Highlights 77th Texas Legislature - Senate

________________________________ BUDGET
77 th Texas Legislature
Provides a waiver of sovereign immunity in order to preserve the legislature's interest in managing state
fiscal matters through the appropriations process and amends the Government Code providing that the
legislature retains the authority to deny or grant a waiver of immunity to suit against a unit of state
government by statute, resolution, or any other means the legislature may determine appropriate.
Provides, as part of the transfer of personnel and appropriations made by H.B. 819, that any appropriation
to the Texas Department of Economic Development relating to the Office of Rural Affairs is transferred to
the Department of Agriculture.
Creates a task force to evaluate employee compensation and provide recommendations to the legislature
no later than January 1, 2003.
Appropriates receipts of the new Emissions Reduction Account in the Clean Air Account to the Texas
Natural Resources Conservation Commission (TNRCC) contingent on legislation relating to certain nitrous
oxide emission reductions.
Directs TNRCC, by rule, to develop a program for the reduction of emissions of nitrogen oxides from
reciprocating internal combustion engines associated with pipelines that are required to reduce hourly
emissions of nitrogen oxides by at least 50 percent and provides that the program may include incentives
as developed by TNRCC.
Directs the comptroller to report to the legislature as to the feasibility, methodology, and cost of calculating
the effect of each provision on the distribution of the tax burden by ethnicity from the data included in the
Tax Exemptions and Tax Incidence Report by September 1, 2002.
Appropriates $15,000,000 to the Texas Forest Service from the new Volunteer Fire Department Assistance
Fund to administer the Rural Volunteer Fire Department Assistance Program.
Makes provisions relating to the Texas Treasury Safekeeping Trust Company.
Directs the comptroller to create the Product Development and Small Business Incubator Board (board)
and makes provision for the board’s administration.
Investments of Public Money - H.B. 2957
by Representative Phil King
Senate Sponsor: Senator Sibley
State law determines if a federal home loan bank (FHLB) letter of credit can serve as collateral for a
municipal fund depository. The Public Funds Investment Act provides an indirect reference to FHLB letters
of credit by providing that obligations of United States agencies and instrumentalities are authorized
investments that may serve as collateral for the deposit of public funds. However, since letters of credit are
not specifically mentioned, some municipalities are wary of relying on FHLB letters of credit to serve as
collateral for their deposit funds.
Senate Research Center 34