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HB 3436

Relating to costs associated with trees on public property; prescribing an effective date.

2025 Regular Session Introduced by Jami Cate

Allows transfer of funds from the Budget Stabilization Fund to the General Revenue Fund to cover cash-flow shortfalls, with no repayment required if payables top $4 billion.

In committee upon adjournment.
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Bill Summary · HB 3436

Note on bill title: although the bill header provided in your request is titled "Relating to costs associated with trees on public property," the text of HB 3436 (LRB10408420HLH18472b) is a finance bill amending several State budget and reporting statutes. This summary reflects the introduced finance version of HB 3436.

HB 3436 — Summary (Introduced version)

Sponsor: Rep. Natalie A. Manley (primary). Co‑sponsors: Jaime M. Andrade, Jr.; Rita Mayfield; Elizabeth "Lisa" Hernandez; Daniel Didech; Dagmara Avelar; Edgar González, Jr.; Norma Hernandez.

Status / Key dates
- Introduced: introduced in the 104th General Assembly (text lists 2/18/2025); filed with Clerk 2/26/2025.
- Committee status: In committee upon adjournment (6/28/2025).
- Effective date: bill provides "effective immediately" if enacted.

Purpose
- Make several technical and substantive changes to State budget and finance law: redefine what counts as "general funds," change permissible transfers and repayment rules for the Budget Stabilization Fund (BSF), adjust reporting requirements for state agencies and the Comptroller, and add procedural limitations on General Assembly appropriations under certain revenue conditions.

Key provisions and changes
1. Redefine "general funds" (State Budget Law & Balanced Budget Note Act)
- Adds the Pension Stabilization Fund to the list of accounts treated as "general funds" or "State general funds" (alongside the General Revenue Fund, Common School Fund, Education Assistance Fund, Fund for the Advancement of Education, Commitment to Human Services Fund, and the Budget Stabilization Fund).

  1. Budget Stabilization Fund (State Finance Act)

    • Confirms that the Comptroller may direct transfers from the BSF to the General Revenue Fund to meet cash‑flow deficits.
    • Creates a nonrepayment exception (new subsection (b‑5)): amounts transferred from the BSF into the General Revenue Fund to address outstanding vouchers shall not be required to be repaid into the BSF if the Comptroller determines that accounts payable on June 30 of the fiscal year exceed $4,000,000,000.

  2. Appropriations cap condition (Budget Stabilization Act — synopsis language)

    • Beginning in Fiscal Year 2027, the General Assembly's appropriations and required transfers/diversions from general funds shall not exceed 99% of estimated general funds revenues for the fiscal year if both: a) estimated general funds revenues for the fiscal year exceed the prior fiscal year's estimate by more than 4%, and b) projected accounts payable are estimated by the Comptroller to be less than $3,000,000,000.
    • (This provision appears in the bill synopsis and would impose a 1% reserve requirement under specified growth/low‑payables conditions.)

  3. Agency reporting and public transparency (State Finance Act — Sec. 9.08 revisions)

    • Requires monthly reports from each State agency to the Comptroller identifying current state liabilities by fund, appropriation status, and estimated interest/penalties under the Prompt Payment Act (in a Comptroller‑prescribed format; waivers possible if no liabilities).
    • For January 2026 and every January thereafter, specified agencies must include additional details:
      • Dept. on Aging, Dept. of Healthcare & Family Services, Dept. of Human Services: number and aggregate dollar value of invoices that may be paid from future fiscal year appropriations because current year appropriations are insufficient.
      • Dept. of Central Management Services: invoices that may be paid in future fiscal years due to insufficient Health Insurance Reserve Fund resources.
      • Dept. of Revenue: estimate of individual and corporate income tax overpayments that will not be refunded before fiscal year close due to insufficient Income Tax Refund Fund deposits.
    • Comptroller must post agency reported liabilities on a public website.

  4. Miscellaneous / existing provisions

    • Continued statutory language for monthly automatic transfers (existing law: $3,750,000 from GRF to BSF monthly beginning July 1, 2023 remains referenced).

Who is affected
- State fiscal operations: Comptroller and Treasurer (authority to transfer and post reports), all state agencies (enhanced monthly reporting duties), and budget administrators.
- Budget Stabilization Fund and Pension Stabilization Fund: changed legal classification and transfer/repayment rules.
- Vendors and providers who bill the State: potential impact on timing of payments and treatment of transfers used to clear outstanding vouchers when statewide accounts payable exceed $4 billion.
- Taxpayers and policymakers: changes affect how reserves, appropriation caps, and transparency are managed.

Fiscal/operational impacts
- Allows use of BSF transfers to address large accounts payable without statutory repayment if accounts payable exceed the $4 billion threshold, effectively permitting permanent General Revenue Fund relief in such circumstances.
- Introduces a conditional 1% holdback (99% cap) on appropriations in years of strong revenue growth, provided payables are below $3 billion — intended to increase fiscal prudence and reserves.
- Increases reporting and transparency obligations that may improve visibility of outstanding liabilities and cash pressures.

Notes and caveats
- Summary is based on the introduced bill text (LRB10408420HLH18472b); portions of the text provided in the file are truncated. The bill synopsis contains the 99% appropriation cap language not fully shown in the excerpted statutory sections; confirm final text for precise placement and cross‑references.

Compiled from official sources — confirm details with the bill’s official record.

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