88R12317 KBB-D     By: Bonnen H.B. No. 3461       A BILL TO BE ENTITLED   AN ACT   relating to the creation and re-creation of funds and accounts, the   dedication and rededication of revenue and allocation of accrued   interest on dedicated revenue, and the exemption of unappropriated   money from use for general governmental purposes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  DEFINITION. In any provision of this Act that   does not amend current law, "state agency" means an office,   institution, or other agency that is in the executive or judicial   branch of state government, has authority that is not limited to a   geographical portion of the state, and was created by the   constitution or a statute of this state. The term does not include   an institution of higher education as defined by Section 61.003,   Education Code.          SECTION 2.  ABOLITION OF FUNDS, ACCOUNTS, AND DEDICATIONS.   Except as otherwise specifically provided by this Act, all funds   and accounts created or re-created by an Act of the 88th   Legislature, Regular Session, 2023, that becomes law and all   dedications or rededications of revenue collected by a state agency   for a particular purpose by an Act of the 88th Legislature, Regular   Session, 2023, that becomes law are abolished on the later of August   31, 2023, or the date the Act creating or re-creating the fund or   account or dedicating or rededicating revenue takes effect.          SECTION 3.  PREVIOUSLY EXEMPT DEDICATIONS, FUNDS, AND   ACCOUNTS. Section 2 of this Act does not apply to:                (1)  statutory dedications, funds, and accounts that   were enacted before the 88th Legislature convened to comply with   requirements of state constitutional or federal law;                (2)  dedications, funds, or accounts that remained   exempt from former Section 403.094(h), Government Code, at the time   dedications, accounts, and funds were abolished under that   provision;                (3)  increases in fees or other revenue dedicated as   described by this section; or                (4)  increases in fees or other revenue required to be   deposited in a fund or account described by this section.          SECTION 4.  FEDERAL FUNDS. Section 2 of this Act does not   apply to funds created under an Act of the 88th Legislature, Regular   Session, 2023, for which separate accounting is required by federal   law, except that the funds shall be deposited in accounts in the   general revenue fund unless otherwise required by federal law.          SECTION 5.  TRUST FUNDS. Section 2 of this Act does not   apply to trust funds or dedicated revenue deposited to trust funds   created under an Act of the 88th Legislature, Regular Session,   2023, except that the trust funds shall be held in the state   treasury, with the comptroller in trust, or outside the state   treasury with the comptroller's approval.          SECTION 6.  BOND FUNDS. Section 2 of this Act does not apply   to bond funds and pledged funds created or affected by an Act of the   88th Legislature, Regular Session, 2023, except that the funds   shall be held in the state treasury, with the comptroller in trust,   or outside the state treasury with the comptroller's approval.          SECTION 7.  CONSTITUTIONAL DEDICATIONS, FUNDS, AND   ACCOUNTS. Section 2 of this Act does not apply to funds or accounts   that would be created or re-created by the Texas Constitution or   revenue that would be dedicated or rededicated by the Texas   Constitution under a constitutional amendment proposed by the 88th   Legislature, Regular Session, 2023, or to dedicated revenue   deposited to funds or accounts that would be so created or   re-created, if the constitutional amendment is approved by the   voters.          SECTION 8.  ADDITIONAL USES FOR DEDICATED FUNDS OR ACCOUNTS.     Section 2 of this Act does not apply to a newly authorized use of   money in a dedicated fund or dedicated account as provided by an Act   of the 88th Legislature, Regular Session, 2023, to the extent:                (1)  the fund or account was exempted from abolition by   an Act of the legislature that became law before January 1, 2023;   and                (2)  the newly authorized use is within the scope of the   original dedication of the fund or account.          SECTION 9.  REALLOCATION OF INTEREST ACCRUED ON CERTAIN   DEDICATED REVENUE. (a)  This section applies only to an account in   the general revenue fund:                (1)  any part of which Section 403.095, Government   Code, makes available for certification under Section 403.121,   Government Code; and                (2)  that is created or re-created by an Act of the 88th   Legislature, Regular Session, 2023.          (b)  Except as provided by this Act, all interest and other   earnings that accrue on all revenue held in an account in the   general revenue fund are available for any general governmental   purpose.          (c)  Except as provided by this Act, the comptroller shall   deposit all interest and other earnings that accrue on all revenue   held in an account in the general revenue fund to the credit of the   general revenue fund.          SECTION 10.  AMENDMENT OF SECTION 403.095, GOVERNMENT CODE.   Effective September 1, 2023, Sections 403.095(b), (d), and (f),   Government Code, are amended to read as follows:          (b)  Notwithstanding any law dedicating or setting aside   revenue for a particular purpose or entity, dedicated revenues that   on August 31, 2025 [2023], are estimated to exceed the amount   appropriated by the General Appropriations Act or other laws   enacted by the 88th [87th] Legislature are available for general   governmental purposes and are considered available for the purpose   of certification under Section 403.121.          (d)  Following certification of the General Appropriations   Act and other appropriations measures enacted by the 88th [87th]   Legislature, the comptroller shall reduce each dedicated account as   directed by the legislature by an amount that may not exceed the   amount by which estimated revenues and unobligated balances exceed   appropriations. The reductions may be made in the amounts and at the   times necessary for cash flow considerations to allow all the   dedicated accounts to maintain adequate cash balances to transact   routine business. The legislature may authorize, in the General   Appropriations Act, the temporary delay of the excess balance   reduction required under this subsection. This subsection does not   apply to revenues or balances in:                (1)  funds outside the treasury;                (2)  trust funds, which for purposes of this section   include funds that may or are required to be used in whole or in part   for the acquisition, development, construction, or maintenance of   state and local government infrastructures, recreational   facilities, or natural resource conservation facilities;                (3)  funds created by the constitution or a court; or                (4)  funds for which separate accounting is required by   federal law.          (f)  This section expires September 1, 2025 [2023].          SECTION 11.  AMENDMENT OF SECTION 504.6012, TRANSPORTATION   CODE. Effective September 1, 2023, Section 504.6012,   Transportation Code, is amended to read as follows:          Sec. 504.6012.  ELIMINATION OF DEDICATED REVENUE ACCOUNTS;   REVENUES IN TRUST.  (a)  Notwithstanding any other law, not later   than September 30, 2023 [2021], the comptroller shall eliminate all   dedicated accounts established for specialty license plates and   shall set aside the balances of those dedicated accounts so that the   balances may be appropriated only for the purposes intended as   provided by the dedications.          (b)  On and after September 1, 2023 [2021], the portion of a   fee payable that is designated for deposit to a dedicated account   shall be paid instead to the credit of an account in a trust fund   created by the comptroller outside the general revenue fund.  The   comptroller shall administer the trust fund and accounts and may   allocate the corpus and earnings on each account only in accordance   with the dedications of the revenue deposited to the trust fund   accounts.          SECTION 12.  EFFECT OF ACT. (a)  This Act prevails over any   other Act of the 88th Legislature, Regular Session, 2023,   regardless of the relative dates of enactment, that purports to   create or re-create a special fund or account or to dedicate or   rededicate revenue to a particular purpose, including any fund,   account, or revenue dedication abolished under former Section   403.094, Government Code.          (b)  An exemption from the application of Section 403.095,   Government Code, contained in another Act of the 88th Legislature,   Regular Session, 2023, that is exempted from the application of   Section 2 of this Act has no effect.          (c)  Revenue that, under the terms of another Act of the 88th   Legislature, Regular Session, 2023, would be deposited to the   credit of a special account or fund shall be deposited to the credit   of the undedicated portion of the general revenue fund unless the   fund, account, or dedication is exempted under this Act.          (d)  This Act prevails over any other Act of the 88th   Legislature, Regular Session, 2023, regardless of the relative   dates of enactment, that purports to allocate interest or other   earnings that accrue on revenue held in an account in the general   revenue fund any part of which Section 403.095, Government Code,   makes available for certification under Section 403.121,   Government Code.          SECTION 13.  EFFECTIVE DATE. Except as otherwise provided   by this Act:                (1)  this Act takes effect immediately if this Act   receives a vote of two-thirds of all the members elected to each   house, as provided by Section 39, Article III, Texas Constitution;   and                (2)  if this Act does not receive the vote necessary for   immediate effect, this Act takes effect on the 91st day after the   last day of the legislative session.