1-1     By:  Turner of Harris (Senate Sponsor - Ratliff)      H.B. No. 2948

 1-2           (In the Senate - Received from the House May 16, 1997;

 1-3     May 16, 1997, read first time and referred to Committee on Finance;

 1-4     May 18, 1997, reported favorably by the following vote:  Yeas 13,

 1-5     Nays 0; May 18, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the creation and re-creation of funds and accounts in

 1-9     the state treasury, the dedication and rededication of revenue, and

1-10     the exemption of unappropriated money from use for general

1-11     governmental purposes.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  ABOLITION OF FUNDS, ACCOUNTS, AND DEDICATIONS.

1-14     Except as otherwise specifically provided by this Act, all funds

1-15     and accounts created or re-created in the state treasury by an Act

1-16     of the 75th Legislature, Regular Session, 1997, that becomes law,

1-17     and all dedications or rededications of revenue in the state

1-18     treasury or otherwise collected by a state agency for a particular

1-19     purpose by an Act of the 75th Legislature, Regular Session, 1997,

1-20     that becomes law, are abolished on the later of August 30, 1997, or

1-21     the date the Act creating or re-creating the fund or account or

1-22     dedicating or rededicating revenue takes effect.

1-23           SECTION 2.  PREVIOUSLY EXEMPT DEDICATIONS, FUNDS, AND

1-24     ACCOUNTS.  Section 1 of this Act does not apply to statutory

1-25     dedications, funds, and accounts that were enacted before the 75th

1-26     Legislature convened to comply with requirements of state

1-27     constitutional or federal law or to dedications, funds, or accounts

1-28     that remained exempt from former Section 403.094(h), Government

1-29     Code, at the time dedications, accounts, and funds were abolished

1-30     under that provision.

1-31           SECTION 3.  ACCOUNTS IN GENERAL REVENUE FUND.  Effective

1-32     August 30, 1997, the following accounts in the general revenue

1-33     fund, if created by an Act of the 75th Legislature, Regular

1-34     Session, 1997, that becomes law, are exempt from Section 1 of this

1-35     Act and Section 403.095, Government Code:

1-36                 (1)  the capital access fund account created by Senate

1-37     Bill No. 266 or House Bill No. 618; and

1-38                 (2)  the account containing fees for maintaining a real

1-39     estate license on inactive status created by House Bill No. 1346.

1-40           SECTION 4.  OTHER FUNDS IN TREASURY.  Effective August 30,

1-41     1997, the following funds in the state treasury, if created by an

1-42     Act of the 75th Legislature, Regular Session, 1997, that becomes

1-43     law, are exempt from Section 1 of this Act and Section 403.095,

1-44     Government Code:

1-45                 (1)  the groundwater district loan assistance fund

1-46     created by Senate Bill No. 1 or House Bill No. 5;

1-47                 (2)  the Texas water development fund II, including all

1-48     accounts in the fund,  created by Senate Bill No. 1 or House Bill

1-49     No. 5; and

1-50                 (3)  the safe drinking water revolving fund created by

1-51     Senate Bill No. 1 or House Bill No. 5.

1-52           SECTION 5.  CERTAIN FEE REVENUE.  Effective August 30, 1997,

1-53     revenue consisting of fees collected under Section 5(m), The Real

1-54     Estate License Act (Article 6573a, Vernon's Texas Civil Statutes),

1-55     if rededicated by an Act of the 75th Legislature, Regular Session,

1-56     1997, that becomes law, including House Bill No. 2539 or Senate

1-57     Bill No. 1497, is exempt from Section 1 of this Act and Section

1-58     403.095, Government Code.

1-59           SECTION 6.  FEDERAL FUNDS.  Section 1 of this Act does not

1-60     apply to funds created pursuant to an Act of the 75th Legislature,

1-61     Regular Session, 1997, for which separate accounting is required by

1-62     federal law, except that the funds shall be deposited in accounts

1-63     in the general revenue fund unless otherwise required by federal

1-64     law.

 2-1           SECTION 7.  TRUST FUNDS.  Section 1 of this Act does not

 2-2     apply to trust funds or dedicated revenue deposited to trust funds

 2-3     created under an Act of the 75th Legislature, Regular Session,

 2-4     1997, except that the trust funds shall be held in the state

 2-5     treasury, with the comptroller in trust, or outside the state

 2-6     treasury with the comptroller's approval.

 2-7           SECTION 8.  BOND FUNDS.  Section 1 of this Act does not apply

 2-8     to bond funds and pledged funds created or affected by an Act of

 2-9     the 75th Legislature, Regular Session, 1997, except that the funds

2-10     shall be held in the state treasury, with the comptroller in trust,

2-11     or outside the state treasury with the comptroller's approval.

2-12     Funds created or affected include bond and pledged funds or

2-13     accounts created or affected by the following, if enacted by the

2-14     75th Legislature, Regular Session, 1997, by an Act that becomes

2-15     law:

2-16                 (1)  revenue bond funds in Senate Bill No. 1060;

2-17                 (2)  revenue bonds in Senate Bill No. 370; and

2-18                 (3)  revenue bond accounts in House Bill No. 3189.

2-19           SECTION 9.  CONSTITUTIONAL FUNDS.  Section 1 of this Act does

2-20     not apply to funds or accounts that would be created or re-created

2-21     in the Texas Constitution or revenue that would be dedicated or

2-22     rededicated by the Texas Constitution  under constitutional

2-23     amendments proposed by the 75th Legislature, Regular Session, 1997,

2-24     or to dedicated revenue deposited to funds or accounts that would

2-25     be so created or re-created.  Funds, accounts, and revenue exempted

2-26     under this section include the following:

2-27                 (1)  the Texas tomorrow fund in House Joint Resolution

2-28     No. 8, Senate Joint Resolution No. 27, House Bill No. 9, or similar

2-29     legislation;

2-30                 (2)  the crime victims compensation fund and the crime

2-31     victims auxiliary fund in Senate Joint Resolution No. 33, House

2-32     Joint Resolution No. 1, House Bill No. 3062, or similar

2-33     legislation;

2-34                 (3)  lottery and property tax revenue in House Joint

2-35     Resolution No. 4 or House Bill No. 4;

2-36                 (4)  the Texas growth fund II in House Bill No. 138 or

2-37     similar legislation; and

2-38                 (5)  the Texas water development fund II in Senate

2-39     Joint Resolution No. 17 or similar legislation.

2-40           SECTION 10.  AMENDMENT.  Effective September 1, 1997,

2-41     Sections 403.095(b) and (c), Government Code, are amended to read

2-42     as follows:

2-43           (b)  Notwithstanding any law dedicating or setting aside

2-44     revenue for a particular purpose or entity, dedicated revenues

2-45     that, on August 31, 1999 [1997], exceed the amount appropriated are

2-46     available for general governmental purposes.  The comptroller shall

2-47     develop accounting and revenue estimating procedures so that each

2-48     dedicated account maintained in the general revenue fund can be

2-49     separately identified as to balances of cash and other assets and

2-50     the amounts of revenues and expenditures and appropriations for

2-51     each fiscal year.  Following certification of the General

2-52     Appropriations Act and other appropriations measures, the

2-53     comptroller shall reduce each dedicated account by the amount by

2-54     which estimated revenues and unobligated balances exceed

2-55     appropriations.  The reductions may be made in the amounts and at

2-56     the times necessary so that cash flow considerations allow all the

2-57     dedicated accounts to maintain adequate cash balances to transact

2-58     routine business.  The legislature may authorize, in the General

2-59     Appropriations Act, the temporary delay of the excess balance

2-60     reduction required for accounts under this subsection that exceed

2-61     the amount appropriated for the dedicated purposes.  This

2-62     subsection does not apply to revenues in:

2-63                 (1)  funds outside the treasury;

2-64                 (2)  trust funds, which for purposes of this section

2-65     include funds that may or are required to be used in whole or in

2-66     part for the acquisition, development, construction, or maintenance

2-67     of state and local government infrastructures, recreational

2-68     facilities, or natural resource conservation facilities;

2-69                 (3)  funds created by the constitution or a court; or

 3-1                 (4)  funds for which separate accounting is required by

 3-2     federal law.

 3-3           (c)  The availability of revenues for general governmental

 3-4     purposes conferred by Subsection (b) expires on September 1, 1999

 3-5     [1997].

 3-6           SECTION 11.  AMENDMENT.  The heading to and Subsection (a)

 3-7     of Section 2201.003, Government Code, are amended to read as

 3-8     follows:

 3-9           Sec. 2201.003.  TRANSFERS FROM CAPITAL TRUST [RELATION TO

3-10     GENERAL REVENUE] FUND.  (a)  Interest earned by [Income from] the

3-11     fund shall be deposited to the credit of the housing trust [general

3-12     revenue] fund.

3-13           SECTION 12.  EFFECT OF ACT.  This Act prevails over any other

3-14     Act of the 75th Legislature, Regular Session, 1997, regardless of

3-15     the relative dates of enactment, that purports to create or

3-16     re-create a special fund or account in the state treasury or to

3-17     dedicate or rededicate revenue to a particular purpose, including

3-18     any fund, account, or revenue dedication abolished under former

3-19     Section 403.094, Government Code.  Revenues that, under the terms

3-20     of another Act of the 75th Legislature, Regular Session, 1997,

3-21     would be deposited to the credit of a special account or fund shall

3-22     be deposited to the credit of the unobligated portion of the

3-23     general revenue fund, unless the fund, account, or dedication is

3-24     exempted under this Act.

3-25           SECTION 13.  EMERGENCY.  The importance of this legislation

3-26     and the crowded condition of the calendars in both houses create an

3-27     emergency and an imperative public necessity that the

3-28     constitutional rule requiring bills to be read on three several

3-29     days in each house be suspended, and this rule is hereby suspended,

3-30     and that this Act take effect and be in force from and after its

3-31     passage, and it is so enacted.

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