78(R) HB 3318 - House Committee Report version


                                                                                
78R15175 JJT-F


By:  Luna                                                         H.B. No. 3318

Substitute the following for H.B. No. 3318:                                   

By:  Luna                                                     C.S.H.B. No. 3318



A BILL TO BE ENTITLED

AN ACT

relating to the creation and re-creation of funds and accounts in 
the state treasury, the allocation of revenue, the dedication and 
rededication of revenue, and the exemption of unappropriated money 
from use for general governmental purposes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  DEFINITION.  In any provision of this Act that 
does not amend current law, "state agency" means an office, 
institution, or other agency that is in the executive branch of 
state government, has authority that is not limited to a 
geographical portion of the state, and was created by the 
constitution or a statute of this state.  The term does not include 
an institution of higher education as defined by Section 61.003, 
Education Code.
	SECTION 2.  ABOLITION OF FUNDS, ACCOUNTS, ALLOCATIONS, AND 
DEDICATIONS.  Except as otherwise specifically provided by this 
Act, all funds and accounts created or re-created in the state 
treasury by an Act of the 78th Legislature, Regular Session, 2003, 
that becomes law, all allocations of revenue made by an Act of the 
78th Legislature, Regular Session, 2003, that becomes law, and all 
dedications or rededications of revenue in the state treasury or 
otherwise collected by a state agency for a particular purpose by an 
Act of the 78th Legislature, Regular Session, 2003, that becomes 
law are abolished on the later of August 30, 2003, or the date the 
Act creating or re-creating the fund or account, allocating 
revenue, or dedicating or rededicating revenue takes effect.
	SECTION 3.  PREVIOUSLY EXEMPT DEDICATIONS, FUNDS, AND 
ACCOUNTS.  Section 2 of this Act does not apply to:
		(1)  statutory dedications, allocations, funds, and 
accounts that were enacted before the 78th Legislature convened to 
comply with requirements of state constitutional or federal law;
		(2)  dedications, funds, or accounts that remained 
exempt from former Section 403.094(h), Government Code, at the time 
dedications, accounts, and funds were abolished under that 
provision;
		(3)  increases in fees or in other revenue dedicated or 
allocated as described by this section; or
		(4)  increases in fees or in other revenue required to 
be deposited in a fund or account described by this section.
	SECTION 4.  SYSTEM BENEFIT FUND.  (a)  Section 39.903(a), 
Utilities Code, as amended by Section 3, Chapter 1394, and Section 
19(a), Chapter 1466, Acts of the 77th Legislature, Regular Session, 
2001, is reenacted and amended to read as follows:
	(a)  The system benefit fund is an account in the general 
revenue fund.  Money in the account [that] may be appropriated only 
for the purposes provided by this section or other law.  Interest 
earned on the system benefit fund shall be credited to the fund.  
Section 403.095, Government Code, does not apply to the system 
benefit fund.
	(b)  On the effective date of this Act, the system benefit 
fund is re-created as an account in the general revenue fund, and 
the account and the revenue deposited to the credit of the account 
are exempt from Section 2 of this Act.
	SECTION 5.  SUBSEQUENT INJURY FUND.  (a)  Section 
403.006(a), Labor Code, is amended to read as follows:
	(a)  The subsequent injury fund is an account in the general 
revenue fund.  Money in the account may be appropriated only for the 
purposes of this section or as provided by other law.  Section 
403.095, Government Code, does not apply to the subsequent injury 
fund [a special fund in the state treasury].
	(b)  On the effective date of this Act, the subsequent injury 
fund is re-created as an account in the general revenue fund, and 
the account and the revenue deposited to the credit of the account 
are exempt from Section 2 of this Act.
	SECTION 6.  TERTIARY CARE ACCOUNT.  The tertiary care 
account is re-created by this Act.  Money in the account and money 
required by law to be put in the account is rededicated for the 
purposes provided by Chapter 46, Health and Safety Code.  The 
account and money put in the account are exempt from Section 2 of 
this Act.
	SECTION 7.  LICENSE PLATES.  The following funds, accounts, 
and allocations or dedications of revenue are exempt from Section 2 
of this Act if created by an Act of the 78th Legislature, Regular 
Session, 2003, that becomes law:
		(1)  the specialty license plate account created by 
Senate Bill No. 1704 and revenue dedicated by that bill; and
		(2)  the specialty license plate fund created by House 
Bill No. 3106 and revenue dedicated by that bill.
	SECTION 8.  FEDERAL FUNDS.  Section 2 of this Act does not 
apply to funds created pursuant to an Act of the 78th Legislature, 
Regular Session, 2003, for which separate accounting is required by 
federal law, except that the funds shall be deposited in accounts in 
the general revenue fund unless otherwise required by federal law.
	SECTION 9.  TRUST FUNDS.  Section 2 of this Act does not 
apply to trust funds or dedicated revenue deposited to trust funds 
created under an Act of the 78th Legislature, Regular Session, 
2003, except that the trust funds shall be held in the state 
treasury, with the comptroller in trust, or outside the state 
treasury with the comptroller's approval.
	SECTION 10.  BOND FUNDS.  Section 2 of this Act does not 
apply to bond funds and pledged funds created or affected by an Act 
of the 78th Legislature, Regular Session, 2003, except that the 
funds shall be held in the state treasury, with the comptroller in 
trust, or outside the state treasury with the comptroller's 
approval.
	SECTION 11.  CONSTITUTIONAL FUNDS.  Section 2 of this Act 
does not apply to funds or accounts that would be created or 
re-created in the Texas Constitution or revenue that would be 
allocated, dedicated, or rededicated by the Texas Constitution 
under constitutional amendments proposed by the 78th Legislature, 
Regular Session, 2003, or to allocated or dedicated revenue 
deposited to funds or accounts that would be so created or 
re-created.
	SECTION 12.  AMENDMENT OF SECTION 403.095, GOVERNMENT CODE.  
Effective September 1, 2003, Sections 403.095(b), (d), and (e), 
Government Code, are amended to read as follows:
	(b)  Notwithstanding any law dedicating or setting aside 
revenue for a particular purpose or entity, dedicated revenues 
that, on August 31, 2005 [2003], are estimated to exceed the amount 
appropriated by the General Appropriations Act or other laws 
enacted by the 78th [77th] Legislature are available for general 
governmental purposes and are considered available for the purpose 
of certification under Section 403.121.
	(d)  Following certification of the General Appropriations 
Act and other appropriations measures enacted by the 78th [77th] 
Legislature, the comptroller shall reduce each dedicated account as 
directed by the legislature by an amount that may not exceed the 
amount by which estimated revenues and unobligated balances exceed 
appropriations.  The reductions may be made in the amounts and at 
the times necessary for cash flow considerations to allow all the 
dedicated accounts to maintain adequate cash balances to transact 
routine business.  The legislature may authorize, in the General 
Appropriations Act, the temporary delay of the excess balance 
reduction required under this subsection.  This subsection does not 
apply to revenues or balances in:
		(1)  funds outside the treasury;                                              
		(2)  trust funds, which for purposes of this section 
include funds that may or are required to be used in whole or in part 
for the acquisition, development, construction, or maintenance of 
state and local government infrastructures, recreational 
facilities, or natural resource conservation facilities;
		(3)  funds created by the constitution or a court;  or                        
		(4)  funds for which separate accounting is required by 
federal law.        
	(e)  This section expires on September 1, 2005 [2003]. 
	SECTION 13.  EFFECT OF ACT.  (a)  This Act prevails over any 
other Act the 78th Legislature, Regular Session, 2003, regardless 
of the relative dates of enactment, that purports to create or 
re-create a special fund or account in the state treasury, to 
allocate revenue, or to dedicate or rededicate revenue to a 
particular purpose, including any fund, account, or revenue 
dedication abolished under former Section 403.094, Government 
Code.
	(b)  Revenues that, under the terms of another Act of the 
78th Legislature, Regular Session, 2003, would be deposited to the 
credit of a special account or fund shall be deposited to the credit 
of the unobligated portion of the general revenue fund unless the 
fund, account, allocation, or dedication is exempted under this 
Act.
	(c)  For purposes of this Act, an appropriation or a 
limitation or direction incident to an appropriation is not 
considered an allocation of revenue.
	SECTION 14.  EFFECTIVE DATE. This Act takes effect 
immediately if it receives a vote of two-thirds of all the members 
elected to each house, as provided by Section 39, Article III, Texas 
Constitution.  If this Act does not receive the vote necessary for 
immediate effect, this Act takes effect September 1, 2003.