BILL ANALYSIS S.B. 360 By: Montford (Telford) March 9, 1995 Committee Report (Unamended) BACKGROUND The Texas Fine Arts Commission was created in 1965 by the 59th Legislature and was renamed the Texas Commission on the Arts (TCA) in 1979. The mission of the TCA is to preserve and develop the arts and cultural industries, expand artistic opportunities, conserve Texas' rich and diverse artistic heritage, and encourage the use of the arts in education. The TCA and its programs follow a pattern used by other states to provide support for the arts through information and technical assistance and making grants of money, from state and federal sources, to various non-profit organizations involved in the arts. This grant process allows the state to set its overall priorities for support and development of the arts. The Texas Commission on the Arts is subject to the Sunset Act and will be abolished on September 1, 1995, unless continued by the Legislature. As a result of its review of the Commission, the Sunset Advisory Commission recommended continuation and several statutory modifications that are contained in this legislation. PURPOSE The purpose of this bill is to continue the Texas Commission on the Arts for a 12-year period, make statutory modifications recommended by the Sunset Advisory Commission, and provide for other changes. The modifications proposed by this bill: - continue the Texas Commission on the Arts for the usual 12-year period under the Sunset Act; - ensure that the Commission includes the perspective of rural counties by requiring that at least two of the 18 Commission members be from counties with less than 50,000 residents; - strengthen the state's Percent for the Arts provision by authorizing a voluntary hearings process state agencies can use to consider whether to set- aside a portion of construction costs for art; - require the Commission to develop formal agreements with other state agencies to strengthen and better define working relationships in the areas of arts in public education, state music and film promotion, and arts in tourism; and - provide for other changes. RULEMAKING AUTHORITY In the committee's opinion, this bill grants rulemaking authority to the Texas Commission on the Arts in the following sections: SECTION 5 - Section 444.007, Government Code; SECTION 6 - Section 444.008; SECTION 7 - Section 444.010; SECTION 9 - Section 444.012; SECTION 10 - Section 444.013 and 444.014; SECTION 12 - Section 444.029; SECTION 13 - Section 5.16(a), State Purchasing and General Services Act (Article 601b, Vernon's Texas Civil Statutes); SECTION 14 - Section 5.18. In addition, under the general rulemaking authority already granted to the commission, rules may be adopted to implement other new provisions found in this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 444.002, Government Code, as follows: Sec. 444.002. APPLICATION OF SUNSET, OPEN MEETINGS, AND ADMINISTRATIVE PROCEDURES LAWS. (a) Provides that the Texas Commission on the Arts (commission), unless continued in existence as provided by this chapter, is abolished and this chapter expires September 1, 2007, rather than 1995. (b) Provides that the commission is subject to the open meetings law, Chapter 551, and the administrative procedure law, Chapter 2001. SECTION 2. Amends Section 444.003, Government Code, as follows: Sec. 444.003. COMPOSITION. (a) Requires at least two members of the commission to be residents of a county with a population of less than 50,000. Requires the appointments to the commission to be made without regard to the race, color, disability, sex, religion, age, or national origin of the appointees. (b) Provides that a person is not eligible for appointment to the commission if the person or person's spouse has a financial interest in a business entity or other organization that receives funds from the commission or uses or receives a substantial amount of tangible goods, services, or funds from the commission, with exceptions. SECTION 3. Amends Section 444.005, Government Code, to require the governor to designate a member of the commission as the presiding officer of the commission. SECTION 4. Amends Section 444.006, Government Code, as follows: Sec. 444.006. New title: CONFLICT OF INTEREST; REMOVAL PROVISIONS. (a) Prohibits a person from serving as a member of the commission or acting as the general counsel to the commission if the person is required to register as a lobbyist. (b) and (c) Prohibit an officer, spouse of an officer, manager, employee, or paid consultant of a Texas trade association in the field of art from being a member or employee of the commission who is exempt from the state's position classification plan or is compensated at or above the amount prescribed by the General Appropriations Act for step 1, salary group 17, of the position classification schedule. (d) Sets forth grounds for removal of a commission member. (e) Provides that the validity of an action of the commission is not affected by the fact that it is taken when a ground for removal of a commission member exists. (f) Requires the executive director to notify the presiding officer of the commission of a potential ground for removal. Requires the presiding officer to then notify the governor and the attorney general that a potential ground for removal exists. Requires the executive director to notify the next highest officer of the commission if the potential ground for removal involves the presiding officer. (g) Defines a Texas trade association. SECTION 5. Amends Section 444.007, Government Code, as follows: Sec. 444.007. RESPONSIBILITIES OF COMMISSION, EXECUTIVE DIRECTOR, AND STAFF. (a) Authorizes the commission to employ an executive director to hire the staff of the commission. (b) Requires the commission to develop and implement policies that clearly separate the policy-making responsibilities of the commission and the management responsibilities of the executive director and the staff of the commission. SECTION 6. Amends Section 444.008(b), Government Code, to require the commission to develop and implement policies that provide the public with a reasonable opportunity to appear before the commission and to speak on any issue under the jurisdiction of the commission. SECTION 7. Amends Section 444.010, Government Code, as follows: Sec. 444.010. EMPLOYMENT PRACTICES. (a) Requires the executive director or the executive director's designee to develop an intra-agency career ladder program that addresses opportunities for mobility and advancement for employees within the commission and post all positions intra-agency concurrently with any public posting. (b) Requires the executive director or the executive director's designee to develop a system of annual performance evaluations based on documented employee performance. Requires all merit pay to be based on the evaluation system. (c) Requires the executive director or executive director's designee to prepare and maintain a written policy statement to assure equal employment opportunity. Sets forth the requirements a policy statement must contain. (d) Requires a policy statement under Subsection (c) to be updated annually and reviewed by the Texas Commission on Human Rights for compliance and be filed with the governor's office. Deletes existing subsection. (e) Requires the governor's office to deliver a biennial report, separately or as a part of other biennial reports, to the legislature based on the information received under Subsection (d). SECTION 8. Amends Section 444.011, Government Code, as follows: Sec. 444.011. STANDARDS OF CONDUCT. Requires the executive director or designee to provide to commission members and employees information regarding their qualification for office or employment under this chapter. SECTION 9. Amends Section 444.012, Government Code, as follows: Sec. 444.012. INFORMATION OF INTEREST; COMPLAINTS. (a) Requires the commission to prepare information of public interest describing the functions and procedures by which complaints are filed with and resolved by the commission. (b) Requires the commission, by rule, to establish methods by which consumers and grant recipients are notified of the name, mailing address, and telephone number of the commission for the purpose of directing complaints to the commission. (c) Requires the commission to keep certain information about each complaint filed with the commission. (d) Requires the commission to keep a file about each written complaint filed within the commission's jurisdiction. Requires the commission to provide to the person filing the complaint, and the persons or entities complained about, the commission's policies and procedures pertaining to complaint investigation and resolution and the status of the complaint at least quarterly and until final disposition of the complaint. SECTION 10. Amends Chapter 444A, Government Code, by adding Sections 444.013 and 444.014, as follows: Sec. 444.013. ACCESSIBILITY. Requires the commission to comply with federal and state laws related to program and facility accessibility. Requires the executive director to also prepare a written plan that describes how a person who does not speak English can be provided reasonable access to the commission's programs and services. Sec. 444.014. TRAINING. (a) Requires the commission to establish a training program for commission members. (b) Requires a member to complete at least one course of the training program before assuming duties and being confirmed by the senate. (c) Requires the training program to provide certain information to the member. SECTION 11. Amends Section 444.025, Government Code, by adding Subsections (f) and (g), as follows: (f) Requires the commission to prepare annually a complete and detailed written report accounting for all funds received and disbursed during the preceding fiscal year as provided in the General Appropriations Act. (g) Provides that all money paid to the commission under this chapter, other than money required to be deposited in the Texas cultural endowment fund, is subject to Chapter 404F. SECTION 12. Amends Chapter 444B, Government Code, by adding Section 444.029, as follows: Sec. 444.029. MEMORANDA OF UNDERSTANDING WITH OTHER STATE AGENCIES. (a) Requires the commission to initiate negotiations for and enter into a memorandum of understanding with each state agency involved in the arts to cooperate in program planning and budgeting. (b) Requires the commission to enter into an agreement with certain state agencies. (c) Authorizes each agency listed in Subsection (b) to enter into memoranda of understanding in areas other than those listed for the respective agency. (d) Requires a memorandum of understanding between the commission and another state agency to be adopted by the governing bodies of the commission and the other state agency. (e) Requires the commission to publish the memorandum of understanding, after adoption, in the Texas Register. SECTION 13. Amends Section 5.16(a), Article 601b, V.T.C.S., to require each using agency of the state to specify the desire that a portion of the cost of a project be used for fine arts projects at or near the site of the project. SECTION 14. Amends Section 5.18, Article 601b, V.T.C.S. (State Purchasing and Services Act), as follows: Sec. 5.18. FINE ARTS PROJECTS. (a) Authorizes the using agency to consult the Texas Commission on the Arts in preparing the general description of the project. Makes conforming changes. (b) Authorizes the using agency, the General Services Commission, and the Texas Commission on the Arts to conduct a public hearing to take testimony from interested persons regarding the costs and benefits of using a portion of the project cost for fine arts projects. (c) Requires the General Services Commission to initiate negotiations for and enter into a memorandum of understanding with the Texas Commission on the Arts to establish guidelines for implementing this section. Requires the memorandum of understanding to be adopted by the governing bodies of the General Services Commission and the Texas Commission on the Arts and published in the Texas Register. (d) Created from existing Subsection (b). (e) and (f) Redesignate existing Subsections (c) and (d). SECTION 15. Makes application of this Act prospective. Provides that a current member of the commission is eligible for reappointment if the member meets qualifications under this Act. SECTION 16. Effective date: September 1, 1995. SECTION 17. Emergency clause. SUMMARY OF COMMITTEE ACTION SB 360 was considered by the House Committee on State, Federal, and International Relations in a public hearing on 8 March 1995. The following persons testified in favor of the bill: Mr. James D. Tittle, Chairman Texas Commission on the Arts Ms. Connie Ware Marshall Regional Arts Council Mr. Gilberto Zepeda, Jr., Commissioner Texas Commission on the Arts Mr. Richard E. Huff representing himself Dr. Francine Carraro Texas Fine Arts Association The following person testified neutrally on the bill: Mr. John Paul Batiste, Executive Director Texas Commission on the Arts The bill was reported favorably without amendment with the recommendation that it do pass and be printed, by a record vote of 6 ayes, 0 nays, 0 pnv, and 3 absent.