 1, 1995. 
Requires any unencumbered balances in the state lease fund in
excess of amounts needed for debt service to be transferred to the
credit of the general revenue fund at the end of each biennium.

SECTION 4. Sets forth funds that are exempt from Section 403.094,
Government Code, and are created or re-created, as appropriate, as
special funds in the state treasury outside the general revenue
fund to be used only for purposes designated by law, effective
September 1, 1995.

SECTION 5. Sets forth funds that are exempt from Section 403.094,
Government Code, and are created or re-created, as appropriate, as
special funds in the state treasury outside the general revenue
fund to be used only for purposes designated by law, effective
September 1, 1995.

SECTION 6. Provides that the Water Development Board operating fund
for state revolving funds is created as a special fund outside the
state treasury to be used only for the purpose designated by law,
effective September 1, 1995.

SECTION 7. Sets forth revenue that is exempt from Section 403.094,
Government Code, and may be used only for purposes designated by
law, effective August 30, 1995.

SECTION 8. Provides that effective August 30, 1995, if H.B. 2185,
Acts of the 74th Legislature, Regular Session, 1995, is enacted and
becomes law, revenue collected as court costs and dedicated to
certain funds and special accounts is exempt from Section 403.094,
Government Code, and may be used for the purposes designated by
law.

SECTION 9. Provides that effective August 30, 1995, revenue
collected as a maintenance tax imposed under the Insurance Code and
allocated for the operation of the Department of Insurance is
exempt from Section 403.094, Government Code, and may be used only
for the purposes designated by law.

SECTION 10.    Provides that effective August 30, 1995, bond
proceeds from bonds authorized by or as provided by the 74th
Legislature, Regular Session, 1995, are exempt from Sections
403.094 and 403.095, Government Code.

SECTION 11.    Provides that effective August 30, 1995, revenue in
excess of 1994 levels, as determined by the comptroller, from the
Safe Drinking Water Act fee deposited in account 524 is exempt from
Section 403.094, Government Code, and may be used only for the
purpose of financing the Texas Department of Health's (department)
laboratory facility.

SECTION 12.    Provides that effective August 30, 1995, revenue in
excess of 1994 levels, as determined by the comptroller, from the
early and periodic screening, diagnosis, and treatment fee
deposited in account 273 is exempt from Section 403.094, Government
Code, and may be used only for the purpose of financing the
department's laboratory facility.

SECTION 13.    Provides that effective September 1, 1995, revenue
collected as fees by the attorney general under Article 9023d,
V.T.C.S., may be used only for the purposes designated by that
article.

SECTION 14.    Repealer:  Effective August 30, 1995, Section
40.151(c), Natural Resources Code (Investment of the veteran's land
fund).

SECTION 15.    Amends Section 40.155, Natural Resources Code,
effective August 30, 1995, to make conforming changes.

SECTION 16.    Provides that this Act prevails over any other Act
of the 74th Legislature, Regular Session, regardless of the
relative dates of enactment, that purports to create or re-create
a special fund or account in or outside of the general revenue fund
or to dedicate or rededicate revenue to a particular purpose,
including any fund or revenue dedication abolished under Section
403.094, Government Code.  Provides that the creation of a special
fund or account or the dedication of revenue in such an Act is of
no force or effect unless the fund is created or the revenue is
dedicated or rededicated by this Act.  Provides that revenues that,
under the terms of such an Act, would be deposited to the credit of
a special fund or account shall be deposited to the credit of the
unobligated portion of the general revenue fund.

SECTION 17.    Repealer:  Effective September 1, 1995, Section
403.094, Government Code (Consolidation of Funds; Abolition of
Dedications).

SECTION 18.    Reenacts and amends Section 403.095, Government
Code, effective September 1, 1995, as follows:

     (a)  Makes conforming changes.
     
     (b)  Requires the comptroller to develop accounting and
     revenue estimating procedures so that each dedicated account
     maintained in the general revenue fund can be separately
     identified as to balances of cash and other assets and the
     amounts of revenue and expenditures and appropriations for
     each fiscal year.  Requires the comptroller to reduce each
     dedicated account by the amount by which estimated revenues
     and unobligated balances exceed appropriations following
     certification of the General Appropriations Act  and other
     measures.  Authorizes the reductions to be made in the amounts
     and at the times necessary so that cash flow considerations
     allow all the dedicated accounts to maintain adequate cash
     balances to transact routine business.  Authorizes the
     legislature to authorize, in the General Appropriations Act,
     the temporary delay of the excess of the balance reduction
     required for accounts under this subsection that exceed the
     amount appropriated for the dedicated purposes.
     
     (c)  Provides that the availability of revenues for general
     governmental purposes conferred by Subsection (b) expires on
     September 1, 1997, rather than the first day of the subsequent
     biennium.
     
SECTION 19.    Emergency clause.
           Effective date: upon passage.