82R1463 JJT-D
By: Shapiro S.B. No. 165
A BILL TO BE ENTITLED
AN ACT
relating to zero-based budgeting for state agencies as a part of the
sunset review process.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 322.008, Government Code, is amended by
adding Subsection (c-1) to read as follows:
(c-1) The budget of estimated appropriations prepared and
delivered by the director under this section must provide for an
allocation of zero dollars for each proposed item of appropriation
for each agency that is subject to review and abolition under
Chapter 325 (Texas Sunset Act) during that calendar year. The
budget must include for each of those agencies a zero-based budget
and performance review report prepared for the agency as provided
by Section 325.0075.
SECTION 2. Chapter 325, Government Code, is amended by
adding Section 325.0075 to read as follows:
Sec. 325.0075. ZERO-BASED BUDGET AND PERFORMANCE REVIEW
REPORT TO COMMISSION. Before September 1 of the odd-numbered year
before the year in which a state agency subject to this chapter is
scheduled for abolition, the Legislative Budget Board shall prepare
and present to the commission and to the governor a zero-based
budget and performance review report that contains:
(1) a description of the discrete activities the
agency is charged with conducting or performing together with:
(A) a justification for each activity by
reference to a statute or other legal authority; and
(B) an evaluation of the effectiveness and
efficiency of the agency's policies, management, fiscal affairs,
and operations in relation to each activity;
(2) for each activity identified under Subdivision
(1), a quantitative estimate of any adverse effects that reasonably
may be expected to result if the activity were discontinued,
together with a description of the methods by which the adverse
effects were estimated;
(3) for each activity identified under Subdivision
(1), an itemized account of expenditures required to maintain the
activity at the minimum level of service required by the statute or
other legal authority, together with a concise statement of the
quantity and quality of service required at that minimum level;
(4) for each activity identified under Subdivision
(1), an itemized account of expenditures required to maintain the
activity at the current level of service or performance, together
with a concise statement of the quantity and quality of service or
performance provided at that minimum level;
(5) a ranking of activities identified under
Subdivision (1) that illustrates the relative importance of each
activity to the overall goals and purposes of the agency at current
service levels; and
(6) recommendations to the legislature regarding
whether the legislature should continue funding each activity
identified under Subdivision (1) and, if so, at what level.
SECTION 3. Section 325.012(a), Government Code, is amended
to read as follows:
(a) In its report on a state agency, the commission shall:
(1) make recommendations on the abolition,
continuation, or reorganization of each affected state agency and
its advisory committees and on the need for the performance of the
functions of the agency and its advisory committees;
(2) make recommendations on the consolidation,
transfer, or reorganization of programs within state agencies not
under review when the programs duplicate functions performed in
agencies under review; [and]
(3) make recommendations to improve the operations of
the agency, its policy body, and its advisory committees, including
management recommendations that do not require a change in the
agency's enabling statute; and
(4) include the report of the Legislative Budget Board
presented under Section 325.0075 together with the commission's
evaluation of the board's recommendations on funding the agency's
activities.
SECTION 4. Section 325.019, Government Code, is amended to
read as follows:
Sec. 325.019. ASSISTANCE OF AND ACCESS TO STATE AGENCIES.
(a) The commission or the Legislative Budget Board may request the
assistance of state agencies and officers in carrying out its
functions under this chapter. When assistance is requested, a
state agency or officer shall assist the commission or board.
(b) In carrying out its functions under this chapter, the
commission, the Legislative Budget Board, or a [its] designated
staff member of the commission or board may inspect the records,
documents, and files of any state agency.
SECTION 5. Section 401.043, Government Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) At a public hearing held under Subsection (a),
regarding appropriations for an agency that is then currently the
subject of Sunset Advisory Commission review under Chapter 325, the
governor or the governor's representative shall consider the
zero-based budget presented under Section 325.0075 in addition to
any information the agency presents for consideration in the
budgeting process.
SECTION 6. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.