78R9019 JRD-D

By:  Heflin                                                       H.B. No. 3453



A BILL TO BE ENTITLED

AN ACT

relating to suspending the operation of certain statutory funding 
formulas during the state fiscal biennium beginning September 1, 
2003.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  APPLICABILITY.  This Act applies only to a 
funding formula prescribed by state statute with regard to which 
the legislature has discretion to determine the overall amount that 
will be appropriated for expenditure or distribution under the 
formula.
	SECTION 2.  SUSPENSION.  (a)  Except as provided by this Act, 
the provisions of a statute that prescribe the elements of a 
mathematical formula according to which state money is spent or 
distributed are suspended until September 1, 2005.
	(b)  Subsection (a) of this section does not suspend the 
provisions of a statute to the extent the provisions authorize the 
expenditure of state money for a particular purpose.
	SECTION 3.  EXCEPTIONS.  Section 2 of this Act does not 
suspend the provisions of a statute that prescribe the elements of a 
mathematical formula according to which state money is spent for 
the purpose of:
		(1)  the payment of debt service on a public security or 
related obligation;
		(2)  funding the public school finance system for 
primary and secondary schools;
		(3)  providing group insurance coverage or health or 
dental benefits coverage for state employees; or
		(4)  a program funded by a combination of state and 
federal money with regard to which federal law requires the state to 
prescribe by statute the elements of a mathematical formula 
according to which money is spent on the program.
	SECTION 4.  APPROPRIATIONS ACT.  In an Act making 
appropriations for a period during which the statutory provisions 
prescribing the elements of an otherwise applicable funding formula 
are suspended by this Act, the legislature may direct the 
expenditure of state money according to an alternate formula 
prescribed by the Act making the appropriation.
	SECTION 5.  EXPIRATION.  This Act expires September 1, 2005.                   
	SECTION 6.  EFFECTIVE DATE.  This Act takes effect September 
1, 2003.