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.