Specialty License Plate Revenue: Changes to Certain General Revenue Dedicated Accounts

Overview

Applicable to

State agencies and institutions of higher education

Summary

Certain accounts eliminated

House Bill 7, 83rd Legislature, Regular Session:

• Required all dedicated accounts established for specialty license plates under Transportation Code, Chapter 504, Subchapter G, to be eliminated.
• Directed the balances of those dedicated accounts to be set aside, presumably so that the balances could be appropriated by subsequent legislatures.
• On and after Sept. 1, 2013, required fees designated for deposit to such dedicated accounts instead be paid to License Plate Trust Fund 0802.

Note: If an agency collects specialty license plate revenue under GR or other funds (ex. Fund 0001, 0573, 0334), the provisions of HB 7 (from either the 83rd or 84th Legislature) do not apply.

HB 7, 84th Legislature, Regular Session:

• Expands on the provisions of HB 7, 83rd Legislature, Regular Session, by applying that bill’s requirements to all dedicated accounts established for specialty license plates, not just those established under Transportation Code, Chapter 504, Subchapter G.
• Beginning Sept. 1, 2015, this effectively requires agencies collecting license plate revenues under Account 5140 – Specialty License Plates General to instead deposit those amounts to License Plate Trust Fund 0802.
• Eliminates account 5140 effective Sept. 30, 2015. Agencies currently collecting license plate revenue under account 5140 include:

  Agency	License Plate Description
  305 – General Land Office	Texas Society of the Daughters of the American Revolution, San Jacinto Texas Historic District, Buffalo Soldiers and Adopt a Beach
  332 – Texas Department of Housing and Community Affairs	Texas Realtors Association
  411 – Texas Commission on Fire Protection	Professional Firefighter
  537 – Department of State Health Services	Rotary International
  551 – Department of Agriculture	American Quarter Horse, Texas Masons
  582 – Texas Commission on Environmental Quality	Take Care of Texas
  701 – Texas Education Agency	Texas Trails
  781 – Texas Higher Education Coordinating Board	Conserve Water, Omega Psi Phi

  Note: Revenue collected under accounts 5032, 5036, 5055, 5089, 5113, 5134 and 5154 was redirected to License Plate Trust Fund 0802 during appropriation years (AYs) 2014-15; however, the accounts themselves were not eliminated. Those accounts are eliminated for AY 2016-17 effective Sept. 30, 2015.

Disposition of balances in dedicated accounts established for specialty license plates

HB 1, the General Appropriations Act, 84th Legislature, Regular Session, provides additional guidance on the treatment of license plate revenue and the disposition of license plate balances during the 2016-17 biennium. Where applicable, please refer to your agency’s bill pattern for agency-specific guidance.

• Article III, Special Provisions, Section 60: Appropriates all unexpended balances that may exist and all receipts deposited in the state treasury in the Texas Collegiate License Plate Scholarships program during the biennium beginning Sept. 1, 2015. Appropriates any balances on hand at the end of fiscal 2016 for fiscal 2017 to the collecting agency.
• Article IX, Other Appropriation Authority, Section 8.13: Appropriates to a collecting agency all unexpended balances that may exist and all revenue collected by the agency on or after Sept. 1, 2015, that is associated with the sale of a Texas specialty license plate.

These riders appropriate unexpended amounts collected during the 2014-15 biennium for use during AY 2016, and appropriate any cumulative amounts remaining in AY 2016 for use in AY 2017.

Note that “unexpended balances” does not include amounts collected prior to Sept. 1, 2013, that were previously moved to unappropriated Fund 0802. Those amounts will need to be moved as unappropriated revenue to the current appropriation year for future appropriation by subsequent legislatures.

Contact your appropriation control officer if you have questions about the ending balances of General Revenue-Dedicated (GRD) accounts.

Establishing Profiles

As in prior years, all agencies that anticipate receiving license plate revenues in License Plate Trust Fund 0802 must have a Fund Profile (D23) set up according to USAS Coding Instructions (FPP Q.010) that infers the following:

• Appropriated Fund 0802
• GAAP Fund 0802
• GAAP Fund Type 01
• Depository Interest Indicator Y

All agencies must also have a Program Cost Account (PCA) that infers the appropriation number tied to their expenditure authority as described below and Fund 0802.

Agencies should not delete old D23 profiles associated with eliminated GRD accounts. Doing so will cause historical data to be inaccurate.

Establishing Budgets

Authority in agency’s method of finance

Agencies with Fund 0802 in their method of finance (MOF) will set up original collected budgets for any direct strategies (ex. 13XXX) funded with specialty license plate revenue. The USAS coding requirements for entering these collected budgets are shown in the table below.

Doc Type	Batch Type	Transaction Code	Appropriation	COBJ	PCA	Appd Fund	Agency Fund
B	1	001/Establish Original Expenditure Budget	Determined by Agency	7000	Determined by Agency	0802*	Determined by Agency
B	1	003/Establish Original Revenue Budget	Determined by Agency	3000	Determined by Agency	0802*	Determined by Agency

Note: *If an agency collects license plate revenue under another MOF, such as GR or Other Funds (ex. Fund 0001, 0573, 0334), then the agency would establish a collected budget for license plate receipts, but under the applicable fund number.

Authority in Article III, Special Provisions, Section 60

Institutions of higher education that use the authority in Article III, Special Provisions, Section 60, should see an amount listed for Texas Collegiate License Plates on their agency ABEST crosswalk. The collecting agency will establish a PCA that infers rider appropriation 24060, establish an agency fund that points to Appd Fund 0802 and set up original collected budgets as shown in the table below.

Doc Type	Batch Type	Transaction Code	Appropriation	COBJ	PCA	Appd Fund	Agency Fund
B	1	001/Establish Original Expenditure Budget	24060	7000	Determined by Agency	0802	Determined by Agency
B	1	003/Establish Original Revenue Budget	24060	3000	Determined by Agency	0802	Determined by Agency

Authority in Article IX, Other Appropriation Authority, Section 8.13

Agencies that use the authority in Article IX, Section 8.13, will establish a PCA that infers appropriation 24813 and an agency fund that points to Appd Fund 0802 or another fund if appropriate*. A collecting agency can establish budget in that appropriation as revenue is received as shown in the table below.

Doc Type	Batch Type	Transaction Code	Appropriation	COBJ	PCA	Appd Fund	Agency Fund
A	1	006/Adjust Expenditure Budget	24813	7000	Determined by Agency	0802*	Determined by Agency
A	1	009/Adjust Revenue Budget	24813	3000	Determined by Agency	0802*	Determined by Agency

Note: *If an agency currently collects specialty license plate revenue under another MOF, such as GR or Other Funds (ex. Fund 0001, 0573, 0334), then that revenue will continue to be deposited to the applicable fund number.

Disposition of Balances

Unexpended balance authority in the agency’s bill pattern

Agencies that have license plate funding in their MOF and have unexpended balance (UB) authority to that revenue will transfer balances forward as shown in the table below. Agencies should always transfer unobligated balances forward one year at a time (i.e., AY 2015 to AY 2016).

Doc Type	Batch Type	Transaction Code	Appropriation	COBJ	PCA	Appd Fund	Agency Fund
B	1	040 and 041 (From the prior AY)	Determined by Agency	7000 and 3000	Determined by Agency	0802*	Determined by Agency
B	1	042 and 043 (To the current AY)	Determined by Agency	7000 and 3000	Determined by Agency	0802*	Determined by Agency

Note: *If an agency currently collects specialty license plate revenue under another MOF, such as GR or Other Funds (ex. Fund 0001, 0573, 0334), then amounts collected in the AY 2016-17 biennium will continue to be deposited to the applicable fund number.

Unobligated cash transfers forward should also move only one year at a time (i.e., AY 2015 to AY 2016). Transfers forward of UB collected cash should be processed using the cash disposition T-codes shown in the table below.

Doc Type	Batch Type	Transaction Code	Appropriation	COBJ	PCA	Appd Fund	Agency Fund
J	2	406/Revenue Transfer – Out (From the prior AY)	Determined by Agency	3975	Determined by Agency	0802*	Determined by Agency
J	2	405/Revenue Transfer – In (To the current AY)	Determined by Agency	3975	Determined by Agency	0802*	Determined by Agency

Note: *If an agency currently collects specialty license plate revenue under another MOF, such as GR or Other Funds (ex. Fund 0001, 0573, 0334), then amounts UBed forward should remain in the same fund (i.e., do not move the amounts to Fund 0802).

UB Authority in Article III, Special Provisions, Section 60

Higher education agencies that use the authority in Article III, Special Provisions, Section 60, are appropriated for use during AY 2016 any unexpended balances from Texas Collegiate License Plates collected during the 2014-15 biennium as shown in the table below. Agencies should always transfer unobligated balance forward one year at a time (i.e., AY 2015 to AY 2016).

Doc Type	Batch Type	Transaction Code	Appropriation	COBJ	PCA	Appd Fund	Agency Fund
B	1	040 and 041 (From the prior AY)	24060	7000 and 3000	Determined by Agency	0802	Determined by Agency
B	1	042 and 043 (To the current AY)	24060	7000 and 3000	Determined by Agency	0802	Determined by Agency

Unobligated cash transfers forward should also move only one year at a time (i.e., AY 2015 to AY 2016). Transfers forward of UB collected cash should be processed using the cash disposition T-codes as shown in the table below.

Doc Type	Batch Type	Transaction Code	Appropriation	COBJ	PCA	Appd Fund	Agency Fund
J	2	406/Revenue Transfer – Out (From the prior AY)	24060	3975	Determined by Agency	0802	Determined by Agency
J	2	405/Revenue Transfer – In (To the current AY)	24060	3975	Determined by Agency	0802	Determined by Agency

Please note that “unexpended balances” does not include amounts collected prior to Sept. 1, 2013, and moved to unappropriated Fund 0802; that cash will need to be moved to the current appropriation year for future appropriation by subsequent legislatures using T-code 404 with COBJ 7986 and T-code 403 with COBJ 3986.

UB Authority in Article IX, Section 8.13

Article IX, Section 8.13, appropriates for use during AY 2016 any unexpended balances from specialty license plate revenues collected during the 2014-15 biennium as shown in the table below. Agencies should always transfer unobligated balance forward one year at a time (i.e., AY 2015 to AY 2016).

Doc Type	Batch Type	Transaction Code	Appropriation	COBJ	PCA	Appd Fund	Agency Fund
J	2	406/Revenue Transfer – Out (From the prior AY)	Prior AY’s license plate appropriation (ex. 23305, 23806)	3975	Determined by Agency	0802*	Determined by Agency
J	2	405/Revenue Transfer – In (To the current AY)	24813	3975	Determined by Agency	0802*	Determined by Agency

Note: *If an agency currently collects specialty license plate revenue under another MOF, such as GR or Other Funds (ex. Fund 0001, 0573, 0334), then amounts UBed forward should remain in the same fund (i.e., do not move the amounts to Fund 0802).

After the revenue is moved forward, agencies can increase their budget in the current AY for appropriation 24813 as shown in the table below.

Doc Type	Batch Type	Transaction Code	Appropriation	COBJ	PCA	Appd Fund	Agency Fund
A	1	006/Adjust Expenditure Budget	24813	7000	Determined by Agency	0802*	Determined by Agency
A	1	009/Adjust Revenue Budget	24813	3000	Determined by Agency	0802*	Determined by Agency

Note: *If an agency currently collects specialty license plate revenue under another MOF, such as GR or Other Funds (ex. Fund 0001, 0573, 0334), then amounts collected in the AY 2016-17 biennium will continue to be deposited to the applicable fund number.

After revenue is moved forward and budget adjustments are made in the current AY, agencies should reduce the appropriation revisions from the prior AY by using T-code 006R and 009R.

Please note that “unexpended balances“ does not include amounts collected prior to Sept. 1, 2013, and moved to unappropriated Fund 0802; that cash must be moved as unappropriated revenue to the current appropriation year for future appropriation by subsequent legislatures using T-code 404 with COBJ 7986 and T-code 403 with COBJ 3986.