81R447 JRD-D

By: Leibowitz H.B. No. 338

A BILL TO BE ENTITLED

AN ACT

relating to ensuring that at least 75 percent of dedicated revenues are spent for the purpose of the dedication.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 316.033, Government Code, is amended to read as follows:

Sec. 316.033. FUNDS EXCLUDED. This subchapter applies to funds established by state law, but does not apply to:

(1) any portion of a fund derived from [constitutionally] dedicated revenues; or

(2) [to] funds or fund balances that are:

(A) [(1)] dedicated by the Texas Constitution or by statute;

(B) [(2)] held in trust or escrow for the benefit of any person or entity other than a state agency;

(C) [(3)] pledged to the payment of bonds, notes, or other debts;

(D) [(4)] derived from gifts, donations, or endowments made to state agencies or institutions of higher education;

(E) [(5)] pledged to the capital trust fund to be used for construction; or

(F) [(6)] maintained by institutions of higher education, including the Texas State Technical College System.

SECTION 2. Section 403.095, Government Code, is amended to read as follows:

Sec. 403.095. USE OF DEDICATED REVENUE. (a) Revenue that has been set aside by law for a particular purpose or entity, other than any portion of the revenue that is available for general governmental purposes as provided by Subsection (b), is available only for that purpose or entity [to the extent money is appropriated for that purpose or entity]. Expenditures made in furtherance of the dedicated purpose or entity shall be made from money received from the dedicated revenue source to the extent those funds are available [appropriated].

(b) Notwithstanding any law dedicating or setting aside revenue for a particular purpose or entity, an amount equal to the lesser of either 25 percent of the dedicated revenues from a tax, fee, or other source or the amount by which dedicated revenues received from the revenue source [that, on August 31, 2009,] are estimated to exceed the amount of dedicated revenues appropriated by the legislature for the dedicated purpose from the revenue source for a state fiscal biennium is [General Appropriations Act or other laws enacted by the 80th Legislature are] available for general governmental purposes on the last day of the state fiscal biennium and [are] considered available for the purpose of certification under Section 403.121. The availability of the revenue for general governmental purposes under this subsection expires on the first day of the succeeding state fiscal biennium.

(c) The comptroller shall develop accounting and revenue estimating procedures so that each dedicated account maintained in the general revenue fund can be separately identified as to balances of cash and other assets and the amounts of revenues and expenditures and appropriations for each fiscal year.

(d) [Following certification of the General Appropriations Act and other appropriations measures enacted by the 80th 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 section [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, 2009.]

SECTION 3. Section 316.032, Government Code, is repealed.

SECTION 4. This Act takes effect September 1, 2009.