By Cuellar of Webb, et al.                             H.B. No. 142
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the identification and legislative review of unfunded
    1-3  mandates on political subdivisions.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subtitle B, Title 3, Government Code, is amended
    1-6  by adding Chapter 320 to read as follows:
    1-7       CHAPTER 320. UNFUNDED MANDATES ON POLITICAL SUBDIVISIONS
    1-8        Sec. 320.001.  DEFINITIONS.   In this chapter:
    1-9              (1)  "Interagency work group" means the unfunded
   1-10  mandates interagency work group.
   1-11              (2)  "State mandate" means a requirement made by a
   1-12  statute enacted by the legislature on or after January 1, 1995,
   1-13  that requires a political subdivision to establish, expand, or
   1-14  modify an activity in a way that requires the expenditure of
   1-15  revenue by the political subdivision that would not have been
   1-16  required in the absence of the statutory provision.
   1-17        Sec. 320.002.  UNFUNDED MANDATES INTERAGENCY WORK GROUP.  (a)
   1-18  The unfunded mandates interagency work group consists of:
   1-19              (1)  the state auditor;
   1-20              (2)  the director of the Legislative Budget Board;
   1-21              (3)  the director of the Sunset Advisory Commission;
   1-22  and
   1-23              (4)  the comptroller.
    2-1        (b)  A member of the interagency work group is not entitled
    2-2  to additional compensation for service on the work group.
    2-3        (c)  A member of the interagency work group may use any
    2-4  person employed by the member's agency to complete the member's
    2-5  work on the interagency work group.
    2-6        (d)  The members of the interagency work group may enter into
    2-7  an interagency memorandum of understanding regarding the completion
    2-8  of the work required by this chapter.
    2-9        (e)  The interagency work group shall:
   2-10              (1)  compile a list of unfunded mandates under the
   2-11  requirements of Section 320.003; and
   2-12              (2)  present, at the time of each regular legislative
   2-13  session, to the legislature and governor a report on the unfunded
   2-14  mandates scheduled to be reviewed under Section 320.004.
   2-15        Sec. 320.003.  LIST OF UNFUNDED MANDATES.  (a) On or before
   2-16  the September 1 following a regular session of the legislature and
   2-17  on or before the 90th day after the last day of a special session
   2-18  of the legislature, the interagency work group shall publish a list
   2-19  of mandates for which the legislature has not provided
   2-20  reimbursement under Subsection (b) and that were enacted by the
   2-21  legislature during that legislative session.  By that same date the
   2-22  interagency work group shall remove from the list of mandates for a
   2-23  previous legislative session those mandates for which the
   2-24  legislature has provided reimbursement under Subsection (b), those
   2-25  that are no longer subject to reimbursement, and those that are no
    3-1  longer in effect.
    3-2        (b)  A mandate is considered to be a mandate for which the
    3-3  legislature has provided reimbursement if the legislature:
    3-4              (1)  by statute enacted by a record vote of two-thirds
    3-5  of the members elected to each house expressly provides that the
    3-6  mandate is not subject to reimbursement under this section; or
    3-7              (2)  appropriates or otherwise provides for the payment
    3-8  or reimbursement from a source other than revenue of the political
    3-9  subdivision of the costs incurred in the calendar year by the
   3-10  political subdivision in complying with the mandate.
   3-11        (c)  This section does not apply to a mandate:
   3-12              (1)  not included in the appropriate list of mandates
   3-13  published by the interagency work group under this section;
   3-14              (2)  imposed by the legislature or a state agency to
   3-15  comply with a requirement of the Texas Constitution, federal law,
   3-16  or court order;
   3-17              (3)  creating a new criminal offense or changing the
   3-18  elements of a criminal offense; or
   3-19              (4)  approved by the voters of this state at a general
   3-20  election.
   3-21        Sec. 320.004.  SUNSET REVIEW OF UNFUNDED MANDATES.  (a)
   3-22  Before September 1 of the even-numbered year before the fifth
   3-23  anniversary of the date of enactment of a mandate identified by the
   3-24  interagency work group under Section 320.003, the interagency work
   3-25  group shall:
    4-1              (1)  review the legislative history of the mandate;
    4-2              (2)  conduct an evaluation on the benefits of the
    4-3  mandate and the costs of the mandate on affected political
    4-4  subdivisions; and
    4-5              (3)  present a written report to the legislature and
    4-6  the governor on the interagency work group's findings.
    4-7        (b)  During the regular session immediately following the
    4-8  issuance of a report under Subsection (a), the legislature by law
    4-9  may continue the mandate for a period not to exceed five years,
   4-10  repeal the mandate, or take no action on the mandate.
   4-11        SECTION 2.  The importance of this legislation and the
   4-12  crowded condition of the calendars in both houses create an
   4-13  emergency and an imperative public necessity that the
   4-14  constitutional rule requiring bills to be read on three several
   4-15  days in each house be suspended, and this rule is hereby suspended,
   4-16  and that this Act take effect and be in force from and after its
   4-17  passage, and it is so enacted.