1-1                                   AN ACT
 1-2     relating to the creation and re-creation of funds and accounts in
 1-3     the state treasury, the dedication and rededication of  revenue,
 1-4     and the exemption of unappropriated money from use for general
 1-5     governmental purposes.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.  DEFINITION.  In this Act, "state agency" means an
 1-8     office, institution, or other agency that is in the executive
 1-9     branch of state government, has authority that is not limited to a
1-10     geographical portion of the state, and was created by the
1-11     constitution or a statute of this state.  The term does not include
1-12     an institution of higher education as defined by Section 61.003,
1-13     Education Code.
1-14           SECTION 2.  ABOLITION OF FUNDS, ACCOUNTS, AND DEDICATIONS.
1-15     Except as otherwise specifically provided by this Act, all funds
1-16     and accounts created or re-created in the state treasury by an Act
1-17     of the 77th Legislature, Regular Session, 2001, that becomes law,
1-18     and all dedications or rededications of revenue in the state
1-19     treasury or otherwise collected by a state agency for a particular
1-20     purpose by an Act of the 77th Legislature, Regular Session, 2001,
1-21     that becomes law, are abolished on the later of August 27, 2001, or
1-22     the date the Act creating or re-creating the fund or account or
1-23     dedicating or rededicating revenue takes effect.
1-24           SECTION 3.  PREVIOUSLY EXEMPT DEDICATIONS, FUNDS, AND
 2-1     ACCOUNTS.  Section 2 of this Act does not apply to:
 2-2                 (1)  statutory dedications, funds, and accounts that
 2-3     were enacted before the 77th Legislature convened to comply with
 2-4     requirements of state constitutional or federal law;
 2-5                 (2)  dedications, funds, or accounts that remained
 2-6     exempt from former Section 403.094(h), Government Code, at the time
 2-7     dedications, accounts, and funds were abolished under that
 2-8     provision;
 2-9                 (3)  increases in fees or in other revenue dedicated as
2-10     described by this section; or
2-11                 (4)  increases in fees or in other revenue required to
2-12     be deposited in a fund or account described by this section.
2-13           SECTION 4.  ACCOUNTS IN GENERAL REVENUE FUND.  Effective
2-14     August 27, 2001, the following accounts and the revenue deposited
2-15     to the credit of the accounts are exempt from Section 2 of this Act
2-16     and are created in the general revenue fund, if created or
2-17     re-created by an Act of the 77th Legislature, Regular Session,
2-18     2001, that becomes law:
2-19                 (1)  the fair campaign spending account created by
2-20     House Bill No. 2;
2-21                 (2)  the tertiary care account re-created by House Bill
2-22     No. 893;
2-23                 (3)  the permanent management facility decommissioning
2-24     account created by House Bill No. 3420 or Senate Bill No. 1541;
2-25                 (4)  the assured isolation conversion account created
2-26     by House Bill No. 3420 or Senate Bill No. 1541;
2-27                 (5)  the private sector prison industry expansion
 3-1     account created by House Bill No. 1617;
 3-2                 (6)  the volunteer fire department assistance fund
 3-3     created as an account by House Bill No. 2604;
 3-4                 (7)  the colonia self-help account created by Senate
 3-5     Bill No. 312;
 3-6                 (8)  the scholarship fund for architectural examination
 3-7     applicants re-created as an account by House Bill No. 1706;
 3-8                 (9)  the interagency water policy account created by
 3-9     House Bill No. 2912 or Senate Bill No. 2;
3-10                 (10)  the environmental testing laboratory
3-11     accreditation account created by House Bill No. 2912;
3-12                 (11)  any account created by Senate Bill No. 5 and not
3-13     otherwise listed in this Act, other than a trust account subject to
3-14     Section 8(a) of this Act;
3-15                 (12)  the Texas peace officer flag account created by
3-16     House Bill No. 815;
3-17                 (13)  the special account for administrative penalties
3-18     collected by the Department of Public Safety under Section
3-19     548.3065, Transportation Code, created by House Bill No. 2134;
3-20                 (14)  the governor for a day account created by House
3-21     Bill No. 2147;
3-22                 (15)  the speaker's reunion day account created by
3-23     House Bill No. 2147;
3-24                 (16)  the inaugural endowment fund created as an
3-25     account by House Bill No. 2439 or similar legislation;
3-26                 (17)  the rural volunteer fire department insurance
3-27     fund created as an account by House Bill No. 3667;
 4-1                 (18)  the water infrastructure fund created as an
 4-2     account by Senate Bill No. 2;
 4-3                 (19)  the rural water assistance fund created as an
 4-4     account by Senate Bill No. 2;
 4-5                 (20)  the interagency water advisory account created by
 4-6     Senate Bill No. 2;
 4-7                 (21)  the Texas emissions reduction plan fund created
 4-8     as an account by Senate Bill No. 5;
 4-9                 (22)  the environmental research fund created as an
4-10     account by Senate Bill No. 5;
4-11                 (23)  the dedicated account established as a successor
4-12     to the Texas Healthy Kids Fund by Senate Bill No. 236;
4-13                 (24)  the technology workforce development account
4-14     created by Senate Bill No. 353;
4-15                 (25)  the rural physician relief program account
4-16     created by Senate Bill No. 516;
4-17                 (26)  the smart jobs fund, if re-created as an account
4-18     by House Bill No. 3452 or Senate Bill No. 321;
4-19                 (27)  the child abuse and neglect prevention operating
4-20     fund account created by Senate Bill No. 1475;
4-21                 (28)  the child abuse and neglect prevention trust fund
4-22     account created by Senate Bill No. 1475;
4-23                 (29)  the floating cabins purchase account created by
4-24     Senate Bill No. 1573; and
4-25                 (30)  the mobile amusement ride regulation account
4-26     created by Senate Bill No. 1622.
4-27           SECTION 5.  FUNDS TO BECOME ACCOUNTS. Effective August 27,
 5-1     2001, the following funds in the state treasury or funds otherwise
 5-2     with the comptroller are re-created as accounts in the general
 5-3     revenue fund and the accounts and the revenue deposited to the
 5-4     credit of the accounts are exempt from Section 2 of this Act, if
 5-5     created or re-created by an Act of the 77th Legislature, Regular
 5-6     Session, 2001, that becomes law:
 5-7                 (1)  the rural water assistance fund created by House
 5-8     Bill No. 622;
 5-9                 (2)  the work and family policies fund re-created by
5-10     House Bill No. 761 or Senate Bill No. 1586;
5-11                 (3)  the owner-builder revolving loan fund created by
5-12     Senate Bill No. 322;
5-13                 (4)  the colonia model subdivision revolving loan fund
5-14     created by Senate Bill No. 322;
5-15                 (5)  any fund created by Senate Bill No. 5 and not
5-16     otherwise listed in this Act, other than a trust fund subject to
5-17     Section 8(a) of this Act;
5-18                 (6)  the smart jobs fund, if re-created as a fund by
5-19     House Bill No. 3452 or Senate Bill No. 321;
5-20                 (7)  the gas utility service assistance trust fund
5-21     created by Senate Bill No. 310 or similar legislation;
5-22                 (8)  the barber school tuition protection account
5-23     created as a trust fund with the comptroller by Senate Bill No.
5-24     660;
5-25                 (9)  the spaceport trust fund created by Senate Bill
5-26     No. 813;
5-27                 (10)  the quality assurance fund created by Senate Bill
 6-1     No. 1839; and
 6-2                 (11)  the stabilization reserve fund re-created by
 6-3     Senate Bill No. 1839.
 6-4           SECTION 6.  REVENUE DEDICATION. Effective August 27, 2001,
 6-5     the following dedication of revenue collected by a state agency for
 6-6     a particular purpose is exempt from Section 2 of this Act, if
 6-7     dedicated by an Act of the 77th Legislature, Regular Session, 2001,
 6-8     that becomes law:
 6-9                 (1)  the dedication of revenue by House Bill No. 335
6-10     for a Department of Public Safety historical museum and research
6-11     center;
6-12                 (2)  the reinstatement fee revenue dedicated to the
6-13     state highway fund by Senate Bill No. 1329;
6-14                 (3)  the ferry sticker fee revenue dedicated to the
6-15     state highway fund by Senate Bill No. 1109;
6-16                 (4)  the dedication of revenue by Senate Bill No. 736
6-17     for the self-directed semi-independent agency pilot project;
6-18                 (5)  all revenue dedicated to the Texas Mobility Fund
6-19     by Senate Bill No. 4, Senate Bill No. 342, or similar legislation;
6-20                 (6)  all revenue dedicated to the abandoned rail
6-21     account in the state highway fund by Senate Bill No. 406;
6-22                 (7)  all revenue dedicated to the "Go Texan" partner
6-23     program account by Senate Bill No. 571; and
6-24                 (8)  the revenue from administrative fees and discount
6-25     and service charges dedicated by Senate Bill No. 487, relating to
6-26     bid guaranties, to the state highway fund.
6-27           SECTION 7.  FEDERAL FUNDS.  Section 2 of this Act does not
 7-1     apply to funds created pursuant to an Act of the 77th Legislature,
 7-2     Regular Session, 2001, for which separate accounting is required by
 7-3     federal law, except that the funds shall be deposited in accounts
 7-4     in the general revenue fund unless otherwise required by federal
 7-5     law.
 7-6           SECTION 8.  TRUST FUNDS.  (a)  Section 2 of this Act does not
 7-7     apply to trust funds or dedicated revenue deposited to trust funds
 7-8     created under an Act of the 77th Legislature, Regular Session,
 7-9     2001, except that the trust funds shall be held in the state
7-10     treasury, with the comptroller in trust, or outside the state
7-11     treasury with the comptroller's approval.
7-12           (b)  Section 2 of this Act does not apply to the capital
7-13     renewal trust fund created by House Bill No. 2796 or to revenue
7-14     deposited to the credit of the fund.  Notwithstanding Subsection
7-15     (a) of this section, the fund is a trust fund outside the treasury
7-16     with the comptroller in accordance with the provisions of House
7-17     Bill No. 2796, without regard to whether the comptroller approves
7-18     of the creation of the fund outside the treasury.
7-19           (c)  Notwithstanding Subsection (a) of this section, Section
7-20     2 of this Act applies to the smart jobs rainy day fund created or
7-21     re-created as a trust fund by House Bill No. 3452 or Senate Bill
7-22     No. 321 and to revenue dedicated to the fund.
7-23           (d)  Notwithstanding Subsection (a) of this section, Section
7-24     2 of this Act applies to the community health center revolving loan
7-25     fund created by House Bill No. 2574 and to revenue dedicated to the
7-26     fund.
7-27           SECTION 9.  PAN AMERICAN GAMES TRUST FUND. The comptroller
 8-1     shall undertake to accomplish the duties assigned by Section 4,
 8-2     Chapter 1507, Acts of the 76th Legislature, Regular Session, 1999,
 8-3     as if the Pan American Games trust fund and the dedication of
 8-4     revenue for the purposes of that fund were not abolished by
 8-5     operation of Sections 2 and 9, Chapter 1045, Acts of the 76th
 8-6     Legislature, Regular Session, 1999.  The Pan American Games trust
 8-7     fund is re-created by this Act.  Revenue dedicated by Chapter 1507,
 8-8     Acts of the 76th Legislature, Regular Session, 1999, is rededicated
 8-9     by this Act for the same purposes.  Section 2 of this Act does not
8-10     apply to the fund or to revenue dedicated to the fund.
8-11           SECTION 10.  TELECOMMUNICATIONS INFRASTRUCTURE FUND. (a)
8-12     Section 57.043(a), Utilities Code, is amended to read as follows:
8-13           (a)  The telecommunications infrastructure fund is  an
8-14     account in the general revenue fund.  The telecommunications
8-15     infrastructure fund account is composed of the public schools
8-16     account and the qualifying entities account. Section 403.095,
8-17     Government Code, does not apply to the telecommunications
8-18     infrastructure fund account or to the accounts that compose the
8-19     fund account.
8-20           (b)  Effective August 27, 2001, the telecommunications
8-21     infrastructure fund is re-created as an account in the general
8-22     revenue fund, and the account and the revenue deposited to the
8-23     credit of the account are exempt from Section 2 of this Act.
8-24           SECTION 11.  BOND FUNDS.  Section 2 of this Act does not
8-25     apply to bond funds and pledged funds created or affected by an Act
8-26     of the 77th Legislature, Regular Session, 2001, except that the
8-27     funds shall be held in the state treasury, with the comptroller in
 9-1     trust, or outside the state treasury with the comptroller's
 9-2     approval.
 9-3           SECTION 12.  CONSTITUTIONAL FUNDS.  Section 2 of this Act
 9-4     does not apply to funds or accounts that would be created or
 9-5     re-created in the Texas Constitution or revenue that would be
 9-6     dedicated or rededicated by the Texas Constitution  under
 9-7     constitutional amendments proposed by the 77th Legislature, Regular
 9-8     Session, 2001, or to dedicated revenue deposited to funds or
 9-9     accounts that would be so created or re-created.
9-10           SECTION 13.  SEPARATE FUNDS IN THE TREASURY. Effective August
9-11     27, 2001, the following funds in the state treasury and the revenue
9-12     deposited to the credit of the funds are exempt from Section 2 of
9-13     this Act and are created as separate funds in the state treasury,
9-14     if created by an Act of the 77th Legislature, Regular Session,
9-15     2001, that becomes law:
9-16                 (1)  the permanent fund for veterans' care created by
9-17     House Bill No. 515 or Senate Bill No. 976; and
9-18                 (2)  the permanent endowment fund for the rural
9-19     communities health care investment program created by Senate Bill
9-20     No. 126.
9-21           SECTION 14.  YOUNG FARMER LOAN GUARANTEE ACCOUNT. (a)  The
9-22     young farmer loan guarantee account in the Texas agricultural fund
9-23     is re-created by this Act.  Revenue dedicated for deposit to the
9-24     credit of the account under Section 58.057, Agriculture Code, or
9-25     Section 502.174, Transportation Code, is rededicated by this Act
9-26     for deposit to the credit of the account.  Section 2 of this Act
9-27     does not apply to the account or to revenue dedicated to the
 10-1    account.
 10-2          (b)  Revenue received after the effective date of this Act
 10-3    that is dedicated to the account shall be deposited to the credit
 10-4    of the account, except that grants and donations made for the
 10-5    purposes of the young farmer loan guarantee program shall be
 10-6    deposited to the credit of the account without regard to when the
 10-7    grant or donation was made.
 10-8          (c)  Any unexpended interest that accrues to the credit of
 10-9    any successor account to the young farmer loan guarantee account in
10-10    the general revenue fund, established by the comptroller in
10-11    response to Chapter 1045, Acts of the 76th Legislature, Regular
10-12    Session, 1999, shall be transferred to the credit of the Texas
10-13    agricultural fund at the end of each fiscal year.
10-14          SECTION 15.  COURT COSTS.  Effective August 27, 2001, revenue
10-15    consisting of court costs authorized by an Act of the 77th
10-16    Legislature, Regular Session, 2001, that becomes law is exempt from
10-17    Section 2 of this Act.
10-18          SECTION 16.  LICENSE PLATE FEES. Effective August 27, 2001,
10-19    revenue consisting of fees collected from the sale of motor vehicle
10-20    license plates that are authorized by an Act of the 77th
10-21    Legislature, Regular Session, 2001, that becomes law is exempt from
10-22    Section 2 of this Act.
10-23          SECTION 17.  AMENDMENT.  Effective September 1, 2001,
10-24    Sections 403.095(b), (d), and (e), Government Code, are amended to
10-25    read as follows:
10-26          (b)  Notwithstanding any law dedicating or setting aside
10-27    revenue for a particular purpose or entity, dedicated revenues
 11-1    that, on August 31, 2003 [2001], are estimated to exceed the amount
 11-2    appropriated by the General Appropriations Act or other laws
 11-3    enacted by the 77th [76th] Legislature are available for general
 11-4    governmental purposes and are considered available for the purpose
 11-5    of certification under Section 403.121.
 11-6          (d)  Following certification of the General Appropriations
 11-7    Act and other appropriations measures enacted by the 77th [76th]
 11-8    Legislature, the comptroller shall reduce each dedicated account as
 11-9    directed by the legislature by an amount that may not exceed the
11-10    amount by which estimated revenues and unobligated balances exceed
11-11    appropriations.  The reductions may be made in the amounts and at
11-12    the times necessary for cash flow considerations to allow all the
11-13    dedicated accounts to maintain adequate cash balances to transact
11-14    routine business.  The legislature may authorize, in the General
11-15    Appropriations Act, the temporary delay of the excess balance
11-16    reduction required under this subsection. This subsection does not
11-17    apply to revenues or balances in:
11-18                (1)  funds outside the treasury;
11-19                (2)  trust funds, which for purposes of this section
11-20    include funds that may or are required to be used in whole or in
11-21    part for the acquisition, development, construction, or maintenance
11-22    of state and local government infrastructures, recreational
11-23    facilities, or natural resource conservation facilities;
11-24                (3)  funds created by the constitution or a court; or
11-25                (4)  funds for which separate accounting is required by
11-26    federal law.
11-27          (e)  This section expires on September 1, 2003 [2001].
 12-1          SECTION 18.  FUNDS OUTSIDE THE TREASURY. Section 2 of this
 12-2    Act does not apply to the following funds outside the treasury or
 12-3    to the dedicated revenue deposited to the credit of the funds, if
 12-4    created by an Act of the 77th Legislature, Regular Session, 2001,
 12-5    that becomes law:
 12-6                (1)  the Department of Public Safety Historical Museum
 12-7    and Research Center account created by House Bill No. 335;
 12-8                (2)  the Texas excellence fund created by House Bill
 12-9    No. 1839; and
12-10                (3)  the university research fund created by House Bill
12-11    No. 1839.
12-12          SECTION 19.  SYSTEM BENEFIT FUND. (a)  Sections 39.903(a) and
12-13    (e), Utilities Code, are amended to read as follows:
12-14          (a)  The system benefit fund is created as a trust fund with
12-15    the comptroller in the state treasury [and shall be administered by
12-16    the commission as trustee on behalf of the recipients of money from
12-17    the fund].
12-18          (e)  Money in the [The] system benefit fund may be
12-19    appropriated to [shall] provide funding solely for the following
12-20    regulatory purposes:
12-21                (1)  programs to assist low-income electric customers
12-22    provided by Subsections (f)-(l);
12-23                (2)  customer education programs; and
12-24                (3)  the school funding loss mechanism provided by
12-25    Section 39.901.
12-26          (b)  The system benefit fund is re-created by this Act as a
12-27    trust fund with the comptroller in the state treasury.  Section 2
 13-1    of this Act does not apply to the fund or to revenue dedicated to
 13-2    the fund.
 13-3          SECTION 20.  HOLDING FUND. (a)  Section 204.122, Labor Code,
 13-4    is amended to read as follows:
 13-5          Sec. 204.122.  HOLDING FUND. (a)  The holding fund is a
 13-6    dedicated account in the general revenue fund [special trust fund
 13-7    in the custody of the comptroller separate and apart from all
 13-8    public money or funds of this state].
 13-9          (b)  The comptroller shall administer the holding fund in
13-10    accordance with the directions of the commission, subject to
13-11    legislative appropriations of money in the fund.  Interest accruing
13-12    on amounts in the holding fund shall be deposited quarterly to the
13-13    credit of the compensation fund.
13-14          (b)  Effective August 27, 2001, the holding fund is
13-15    re-created as an account in the general revenue fund, and the
13-16    account and the revenue deposited to the credit of the account are
13-17    exempt from Section 2 of this Act.
13-18          SECTION 21.  EFFECT OF ACT.  (a)  This Act prevails over any
13-19    other Act of the 77th Legislature, Regular Session, 2001,
13-20    regardless of the relative dates of enactment, that purports to
13-21    create or re-create a special fund or account in the state treasury
13-22    or to dedicate or rededicate revenue to a particular purpose,
13-23    including any fund, account, or revenue dedication abolished under
13-24    former Section 403.094, Government Code.
13-25          (b)  Revenues that, under the terms of another Act of the
13-26    77th Legislature, Regular Session, 2001, would be deposited to the
13-27    credit of a special account or fund shall be deposited to the
 14-1    credit of the unobligated portion of the general revenue fund,
 14-2    unless the fund, account, or dedication is exempted under this Act.
 14-3          SECTION 22.  EFFECTIVE DATE. This Act takes effect
 14-4    immediately if it receives a vote of two-thirds of all the members
 14-5    elected to each house, as provided by Section 39, Article III,
 14-6    Texas Constitution.  If this Act does not receive the vote
 14-7    necessary for immediate effect, this Act takes effect on the 91st
 14-8    day after the last day of the legislative session.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3088 was passed by the House on May
         10, 2001, by the following vote:  Yeas 131, Nays 2, 3 present, not
         voting; and that the House concurred in Senate amendments to H.B.
         No. 3088 on May 25, 2001, by the following vote:  Yeas 114, Nays 0,
         1 present, not voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3088 was passed by the Senate, with
         amendments, on May 22, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor