BILL ANALYSIS
Senate Research Center S.B. 1900
81R5809 MTB-D By: Seliger
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
In 1993, the Texas Legislature established the Cultural Endowment Fund (endowment fund) outside the treasury to provide a permanent and sustaining source of financial support for the Texas Commission on the Arts (TCA) and to eliminate the need for future appropriations of general revenue funds. The fundraising goal was set at $200 million by 2005, a level estimated as necessary to support annual agency appropriations of $9.3 million. The endowment fund has not reached its target of $200 million, ending fiscal year 2008 with a balance of $9.8 million. As such, the endowment fund has not accomplished its purpose of providing a sustainable source of financial support for TCA.
As proposed, S.B. 1900 dissolves the endowment fund and transfers the endowment fund balance to TCA's operating fund.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Sections 444.025(a), (b), and (i), Government Code, as follows:
(a) Requires that money paid to Texas Commission on the Arts (TCA) under this chapter be deposited in the TCA operating fund (operating fund). Deletes existing text requiring that money paid to TCA under this chapter, except as provided by Subsection (b), be deposited in the Texas cultural endowment fund (endowment fund).
(b) Deletes existing text authorizing a person to designate a donation as intended for the endowment fund or the operating fund. Deletes existing text requiring the donation, if the person designates that a donation is intended for a specific fund, to be deposited in the designated fund.
(i) Deletes existing text requiring money paid to TCA under this chapter, other than money required to be deposited in the endowment fund is subject to Subchapter F (State Funds Reform Act), Chapter 404 (State Treasury Operations of Comptroller).
SECTION 2. Amends Section 444.032(c), Government Code, to require that all proceeds from the sale of compact discs under the project be deposited in the operating fund, rather than endowment fund, under Section 444.027 (Texas Commission on the Arts Operating Fund), rather than Section 444.026 (Texas Cultural Endowment Fund).
SECTION 3. Repealer: Section 444.026 (Texas Cultural Endowment Fund), Government Code.
Repealer: Section 444.028 (Endowment Fund Investment and Management), Government Code.
SECTION 4. (a) Requires TCA, before December 1, 2009, to review donor restrictions on donations to the endowment fund to determine if the donations are authorized to be transferred to the operating fund.
(b) Provides that on December 1, 2009, the endowment fund is abolished and the money in the endowment fund is transferred to the operating fund or returned to the donor, as applicable.
SECTION 5. Effective date: September 1, 2009.