SRC-TJG H.B. 3175 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 3175
By: Pitts (Bivins)
Finance
5/8/2003
Engrossed


DIGEST AND PURPOSE 

The comptroller of public accounts (comptroller) is responsible for
managing the cash flows of the General Revenue Fund.  Currently, the
comptroller may borrow only from funds in the state treasury even though
the comptroller manages numerous funds outside of the treasury.  H.B. 3175
authorizes the comptroller to manage cash flow by transferring available
cash between funds in the custody or under the management of the
comptroller.  This bill also prohibits the comptroller from transferring
available cash to the general revenue fund from the Texas Tomorrow Fund
and makes an appropriation. 

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 Section 403.092, Government Code, by amending
Subsections (a) and (b) and adding Subsection (f), as follows: 

(a) Authorizes the comptroller of public accounts (comptroller), to allow
efficient management of the cash flow of the general revenue fund and to
avoid a temporary cash deficiency in the general revenue fund, to transfer
available cash, rather than surplus cash, except constitutionally
dedicated revenues, between fund that are managed by or in the custody of
the comptroller, rather than the state treasury.  Requires the
comptroller, as soon as practicable, to return to the fund from which the
available cash was transferred cash in the amount of the available cash
transferred.  Requires the comptroller to preserve the equity of the fund
from which the available cash was transferred and allocate earned, rather
than the depository, interest as if the transfer had not been made.  Makes
conforming and nonsubstantive changes. 

(b) Makes conforming changes.

(f) Prohibits the comptroller from transferring available cash to the
general revenue fund under Subsection (a) from the Texas Tomorrow Fund. 

SECTION 2.  Provides that the comptroller, in accordance with the
requirements imposed by Sections 403.092(a) and (b), Government Code, as
amended by this Act, is appropriated from the general revenue fund for the
state fiscal biennium beginning September 1, 2003, the amount needed to
return any available cash that is transferred to the general revenue fund
from a fund outside the state treasury during the state fiscal biennium
beginning September 1, 2003, and to maintain the equity of the fund from
which the transfer of available cash was made.  

SECTION 3.  Effective date: upon passage or September 1, 2003.