BILL ANALYSIS


                                                        H.B. 1399
                                                By: Gray (Sibley)
                                                    State Affairs
                                                          5-16-95
                              Senate Committee Report (Unamended)
BACKGROUND

The Office of State-Federal Relations (OSFR) began in 1965 as a
division of the governor's office and primarily reported on federal
actions that affected Texas.  In 1971, the legislature established
OSFR as a separate state agency.  Over time, its role has changed
from monitoring federal funding and policy development to actively
attempting to influence those decisions.  Today, OSFR works with
members of the U.S. Congress, particularly those from Texas; the
governor; the legislature; and Texas state agencies to communicate
Texas' needs to the federal government.  This effort is aimed at
increasing the state's share of federal funds and influencing
federal decisions for the benefit of Texas.  The OSFR is also
responsible for producing an annual report on the state's
effectiveness in getting federal funds to Texas, evaluating
individual state agency applications for, and receipt of, federal
funds, and maintaining a grants team to assist in bringing more
discretionary federal funds to Texas.

The OSFR is subject to the Sunset Act and will be abolished
September 1, 1995, unless continued by the legislature.  As a
result of the review of OSFR, the Sunset Advisory Commission
recommended continuation and several statutory modifications.

PURPOSE

As proposed, H.B. 1399 sets forth requirements for the continuation
and functions of the Office of State-Federal Relations in
accordance with the Sunset Act.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 751.003, Government Code, to provide that
the Office of State-Federal Relations (office) is abolished and
this chapter expires September 1, 2007, rather than 1995, unless
continued in existence as provided by the Texas Sunset Act.

SECTION 2. Amends Section 751.002, Government Code, to subject the
office to the administrative procedure law, Chapter 2001.

SECTION 3. Amends Section 751.005, Government Code, to amend
Subsection (b) and add Subsection (d), as follows:

     (b) Requires the director of the office to prepare annually a
     complete and detailed written report accounting for all funds
     received and disbursed by the office during the preceding
     fiscal year.
     
     (d) Requires the report to meet the applicable financial
     reporting requirements provided in the General Appropriations
     Act.
SECTION 4. Amends Section 751.006, Government Code, as follows:

     Sec. 751.006.  New heading:  STAFF; PERSONNEL POLICIES.  (a)
     Requires the director or a designee to provide to office
     employees information regarding their qualification for
     employment and their responsibilities under applicable laws
     relating to standards of conduct for state employees.
     
     (b) Requires the director or a designee (director) to
       develop an intra-agency career ladder program that addresses
       opportunities for mobility and advancement for employees
       within the office.  Requires the program to require the
       intra-agency posting of all positions, rather than just
       nonentry level positions, concurrently with, rather than in
       advance of, any public posting.
       
       (c) Requires the director to develop a system of annual
       performance evaluations that are based on documented
       employee performance.  Requires merit pay for office
       employees to be based on the system established under this
       subsection.
       
       (d) Requires the director to prepare a policy statement to
       assure implementation of a program of equal employment
       opportunity.  Sets forth requirements for the statement.
       
       (e) Requires the annual statement to be updated annually,
       reviewed by the Texas Commission on Human Rights, and be
       filed with the governor's office.
       
       (f) Requires the governor's office to deliver biennially a
       report to the legislature based on the statement. 
       Authorizes the report to be made separately or as a part of
       other reports.
       
       (g) Authorizes the director and the staff of the Washington,
       D.C. office to receive the same cost-of-living salary
       adjustments as set for employees of other state agencies.
SECTION 5. Amends Section 751.008, Government Code, as follows:

     Sec. 751.008.  PUBLIC INFORMATION AND COMPLAINTS.  (a)
     Requires the director to establish methods by which consumers
     and service recipients are notified of the name, address, and
     telephone number of the office for the purpose of directing
     complaints.
     
     (b) Requires the office to keep information about each
       complaint filed with the office.  Sets forth requirements
       for the information.
       
       (c) Requires the office to keep a file about each written
       complaint filed that the office has the authority to
       resolve.  Requires the office to provide to the person
       filing the complaint and the person or entities complained
       about the office's policies regarding complaint
       investigation and resolution.  
       
SECTION 6. Amends Section 751.010, Government Code, by amending
Subsections (c) and (e) and adding Subsection (f), to require the
office Advisory Policy Board (board) to work with the director to
hold periodic meetings at times determined by the presiding officer
to discuss upcoming federal activities and issues with state agency
representatives.  Makes nonsubstantive changes.

SECTION 7. Amends Section 751.011, Government Code, to require the
board to review any interagency contract under Section 751.012 and
to approve a contract only if the contract meets the requirements
of that section.

SECTION 8. Amends Section 751.012, Government Code, as follows:

     Sec. 751.012.  INTERAGENCY CONTRACTS.  (a) Authorizes the
     office to enter into interagency contracts to locate staff of
     the other state agency in Washington, D.C., to work under the
     supervision of the director and to coordinate activities
     conducted on behalf of the other agency with those of the
     office.
     
     (b) Requires the office to enter into a contract with the
       Legislative Budget Board (LBB)
       
       (c) Requires a contract with another state agency to include
       provisions under which staff of the other state agency have
       certain duties and compensation.
       
       (d) Requires the state auditor to establish a salary
       schedule for state employees subject to a contract under
       this section.  Requires the schedule to include certain
       information.
       
       (e) Requires a state agency identified by the LBB as
       receiving significant federal funding or affected by federal
       policy decisions, other than an agency headed by a
       statewide-elected official, to perform certain duties.
       
       (f) Requires the Health and Human Services Commission to
       satisfy the requirements of Subsection (e) for all health
       and human services agencies listed in Section 19, Article
       4413(502), V.T.C.S.
SECTION 9. Amends Chapter 751A, Government Code, by adding Section
751.013, as follows:

     Sec. 751.013.  PROGRAM AND FACILITY ACCESSIBILITY.  Requires
     the office to comply with federal and state laws related to
     program accessibility.  Requires the director to prepare a
     plan describing how a non-English speaker can have access to
     the programs.
          
SECTION 10.    Amends Chapter 751A, Government Code, by adding
Section 751.014, as follows:

     Sec. 751.014.  FUNDS SUBJECT TO STATE FUNDS REFORM ACT. 
     Subjects all money paid to the office to Chapter 404F.
SECTION 11.    Amends Section 751.021, Government Code, to define
"federal formula funds" and to delete existing definitions.

SECTION 12.    Amends Section 751.022, Government Code, as follows:

     Sec. 751.022.  POWERS AND DUTIES.  (a) Makes a conforming
     change.
     
     (b) Deletes from the list of required activities of the
       office monitoring certain publications regarding funding,
       developing procedures to formally notify agencies of the
       availability of federal funds, periodically review the
       funding strategies and methods of those states that rank
       above the national averages in per capita receipt of federal
       funds.  Makes conforming changes.
       
       (c) Deletes from the list of required inclusions in the
       report on the effectiveness of the state's efforts to ensure
       a receipt of equitable federal formula funds a description
       of any instances in which the state has not pursued
       available opportunities to receive federal funds or earned
       federal funds.  Deletes existing Subsections (d)-(f)
       regarding federal funding coordinators and reports on the
       agency's efforts to acquire federal funds. SECTION 13.    Amends Chapter 751B, Government Code, by adding
Section 751.023, as follows:

     Sec. 751.023.  AGENCY COMMUNICATIONS.  Requires a state agency
     to contact the office before the agency provides information
     to a federal agency or the U.S. Congress.  Provides that this
     section does not apply to a state agency that is headed by a
     statewide-elected official.
     
SECTION 14.    Amends Chapter 751B, Government Code, by adding
Section 751.024, as follows:

     Sec. 751.024.  REPORTS TO LEGISLATIVE BUDGET BOARD.  (a)
     Requires each agency and institution of higher education to
     report certain requests for grants, grant awards, and waivers
     of grant requirements. 
     
     (b) Authorizes the LBB to develop reporting procedures and
       time schedules to implement Subsection (a).
       
       (c) Requires the LBB to consult with the director in
       prescribing a report form.
     SECTION 15.    Amends Chapter 772, Government Code, by adding
Section 772.009, as follows:

     Sec. 772.009.  GRANT ASSISTANCE  (a) Requires the director of
     the Governor's Office of Budget and Planning (budget office)
     to establish a state grant writing team.  Sets forth
     requirements for the grant writing team (team).
     
     (b) Sets forth authorized actions for the team.
       
       (c) Requires the team to charge and collect fees from a
       person who uses the team's services.  Requires the fee to be
       set in an amount to cover all or a part of the costs of the
       services.
       
       (d) Requires the team to monitor and identify federal grants
       that are available to state and local criminal justice
       agencies and assist the agencies in applying for and
       obtaining those grants.  
       
       (e) Authorizes the team to initiate negotiations for and
       enter into a memorandum of understanding with other state
       agencies to cooperate with the team in providing certain
       information.  
       
       (f) Requires each state agency to designate an employee on
       the management or senior staff level to serve as the
       agency's federal funds coordinator.  Prohibits an agency
       from creating a staff position for a federal funds
       coordinator.  Provides that the coordinator's duties are
       additional duties of an employee of the agency.  Sets forth
       requirements for each federal funds coordinator.
       
       (g) Requires each state agency or institution to file an
       annual report with the team concerning the agency's efforts
       in acquiring available discretionary federal funds during
       the preceding state fiscal year.  Requires the team to
       establish guidelines for information included in the annual
       report.  Requires the team to evaluate the effectiveness of
       each agency in acquiring discretionary federal funds and to
       report the evaluation to the governor and the LBB
       
       (h) Authorizes, if the governor or LBB determines that an
       agency's efforts were unsatisfactory, to take action under
       Chapter 317 to affect the agency's appropriation.
       
       (i) Defines "earned federal funds," "federal funds,"
       "indirect costs," and "local governmental entity."
SECTION 16.    Requires the office to enter into a contract with
the LBB by January 1, 1996.

SECTION 17.    Repealer:  Chapter 751C, Government Code (Office of
State-Federal Relations).

SECTION 18.    (a) Requires the office to transfer to the
governor's budget office all records in the office's possession
that relate to the administration of Chapter 751C, Government Code.

     (b) Provides that the budget office assumes the outstanding
     obligations of the office with respect to any existing
     contracts entered into by the office before the effective date
     of this Act under Chapter 751C, Government Code.
SECTION 19.    Effective date: September 1, 1995.

SECTION 20.    Emergency clause.