BILL ANALYSIS

H.B. 456

By: Metcalf

Appropriations

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties suggest that certain state revenue should be dedicated to the purpose of retiring state debt. H.B. 456 seeks to provide for such a dedication.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 456 amends the Government Code to establish the state debt retirement account as an account in the general revenue fund administered by the comptroller of public accounts. The bill exempts the account from the application of statutory provisions relating to use of dedicated revenue.

H.B. 456 requires the comptroller, each time the comptroller reduces an amount of general revenue that otherwise is to be transferred to the economic stabilization fund, to allocate to the credit of the state debt retirement account an amount of general revenue equal to the amount by which the comptroller reduced the amount of the transfer to the economic stabilization fund and, each time the comptroller credits to general revenue an amount of interest otherwise due to the economic stabilization fund, to credit that amount to the state debt retirement account.

H.B. 456 limits the appropriation of money allocated or credited to the state debt retirement account under the bill's provisions to the payment of the principal of or interest on state bonds, notes, or other obligations. The bill requires the comptroller, at any time there is no outstanding amount of principal or interest owed on a state obligation, to allocate to the nondedicated portion of the general revenue fund any remaining balance of money allocated or credited to the state debt retirement account. The bill prohibits the comptroller from making an allocation or crediting money to the state debt retirement account in such a circumstance and authorizes the money allocated to the nondedicated portion of the general revenue fund to be appropriated for any general governmental purpose.

EFFECTIVE DATE

September 1, 2017.