BILL ANALYSIS

C.S.H.B. 4486

By: Bonnen

Appropriations

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that, at the conclusion of each state fiscal biennium, there are many outstanding claims and judgments against the state for various amounts of money, including warrants voided by the statute of limitations, outstanding invoices to private vendors, unpaid charges for Medicaid recipients, and court judgment settlements. The bill author has also informed the committee that the payment of these claims and judgments requires additional appropriations to be made to honor the state's legal obligations. C.S.H.B. 4486 seeks to address these issues by appropriating money out of certain funds and accounts to pay certain claims and judgments against the state.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 4486 appropriates certain sums of money for payment of itemized claims and judgments plus interest, if any, against the State of Texas out of the following funds and accounts:

·the general revenue fund;

·the state highway fund;

·the federal disaster fund;

·the coronavirus relief fund;

·contingent on approval by two-thirds of the members present in each house of the legislature, the Economic Stabilization Fund, otherwise known as the Rainy Day Fund;

·the sales tax guaranty trust account; and

·the suspense account established by the comptroller of public accounts and the attorney general in the general revenue fund.

C.S.H.B. 4486 requires any claim or judgment, before the claim or judgment may be paid from money appropriated by the bill, to be verified and substantiated by the administrator of the special fund or account against which the claim or judgment is to be charged and to be approved by the attorney general and the comptroller. Any claim or judgment itemized in the bill that has not been verified and substantiated by the administrator of the special fund or account and approved by the attorney general and the comptroller by the second anniversary of the bill's effective date may not be paid from money appropriated by the bill. The bill requires each claim or judgment paid from money appropriated by the bill to contain such information as the comptroller requires but at a minimum to contain the specific reason for the claim or judgment. If the claim is for a void warrant, the claim must include a specific identification of the goods, services, refunds, or other items for which the warrant was originally issued. In addition, it must include a certification by the original payee or the original payee's successors, heirs, or assigns that the debt is still outstanding. If the claim or judgment is for unpaid goods or services, it must be accompanied by an invoice or other acceptable documentation of the unpaid account and any other information that may be required by the comptroller.

C.S.H.B. 4486, subject to the conditions and restrictions in the bill and provisions stated in the judgments, authorizes and directs the comptroller to issue one or more warrants on the state treasury, as soon as possible following the bill's effective date, in favor of each of the individuals, firms, or corporations named or claim numbers identified in the bill, in an amount not to exceed the amount set opposite their respective names or claim numbers. The bill requires the comptroller to mail or deliver to each of the individuals, firms, or corporations associated with each claim one or more warrants in payment of all claims included in the bill.

EFFECTIVE DATE

Except as otherwise provided, on passage.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 4486 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute revises the appropriations made for payment of itemized claims and judgments plus interest, if any, against the State of Texas out of the general revenue fund as follows:

·increases the appropriation to pay claim number 95M23630 to the Harris County Treasurer's Office for reimbursement for COVID-19 services from $1270.52, as in the introduced, to $57.549.05; and

·appropriates $1270.52 to pay claim number 95M23632 to Baylor Scott and White Health, LLC for repayment of a void refund of credit warrant, whereas the introduced did not.

The substitute changes the deadline by which any claim or judgment itemized in the bill must be verified and substantiated by the administrator of the special fund or account against which the claim or judgment is to be charged and approved by the attorney general and the comptroller for the claim or judgment to be paid from money appropriated by the bill from August 31, 2027, as in the introduced, to the second anniversary of the bill's effective date.

The substitute changes the bill's effective date from, except as otherwise provided, September 1, 2025, as in the introduced, to, except as otherwise provided, on passage.