By: Watson  S.B. No. 1652
         (In the Senate - Filed March 11, 2011; March 23, 2011, read
  first time and referred to Committee on Finance; May 11, 2011,
  reported adversely, with favorable Committee Substitute by the
  following vote:  Yeas 11, Nays 0; May 11, 2011, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1652 By:  Patrick
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the implementation of new processes for the purposes of
  budget transparency, fiscal responsibility, and open government.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 322.003, Government Code, is amended by
  adding Subsection (f) to read as follows:
         (f)  The board shall hold a public hearing in November of
  each state fiscal year to hear a report from the comptroller and
  receive public testimony regarding the financial condition of this
  state. The report from the comptroller must:
               (1)  specify for each revenue source included in
  determining the estimate of anticipated revenue for purposes of the
  most recent statement required by Section 49a, Article III, Texas
  Constitution, the total net revenue actually collected from that
  source for the state fiscal year as of the end of the most recent
  state fiscal quarter;
               (2)  compare for the period described by Subdivision
  (1) the total net revenue collected from each revenue source
  required to be specified under that subdivision with the
  anticipated revenue from that source that was included for purposes
  of determining the estimate of anticipated revenue in the statement
  required by Section 49a, Article III, Texas Constitution;
               (3)  specify for each state revenue source resulting
  from a law taking effect after the comptroller submitted the most
  recent statement required by Section 49a, Article III, Texas
  Constitution, the estimated total net revenue collected from that
  source for the state fiscal year as of the end of the most recent
  state fiscal quarter;
               (4)  summarize indicators of state economic trends
  experienced since the most recent statement required by Section
  49a, Article III, Texas Constitution; and
               (5)  summarize anticipated state economic trends and
  the anticipated effect of the trends on state revenue collections.
         SECTION 2.  Section 322.008, Government Code, is amended by
  adding Subsection (b-1) to read as follows:
         (b-1)  For each state fee the amount of which is proposed or
  authorized to be increased by a provision of the general
  appropriations bill, the general appropriations bill must set out
  in a separate section of the bill:
               (1)  the statutory authority for the fee;
               (2)  the amount of the fee increase;
               (3)  each purpose for which the fee revenue is to be
  used; and
               (4)  into which fund the fee revenue will be deposited.
         SECTION 3.  Chapter 322, Government Code, is amended by
  adding Section 322.022 to read as follows:
         Sec. 322.022.  PUBLIC HEARING ON INTERIM BUDGET REDUCTION
  REQUEST. (a)  In this section:
               (1)  "Interim budget reduction request" means a request
  communicated in any manner for a state agency to make adjustments to
  the strategies, methods of finance, performance measures, or riders
  applicable to the agency through the state budget in effect on the
  date the request is communicated that, if implemented, would reduce
  the agency's total expenditures for the current state fiscal
  biennium to an amount less than the total amount that otherwise
  would be permissible based on the appropriations made to the agency
  in the budget.
               (2)  "State agency" means an office, department, board,
  commission, institution, or other entity to which a legislative
  appropriation is made.
         (b)  A state agency shall provide to the board a detailed
  report of any expenditure reduction plan that:
               (1)  the agency develops in response to an interim
  budget reduction request made by the governor, the lieutenant
  governor, or a member of the legislature, or any combination of
  those persons; and
               (2)  if implemented, would reduce the agency's total
  expenditures for the current state fiscal biennium to an amount
  less than the total amount that otherwise would be permissible
  based on the appropriations made to the agency in the state budget
  for the biennium.
         (c)  The board shall hold a public hearing to solicit
  testimony on an expenditure reduction plan a state agency reports
  to the board as required by Subsection (b) as soon as practicable
  after receiving the report. The agency may not implement any
  element of the plan until the conclusion of the hearing.
         (d)  This section does not apply to an expenditure reduction
  a state agency desires to make that does not directly or indirectly
  result from an interim budget reduction request made by the
  governor, the lieutenant governor, or a member of the legislature,
  or any combination of those persons.
         SECTION 4.  Subchapter B, Chapter 403, Government Code, is
  amended by adding Section 403.0145 to read as follows:
         Sec. 403.0145.  PUBLICATION OF FEES SCHEDULE. As soon as
  practicable after the end of each state fiscal year, the
  comptroller shall publish a schedule of all revenue to the state
  from fees authorized by statute. For each fee, the schedule must
  specify:
               (1)  the purpose for which the fee revenue is to be
  used;
               (2)  if the fee has been increased during the most
  recent legislative session, the amount of the increase;
               (3)  into which fund the fee revenue will be deposited;
  and
               (4)  the amount of the fee revenue that will be
  considered available for general governmental purposes and
  accordingly considered available for the purpose of certification
  under Section 403.121.
         SECTION 5.  Section 404.124, Government Code, is amended by
  amending Subsections (a) and (b) and adding Subsection (b-1) to
  read as follows:
         (a)  Before issuing notes the comptroller shall submit to the
  committee a general revenue cash flow shortfall forecast, based on
  the comptroller's most recent anticipated revenue estimate. The
  forecast must contain a detailed report of estimated revenues and
  expenditures for each month and each major revenue and expenditure
  category and must demonstrate the maximum general revenue cash flow
  shortfall that may be predicted. The committee shall hold a public
  hearing to solicit testimony on the forecast, including testimony
  on this state's overall economic condition, as soon as practicable
  after receiving the forecast.
         (b)  Based on the forecast and testimony provided at the
  hearing required by Subsection (a), the committee may approve the
  issuance of notes, subject to Subsections (b-1) and (c), and the
  maximum outstanding balance of notes in any fiscal year. The
  outstanding balance may not exceed the maximum temporary cash
  shortfall forecast by the comptroller for any period in the fiscal
  year. The comptroller may not issue notes in excess of the amount
  approved.
         (b-1)  The committee's approval of the issuance of notes
  granted under Subsection (b) expires on the 91st day after the date
  the hearing conducted under Subsection (a) concludes. The
  comptroller may not issue notes on or after the 91st day unless the
  comptroller submits another general revenue cash flow shortfall
  forecast to the committee and the committee subsequently grants
  approval for the issuance of the notes in accordance with the
  procedure required by Subsections (a) and (b). Each subsequent
  approval expires on the 61st day after the date the hearing on which
  the approval was based concludes.
         SECTION 6.  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, 2011.
 
  * * * * *