By: Isett H.B. No. 2770
A BILL TO BE ENTITLED
AN ACT
relating to unexpected cash balances of the general revenue
account.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter F, Chapter 403, Government Code, is
amended by adding Section 403.098 to read as follows:
Sec. 403.098. UNEXPECTED CASH BALANCE OF GENERAL REVENUE
ACCOUNT. (a) The comptroller shall estimate the cash balance of
the general revenue account that will exist at the end of a fiscal
biennium. The comptroller shall provide the estimate to the
governor and the legislature at the same time the comptroller
provides the statement of financial condition for the remainder of
that biennium and the next biennium.
(b) The comptroller shall exclude the estimated cash
balance from the comptroller's estimate of the cash or revenues
that will be available for the general revenue account during the
next fiscal biennium.
(c) As soon as possible after the end of a fiscal biennium,
the comptroller shall state the actual cash balance of the general
revenue account as of the end of that biennium.
(d) Not later than October 1 following the end of a fiscal
biennium, the comptroller shall transfer cash from the general
revenue account to both the returning the favor fund and the
economic stabilization fund. Except as provided in Subsection (j),
the amount transferred to each fund must be equal to half of the
estimated cash balance. This subsection applies only if the
estimated cash balance:
(1) is positive; and
(2) does not exceed the actual cash balance.
(e) Not later than October 1 following the end of a fiscal
biennium, the comptroller shall transfer cash from the general
revenue account to both the returning the favor fund and the
economic stabilization fund. Except as provided in Subsection (j),
the amount transferred to each fund must be equal to half of the
actual cash balance. This subsection applies only if the actual
cash balance is:
(1) positive; and
(2) less than the estimated cash balance.
(f) If the actual cash balance is not positive, then the
comptroller may not make a transfer under this section to either the
returning the favor fund or the economic stabilization fund.
(g) Not later than February 1 following the end of an
exemption period, the comptroller shall estimate the amount by
which the taxes imposed by Chapter 151, Tax Code, decreased during
the exemption period.
(h) Not later than March 1 following the end of an exemption
period, the comptroller shall transfer from the returning the favor
fund to the general revenue account an amount equal to the lesser
of:
(1) the amount estimated under Subsection (g); and
(2) half of the amount transferred to the returning
the favor fund under Subsection (d) or (e).
(i) This subsection applies if the amount transferred under
Subsection (h) is less than half of the amount transferred to the
returning the favor fund under Subsection (d) or (e). Except as
provided in Subsection (j), the comptroller shall transfer the
difference from the returning the favor fund to the economic
stabilization fund. The transfer must occur not later than March 1
following the end of the exemption period.
(j) The amount of a transfer to the economic stabilization
fund under Subsection (d), (e), or (i) shall be reduced as necessary
to ensure that the amount in the fund does not exceed the limit in
effect under Article III, Section 49-g(g), Texas Constitution. The
amount of any transfer to the economic stabilization fund under
Subsection (d) or (e) that does not occur because of this subsection
shall instead be transferred to the returning the favor fund. The
amount of any transfer of the economic stabilization fund under
Subsection (i) that does not occur because of this subsection shall
instead be transferred to the general revenue account.
(k) The returning the favor fund is a fund in the state
treasury.
(l) The comptroller may establish procedures and adopt
rules to administer this section.
(m) In this section:
(1) "Actual cash balance" means the amount of the
comptroller's statement of the actual cash balance of the general
revenue account as required by Subsection (c).
(2) "Estimated cash balance" means the amount of the
comptroller's estimate of the cash balance of the general revenue
account as required by Subsection (a).
(3) "Exemption period" means an exemption period
designated by the comptroller under Section 151.3261, Tax Code.
(4) "General revenue account" means the general
revenue fund, except the term does not include any dedicated
account maintained in that fund.
(5) "Statement of financial condition" means the
statement required by Article III, Section 49a(a), Texas
Constitution.
SECTION 2. The heading to Section 151.326, Tax Code, is
amended to read as follows:
Sec. 151.326. CLOTHING AND FOOTWEAR DURING AUGUST [FOR
LIMITED PERIOD].
SECTION 3. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3261 to read as follows:
Sec. 151.3261. CLOTHING AND FOOTWEAR DURING NOVEMBER OR
DECEMBER. (a) This section applies only if the comptroller has
transferred cash from the general revenue account to the fund under
Subsection (d) or (e) of Section 403.098, Government Code.
(b) An item described in Section 151.326 is exempt from the
taxes imposed by this chapter if the sale of the item takes place
during either of the exemption periods designated by the
comptroller.
(c) The first exemption period must begin not earlier than
November 1 and end not later than December 31 of the fiscal year
during which the transfer to the fund is made. The second exemption
period must begin not earlier than November 1 and end not later than
December 31 of the first fiscal year after the fiscal year during
which the transfer is made. The length of an exemption period may
not exceed the number of days that the comptroller projects would
result in a decrease in the amount of taxes imposed by this chapter
equal to half of the amount transferred. Not later than October 1
of the fiscal year during which the transfer occurs, the
comptroller shall designate the starting and ending dates of the
exemption period that must occur during that year. Not later than
October 1 of the next fiscal year, the comptroller shall designate
the starting and ending dates of the exemption period that must
occur during that year.
(d) In this section:
(1) "Fund" means the returning the favor fund.
(2) "General revenue account" has the meaning assigned
by Section 403.098, Government Code.
SECTION 4. This Act takes effect December 1, 2004.