LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 17, 2001
  
  
          TO:  Honorable Bill Ratliff, Lieutenant Governor,  Senate
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1475  by Duncan (Relating to the abolition of the
               Children's Trust Fund of Texas Council and to the
               transfer of its powers and duties to the Department of
               Protective and Regulatory Services.), As Passed 2nd
               House
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1475, As Passed 2nd House:  an impact of $0 through the biennium    *
*  ending August 31, 2003.                                               *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                                   $0  *
          *       2003                                    0  *
          *       2004                                    0  *
          *       2005                                    0  *
          *       2006                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal    Probable Revenue Gain/(Loss)    Probable Revenue Gain/(Loss)   *
* Year   from Children's Trust Fund 0987   from GR Account--Child Abuse   *
*                                          and Neglect Prevention Trust   *
*                                                  Fund Account           *
*  2002                     $(30,600,000)                     $30,600,000 *
*  2003                       (1,600,000)                       1,600,000 *
*  2004                       (1,600,000)                       1,600,000 *
*  2005                       (1,600,000)                       1,600,000 *
*  2006                       (1,600,000)                       1,600,000 *
***************************************************************************
  
Fiscal Analysis
  
The bill would amend Chapter 40 and repeal Chapter 74 of the Human
Resources Code to abolish the Children's Trust Fund of Texas Council
(CTFC) and transfer its powers and duties to the Department of Protective
and Regulatory Services (PRS).

The bill would rename GR Account 0541 -- Children's Trust Fund of Texas
Council Operating; and abolish the Children's Trust Fund 0987.  The bill
would establish a GR Account -- Child Abuse and Neglect Prevention Trust
Fund.  PRS would be authorized to transfer money between the new account
and the operating fund account at any time, but the bill would limit the
transfers in a fiscal year to the amount appropriated to the operating
fund account for that fiscal year.

The bill would create a new, unnamed fund to receive contributions for
specific child abuse and neglect prevention or prevention or early
intervention purposes.

The bill would allow PRS to renew funding during the biennium ending
August 31, 2003, to entities receiving funding in FY 2001 from CTFC
without the need for competitive procurement.

The bill would take effect September 1, 2001.
  
  
Methodology
  
The Comptroller assumes that unexpended and unobligated balances would be
transferred from GR Account 0541 to the operating fund account and from
Fund 0987 to the trust fund account.  The comptroller also assumes that
the authority to expend money from the newly created accounts would
transfer to PRS.

The Comptroller assumes that the estimated balance for Fund 0987 of $29
million would be transferred to the newly created trust fund account.  In
addition, revenues, less transfers to the operating fund account, that
previously were deposited in Fund 0987 would be deposited in the trust
fund account.  Estimates of these net revenues were based on the
historical deposits and transfers and the proposed appropriation
contained in the House version of Senate Bill 1.

The bill also would create a new unnamed fund to receive contributions
for specific program purposes.  The Comptroller assumes that this fund
would be a dedicated account in Fund 001.  Since this would be a new
account, no balance would transfer and the amount of contributions cannot
be estimated.

The Comptroller notes that the bill would do one or more of the
following: create or recreate a dedicated account in the General Revenue
Fund, create or recreate a special or trust fund either within or outside
of the Treasury, or create a dedicated revenue source.  Government Code
403.094 consolidated special funds (except those affected by
constitutional, federal or other restrictions) into the General Revenue
Fund as of August 31, 1993 and eliminated all applicable statutory
revenue dedications as of August 31, 1995.  Each subsequent Legislature
has reviewed bills that affect funds consolidation.  The fund, account or
revenue dedication included in this bill would be subject to funds
consolidation review by the current Legislature.

According to PRS, any additional reporting and budget tracking
responsibilities created by the bill would be absorbed using existing
staff.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, HD, KF, NM