1-1     By:  Turner of Harris (Senate Sponsor - Ellis)        H.B. No. 3088
 1-2           (In the Senate - Received from the House May 11, 2001;
 1-3     May 11, 2001, read first time and referred to Committee on Finance;
 1-4     May 11, 2001, reported favorably by the following vote:  Yeas 9,
 1-5     Nays 0; May 11, 2001, 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,
1-10     and 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.  DEFINITION.  In this Act, "state agency" means an
1-14     office, institution, or other agency that is in the executive
1-15     branch of state government, has authority that is not limited to a
1-16     geographical portion of the state, and was created by the
1-17     constitution or a statute of this state.  The term does not include
1-18     an institution of higher education as defined by Section 61.003,
1-19     Education Code.
1-20           SECTION 2.  ABOLITION OF FUNDS, ACCOUNTS, AND DEDICATIONS.
1-21     Except as otherwise specifically provided by this Act, all funds
1-22     and accounts created or re-created in the state treasury by an Act
1-23     of the 77th Legislature, Regular Session, 2001, that becomes law,
1-24     and all dedications or rededications of revenue in the state
1-25     treasury or otherwise collected by a state agency for a particular
1-26     purpose by an Act of the 77th Legislature, Regular Session, 2001,
1-27     that becomes law, are abolished on the later of August 27, 2001, or
1-28     the date the Act creating or re-creating the fund or account or
1-29     dedicating or rededicating revenue takes effect.
1-30           SECTION 3.  PREVIOUSLY EXEMPT DEDICATIONS, FUNDS, AND
1-31     ACCOUNTS.  Section 2 of this Act does not apply to:
1-32                 (1)  statutory dedications, funds, and accounts that
1-33     were enacted before the 77th Legislature convened to comply with
1-34     requirements of state constitutional or federal law;
1-35                 (2)  dedications, funds, or accounts that remained
1-36     exempt from former Section 403.094(h), Government Code, at the time
1-37     dedications, accounts, and funds were abolished under that
1-38     provision;
1-39                 (3)  increases in fees or in other revenue dedicated as
1-40     described by this section; or
1-41                 (4)  increases in fees or in other revenue required to
1-42     be deposited in a fund or account described by this section.
1-43           SECTION 4.  ACCOUNTS IN GENERAL REVENUE FUND.  Effective
1-44     August 27, 2001, the following accounts and the revenue deposited
1-45     to the credit of the accounts are exempt from Section 2 of this Act
1-46     and are created in the general revenue fund, if created or
1-47     re-created by an Act of the 77th Legislature, Regular Session,
1-48     2001, that becomes law:
1-49                 (1)  the fair campaign spending account created by
1-50     House Bill No. 2;
1-51                 (2)  the system benefit fund created as an account by
1-52     House Bill No. 1902;
1-53                 (3)  the tertiary care account re-created by House Bill
1-54     No. 893;
1-55                 (4)  the water well plugging account created by House
1-56     Bill No. 3188;
1-57                 (5)  the permanent management facility decommissioning
1-58     account created by House Bill No. 3420 or Senate Bill No. 1541;
1-59                 (6)  the assured isolation conversion account created
1-60     by House Bill No. 3420 or Senate Bill No. 1541;
1-61                 (7)  the highway billboard removal account created by
1-62     House Bill No. 1965;
1-63                 (8)  the private sector prison industry expansion
1-64     account created by House Bill No. 1617;
 2-1                 (9)  the volunteer fire department assistance fund
 2-2     created as an account by House Bill No. 2604;
 2-3                 (10)  the colonia self-help account created by House
 2-4     Bill No. 2776 or Senate Bill No. 1501; and
 2-5                 (11)  the scholarship fund for architectural
 2-6     examination applicants re-created as an account by House Bill No.
 2-7     1706.
 2-8           SECTION 5.  FUNDS TO BECOME ACCOUNTS. Effective August 27,
 2-9     2001, the following funds in the state treasury are re-created as
2-10     accounts in the general revenue fund and the accounts and the
2-11     revenue deposited to the credit of the accounts are exempt from
2-12     Section 2 of this Act, if created or re-created by an Act of the
2-13     77th Legislature, Regular Session, 2001, that becomes law:
2-14                 (1)  the rural water assistance fund created by House
2-15     Bill No. 622;
2-16                 (2)  the work and family policies fund re-created by
2-17     House Bill No. 761 or Senate Bill No. 1586;
2-18                 (3)  the owner-builder revolving loan fund created by
2-19     House Bill No. 3294 or Senate Bill No. 1500;
2-20                 (4)  the colonia model subdivision revolving loan fund
2-21     created by House Bill No. 3294 or Senate Bill No. 1500; and
2-22                 (5)  the smart jobs fund re-created as an account by
2-23     House Bill No. 3452 or Senate Bill No. 321.
2-24           SECTION 6.  REVENUE DEDICATION. Effective August 27, 2001,
2-25     the following dedication of revenue collected by a state agency for
2-26     a particular purpose is exempt from Section 2 of this Act, if
2-27     dedicated by an Act of the 77th Legislature, Regular Session, 2001,
2-28     that becomes law:
2-29                 (1)  the dedication of revenue by House Bill No. 335
2-30     for a Department of Public Safety historical museum and research
2-31     center;
2-32                 (2)  the reinstatement fee revenue dedicated to the
2-33     state highway fund by Senate Bill No. 1329; and
2-34                 (3)  the ferry sticker fee revenue dedicated to the
2-35     state highway fund by Senate Bill No. 1109.
2-36           SECTION 7.  FEDERAL FUNDS.  Section 2 of this Act does not
2-37     apply to funds created pursuant to an Act of the 77th Legislature,
2-38     Regular Session, 2001, for which separate accounting is required by
2-39     federal law, except that the funds shall be deposited in accounts
2-40     in the general revenue fund unless otherwise required by federal
2-41     law.
2-42           SECTION 8.  TRUST FUNDS.  (a)  Section 2 of this Act does not
2-43     apply to trust funds or dedicated revenue deposited to trust funds
2-44     created under an Act of the 77th Legislature, Regular Session,
2-45     2001, except that the trust funds shall be held in the state
2-46     treasury, with the comptroller in trust, or outside the state
2-47     treasury with the comptroller's approval.
2-48           (b)  Section 2 of this Act does not apply to the capital
2-49     renewal trust fund created by House Bill No. 2796 or to revenue
2-50     deposited to the credit of the fund.  Notwithstanding Subsection
2-51     (a) of this section, the fund is a trust fund outside the treasury
2-52     with the comptroller in accordance with the provisions of House
2-53     Bill No. 2796, without regard to whether the comptroller approves
2-54     of the creation of the fund outside the treasury.
2-55           SECTION 9.  PAN AMERICAN GAMES TRUST FUND. The comptroller
2-56     shall undertake to accomplish the duties assigned by Section 4,
2-57     Chapter 1507, Acts of the 76th Legislature, Regular Session, 1999,
2-58     as if the Pan American Games trust fund and the dedication of
2-59     revenue for the purposes of that fund were not abolished by
2-60     operation of Sections 2 and 9, Chapter 1045, Acts of the 76th
2-61     Legislature, Regular Session, 1999.  The Pan American Games trust
2-62     fund is re-created by this Act.  Revenue dedicated by Chapter 1507,
2-63     Acts of the 76th Legislature, Regular Session, 1999, is rededicated
2-64     by this Act for the same purposes.  Section 2 of this Act does not
2-65     apply to the fund or to revenue dedicated to the fund.
2-66           SECTION 10.  TELECOMMUNICATIONS INFRASTRUCTURE FUND. (a)
2-67     Section 57.043(a), Utilities Code, is amended to read as follows:
2-68           (a)  The telecommunications infrastructure fund is  an
2-69     account in the general revenue fund.  The telecommunications
 3-1     infrastructure fund account is composed of the public schools
 3-2     account and the qualifying entities account. Section 403.095,
 3-3     Government Code, does not apply to the telecommunications
 3-4     infrastructure fund account or to the accounts that compose the
 3-5     fund account.
 3-6           (b)  Effective August 27, 2001, the telecommunications
 3-7     infrastructure fund is re-created as an account in the general
 3-8     revenue fund, and the account and the revenue deposited to the
 3-9     credit of the account are exempt from Section 2 of this Act.
3-10           SECTION 11.  BOND FUNDS.  Section 2 of this Act does not
3-11     apply to bond funds and pledged funds created or affected by an Act
3-12     of the 77th Legislature, Regular Session, 2001, except that the
3-13     funds shall be held in the state treasury, with the comptroller in
3-14     trust, or outside the state treasury with the comptroller's
3-15     approval.
3-16           SECTION 12.  CONSTITUTIONAL FUNDS.  Section 2 of this Act
3-17     does not apply to funds or accounts that would be created or
3-18     re-created in the Texas Constitution or revenue that would be
3-19     dedicated or rededicated by the Texas Constitution  under
3-20     constitutional amendments proposed by the 77th Legislature, Regular
3-21     Session, 2001, or to dedicated revenue deposited to funds or
3-22     accounts that would be so created or re-created.
3-23           SECTION 13.  SEPARATE FUNDS IN THE TREASURY. Effective August
3-24     27, 2001, the following funds in the state treasury and the revenue
3-25     deposited to the credit of the funds are exempt from Section 2 of
3-26     this Act and are created as separate funds in the state treasury,
3-27     if created by an Act of the 77th Legislature, Regular Session,
3-28     2001, that becomes law:
3-29                 (1)  the permanent fund for veterans' care created by
3-30     House Bill No. 515 or Senate Bill No. 976.
3-31           SECTION 14.  YOUNG FARMER LOAN GUARANTEE ACCOUNT. (a)  The
3-32     young farmer loan guarantee account in the Texas agricultural fund
3-33     is re-created by this Act.  Revenue dedicated for deposit to the
3-34     credit of the account under Section 58.057, Agriculture Code, or
3-35     Section 502.174, Transportation Code, is rededicated by this Act
3-36     for deposit to the credit of the account.  Section 2 of this Act
3-37     does not apply to the account or to revenue dedicated to the
3-38     account.
3-39           (b)  Revenue received after the effective date of this Act
3-40     that is dedicated to the account shall be deposited to the credit
3-41     of the account, except that grants and donations made for the
3-42     purposes of the young farmer loan guarantee program shall be
3-43     deposited to the credit of the account without regard to when the
3-44     grant or donation was made.
3-45           (c)  Any unexpended interest that accrues to the credit of
3-46     any successor account to the young farmer loan guarantee account in
3-47     the general revenue fund, established by the comptroller in
3-48     response to Chapter 1045, Acts of the 76th Legislature, Regular
3-49     Session, 1999, shall be transferred to the credit of the Texas
3-50     agricultural fund at the end of each fiscal year.
3-51           SECTION 15.  COURT COSTS.  Effective August 27, 2001, revenue
3-52     consisting of court costs authorized by an Act of the 77th
3-53     Legislature, Regular Session, 2001, that becomes law is exempt from
3-54     Section 2 of this Act.
3-55           SECTION 16.  LICENSE PLATE FEES. Effective August 27, 2001,
3-56     revenue consisting of fees collected from the sale of motor vehicle
3-57     license plates that are authorized by an Act of the 77th
3-58     Legislature, Regular Session, 2001, that becomes law is exempt from
3-59     Section 2 of this Act.
3-60           SECTION 17.  AMENDMENT.  Effective September 1, 2001,
3-61     Sections 403.095(b), (d), and (e), Government Code, are amended to
3-62     read as follows:
3-63           (b)  Notwithstanding any law dedicating or setting aside
3-64     revenue for a particular purpose or entity, dedicated revenues
3-65     that, on August 31, 2003 [2001], are estimated to exceed the amount
3-66     appropriated by the General Appropriations Act or other laws
3-67     enacted by the 77th [76th] Legislature are available for general
3-68     governmental purposes and are considered available for the purpose
3-69     of certification under Section 403.121.
 4-1           (d)  Following certification of the General Appropriations
 4-2     Act and other appropriations measures enacted by the 77th [76th]
 4-3     Legislature, the comptroller shall reduce each dedicated account as
 4-4     directed by the legislature by an amount that may not exceed the
 4-5     amount by which estimated revenues and unobligated balances exceed
 4-6     appropriations.  The reductions may be made in the amounts and at
 4-7     the times necessary for cash flow considerations to allow all the
 4-8     dedicated accounts to maintain adequate cash balances to transact
 4-9     routine business.  The legislature may authorize, in the General
4-10     Appropriations Act, the temporary delay of the excess balance
4-11     reduction required under this subsection. This subsection does not
4-12     apply to revenues or balances in:
4-13                 (1)  funds outside the treasury;
4-14                 (2)  trust funds, which for purposes of this section
4-15     include funds that may or are required to be used in whole or in
4-16     part for the acquisition, development, construction, or maintenance
4-17     of state and local government infrastructures, recreational
4-18     facilities, or natural resource conservation facilities;
4-19                 (3)  funds created by the constitution or a court; or
4-20                 (4)  funds for which separate accounting is required by
4-21     federal law.
4-22           (e)  This section expires on September 1, 2003 [2001].
4-23           SECTION 18.  EFFECT OF ACT.  (a)  This Act prevails over any
4-24     other Act of the 77th Legislature, Regular Session, 2001,
4-25     regardless of the relative dates of enactment, that purports to
4-26     create or re-create a special fund or account in the state treasury
4-27     or to dedicate or rededicate revenue to a particular purpose,
4-28     including any fund, account, or revenue dedication abolished under
4-29     former Section 403.094, Government Code.
4-30           (b)  Revenues that, under the terms of another Act of the
4-31     77th Legislature, Regular Session, 2001, would be deposited to the
4-32     credit of a special account or fund shall be deposited to the
4-33     credit of the unobligated portion of the general revenue fund,
4-34     unless the fund, account, or dedication is exempted under this Act.
4-35           SECTION 19.  EFFECTIVE DATE. This Act takes effect
4-36     immediately if it receives a vote of two-thirds of all the members
4-37     elected to each house, as provided by Section 39, Article III,
4-38     Texas Constitution.  If this Act does not receive the vote
4-39     necessary for immediate effect, this Act takes effect on the 91st
4-40     day after the last day of the legislative session.
4-41                                  * * * * *