82R1427 ACP-D By: Watson S.B. No. 705 A BILL TO BE ENTITLED AN ACT relating to unfunded legislative mandates on local governments. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 320, Government Code, is amended to read as follows: CHAPTER 320. UNFUNDED LEGISLATIVE MANDATES ON POLITICAL SUBDIVISIONS Sec. 320.001. DEFINITION. In this chapter, "legislative mandate" has the meaning assigned by Section 68, Article III, Texas Constitution, but does not include a legislative mandate to which that section does not apply [means a requirement made by a statute enacted by the legislature on or after January 1, 1997, that requires a political subdivision to establish, expand, or modify an activity in a way that requires the expenditure of revenue by the political subdivision that would not have been required in the absence of the statutory provision]. Sec. 320.002. UNFUNDED LEGISLATIVE MANDATES INTERAGENCY WORK GROUP. (a) The unfunded legislative mandates interagency work group consists of: (1) the state auditor; (2) the director of the Legislative Budget Board; (3) the comptroller; (4) a senator appointed by the lieutenant governor; (5) a house member appointed by the speaker of the house of representatives; (6) one current or former officer or employee of a political subdivision appointed by the lieutenant governor; and (7) one current or former officer or employee of a political subdivision appointed by the speaker of the house of representatives. (b) An appointed member of the interagency work group serves at the pleasure of the appointing authority. (c) A member of the interagency work group is not entitled to additional compensation for service on the work group. (d) A member of the interagency work group may use a person employed by the member or by the member's agency or political subdivision to assist the interagency work group in performing its duties. (e) The members of the interagency work group may enter into a memorandum of understanding regarding the members' work under this chapter. Sec. 320.003. LIST OF UNFUNDED LEGISLATIVE MANDATES. (a) On or before the September 1 following a regular session of the legislature and on or before the 90th day after the last day of a special session of the legislature, the interagency work group shall publish a list of legislative mandates for which the legislature has not provided reimbursement under Subsection (b) and that were enacted by the legislature during that legislative session. By that same date the interagency work group shall: (1) remove from the list of legislative mandates for a previous legislative session those legislative mandates for which the legislature has provided reimbursement under Subsection (b), those that are no longer subject to reimbursement, and those that are no longer in effect; and (2) add to the list a legislative mandate from a previous legislative session for which reimbursement was provided under Subsection (b) in the previous session but for which reimbursement was not provided in the most recent regular session or in any subsequent special sessions. (a-1) Notwithstanding Subsection (a), the interagency work group shall publish the list of legislative mandates for which the legislature has not provided reimbursement under Subsection (b) and that were enacted by the legislature during the regular session of the 82nd Legislature not later than November 1, 2011. This subsection expires September 2, 2015. (b) A legislative mandate is considered to be a legislative mandate for which the legislature has provided reimbursement if the legislature[: [(1) by statute enacted by a record vote of two-thirds of the members elected to each house expressly provides that the mandate is not subject to reimbursement under this section; or [(2)] appropriates or otherwise provides for the payment or reimbursement, from a source other than revenue of the political subdivision, of the costs incurred in the calendar year by the political subdivision in complying with the legislative mandate. (c) This section does not apply to a legislative mandate[: [(1)] not included in the appropriate list of legislative mandates published by the interagency work group under this section[; [(2) imposed by the legislature or a state agency to comply with a requirement of the Texas Constitution, federal law, or a court order or to maximize the receipt of federal funds by the state in areas such as education, health and human services, and criminal justice; [(3) approved by the voters of this state at a general election; or [(4) affecting employee pensions and benefits]. Sec. 320.004. REVIEW OF UNFUNDED LEGISLATIVE MANDATES; EXPIRATION OF LEGISLATIVE MANDATES. (a) Before September 1 of the even-numbered year before the third anniversary of the date of enactment of a legislative mandate identified by the interagency work group under Section 320.003, the interagency work group shall: (1) review the legislative history of the legislative mandate; (2) conduct an evaluation on the benefits of the legislative mandate and the costs of the legislative mandate on affected political subdivisions; and (3) present a written report to the legislature and the governor on the interagency work group's findings. (b) During the regular session immediately following the issuance of a report under Subsection (a), the legislature by law may continue the legislative mandate for a period not to exceed three years, by law may repeal the legislative mandate, or may take no action on the legislative mandate. The legislature may continue a legislative mandate either by general law or by identifying the legislative mandate in the General Appropriations Act and providing a mechanism to provide money to political subdivisions that may be used to comply with the legislative mandates. If the legislature does not continue or repeal the legislative mandate, the legislative mandate expires on September 1 following the regular session. On and after that date, a political subdivision may but is not required to comply with the legislative mandate. Sec. 320.005. APPLICABILITY. This chapter does not apply to a legislative mandate to which Section 68, Article III, Texas Constitution, does not apply. SECTION 2. This Act takes effect January 1, 2012, but only if the constitutional amendment proposed by the 82nd Legislature, Regular Session, 2011, exempting political subdivisions from unfunded legislative mandates is approved by the voters. If that amendment is not approved by the voters, this Act has no effect.