By:  Luna (Senate Sponsor - Bivins)                               H.B. No. 3318
	(In the Senate - Received from the House May 12, 2003; 
May 12, 2003, read first time and referred to Committee on Finance; 
May 26, 2003, reported adversely, with favorable Committee 
Substitute by the following vote:  Yeas 11, Nays 0; May 26, 2003, 
sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 3318                                   By:  Bivins

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, 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 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 September 1, 2003, or the date the Act creating or re-creating the fund or account 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, 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 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 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 dedicated or rededicated by the Texas Constitution under constitutional amendments proposed by the 78th Legislature, Regular Session, 2003, or to dedicated revenue deposited to funds or accounts that would be so created or re-created. SECTION 12. RAINY DAY FUND ACCOUNTS. Section 2 of this Act does not apply to any accounts created in the economic stabilization fund by H.B. No. 2, H.B. No. 3323, H.B. No. 3548, or S.B. No. 1771, Acts of the 78th Legislature, Regular Session, 2003, and does not apply to any related dedication of revenue, if one of those bills or similar legislation becomes law. SECTION 13. STATE PRESERVATION BOARD. Sections 2 and 9 of this Act do not apply to the capitol trust fund, the capitol account, the capital renewal account, and the museum account, as created or re-created by H.B. No. 3441 or S.B. No. 1866, Acts of the 78th Legislature, Regular Session, 2003, if one of those bills or similar legislation becomes law, and do not apply to revenue dedicated to that fund or any of those accounts. SECTION 14. TEXAS EMISSIONS REDUCTION. Section 2 of this Act does not apply to the Texas emissions reduction plan fund and does not apply to revenue dedicated to that fund by H.B. No. 1365, Acts of the 78th Legislature, Regular Session, 2003, if that bill or similar legislation becomes law. SECTION 15. RURAL WATER ASSISTANCE. Section 2 of this Act does not apply to the rural water assistance fund or the water infrastructure fund created or re-created in the state treasury by H.B. No. 1875 or S.B. No. 967, Acts of the 78th Legislature, Regular Session, 2003, if one of those bills or similar legislation becomes law, and does not apply to revenue dedicated to either fund. SECTION 16. ECONOMIC DEVELOPMENT. Sections 2 and 9 of this Act do not apply to any fund or account created or re-created by S.B. No. 275, S.B. No. 659, or H.B. No. 1233, Acts of the 78th Legislature, Regular Session, 2003, if any of those bills become law, and do not apply to any revenue dedicated by any of those Acts. SECTION 17. TEXAS ENTERPRISE FUND. Section 2 of this Act does not apply to the Texas enterprise fund created by H.B. No. 2, H.B. No. 3323, H.B. No. 3548, or S.B. No. 1771, Acts of the 78th Legislature, Regular Session, 2003, and does not apply to any related dedication of revenue, if one of those bills or similar legislation becomes law. SECTION 18. SPORTS EVENTS TRUST FUND. Sections 2 and 9 of this Act do not apply to the Other Events trust fund or to revenue dedicated to any of those funds, created by an Act of the 78th Legislature, Regular Session, 2003, that amends Chapter 1507, Acts of the 76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes). SECTION 19. PROSECUTOR SUPPLEMENT FUND. Section 2 of this Act does not apply to the felony prosecutor supplement fund created by H.B. No. 1940, Acts of the 78th Legislature, Regular Session, 2003, if that bill or similar legislation becomes law, and does not apply to revenue dedicated to that fund. SECTION 20. TRAVEL SERVICES CONTRACTS. The municipality airline fares account in the general revenue fund created by H.B. No. 1061 or S.B. No. 304, Acts of the 78th Legislature, Regular Session, 2003, if either bill or similar legislation creating the account becomes law, is exempt from Section 2 of this Act, and Section 2 of this Act does not apply to the dedication of revenue to that account made by that legislation. SECTION 21. DRY CLEANING FACILITY RELEASE FUND. Section 2 of this Act does not apply to the dry cleaning facility release fund account created by H.B. No. 1366 or S.B. No. 799 or other similar legislation of the 78th Legislature, Regular Session, 2003, that becomes law, and does not apply to the revenue dedicated to or deposited in that account. SECTION 22. HIGHWAY TAX AND REVENUE ANTICIPATION NOTE FUND. The highway tax and revenue anticipation note fund created by H.B. No. 471, Acts of the 78th Legislature, Regular Session, 2003, if that bill or similar legislation creating the fund becomes law, is exempt from Section 2 of this Act, and Section 2 of this Act does not apply to the dedication of revenue to that fund made by that legislation. SECTION 23. OPERATING PERMIT FEES ACCOUNT. The operating permit fees account created by H.B. No. 1481, Acts of the 78th Legislature, Regular Session, 2003, if that bill or similar legislation creating the account becomes law, is exempt from Section 2 of this Act, and Section 2 of this Act does not apply to the dedication of revenue to that account made by that legislation. The account is created as an account in the general revenue fund. SECTION 24. ELECTION IMPROVEMENT FUND. The election improvement fund created as a dedicated account in the general revenue fund by H.B. No. 1549, Acts of the 78th Legislature, Regular Session, 2003, if that bill or similar legislation creating the account becomes law, is exempt from Section 2 of this Act, and Section 2 of this Act does not apply to the dedication of revenue to that account made by that legislation. SECTION 25. TAX ADMINISTRATION FUND. The tax administration fund created by H.B. No. 2458, Acts of the 78th Legislature, Regular Session, 2003, if that bill or similar legislation creating the fund becomes law, is exempt from Section 2 of this Act, and Section 2 of this Act does not apply to the dedication of revenue to that fund made by that legislation. SECTION 26. MOTOR VEHICLE INSURANCE AND PROOF OF FINANCIAL RESPONSIBILITY. Any fund or account created by S.B. No. 422 or H.B. No. 1809, Acts of the 78th Legislature, Regular Session, 2003, if either bill or similar legislation becomes law, is exempt from Section 2 of this Act, and Section 2 of this Act does not apply to any dedication of revenue made by that legislation. SECTION 27. FUND FOR EMERGENCY MEDICAL SERVICES, TRAUMA FACILITIES, AND TRAUMA CARE SYSTEMS. The fund for emergency medical services, trauma facilities, and trauma care systems created as an account in the general revenue fund by S.B. No. 1131, Acts of the 78th Legislature, Regular Session, 2003, if that bill or similar legislation creating the account becomes law, is exempt from Section 2 of this Act, and Section 2 of this Act does not apply to the dedication of revenue to that account made by that legislation. SECTION 28. STATE PARKS ACCOUNT. Section 2 of this Act does not apply to the dedication of revenue to the state parks account made by S.B. No. 1158 or H.B. No. 2351 or similar legislation if either of those bills or similar legislation becomes law. SECTION 29. PERPETUAL CARE ACCOUNT. The perpetual care account created or re-created as an account in the general revenue fund by H.B. No. 1567, Acts of the 78th Legislature, Regular Session, 2003, if that bill or similar legislation creating or re-creating the account becomes law, is exempt from Section 2 of this Act, and Section 2 of this Act does not apply to any dedication or rededication of revenue to that account made by that legislation. SECTION 30. TEXAS B-ON-TIME ACCOUNT. The Texas B-On-Time student loan account created as an account in the general revenue fund by S.B. No. 4 or S.B. No. 1952, if either bill or similar legislation creating the account becomes law, is exempt from Section 2 of this Act, and Section 2 of this Act does not apply to any dedication of revenue to that account made by that legislation. SECTION 31. 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 32. TRANSFER OF BALANCES. Any balances in the system benefits fund, subsequent injury fund, or any other existing local, trust, or dedicated fund that is re-created as an account in the general revenue fund by this Act shall be transferred to the appropriate general revenue account on the effective date of this Act. SECTION 33. EFFECT OF ACT. (a) This Act prevails over any other Act of 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 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, or dedication is exempted under this Act. SECTION 34. 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.
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