BILL ANALYSIS


                                                     C.S.S.B. 767
                                                     By: Montford
                                                          Finance
                                                         05-10-95
                                   Committee Report (Substituted)
BACKGROUND

The 74th Legislature created the Cultural Endowment Fund in order
for the Texas Commission on the Arts to use the earnings from the
endowment fund as a source of funds for the commission's programs
and administrative expenses rather than relying on general revenue
appropriations.  The fund is designed to have a balance of at least
$200 million, composed of state appropriations and private
donations.  The Joint Interim Committee on the Texas Cultural
Endowment Fund recommended an allocation be created for the fund to
act as a stable source of funding for annual allocations.

PURPOSE

As proposed, C.S.S.B. 767 requires an amount equal to the amount of
revenue derived from the collection of certain sales and tax
revenue to be deposited to the credit of the Texas cultural
endowment fund.

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. Amends Section 151.801, Tax Code, as follows: 
 
          (a)  Requires all proceeds from the collection of the taxes
     imposed by Chapter 151, except for the amounts allocated under
     Subsections (b), (c), and (d), to be deposited to the credit
     of the general revenue fund.
     
     (d)  Requires an amount equal to the amount of revenue derived
     from the collection of taxes  imposed by this chapter at the
     rate of one percent on the sale, storage, or use of cultural
     services and related tangible personal property to deposited
     to the credit of the Texas cultural endowment fund (fund)
     established under Section 444.026, Government Code.  Prohibits
     the comptroller from crediting in excess of $2 million in
     cultural services and related tangible personal property tax
     revenue annually to the fund.  Provides that this subsection
     expires on the earlier of September 1, 2005, or the date on
     which the Texas cultural endowment fund has a balance of $200
     million.  Provides that Section 403.094(h), Government Code,
     does not apply to the funds described by this subsection.
     
     (e)  Requires the comptroller to certify the amounts to be
     deposited to the Texas cultural endowment fund under
     Subsection (d) to the treasurer according to available
     statistical data indicating the estimated or actual total
     receipts in this state from taxable sales of cultural services
     and related tangible personal property.  Makes conforming
     changes.
     
     (f)(3)  Defines "cultural services and related tangible
     personal property."
       SECTION 2.   Effective date:  September 1, 1995.

SECTION 3. Emergency clause.