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.
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