S.B. No. 1332
                                        AN ACT
    1-1  relating to analyses of agency and state proposals and programs and
    1-2  of the effects of proposed legislation and planning.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subsection (b), Section 322.011, Government Code,
    1-5  is amended to read as follows:
    1-6        (b)  The board may <shall> evaluate the programs and
    1-7  operations of any <each> institution, department, agency, or
    1-8  commission that received an appropriation in the most recent
    1-9  General Appropriations Act or is a state agency.  An institution,
   1-10  department, agency, or commission may not be evaluated until after
   1-11  the end of the first full fiscal year of its operation.
   1-12        SECTION 2.  Sections 1, 2, and 3, Article 6252-31, Revised
   1-13  Statutes, as added by Chapter 384, Acts of the 72nd Legislature,
   1-14  Regular Session, 1991, are amended to read as follows:
   1-15        Sec. 1.  Definitions.  In this Act:
   1-16              (1)  "Agency" means  a department, commission, board,
   1-17  office, or other entity of state government, including a university
   1-18  system and an institution of higher education as defined by Section
   1-19  61.003, Education Code, but excluding the office of the Lieutenant
   1-20  Governor and the office of the Governor, that:
   1-21                    (A)  has authority that is not limited to a
   1-22  geographical portion of the state;
   1-23                    (B)  was created by the constitution or a state
   1-24  statute with an ongoing mission and responsibilities;
    2-1                    (C)  is not within the judicial or legislative
    2-2  branch of government;
    2-3                    (D)  is not a committee created under state law
    2-4  whose primary function  is to advise an agency; and
    2-5                    (E)  is not a state-funded junior or community
    2-6  college <an agency, board, commission, or other office of the
    2-7  executive branch of state government, except the office of the
    2-8  Lieutenant Governor>.
    2-9              (2)  "Capital improvement" means any building or
   2-10  infrastructure project that will be owned by the state and built
   2-11  with direct appropriations or with the proceeds of state-issued
   2-12  bonds or paid from revenue sources other than general revenue.
   2-13              (3)  "Plan" means a strategic plan as required by this
   2-14  Act.
   2-15        Sec. 2.  Strategic plans.  (a)  Each agency shall develop a
   2-16  strategic plan for its operations in accordance with the provisions
   2-17  of this Act and the goals established hereunder.  The Legislative
   2-18  Budget Board and the Governor's Office of Budget and Planning shall
   2-19  determine the elements required to be included in each agency's
   2-20  strategic plan.  Unless modified by the Legislative Budget Board
   2-21  and the Governor's Office of Budget and Planning, each <The> plan
   2-22  shall include each of the following items or an explanation why  an
   2-23  item does not apply to the agency:<.>
   2-24              (1)  A statement of the mission, goals, and objectives
   2-25  of the agency;
   2-26              (2)  Measures of the output and outcome of the agency
   2-27  in terms of indicators to be developed under this Act;
    3-1              (3)  Identification of priority and other service
    3-2  populations, or other service measures, under current law and how
    3-3  those populations are expected to change within the period of the
    3-4  plan;
    3-5              (4)  An analysis of the use of current agency resources
    3-6  in meeting current needs and expected future needs, and additional
    3-7  resources that may be necessary to meet future needs;
    3-8              (5)  An analysis of any likely or expected changes in
    3-9  the services provided by that agency due to changes in state or
   3-10  federal law;
   3-11              (6)  Plans and strategies for meeting current and
   3-12  future needs and achieving the goals established for the particular
   3-13  area of state government; <and>
   3-14              (7)  A description of the capital improvement needs of
   3-15  the agency during the period covered by the plan;
   3-16              (8)  A prioritization, if appropriate, of the capital
   3-17  improvement needs of the agency during the period; and
   3-18              (9)  Other information that may be required.
   3-19        (b)  Each agency shall issue a plan <not later than March 1
   3-20  of> each even-numbered year.  The plan will cover a period of five
   3-21  fiscal years beginning with the next odd-numbered fiscal year <six
   3-22  years from the date that it is required to be issued>.  The Texas
   3-23  Higher Education Coordinating Board, in conjunction with all
   3-24  state-funded junior and community colleges, shall develop a
   3-25  consolidated public junior and community college strategic plan
   3-26  under this Act.
   3-27        (c)  Each agency shall send a copy of each plan issued to the
    4-1  Governor, the Lieutenant Governor, the Speaker of the House, the
    4-2  Legislative Budget Board, the Sunset Commission, the State Auditor,
    4-3  and the Comptroller, and two copies to the Legislative Reference
    4-4  Library and the state publications clearinghouse of the Texas State
    4-5  Library.
    4-6        (d)  Compilation of State Agency Plan.
    4-7              (1)  The Governor's Office of Budget and Planning and
    4-8  the Legislative Budget Board shall develop forms and instructions
    4-9  for the use of the agencies in the preparation of their plans.
   4-10              (2)  The Governor's Office of Budget and Planning and
   4-11  the Legislative Budget Board shall work with individual agencies to
   4-12  determine acceptable measures of <workload, output, and> outcome,
   4-13  output, unit cost, and cost effectiveness for use in plans.
   4-14              (3)  Upon receipt of the individual agency plans, the
   4-15  Governor's Office of Budget and Planning and the Legislative Budget
   4-16  Board may <shall> work together to compile a long-range strategic
   4-17  plan for state government based on the individual agency plans.
   4-18  The compiled long-range plan shall serve as the strategic plan for
   4-19  the chief executive officer of the state.
   4-20              (4)  If additional information is required concerning
   4-21  any agency plan submitted, the Governor's Office of Budget and
   4-22  Planning or the Legislative Budget Board may request such
   4-23  information from the agency and the information shall be supplied
   4-24  in a timely fashion.
   4-25              (5)  The Legislative Budget Board, together with the
   4-26  Governor's Office of Budget and Planning, may hold hearings on any
   4-27  matter required by this Act.
    5-1              (6)  The final compiled report shall be submitted to
    5-2  the Governor, the Lieutenant Governor, the Comptroller, and each
    5-3  member of the Legislature not later than the seventh working day of
    5-4  each regular session of the Legislature <September 1 of each
    5-5  even-numbered year>.
    5-6        Sec. 3.  Goals for state government.  (a)  The governor, in
    5-7  cooperation with the Legislative Budget Board, shall establish and
    5-8  adopt goals for achievement for each functional area of state
    5-9  government.  Unless modified by the Governor's Office of Budget and
   5-10  Planning and the Legislative Budget Board, these functional areas
   5-11  shall<, to>  include:
   5-12              (1)  Education;
   5-13              (2)  Regulation <Regulatory>;
   5-14              (3)  Natural Resources;
   5-15              (4)  Health;
   5-16              (5)  Human Services;
   5-17              (6)  Transportation;
   5-18              (7)  Public Safety and Corrections;
   5-19              (8)  General Government; and
   5-20              (9)  State Employee Benefits.
   5-21        (b)  A statement of the goals in each applicable functional
   5-22  area shall be provided to each state agency <not later than October
   5-23  1 of each odd-numbered year>.
   5-24        SECTION 3.  Subsection (c), Section 4, Article 6252-31,
   5-25  Revised Statutes, as added by Chapter 384, Acts of the 72nd
   5-26  Legislature, Regular Session, 1991, is amended to read as follows:
   5-27        (c)  The information shall be provided not later than March 1
    6-1  <September 1> of each even-numbered <odd-numbered> year.
    6-2        SECTION 4.  Section 7, Article 6252-31, Revised Statutes, as
    6-3  added by Chapter 384, Acts of the 72nd Legislature, Regular
    6-4  Session, 1991, is amended to read as follows:
    6-5        Sec. 7.  Comptroller's review.  The Comptroller may
    6-6  periodically review and analyze the effectiveness and efficiency of
    6-7  the policies, management, fiscal affairs, and operations of state
    6-8  agencies, and shall report the Comptroller's <his> findings to the
    6-9  Governor, Lieutenant Governor, and Speaker of the House of
   6-10  Representatives.  The Legislature may consider the Comptroller's
   6-11  reports in connection with the legislative appropriations process.
   6-12        SECTION 5.  (a)  The Legislative Budget Board shall examine
   6-13  methods to identify and quantify the spending interrelationships
   6-14  between functional areas, agencies, goals, objectives, and
   6-15  strategies.
   6-16        (b)  In examining these methods, the board shall consider
   6-17  interrelationships that are caused by increased or decreased need
   6-18  for state spending by various population groups as well as
   6-19  interrelationships that result from requirements or prohibitions
   6-20  provided by federal and state statutes and case law.  The board
   6-21  shall consider demographic projections as well as state revenue
   6-22  projections.
   6-23        (c)  The board may apply methods examined under this section
   6-24  in a pilot program involving the analysis of budget proposals or
   6-25  agency strategic plans in one or more functional areas or of one or
   6-26  more state agencies.
   6-27        (d)  All state agencies shall cooperate with the board in its
    7-1  performance of its functions under this section.
    7-2        (e)  The board shall report to the 74th Legislature its
    7-3  findings and recommendations regarding feasible methodologies and
    7-4  potential applications to the state's strategic planning,
    7-5  budgeting, and legislative processes.  The recommendations shall
    7-6  address existing and proposed goals, objectives, and strategies as
    7-7  outlined in the state's strategic plan and the General
    7-8  Appropriations Act.
    7-9        SECTION 6.  The following provisions are repealed:
   7-10              (1)  Subchapter F, Chapter 316, Government Code;
   7-11              (2)  Section 7B, Chapter 1078, Acts of the 70th
   7-12  Legislature, Regular Session, 1987 (Article 717k-7, Vernon's Texas
   7-13  Civil Statutes);
   7-14              (3)  Section 8, Article 6252-31, Revised Statutes, as
   7-15  added by Chapter 384, Acts of the 72nd Legislature, Regular
   7-16  Session, 1991; and
   7-17              (4)  Article 6252-32, Revised Statutes.
   7-18        SECTION 7.  The importance of this legislation and the
   7-19  crowded condition of the calendars in both houses create an
   7-20  emergency and an imperative public necessity that the
   7-21  constitutional rule requiring bills to be read on three several
   7-22  days in each house be suspended, and this rule is hereby suspended.