C.S.H.B. 651 78(R)    BILL ANALYSIS


C.S.H.B. 651
By: Pitts
Government Reform
Committee Report (Substituted)



BACKGROUND AND PURPOSE 
State agencies frequently spend the remainder of their budgets at the end
of each fiscal year in an effort to avoid losing the funds or having to
undergo budget reductions during the next appropriations cycle. Allowing
state agencies to spend a limited amount of general revenue funds saved
each fiscal year will not only help discourage this practice, but also
allow the agencies to spend the savings on one-time expenditures that will
improve the quality, efficiency and effectiveness of agency operations and
customer service.  
This bill creates a savings incentive program for state agencies by
appropriating half of any general revenue saved during the course of a
fiscal year, up to two percent of an agency's general revenue funding.
Savings realized by state agencies may not be spent on an activity or
expense that creates new or expanded services or that requires continued
funding. Funds other than general revenue, such as general
revenue-dedicated or federal funds, will not be considered for this
program. 
     
RULEMAKING AUTHORITY
It is the Committee's opinion that this bill does not expressly grant any
additional rulemaking authority to any state officer, department, agency,
or institution. 

ANALYSIS
SECTION 1. Amends Title 10, Chapter 2108, Government Code, by adding
Subchapter C.  
Section 2108.101. Notice. Requires a state agency that spends less than
its full general revenue appropriation to send notice to the Comptroller
of Public Accounts a notice of the amount saved before October 30
following the end of the fiscal year in which the savings were realized.  
Section 2108.102. Verification of Savings. The Comptroller shall verify
the amount of savings identified in the notice no later than the 60th day
following receipt of the notice.  
Section 2108.103. Retention of Funds. (a) Authorizes the agency to retain
one-half of the amount of savings verified by the Comptroller, not to
exceed two percent of the agency's general revenue appropriation. Funds
other than general revenue do not apply.  
(b) Savings retained may only be appropriated by the legislature to the
affected agency. The agency may only spend the saved funds 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.


EFFECTIVE DATE
This Act takes effect September 1, 2003.



COMPARISON OF ORIGINAL TO SUBSTITUTE
The substitute  modifies the original by raising the maximum percentage of
fund retention for an agency from 1% to 2% of the amount of undedicated
general revenue derived from nonfederal sources appropriated to the agency
for the fiscal year in which the savings are realized.