SRC-TJG H.B. 651 78(R)    BILL ANALYSIS


Senate Research CenterH.B. 651
78R9367 MTB-DBy: Pitts, et al. (Williams)
Finance
5-7-2003
Engrossed

DIGEST AND PURPOSE 

Currently, no savings incentive program for state agencies exists in this
state.  H.B. 651 allows an agency to retain a portion of its remaining
balance at the end of the fiscal year, while remitting the other portion
to general revenue. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 2108, Government Code, by adding Subchapter C,
as follows: 

SUBCHAPTER C.  SAVINGS INCENTIVE PROGRAM FOR STATE AGENCY

Sec. 2108.101. NOTICE.  Requires a state agency that spends less
undedicated general revenue derived from nonfederal sources than is
appropriated to the agency for a fiscal year to send to the comptroller of
public accounts of the State of Texas (comptroller) a notice of the amount
of the savings before October 30 following the end of the fiscal year in
which the savings are realized.  

Sec. 2108.102. VERIFICATION OF SAVINGS.  Requires the comptroller to
verify the amount of savings contained in the notice not later than the
60th day following the date the comptroller receives the notice. 

Sec. 2108.103.  RETENTION OF FUNDS.  (a) Provides that the affected agency
retains one-half of the amount of savings verified by the comptroller, not
to exceed one percent of the amount of the undedicated general revenue
derived from nonfederal sources appropriated to the agency for the fiscal
year in which the savings are realized. 

(b) Authorizes savings retained under this section to only be appropriated
by the legislature to the affected agency.  Authorizes the affected agency
to spend the savings only on an activity or expense that does not create
new or expanded services or require ongoing funding at a later date. 

SECTION 2.  Effective date: September 1, 2003.