H.B. 3175 78(R)    BILL ANALYSIS


H.B. 3175
By: Pitts
Appropriations
Committee Report (Amended)



BACKGROUND AND PURPOSE 

The Comptroller of Public Accounts 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.  House Bill 3175 addresses cash
flow issues by expanding inter-fund borrowing authority to reach other
funds under the Comptroller's authority on a short-term basis. 


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

House Bill 3175 amends the Government Code by authorizing the Comptroller
of Public Accounts to transfer available cash between funds that are
managed by or under the custody of the Comptroller.  The Comptroller must
return the cash to the funds from which it was transferred, in the amount
that was transferred, as soon as practicable, and earned interest shall be
allocated as if the transfer was not made.  The Comptroller shall indicate
that cash transferred to the General Revenue Fund is a liability and may
not be appropriated by the legislature. 

House Bill 3175 also appropriates to the Comptroller the amount necessary
to return cash to the funds from which it was transferred during Fiscal
Year 2003. 

House Bill 3175 also appropriates to the Comptroller the amount necessary
to return cash to the funds from which it was transferred during Fiscal
Year 2004. 


EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003. 


EXPLANATION OF AMENDMENTS

Committee Amendment No. 1 adds language clarifying the fact that funds
transferred to the General Revenue Fund from other funds may not be
appropriated except as necessary to transfer cash back to the funds from
which it was transferred. 

Committee Amendment No. 1 also removes language from the bill that would
appropriate to the comptroller, from the general revenue fund for Fiscal
Year 2003, the amount needed to return cash to the funds from which it was
transferred during Fiscal Year 2003.