84R11340 MCK-D
By: Hall S.B. No. 1433
A BILL TO BE ENTITLED
AN ACT
relating to the identification of programs and activities in the
general appropriations bill and the review of state agency
performance and rules.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 322.008, Government Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) The general appropriations bill must, for each state
agency or other entity to which an appropriation is proposed under
the bill:
(1) include a line item for each specific program or
activity administered by the agency or entity or by an
organizational unit of the agency or entity, arranged according to
the agency's, entity's, or unit's organizational structure, except
that if a specific program or activity administered by the agency,
entity, or unit includes identifiable components or subprograms,
the bill must include a line item for each of those components or
subprograms;
(2) specify the amount of the proposed appropriation
for each line item; and
(3) include, for each line item that represents a
specific program or activity or, if applicable, each group of line
items representing the components or subprograms of a specific
program or activity:
(A) a description of the program or activity and
a citation to the authorization in law for the program or activity;
and
(B) a statement regarding whether the source of
the proposed appropriation is nondedicated general revenue money,
dedicated general revenue money, federal money, or another source.
SECTION 2. Sections 325.008(a) and (b), Government Code,
are amended to read as follows:
(a) Before January 1 of the year in which a state agency
subject to this chapter and its advisory committees are abolished,
the commission shall:
(1) review and take action necessary to verify the
reports submitted by the agency under Section 325.007;
(2) consult the Legislative Budget Board, the
Governor's Budget, Policy, and Planning Division, the State
Auditor, and the comptroller of public accounts, or their
successors, on the application to the agency of the criteria
provided in Section 325.011;
(3) have [conduct] a review of the agency based on the
criteria provided in Section 325.011 conducted by a private
performance auditor with whom the commission contracts under
Section 325.0081 and have the performance auditor prepare a written
report; and
(4) review the implementation of commission
recommendations contained in the reports presented to the
legislature during the preceding legislative session and the
resulting legislation.
(b) The written report prepared by the performance auditor
[commission] under Subsection (a)(3) is a public record.
SECTION 3. Chapter 325, Government Code, is amended by
adding Section 325.0081 to read as follows:
Sec. 325.0081. PERFORMANCE AUDITOR CONTRACT. The
commission shall contract with a person to perform the performance
audits required by this chapter. The contract must require the
auditor to conduct the performance audits as prescribed by this
chapter.
SECTION 4. Section 325.010(b), Government Code, is amended
to read as follows:
(b) In the report the commission shall include:
(1) the performance auditor's [its] findings regarding
the criteria prescribed by Section 325.011;
(2) its recommendations based on the matters
prescribed by Section 325.012; and
(3) other information the commission considers
necessary for a complete review of the agency.
SECTION 5. Section 325.011, Government Code, is amended to
read as follows:
Sec. 325.011. CRITERIA FOR REVIEW. The commission, [and]
its staff, and the performance auditor shall consider the following
criteria in determining whether a public need exists for the
continuation of a state agency or its advisory committees or for the
performance of the functions of the agency or its advisory
committees:
(1) the efficiency and effectiveness with which the
agency or the advisory committee operates;
(2)(A) an identification of the mission, goals, and
objectives intended for the agency or advisory committee and of the
problem or need that the agency or advisory committee was intended
to address; and
(B) the extent to which the mission, goals, and
objectives have been achieved and the problem or need has been
addressed;
(3)(A) an identification of any activities of the
agency in addition to those granted by statute and of the authority
for those activities; and
(B) the extent to which those activities are
needed;
(4) an assessment of authority of the agency relating
to fees, inspections, enforcement, and penalties;
(5) whether less restrictive or alternative methods of
performing any function that the agency performs could adequately
protect or provide service to the public;
(6) the extent to which the jurisdiction of the agency
and the programs administered by the agency overlap or duplicate
those of other agencies, the extent to which the agency coordinates
with those agencies, and the extent to which the programs
administered by the agency can be consolidated with the programs of
other state agencies;
(7) the promptness and effectiveness with which the
agency addresses complaints concerning entities or other persons
affected by the agency, including an assessment of the agency's
administrative hearings process;
(8) an assessment of the agency's rulemaking process
and the extent to which the agency has encouraged participation by
the public in making its rules and decisions and the extent to which
the public participation has resulted in rules that benefit the
public;
(9) the extent to which the agency has complied with:
(A) federal and state laws and applicable rules
regarding equality of employment opportunity and the rights and
privacy of individuals; and
(B) state law and applicable rules of any state
agency regarding purchasing guidelines and programs for
historically underutilized businesses;
(10) the extent to which the agency issues and
enforces rules relating to potential conflicts of interest of its
employees;
(11) the extent to which the agency complies with
Chapters 551 and 552 and follows records management practices that
enable the agency to respond efficiently to requests for public
information;
(12) the effect of federal intervention or loss of
federal funds if the agency is abolished; and
(13) the extent to which the purpose and effectiveness
of reporting requirements imposed on the agency justifies the
continuation of the requirement.
SECTION 6. Section 325.0127, Government Code, is amended by
adding Subsection (c) to read as follows:
(c) Each state agency reviewed under this chapter shall pay
the costs incurred by the commission in performing the review. The
commission shall determine the costs of the review, and the agency
shall pay the amount of those costs promptly on receipt of a
statement from the commission regarding those costs. Any reduction
in the state agency's operating expenses that result from
implementing the performance auditor's recommendations shall be
used to pay for the cost of the performance review.
SECTION 7. Sections 325.019(b) and (c), Government Code,
are amended to read as follows:
(b) In carrying out its functions under this chapter, the
commission, [or] its designated staff member, the performance
auditor, or an employee of the performance auditor may attend any
meetings and proceedings of any state agency, including any meeting
or proceeding of the governing body of the agency that is closed to
the public, and may inspect the records, documents, and files of any
state agency, including any record, document, or file that is:
(1) attorney work product;
(2) an attorney-client communication; or
(3) made privileged or confidential by law.
(c) It is the intent of the legislature to allow the
commission, [and] its designated staff members, the performance
auditor, or an employee of the performance auditor to have access to
all meetings or proceedings of a state agency being reviewed by the
commission under this chapter and to all records, documents, and
files of that agency. To the extent that this section conflicts
with other law that purports to limit the commission's or auditor's
access to meetings or proceedings or to records, documents, and
files, this section controls. If federal law prohibits a state
agency from disclosing information in a record, document, or file
to the commission or auditor, including information in a record,
document, or file created as a result of or considered during a
meeting or proceeding, the state agency may redact the protected
information from the record, document, or file.
SECTION 8. Sections 325.0195(a), (b), (c), and (d),
Government Code, are amended to read as follows:
(a) A working paper, including all documentary or other
information, prepared or maintained by the commission staff or the
performance auditor in performing [its] duties under this chapter
or other law to conduct an evaluation and prepare a report is
excepted from the public disclosure requirements of Section
552.021.
(b) A record held by another entity that is considered to be
confidential by law and that the commission or the performance
auditor receives in connection with the performance of the
commission's or auditor's duties [functions] under this chapter or
another law remains confidential and is excepted from the public
disclosure requirements of Section 552.021.
(c) A state agency that provides the commission or the
performance auditor with access to a privileged or confidential
communication, record, document, or file under Section 325.019 for
purposes of a review under this chapter does not waive the
attorney-client privilege, or any other privilege or
confidentiality requirement protected or required by the Texas
Constitution, common law, statutory law, or rules of evidence,
procedure, or professional conduct, with respect to the
communication, record, document, or file provided to the commission
or auditor. For purposes of this subsection, a communication
includes a discussion that occurs at a meeting or proceeding of the
state agency that is closed to the public.
(d) The state agency may require the commission, [or] the
members of the commission's staff, the performance auditor, or the
employees of the performance auditor who view, handle, or are privy
to information, or who attend a meeting that is not accessible to
the public, to sign a confidentiality agreement that covers the
information and requires that:
(1) the information not be disclosed outside the
commission or the auditor's office for purposes other than the
purpose for which it was received;
(2) the information be labeled as confidential;
(3) the information be kept securely; and
(4) the number of copies made of the information or the
notes taken from the information that implicate the confidential
nature of the information be controlled, with all copies or notes
that are not destroyed or returned to the governmental body
remaining confidential and subject to the confidentiality
agreement.
SECTION 9. Chapter 325, Government Code, is amended by
adding Section 325.025 to read as follows:
Sec. 325.025. REVIEW OF RULES. (a) The commission, with the
assistance of the appropriate standing committee of each house of
the legislature, shall review each state agency's rules to
determine whether:
(1) the agency has authority to adopt the rule;
(2) the rule is necessary for the administration of
the agency's functions; and
(3) the rule should be repealed or, if applicable, the
agency should be given authority to adopt the rule.
(b) The commission shall prepare a report with the
commission's findings and recommendations and submit the report to
the legislature.
(c) The commission shall establish a schedule to ensure that
each state agency's rules are reviewed every six years.
SECTION 10. This Act takes effect September 1, 2015.