81R12137 JRD-D By: Harper-Brown H.B. No. 3396 A BILL TO BE ENTITLED AN ACT relating to requiring a state agency that is undergoing review by the Sunset Advisory Commission to undergo a financial audit and submit a zero-based budget in connection with the review. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 325.007, Government Code, is amended to read as follows: Sec. 325.007. AGENCY REPORT TO COMMISSION. (a) Before September 1 of the odd-numbered year before the year in which a state agency subject to this chapter is abolished, the agency shall report to the commission: (1) information regarding the application to the agency of the criteria in Section 325.011; and (2) any other information that the agency considers appropriate or that is requested by the commission. (b) Before November 1 of the odd-numbered year before the year in which a state agency subject to this chapter is abolished, the agency shall present to the commission a zero-based budget for the state fiscal year that begins on the date the agency is scheduled to be abolished that: (1) justifies each activity performed by the agency with reference to the agency's legal authority to perform the activity; (2) budgets the minimum amount for each activity that the agency considers necessary to adequately comply with the duties imposed by law on the agency; and (3) includes any other information required by the commission. SECTION 2. Chapter 325, Government Code, is amended by adding Section 325.0075 to read as follows: Sec. 325.0075. FINANCIAL AUDIT. The state auditor shall conduct a financial audit under Section 321.0131 of each state agency scheduled to be abolished on a date certain if not continued in accordance with this chapter. The state auditor shall conduct the audit at a time so that the completed audit may be sent to the commission on September 1 of the odd-numbered year before the year the agency is scheduled to be abolished. SECTION 3. The changes in law made by this Act apply in relation to the review by the Sunset Advisory Commission of agencies scheduled to be abolished on or after September 1, 2013, if not continued in accordance with Chapter 325, Government Code, and in relation to any other agencies that by law are reviewed during those review periods by the Sunset Advisory Commission. SECTION 4. This Act takes effect September 1, 2009.