1 | 1 | | By: Watson S.B. No. 1652 |
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2 | 2 | | (In the Senate - Filed March 11, 2011; March 23, 2011, read |
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3 | 3 | | first time and referred to Committee on Finance; May 11, 2011, |
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4 | 4 | | reported adversely, with favorable Committee Substitute by the |
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5 | 5 | | following vote: Yeas 11, Nays 0; May 11, 2011, sent to printer.) |
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6 | 6 | | COMMITTEE SUBSTITUTE FOR S.B. No. 1652 By: Patrick |
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7 | 7 | | |
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8 | 8 | | |
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9 | 9 | | A BILL TO BE ENTITLED |
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10 | 10 | | AN ACT |
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11 | 11 | | relating to the implementation of new processes for the purposes of |
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12 | 12 | | budget transparency, fiscal responsibility, and open government. |
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13 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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14 | 14 | | SECTION 1. Section 322.003, Government Code, is amended by |
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15 | 15 | | adding Subsection (f) to read as follows: |
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16 | 16 | | (f) The board shall hold a public hearing in November of |
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17 | 17 | | each state fiscal year to hear a report from the comptroller and |
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18 | 18 | | receive public testimony regarding the financial condition of this |
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19 | 19 | | state. The report from the comptroller must: |
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20 | 20 | | (1) specify for each revenue source included in |
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21 | 21 | | determining the estimate of anticipated revenue for purposes of the |
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22 | 22 | | most recent statement required by Section 49a, Article III, Texas |
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23 | 23 | | Constitution, the total net revenue actually collected from that |
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24 | 24 | | source for the state fiscal year as of the end of the most recent |
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25 | 25 | | state fiscal quarter; |
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26 | 26 | | (2) compare for the period described by Subdivision |
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27 | 27 | | (1) the total net revenue collected from each revenue source |
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28 | 28 | | required to be specified under that subdivision with the |
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29 | 29 | | anticipated revenue from that source that was included for purposes |
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30 | 30 | | of determining the estimate of anticipated revenue in the statement |
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31 | 31 | | required by Section 49a, Article III, Texas Constitution; |
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32 | 32 | | (3) specify for each state revenue source resulting |
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33 | 33 | | from a law taking effect after the comptroller submitted the most |
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34 | 34 | | recent statement required by Section 49a, Article III, Texas |
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35 | 35 | | Constitution, the estimated total net revenue collected from that |
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36 | 36 | | source for the state fiscal year as of the end of the most recent |
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37 | 37 | | state fiscal quarter; |
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38 | 38 | | (4) summarize indicators of state economic trends |
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39 | 39 | | experienced since the most recent statement required by Section |
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40 | 40 | | 49a, Article III, Texas Constitution; and |
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41 | 41 | | (5) summarize anticipated state economic trends and |
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42 | 42 | | the anticipated effect of the trends on state revenue collections. |
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43 | 43 | | SECTION 2. Section 322.008, Government Code, is amended by |
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44 | 44 | | adding Subsection (b-1) to read as follows: |
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45 | 45 | | (b-1) For each state fee the amount of which is proposed or |
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46 | 46 | | authorized to be increased by a provision of the general |
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47 | 47 | | appropriations bill, the general appropriations bill must set out |
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48 | 48 | | in a separate section of the bill: |
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49 | 49 | | (1) the statutory authority for the fee; |
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50 | 50 | | (2) the amount of the fee increase; |
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51 | 51 | | (3) each purpose for which the fee revenue is to be |
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52 | 52 | | used; and |
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53 | 53 | | (4) into which fund the fee revenue will be deposited. |
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54 | 54 | | SECTION 3. Chapter 322, Government Code, is amended by |
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55 | 55 | | adding Section 322.022 to read as follows: |
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56 | 56 | | Sec. 322.022. PUBLIC HEARING ON INTERIM BUDGET REDUCTION |
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57 | 57 | | REQUEST. (a) In this section: |
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58 | 58 | | (1) "Interim budget reduction request" means a request |
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59 | 59 | | communicated in any manner for a state agency to make adjustments to |
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60 | 60 | | the strategies, methods of finance, performance measures, or riders |
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61 | 61 | | applicable to the agency through the state budget in effect on the |
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62 | 62 | | date the request is communicated that, if implemented, would reduce |
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63 | 63 | | the agency's total expenditures for the current state fiscal |
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64 | 64 | | biennium to an amount less than the total amount that otherwise |
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65 | 65 | | would be permissible based on the appropriations made to the agency |
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66 | 66 | | in the budget. |
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67 | 67 | | (2) "State agency" means an office, department, board, |
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68 | 68 | | commission, institution, or other entity to which a legislative |
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69 | 69 | | appropriation is made. |
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70 | 70 | | (b) A state agency shall provide to the board a detailed |
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71 | 71 | | report of any expenditure reduction plan that: |
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72 | 72 | | (1) the agency develops in response to an interim |
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73 | 73 | | budget reduction request made by the governor, the lieutenant |
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74 | 74 | | governor, or a member of the legislature, or any combination of |
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75 | 75 | | those persons; and |
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76 | 76 | | (2) if implemented, would reduce the agency's total |
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77 | 77 | | expenditures for the current state fiscal biennium to an amount |
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78 | 78 | | less than the total amount that otherwise would be permissible |
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79 | 79 | | based on the appropriations made to the agency in the state budget |
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80 | 80 | | for the biennium. |
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81 | 81 | | (c) The board shall hold a public hearing to solicit |
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82 | 82 | | testimony on an expenditure reduction plan a state agency reports |
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83 | 83 | | to the board as required by Subsection (b) as soon as practicable |
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84 | 84 | | after receiving the report. The agency may not implement any |
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85 | 85 | | element of the plan until the conclusion of the hearing. |
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86 | 86 | | (d) This section does not apply to an expenditure reduction |
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87 | 87 | | a state agency desires to make that does not directly or indirectly |
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88 | 88 | | result from an interim budget reduction request made by the |
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89 | 89 | | governor, the lieutenant governor, or a member of the legislature, |
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90 | 90 | | or any combination of those persons. |
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91 | 91 | | SECTION 4. Subchapter B, Chapter 403, Government Code, is |
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92 | 92 | | amended by adding Section 403.0145 to read as follows: |
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93 | 93 | | Sec. 403.0145. PUBLICATION OF FEES SCHEDULE. As soon as |
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94 | 94 | | practicable after the end of each state fiscal year, the |
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95 | 95 | | comptroller shall publish a schedule of all revenue to the state |
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96 | 96 | | from fees authorized by statute. For each fee, the schedule must |
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97 | 97 | | specify: |
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98 | 98 | | (1) the purpose for which the fee revenue is to be |
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99 | 99 | | used; |
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100 | 100 | | (2) if the fee has been increased during the most |
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101 | 101 | | recent legislative session, the amount of the increase; |
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102 | 102 | | (3) into which fund the fee revenue will be deposited; |
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103 | 103 | | and |
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104 | 104 | | (4) the amount of the fee revenue that will be |
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105 | 105 | | considered available for general governmental purposes and |
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106 | 106 | | accordingly considered available for the purpose of certification |
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107 | 107 | | under Section 403.121. |
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108 | 108 | | SECTION 5. Section 404.124, Government Code, is amended by |
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109 | 109 | | amending Subsections (a) and (b) and adding Subsection (b-1) to |
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110 | 110 | | read as follows: |
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111 | 111 | | (a) Before issuing notes the comptroller shall submit to the |
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112 | 112 | | committee a general revenue cash flow shortfall forecast, based on |
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113 | 113 | | the comptroller's most recent anticipated revenue estimate. The |
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114 | 114 | | forecast must contain a detailed report of estimated revenues and |
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115 | 115 | | expenditures for each month and each major revenue and expenditure |
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116 | 116 | | category and must demonstrate the maximum general revenue cash flow |
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117 | 117 | | shortfall that may be predicted. The committee shall hold a public |
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118 | 118 | | hearing to solicit testimony on the forecast, including testimony |
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119 | 119 | | on this state's overall economic condition, as soon as practicable |
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120 | 120 | | after receiving the forecast. |
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121 | 121 | | (b) Based on the forecast and testimony provided at the |
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122 | 122 | | hearing required by Subsection (a), the committee may approve the |
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123 | 123 | | issuance of notes, subject to Subsections (b-1) and (c), and the |
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124 | 124 | | maximum outstanding balance of notes in any fiscal year. The |
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125 | 125 | | outstanding balance may not exceed the maximum temporary cash |
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126 | 126 | | shortfall forecast by the comptroller for any period in the fiscal |
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127 | 127 | | year. The comptroller may not issue notes in excess of the amount |
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128 | 128 | | approved. |
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129 | 129 | | (b-1) The committee's approval of the issuance of notes |
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130 | 130 | | granted under Subsection (b) expires on the 91st day after the date |
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131 | 131 | | the hearing conducted under Subsection (a) concludes. The |
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132 | 132 | | comptroller may not issue notes on or after the 91st day unless the |
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133 | 133 | | comptroller submits another general revenue cash flow shortfall |
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134 | 134 | | forecast to the committee and the committee subsequently grants |
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135 | 135 | | approval for the issuance of the notes in accordance with the |
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136 | 136 | | procedure required by Subsections (a) and (b). Each subsequent |
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137 | 137 | | approval expires on the 61st day after the date the hearing on which |
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138 | 138 | | the approval was based concludes. |
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139 | 139 | | SECTION 6. This Act takes effect immediately if it receives |
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140 | 140 | | a vote of two-thirds of all the members elected to each house, as |
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141 | 141 | | provided by Section 39, Article III, Texas Constitution. If this |
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142 | 142 | | Act does not receive the vote necessary for immediate effect, this |
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143 | 143 | | Act takes effect September 1, 2011. |
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144 | 144 | | * * * * * |
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