By: Toth H.B. No. 1379
A BILL TO BE ENTITLED
AN ACT
relating to the control of conditional federal funds for state
programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 10, Government Code, is
amended by adding Chapter 2116 to read as follows:
CHAPTER 2116. CONTROL OF CONDITIONAL FEDERAL FUNDS
Section 2116.001. DEFINITIONS. In this chapter:
(1) "Coercive federal funding program" means a program
under which the federal government transfers funds to state
agencies, or to persons or local entities through state agencies,
to which the federal government has attached coercive conditions,
provided that federal programs that offer to return to the state a
pro-rata share of the state residents' tax contributions to the
federal program if the state refuses to comply with the conditions
attached to such program, is not a coercive federal funding
program.
(2) "Coercive conditions" are conditions in coercive
federal funding programs that pertain to matters other than the
manner in which the federal funds are to be spent, such as
conditions that pertain to how the state must spend its own revenue,
or that pertain to collateral state policies.
Section 2116.002. COORDINATED MULTI-STATE REJECTION OF
COERCIVE FEDERAL FUNDING PROGRAMS. (a) The attorney general shall
annually prepare a comprehensive report to the legislature
designating all the coercive federal funding programs that deliver
more than $100 million yearly to the state, and detailing the
coercive conditions therein.
(b) Where feasible, the attorney general shall sue to enjoin
enforcement of coercive conditions in coercive federal funding
programs. In any case where the federal government rejects a state
plan or application for funds under a coercive federal funding
program, because of the state's refusal to comply with any coercive
condition, the attorney shall sue for relief.
(c) The governor shall work with governors of other states
to develop a coordinated approach with respect to all such coercive
federal funding programs.
(c) Agencies and officers of the state shall implement all
coercive federal funding programs without regard to any conditions
designated as coercive conditions under this section. Applications
for federal approval of state programs shall make no reference to
any coercive condition. This subsection shall go into effect when a
substantially similar requirement has been adopted in 20 other
states.
SECTION 2. Section 751.001, Subchapter A, Chapter 751,
Title 7, Government Code, is amended by adding subsection 5 to read
as follows:
(5) "Coercive federal funding program" and "coercive
conditions" have the meanings ascribed to them in Section 2116.001.
SECTION 3. Section 751.005, Subchapter A, Chapter 751,
Title 7, Government Code, is amended to read as follows:
Sec. 751.005. GENERAL POWERS AND DUTIES OF OFFICE. (a) The
office shall exercise the powers and carry out the duties
prescribed by this section in order to act as a liaison from the
state to the federal government.
(b) The office shall:
(1) help coordinate state and federal programs dealing
with the same subject;
(2) inform the governor and the legislature of federal
programs that may be carried out in the state or that affect state
programs, with particular attention to programs that may be
coercive federal funding programs;
(3) provide federal agencies and the United States
Congress with information about state policy and state conditions
on matters that concern the federal government;
(4) provide the legislature with information useful in
measuring the effect of federal actions on the state and local
programs;
(5) prepare and supply to the governor and all members
of the legislature an annual report that:
(A) describes the office's operations;
(B) contains the office's priorities and
strategies for the following year;
(C) details projects and legislation pursued by
the office;
(D) discusses issues in the following
congressional session of interest to this state; [and]
(E) contains an analysis of federal funds
availability and formulae;
(F) sets forth a catalogue of all the conditions
attached to federal funding programs, in a format that clearly
designates coercive conditions as such; and
(G) contains the office's strategy for ensuring
that the state regains freedom of choice in fact with respect to
coercive federal funding programs, by resisting compliance with
coercive conditions while ensuring receipt of an equitable share of
federal funds under such programs;
(6) notify the governor, the lieutenant governor, the
speaker of the house of representatives, and the legislative
standing committees in each house with primary jurisdiction over
intergovernmental affairs of federal activities relevant to the
state and inform the Texas congressional delegation of state
activities;
(7) conduct frequent conference calls with the
lieutenant governor and the speaker of the house of representatives
or their designees regarding state-federal relations and programs;
(8) respond to requests for information from the
legislature, the United States Congress, and federal agencies;
(9) coordinate with the Legislative Budget Board
regarding the effects of federal funding on the state budget and the
impact of coercive conditions on the state's ability to remain
responsive to the preferences of its residents; and
(10) report to, and on request send appropriate
representatives to appear before, the legislative standing
committees in each house with primary jurisdiction over
intergovernmental affairs.
(c) The office may maintain office space at locations inside
and outside the state as chosen by the office.
(d) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 1083, Sec.
25(63), eff. June 17, 2011.
(e) The report required under Subsection (b)(5) must
include an evaluation of the performance of the office based on
performance measures that are developed by the board.
SECTION 4. Section 751.022, Subchapter A, Chapter 751,
Title 7, Government Code, is amended to read as follows:
Sec. 751.022. POWERS AND DUTIES. (a) The office has primary
responsibility for monitoring, coordinating, and reporting on the
state's efforts to restore freedom of choice with respect to
coercive federal funding programs and ensure receipt of an
equitable share of federal formula funds.
(b) The office shall:
(1) serve as the state's clearinghouse for information
on federal formula funds and coercive conditions attached thereto;
(2) prepare reports on federal funds and earned
federal formula funds;
(3) analyze proposed and pending federal and state
legislation to determine whether the legislation would have a
significant negative effect on the state's ability to maintain
freedom of choice with respect to coercive federal funding programs
and [to] receive an equitable share of federal formula funds;
(4) make recommendations for coordination between
state agencies and local governmental entities, between state
agencies and agencies of other states, and between state agencies,
particularly with respect to formulating strategies for escaping
restrictions imposed by coercive federal funding programs; and
(5) adopt rules under the rule-making procedures of
the administrative procedure law, Chapter 2001, Government Code, as
necessary to carry out the responsibilities assigned by this
subchapter.
(c) The office shall annually prepare a comprehensive
report to the legislature on the effectiveness of the state's
efforts to escape restrictions imposed by coercive federal funding
programs and ensure a receipt of an equitable share of federal
formula funds for the preceding federal fiscal year. The report
must include:
(1) an executive summary that provides an overview of
the major findings and recommendations included in the report;
(2) a comparative analysis of the state's receipt of
federal formula funds relative to other states, prepared using the
best available sources of data;
(3) an analysis of federal formula funding trends that
may have a significant effect on resources available to the state;
[and]
(4) recommendations as to what policies and programs
the state could implement if it were not subject to the restrictions
imposed by the ten largest coercive federal funding programs in the
state budget, and were able to receive an equitable share of federal
funding under such programs; and
(5) recommendations, developed in consultation with
the Legislative Budget Board, the Governor's Office of Budget and
Planning, and the comptroller, for any state legislative or
administrative action necessary to escape restrictions imposed by
coercive federal funding programs and increase the state's receipt
of federal formula funds.
SECTION 5. EFFECTIVE DATE. 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.