GOVERNMENT CODE
TITLE 3. LEGISLATIVE BRANCH

SUBTITLE B. LEGISLATION

CHAPTER 317. STATE BUDGET EXECUTION
SUBCHAPTER A. REGULAR APPROPRIATIONS

Sec. 317.001.  DEFINITIONS.  In this subchapter:
(1)  "Appropriation" means a grant of money made by the legislature for a purpose other than
the payment of a judgment or a preexisting debt incurred by the state.
(2)  "State agency" means a public entity in the executive, judicial, or legislative branch of
state government eligible under law to receive an appropriation.

Added by Acts 1987, 70th Leg., 2nd C.S., ch. 26, Sec. 1. Amended by Acts 1989, 71st Leg., ch. 786,
Sec. 3, eff. Sept. 1, 1989.


Sec. 317.002.  TYPES OF PROPOSALS TO AFFECT APPROPRIATIONS.  (a)  The governor or
Legislative Budget Board may propose that a state agency be prohibited from spending,
obligating the expenditure of, or distributing part or all of an appropriation made to the
agency unless the amount is reappropriated by the legislature or is released, or expenditures
are approved, as provided in the proposal.
(b)  After finding that an emergency exists, the governor or Legislative Budget Board may
propose that the authority to spend, obligate the expenditure of, or distribute part or all of an
appropriation made to a state agency:
(1)  be transferred to another state agency to be used for a specified purpose; or
(2)  be retained by the agency to which the appropriation was made but used for a purpose
different from or additional to the purpose for which the appropriation was made.
(c)  The governor or Legislative Budget Board may propose a change in the time that an
appropriation is distributed or otherwise made available to a state agency, whether the time
of distribution or availability is set by appropriations act or general law.

Added by Acts 1987, 70th Leg., 2nd C.S., ch. 26, Sec. 1. Amended by Acts 1991, 72nd Leg., 1st
C.S., ch. 4, Sec. 18.01, eff. Aug. 22, 1991.


Sec. 317.003.  TIME AND SCOPE OF PROPOSAL.  (a)  The governor or Legislative Budget Board
may make a proposal at any time except during a regular or special session of the legislature.
A proposal may apply to an appropriation that has been made for any specified fiscal year
that has not ended at the time the proposal is made.
(b)  Except as provided by Section 317.005(f), a proposal may provide for the withholding of
appropriations made from funds dedicated by statute to a specific state agency or for a specific
purpose and may provide for the transfer of appropriations made from statutorily dedicated
funds to an agency or for a purpose not authorized by the statute. Funds dedicated by the Texas
Constitution are subject to being withheld under this chapter but are not subject to transfer
except to another state agency entitled to receive appropriations from the funds under the
terms of the constitution. Federal funds appropriated by the legislature are subject to being
withheld under this chapter but may not be transferred except as permitted by federal law.
(c)  The governor's authority to make proposals is independent of any authority to control
expenditures of state agencies that is granted the governor under other law.

Added by Acts 1987, 70th Leg., 2nd C.S., ch. 26, Sec. 1. Amended by Acts 1991, 72nd Leg., 1st
C.S., ch. 4, Sec. 18.02, 18.03, eff. Aug. 22, 1991.


Sec. 317.004.  PUBLICATION OF PROPOSAL.  The entity making a proposal shall specify the
details of the proposal, including, for a proposal made under Section 317.002(b), a statement
describing the emergency. The entity making a proposal shall direct the secretary of state to
publish each proposal, including any accompanying statements, in the Texas Register.

Added by Acts 1987, 70th Leg., 2nd C.S., ch. 26, Sec. 1. Amended by Acts 1991, 72nd Leg., 1st
C.S., ch. 4, Sec. 18.04, eff. Aug. 22, 1991.


Sec. 317.005.  ACTION ON PROPOSAL.  (a)  After a governor's proposal under this chapter is
published in the Texas Register, the Legislative Budget Board may conduct a public hearing
on the proposal. The board shall give notice of a hearing under this section in the manner
provided by law for notice of regular meetings of the board. The board also shall provide notice
by mail of its meetings to each member of the Legislature. The notice of the meeting must
include a description of the nature of the proposal or order to be considered. If the agenda
includes a public hearing on a proposal, the notice must so state.
After a hearing and at a meeting held not less than 10 days after the date notice of the meeting
was given in the manner provided for regular board meetings, in response to a governor's
proposal the board, subject to the restrictions provided by Subsection (e), may:
(1)  ratify the proposal by adopting an order changing the relevant appropriation in the
manner specified in the proposal;
(2)  reject the proposal; or
(3)  recommend changes in the proposal.
(b)  In response to a proposal by the board, the governor may take any action specified by
Subsection (a) for board action on a governor's proposal.
(c)  A recommended change in a proposal may include recommendations for a change in:
(1)  the proposed amount of money withheld or transferred;
(2)  the proposed purpose for which the appropriation may be used;
(3)  the proposed period for which an appropriation may not be expended, obligated, or
distributed;
(4)  the source or recipient of a proposed transfer; or
(5)  a proposed time of distribution or availability of the appropriation that is the subject of
the proposal.
(d)  If the governor or the board recommends a change in a proposal by the other entity, the
recommending entity may adopt a contingent order changing the relevant appropriation in
the manner specified in the recommendations.
(e)  Neither the governor nor the board may adopt an order under this section:
(1)  expressly postponing the time, whether set by appropriations act or general law, that an
appropriation is distributed or otherwise made available to a state agency, for a period that
exceeds 180 days;
(2)  reducing or eliminating an appropriation for the salary of an elected state official or a
member of a board or commission appointed by the governor; or
(3)  reducing or eliminating an appropriation to a state agency that receives appropriations
under the article of the General Appropriations Act that makes appropriations to the
legislative branch.
(f)  The governor or board may adopt an order under this section withholding or transferring
any portion of the total amount appropriated to finance the foundation school program for a
fiscal year. The governor or board may not adopt such an order if it would result in an
allocation of money between particular programs or statutory allotments under the
foundation school program contrary to the statutory proration formula provided by Section
42.253(h), Education Code. The governor or board may transfer an amount to the total amount
appropriated to finance the foundation school program for a fiscal year and may increase the
basic allotment. The governor or board may adjust allocations of amounts between particular
programs or statutory allotments under the foundation school program only for the purpose of
conforming the allocations to actual pupil enrollments or attendance.
(g)  The affirmative vote of a majority of the members of the board from each house is
necessary for the adoption of an order by the board under this section.
(h)  If either the governor or the board adopts an order under this section, the entity adopting
the order shall notify the proposing entity, the comptroller, and the affected state agencies.
Unless the order is a contingent order, the entity adopting the order shall file a copy of the
order with the secretary of state for publication in the Texas Register.

Added by Acts 1987, 70th Leg., 2nd C.S., ch. 26, Sec. 1. Amended by Acts 1989, 71st Leg., ch. 785,
Sec. 2.01, eff. Sept. 1, 1989; Acts 1991, 72nd Leg., 1st C.S., ch. 4, Sec. 18.04, eff. Aug. 22, 1991;
Acts 1993, 73rd Leg., ch. 347, Sec. 4.03, eff. May 31, 1993; Acts 1997, 75th Leg., ch. 165, Sec. 6.11,
eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 8.02, eff. Sept. 1, 1997; Acts 1999, 76th Leg.,
ch. 62, Sec. 8.02, eff. Sept. 1, 1999.


Sec. 317.006.  ACTION ON CONTINGENT ORDER.  The governor or board shall approve or reject
each contingent order adopted under Section 317.005(d) by the other entity. The governor or
board shall notify the other entity, the comptroller, and the affected state agencies of the
approval or rejection and shall direct the secretary of state to publish notice of the action in
the Texas Register.

Added by Acts 1987, 70th Leg., 2nd C.S., ch. 26, Sec. 1. Amended by Acts 1991, 72nd Leg., 1st
C.S., ch. 4, Sec. 18.04, eff. Aug. 22, 1991; Acts 1997, 75th Leg., ch. 1423, Sec. 8.03, eff. Sept. 1,
1997.


Sec. 317.007.  EXPIRATION OF PROPOSAL OR CONTINGENT ORDER.  A proposal made by the
governor or board under this chapter expires if the other entity does not adopt an order
ratifying or changing the proposal before the 31st day after the date the proposal is published
in the Texas Register. A contingent order adopted by the governor or board under this chapter
expires if the other entity does not approve the order before the 31st day after the date the
proposal on which the order is based is published in the Texas Register. A proposal or
contingent order of either entity also expires if a regular or special session of the legislature
begins before, respectively, the other entity has ratified the proposal or has approved the
contingent order.
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