BILL ANALYSIS

H.B. 3258

By: Howard

Appropriations

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Since 1991, unappropriated general revenue dedicated account balances have been counted as revenue available to certify appropriations from the general revenue fund. In 2013, the Texas Legislature enacted H.B. 7, which directed the Legislative Budget Board (LBB) to study and provide recommendations on opportunities for the state to reduce reliance on dedicated revenue for the purposes of budget certification and to provide plans for the succeeding six years. For six years the LBB reviewed and provided recommendations on dedicated funds. There is confusion regarding whether the current statute directs the LBB to continue these reviews, and the LBB has not produced a report since 2019. Given the growing number of dedicated funds, it is necessary for the LBB to continue to evaluate the continuing need for these funds. If a dedicated fund is not being used or is no longer needed, the dedicated funds should be returned to general revenue for other purposes. H.B. 3258 seeks to clarify that the statutory requirements enacted by H.B. 7 are ongoing requirements applicable for every state fiscal biennium.

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. 3258 amends the Government Code to update provisions requiring the Legislative Budget Board (LBB), effective June 2013, to incorporate into its budget recommendations appropriate measures to reduce state government's reliance on available dedicated revenue for the purposes of budget certification and to include with the budget recommendations plans for further reducing state government's reliance on available dedicated revenue for those purposes for the succeeding six years. Specifically, the bill removes the timeline of the succeeding six years and further does the following:

· specifies that the LBB's duty to incorporate and include those appropriate measures and plans in their budget recommendations applies with respect to each state fiscal biennium; and

· specifies that the plan for reducing reliance on available dedicated revenue included with the LBB's budget recommendations is a plan adopted by the LBB and is for the three state fiscal bienniums that follow the adoption of those budget recommendations.

EFFECTIVE DATE

September 1, 2023.