89R23179 CS-F
By: Capriglione, et al. H.B. No. 3770
Substitute the following for H.B. No. 3770:
By: Capriglione C.S.H.B. No. 3770
A BILL TO BE ENTITLED
AN ACT
relating to efficiency and strategic fiscal reviews of state
agencies conducted by the Legislative Budget Board.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 322.017, Government Code, is amended by
amending Subsections (a), (b), and (c) and adding Subsections
(b-1), (b-2), and (f) to read as follows:
(a) In this section, "state agency" has the meaning assigned
by Section 2056.001, except that the term includes an institution
of higher education, as defined by Section 61.003, Education Code.
(b) The board shall [periodically may] review and analyze
the effectiveness and efficiency of the policies, programs,
management, fiscal affairs, and operations of state agencies.
(b-1) The board shall establish a schedule for the review
and analysis conducted under Subsection (b). Each state fiscal
biennium, the board shall review and analyze at least:
(1) 25 state agencies, which must include at least one
state agency from each article of the General Appropriations Act;
and
(2) 40 programs operated by the state agencies under
review during that biennium, which must include at least one
program operated by each state agency under review.
(b-2) Not later than June 30 of each odd-numbered year, the
members of the board shall provide to the director a list of
programs to be reviewed under Subsection (b) for that state fiscal
biennium.
(c) Not later than September 1 of each even-numbered year,
the [The] board shall report the findings of each [the] review and
analysis to the governor and the legislature. A report on a
reviewed program must:
(1) be published in a format prescribed by the board;
and
(2) include:
(A) recommendations for strategies to improve
effectiveness, efficiency, and service to taxpayers; and
(B) a table that:
(i) analyzes all costs, savings, cost
avoidance, expected change to state revenue, and any non-fiscal
taxpayer benefit predicted to result from increased program
effectiveness and efficiency if the strategies recommended under
Paragraph (A) were implemented; and
(ii) presents the information described by
Subparagraph (i) for a five-year period beginning with the
suggested implementation date for the strategies recommended under
Paragraph (A).
(f) The director shall employ sufficient personnel to carry
out the provisions of this section.
SECTION 2. Section 322.0175, Government Code, is amended to
read as follows:
Sec. 322.0175. STRATEGIC FISCAL REVIEW OF STATE AGENCIES
AND PROGRAMS. (a) The board may [shall] perform a strategic fiscal
review for a [each] state agency if the board determines a review is
appropriate [currently the subject of Sunset Advisory Commission
review under Chapter 325 (Texas Sunset Act)]. The board may [shall]
not perform a review under this section of state agencies listed in
Section 325.025(b)[, Government Code,] because those [these]
agencies are not subject to the legislative appropriations process.
(b) If a strategic fiscal review is performed for a state
agency under Subsection (a), the [The] board shall prepare and
submit a report of the findings of the [strategic fiscal] review by
September 1 of the even-numbered year of the biennium during which
the review is conducted to the governor, lieutenant governor, and
speaker of the house of representatives and to the members of the
senate finance and house appropriations committees.
(c) A [The] strategic fiscal review report must contain:
(1) a description of the discrete activities the state
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 state agency's policies, management, fiscal
affairs, and operations in relation to each activity;
(2) for each activity identified under Subdivision
(1):
(A) 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;
(B) an itemized account of expenditures required
to maintain the activity at the minimum level of service or
performance required by the statute or other legal authority,
together with a concise statement of the quantity and quality of
service or performance required at that minimum level; and
(C) 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 current level;
(3) a ranking of activities identified under
Subdivision (1) that illustrates the relative importance of each
activity to the overall goals and purposes of the state agency at
current service or performance levels; and
(4) recommendations to the legislature regarding
whether the legislature should continue funding each activity
identified under Subdivision (1) and, if so, at what level.
(d) The legislature may consider [the] strategic fiscal
review reports in connection with the legislative appropriations
process.
(e) If the board performs a strategic fiscal review under
Subsection (a) [Until the board has completed a strategic fiscal
review under this section], all information, documentary or
otherwise, prepared or maintained in conducting the strategic
fiscal review or preparing the strategic fiscal review report,
including intra-agency and interagency communications and drafts
of the strategic fiscal review report, or portions of those drafts,
is excepted from required public disclosure as audit working papers
under Section 552.116 until the review is completed. This
subsection does not affect whether information described by this
subsection is confidential or excepted from required public
disclosure under a law other than Section 552.116.
SECTION 3. Sections 322.011, 322.0165, and 322.0171,
Government Code, are repealed.
SECTION 4. Notwithstanding Section 322.017(b-1),
Government Code, as added by this Act, for the state fiscal biennium
ending August 31, 2027, the Legislative Budget Board is required to
review and analyze:
(1) 12 state agencies; and
(2) 20 programs operated by the 12 state agencies
reviewed during that state fiscal biennium.
SECTION 5. This Act takes effect September 1, 2025.