H.B. 28 78(3)    BILL ANALYSIS


H.B. 28
By: McCall
Appropriations
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

With the enactment of HB 2425 (78th , Regular Session), the Comptroller is
allowed to borrow funds from outside the State Treasury.  Due to a line
item veto by the Governor, HB 28 is needed so that an appropriation for
repayment of such borrowing can be made.  For the 2004-05 biennium, this
bill would appropriate to the Comptroller from the General Revenue Fund
the amount necessary to return any available cash that was transferred to
the General Revenue Fund from a fund outside the State Treasury and to
maintain the equity of the fund from which the transfer of available cash
was made. 
         
HB 28 also addresses the appropriation of vetoed money from the 78th
Regular session as well as corrects previously passed legislation (SB 671)
dealing with local value appraisals for school districts. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1. Provides that for the fiscal biennium beginning September 1,
2003, the comptroller of public accounts (comptroller) is appropriated
from the general revenue fund the amount needed to return any available
cash that was transferred to that fund from a fund outside the state
treasury and to maintain the equity of the fund from which the transfer
was made, as required by Section 403.092 (Temporary Transfer of Surplus
and Other Cash), Government Code, as amended by Section 19, H.B. No. 2425,
Acts of the 78th Legislature, Regular Session, 2003. 

SECTION 2. Establishes that not more than $5,000,000 of the appropriation
made by Section 1 of this Act may be used to allocate earned interest to a
fund outside the state treasury under Section 403.092(a), Government Code.

SECTION 3. Requires the comptroller, during the state fiscal biennium
beginning September 1, 2003, to return the available cash that has been
transferred from a fund outside the state treasury to a fund within the
state treasury under Section 403.092(a), Government Code, together with
the earned interest on the transferred amount, to the fund from which the
available cash was transferred within 14 days after the date on which the
available cash was transferred.  

SECTION 4. Provides that the change made to Section 42.259, Education
Code, by Section 4, H.B. No. 2425, Acts of the 78th Legislature, Regular
Session, 2003, effectively transferring certain payments to school
districts from August of a state fiscal year to September of the following
fiscal year, apply only to a payment from the foundation school fund that
is made on or after January 1, 2004. Establishes that a payment to a
school district from the foundation school fund that is made before that
date is governed by Section 42.259, Education Code, as it existed on June
1, 2003, and the former law is continued in effect for that purpose.  
 
SECTION 5.   Allows for a one year grace period for school districts to
comply with the enactment of S.B. 671 (78th Regular Session) relating to
local values for school districts. 

 SECTION 6.  Repeals Section 403.302 (m), Government Code as added by S.B.
671, Acts of the 78th Legislature, Regular Session, 2003. 

SECTION 7.  Amends the General Appropriations Act of the 78th Regular
Session by removing and adding language to allow for funds, including
vetoed money, to be appropriated by the Governor and Legislative Budget
Board beginning September 1, 2003 for the purpose of transferring funds to
state agencies for state fiscal relief. 

SECTION 8.  Amends a heading in the General Appropriations Act of the 78th
Regular Session, 2003 by adding language for the Reappropriation for State
Fiscal Relief of Vetoed General Revenue Appropriations. 

EFFECTIVE DATE

 Immediate effect if it receives a vote of two-thirds of all the members
elected to each house.  If this act does not receive the vote for
immediate effect, the act takes effect on the 91st day after the last day
of the legislative session.