By: Pickett	H.B. No. 1
	Substitute the following for H.B. No. 1:
	By:  Phillips	C.S.H.B. No. 1

	A BILL TO BE ENTITLED
	AN ACT
	relating to transportation funding, expenditures, and finance and
	the preservation of a sufficient balance in the economic
	stabilization fund; making an appropriation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter A, Chapter 222, Transportation Code,
	is amended by adding Section 222.0031 to read as follows:
	Sec. 222.0031.  REQUIRED REPAYMENT OF BONDS. (a) On or
	before August 31, 2015, the department shall identify and implement
	savings and efficiencies that result in a total savings of at least
	$100 million in funds appropriated to the department for the state
	fiscal biennium ending August 31, 2015. The amount saved is
	appropriated for the state fiscal biennium ending August 31, 2015,
	to the department from the source from which the money was
	originally appropriated for the purpose of reducing the principal
	of and interest on bonds and other public securities issued, and
	bond enhancement agreements entered into, by the commission as
	authorized by Section 49-n, Article III, Texas Constitution, as
	proposed by H.J.R. 28, 78th Legislature, Regular Session, 2003.
	(b)  To make payments required under Subsection (a), the
	department:
	(1)  shall maximize the use of all amounts appropriated
	to the department;
	(2)  may use savings realized through operational
	efficiencies, cost reductions, and cost savings; and
	(3)  may not reduce the amount of funding available for
	transportation projects.
	(c)  Not later than August 31, 2015, the department shall
	report in writing to the legislature on the implementation of this
	section.
	(d)  This section expires September 1, 2015.
	SECTION 2.  (a) Chapter 316, Government Code, is amended by
	adding Subchapter H to read as follows:
	SUBCHAPTER H. PRESERVATION OF SUFFICIENT BALANCE IN
	ECONOMIC STABILIZATION FUND
	Sec. 316.091.  DEFINITION.  In this subchapter, "fund" means
	the economic stabilization fund.
	Sec. 316.092.  DETERMINATION OF SUFFICIENT FUND BALANCE. (a)
	Not later than September 1 of each even-numbered year, the speaker
	of the house of representatives and the lieutenant governor shall
	appoint a select committee as follows:
	(1)  the speaker of the house of representatives shall
	appoint five members of the house appropriations committee as
	members of the committee; and
	(2)  the lieutenant governor shall appoint five members
	of the senate finance committee as members of the committee.
	(b)  For the purposes of Section 49-g(c-2), Article III,
	Texas Constitution, not later than December 1 of each even-numbered
	year, the select committee shall determine and adopt for the next
	state fiscal biennium a sufficient balance of the fund in an amount
	that the committee estimates will ensure an appropriate amount of
	revenue available in the fund.  In determining the sufficient
	balance for that fiscal biennium, the committee shall consider:
	(1)  the history of fund balances;
	(2)  the history of transfers to the fund;
	(3)  estimated fund balances during that fiscal
	biennium;
	(4)  estimated transfers to the fund to occur during
	that fiscal biennium;
	(5)  information available to the committee regarding
	state highway congestion and funding demands; and
	(6)  any other information requested by the committee
	regarding the state's financial condition.
	(c)  On or before October 1 of each even-numbered year, the
	comptroller shall provide to the select committee the comptroller's
	projection of the amounts to be transferred to the fund during the
	next state fiscal biennium.
	(d)  The sufficient fund balance adopted by the select
	committee under Subsection (b) may be adjusted by filing a
	resolution proposing that a different amount be adopted as the
	sufficient fund balance. The resolution must be filed not later
	than the 30th day of the regular legislative session that begins
	after the date the sufficient fund balance is adopted by the
	committee, and must be approved by a majority of the members of both
	houses of the legislature not later than the 60th day of that
	legislative session or the resolution has no effect.  If the
	resolution is approved as provided by this subsection, the amount
	of the sufficient fund balance specified in the resolution is
	adopted and supersedes the balance adopted by the committee under
	Subsection (b).
	Sec. 316.093.  ADJUSTMENT OF CONSTITUTIONAL ALLOCATIONS TO
	FUND AND STATE HIGHWAY FUND. (a) Before the comptroller makes
	transfers for a state fiscal year in accordance with Section
	49-g(c), Article III, Texas Constitution, the comptroller shall
	determine whether the sum of the balance of the fund on the
	preceding August 31, any projected transfer to the fund under
	Section 49-g(b) of that article, and any projected transfer to the
	fund under Section 49-g(c) of that article in accordance with the
	allocations for the transfer as provided by Section 49-g(c-1) of
	that article is less than the sufficient balance adopted under
	Section 316.092.
	(b)  If the sum described by Subsection (a) is less than the
	sufficient balance adopted under Section 316.092, the comptroller
	shall reduce the allocation to the state highway fund provided by
	Section 49-g(c), Article III, Texas Constitution, and increase the
	allocation to the economic stabilization fund, in an equal amount,
	until the sufficient balance adopted under Section 316.092 is
	achieved.
	(c)  If under Section 316.092 a sufficient balance has not
	been adopted for the comptroller to consider under this section,
	the comptroller shall adjust the allocation of amounts to be
	transferred to the fund and to the state highway fund provided by
	Section 49-g(c), Article III, Texas Constitution, so that the total
	of those amounts is transferred to the economic stabilization fund,
	except that the comptroller shall reduce a transfer made under this
	subsection as necessary to prevent the amount in the fund from
	exceeding the limit in effect for that biennium under Section
	49-g(g) of that article.
	(d)  As soon as practicable after the effective date of this
	section, the speaker of the house of representatives and the
	lieutenant governor shall appoint a select committee in the manner
	required by Section 316.092(a), and that committee shall determine
	and adopt a sufficient balance of the fund applicable to the
	transfers to be made under Section 49-g(c), Article III, Texas
	Constitution, for the state fiscal year beginning September 1,
	2014, and a sufficient balance of the fund applicable to the
	transfers to be made under that subsection for the next fiscal
	biennium.  The comptroller may not make the transfers required
	under Section 49-g of that article for the state fiscal year
	beginning September 1, 2014, until the committee has adopted a
	sufficient balance under this subsection.  However, if the
	committee has not adopted the balance before the 30th day after the
	effective date of this section, the comptroller shall make that
	transfer on the 30th day after the effective date of this section in
	accordance with Subsection (c).  This subsection expires September
	1, 2015.
	Sec. 316.094.  ALLOCATION OF CERTAIN AMOUNTS TRANSFERRED TO
	STATE HIGHWAY FUND. (a)  Amounts transferred to the state highway
	fund under Section 49-g(c), Article III, Texas Constitution, when
	appropriated, must be used and allocated throughout the state by
	the Texas Department of Transportation consistent with existing
	formulas adopted by the Texas Transportation Commission.
	(b)  This section takes effect immediately on the final
	canvass of the election on the constitutional amendment proposed by
	the 83rd Legislature, 3rd Called Session, 2013, to provide for the
	transfer of certain general revenue to the economic stabilization
	fund and to the state highway fund and for the dedication of the
	revenue transferred to the state highway fund, but only if that
	amendment is approved by the voters. If that amendment is not
	approved by the voters, this section has no effect.
	SECTION 3.  (a)  The speaker of the house of representatives
	shall appoint nine members to a House Select Committee on
	Transportation Funding, Expenditures, and Finance and designate
	one member as chair.  The lieutenant governor shall appoint nine
	members to a Senate Select Committee on Transportation Funding,
	Expenditures, and Finance and designate one member as chair.  The
	speaker and lieutenant governor shall make the appointments not
	later than November 30, 2013.
	(b)  The committees established under this section may meet
	separately at the call of the chair of the committee or jointly at
	the call of both chairs.  In joint meetings, the chairs shall act as
	joint chairs.
	(c)  The committees established under this section, meeting
	separately or jointly, shall review, study, and evaluate:
	(1)  the future reliability of all current state
	transportation funding sources;
	(2)  alternatives that may increase available state
	funding for surface transportation, including an examination of
	increases to current surface-transportation-related funding
	streams and possible diversions of
	non-surface-transportation-related funding streams toward surface
	transportation funding;
	(3)  the use of debt financing in state transportation
	funding, including the uses of the Texas Mobility Fund, and the
	effects on long-term transportation planning of using debt
	financing;
	(4)  alternative transportation funding options in use
	nationally and internationally;
	(5)  current and historic appropriations to the Texas
	Department of Transportation, including:
	(A)  whether that agency's budget structure best
	maximizes the application of limited public funds toward highway
	maintenance and construction;
	(B)  whether there are opportunities to reduce the
	use of money from the state highway fund by that agency for
	activities not related to highway maintenance and construction,
	including such uses as employee salaries and benefits; and
	(C)  possible benefits of developing a budget for
	that agency for the 2016-2017 state fiscal biennium using
	zero-based budgeting principles;
	(6)  the uses of the state highway fund for agencies
	other than the Texas Department of Transportation, including and
	emphasizing the use of that fund for the Department of Public Safety
	of the State of Texas; and
	(7)  the original purpose of the economic stabilization
	fund established by Section 49-g, Article III, Texas Constitution,
	whether that purpose remains relevant, and whether it remains
	appropriate to continue using the net amount of oil and gas
	production taxes received in the 1987 state fiscal year as the basis
	for making general revenue transfers to the economic stabilization
	fund.
	(d)  Following consideration of the factors described by
	Subsection (c) of this section, the committees established under
	this section shall jointly adopt recommendations related to the
	reviewed subjects and shall provide a written report of the
	committees' recommendations on the reviewed subjects to the
	legislature not later than November 1, 2014.
	(e)  The committees established under this section may
	exercise any power of a committee of their respective chambers and
	any powers of a joint committee. For the purposes of this section,
	the committees established under this section are considered a
	joint committee and the cost of operation of each committee may be
	borne in the same manner as the cost of a joint committee.  The Texas
	Legislative Council may provide funding for the operations of the
	committees.  To the extent not inconsistent with this section, the
	joint rules adopted by the 83rd Legislature for the administration
	of joint interim legislative study committees apply to the
	committees established under this section.
	(f)  This section expires January 13, 2015.
	SECTION 4.  Except as otherwise provided by this Act:
	(1)  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; 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.