81R3637 JRD-D By: Watson S.B. No. 738 A BILL TO BE ENTITLED AN ACT relating to a state agency review and analysis of the revenue sources that pay for the agency's functions and the adjustment by certain agencies of fee amounts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 2056, Government Code, is amended by adding Section 2056.0023 to read as follows: Sec. 2056.0023. ANALYSIS OF REVENUE SOURCES. As part of the strategic plan required under Section 2056.002, a state agency shall: (1) review the agency's functions that are paid for wholly by general revenue and determine whether any of those functions could appropriately be paid for wholly or partly by fees or other sources of revenue; (2) review the agency's functions that currently are paid for wholly or partly by sources of revenue other than general revenue, including fee revenue, and determine whether those sources of revenue could appropriately be increased; and (3) for an agency function that the agency determines could appropriately be paid for wholly or partly by charging a new fee or by increasing the amount of an existing fee: (A) recommend the appropriate fee amounts; (B) describe who would pay the new fee or the increased fee; and (C) estimate the amount of revenue that would be received from the recommended fee amounts. SECTION 2. Section 316.045(b), Government Code, is amended to read as follows: (b) If the agency determines that the fees are set at a level that [exceeds the administrative costs of the agency] as of the date of the review exceeds the sum of the direct costs to the agency to provide the services or regulate the activities for which the fees are charged and the indirect costs to state government that could appropriately be allocated to the provision of those services or the regulation of those activities, the agency shall reduce the amount of the affected fees to the appropriate level and shall charge the reduced fees during the subsequent biennium. Each agency shall give specific recognition to reductions in salary expenses resulting from statutorily directed employee attrition. SECTION 3. This Act takes effect September 1, 2009.