1-1  By:  Gray (Senate Sponsor - Sibley)                   H.B. No. 1399
    1-2        (In the Senate - Received from the House May 10, 1995;
    1-3  May 11, 1995, read first time and referred to Committee on State
    1-4  Affairs; May 16, 1995, reported favorably by the following vote:
    1-5  Yeas 11, Nays 0; May 16, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to the continuation and functions of the Office of
    1-9  State-Federal Relations and to assistance for acquiring federal
   1-10  grants and other funds.
   1-11        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-12        SECTION 1.  Section 751.003, Government Code, is amended to
   1-13  read as follows:
   1-14        Sec. 751.003.  Sunset Provision.  The Office of State-Federal
   1-15  Relations is subject to Chapter 325 (Texas Sunset Act).  Unless
   1-16  continued in existence as provided by that chapter, the office is
   1-17  abolished and this chapter expires September 1, 2007 <1995>.
   1-18        SECTION 2.  Section 751.002, Government Code, is amended to
   1-19  read as follows:
   1-20        Sec. 751.002.  Office of State-Federal Relations.  (a)  The
   1-21  Office of State-Federal Relations is an agency of the state and
   1-22  operates within the executive department.
   1-23        (b)  The office is subject to the administrative procedure
   1-24  law, Chapter 2001.
   1-25        SECTION 3.  Section 751.005, Government Code, is amended by
   1-26  amending Subsection (b) and adding Subsection (d) to read as
   1-27  follows:
   1-28        (b)  The director shall:
   1-29              (1)  help coordinate state and federal programs dealing
   1-30  with the same subject;
   1-31              (2)  inform the governor and the legislature of federal
   1-32  programs that may be carried out in the state or that affect state
   1-33  programs;
   1-34              (3)  provide federal agencies and the United States
   1-35  Congress with information about state policy and state conditions
   1-36  on matters that concern the federal government;
   1-37              (4)  provide the legislature with information useful in
   1-38  measuring the effect of federal actions on the state and local
   1-39  programs; <and>
   1-40              (5)  prepare and supply to the governor and all members
   1-41  of the legislature an annual report that:
   1-42                    (A)  describes the office's operations;
   1-43                    (B)  contains the office's priorities and
   1-44  strategies for the following year;
   1-45                    (C)  details projects and legislation pursued by
   1-46  the office;
   1-47                    (D)  discusses issues in the following
   1-48  congressional session of interest to this state; and
   1-49                    (E)  contains an analysis of federal funds
   1-50  availability and formulae; and
   1-51              (6)  prepare annually a complete and detailed written
   1-52  report accounting for all funds received and disbursed by the
   1-53  office during the preceding fiscal year.
   1-54        (d)  The annual report required under Subsection (b)(6) must
   1-55  meet the reporting requirements applicable to financial reporting
   1-56  provided in the General Appropriations Act.
   1-57        SECTION 4.  Section 751.006, Government Code, is amended to
   1-58  read as follows:
   1-59        Sec. 751.006.  STAFF; PERSONNEL POLICIES <CAREER LADDER
   1-60  PROGRAM>.  (a)  The director may employ staff necessary to carry
   1-61  out the director's powers and duties under this chapter.  The
   1-62  director or the director's designee shall provide to office
   1-63  employees, as often as necessary, information regarding their
   1-64  qualification for employment under this chapter and their
   1-65  responsibilities under applicable laws relating to standards of
   1-66  conduct for state employees.
   1-67        (b)  The director or the director's designee shall develop an
   1-68  intraagency career ladder program that addresses opportunities for
    2-1  mobility and advancement for employees within the office.  The
    2-2  program shall require <includes the> intraagency posting of all
    2-3  <nonentry level> positions concurrently with <for at least 10 days
    2-4  before the date of> any public posting.
    2-5        (c)  The director or the director's designee shall develop a
    2-6  system of annual performance evaluations that are based on
    2-7  documented employee performance.  All <measurable job tasks and>
    2-8  merit pay for office employees <staff> must be based on the <this>
    2-9  system established under this subsection.
   2-10        (d)  The director or the director's designee shall prepare
   2-11  and maintain a written policy statement to assure implementation of
   2-12  a program of equal employment opportunity under which all personnel
   2-13  transactions are made without regard to race, color, disability,
   2-14  sex, religion, age, or national origin.  The policy statement must
   2-15  include:
   2-16              (1)  personnel policies, including policies relating to
   2-17  recruitment, evaluation, selection, appointment, training, and
   2-18  promotion of personnel that are in compliance with the requirements
   2-19  of Chapter 21, Labor Code;
   2-20              (2)  a comprehensive analysis of the office workforce
   2-21  that meets federal and state guidelines;
   2-22              (3)  procedures by which a determination can be made
   2-23  about the extent of underuse in the office workforce of all persons
   2-24  for whom federal or state guidelines encourage a more equitable
   2-25  balance; and
   2-26              (4)  reasonable methods to appropriately address those
   2-27  areas of underuse.
   2-28        (e)  A policy statement prepared under Subsection (d) must
   2-29  cover an annual period, be updated annually and reviewed by the
   2-30  Texas Commission on Human Rights for compliance with Subsection
   2-31  (d)(1), and be filed with the governor's office.
   2-32        (f)  The governor's office shall deliver a biennial report to
   2-33  the legislature based on the information received under Subsection
   2-34  (e).  The report may be made separately or as a part of other
   2-35  biennial reports made to the legislature.
   2-36        (g)  The director and the staff of the office working in
   2-37  Washington, D.C., may receive the same cost-of-living salary
   2-38  adjustment as is established for an employee of another state
   2-39  agency under Section 751.012(d).
   2-40        SECTION 5.  Section 751.008, Government Code, is amended to
   2-41  read as follows:
   2-42        Sec. 751.008.  Public Information and Complaints.  (a)  The
   2-43  director shall:
   2-44              (1)  prepare information of public interest describing
   2-45  the <director's> functions of the office and the procedures by
   2-46  which complaints are filed with and resolved by the  office and
   2-47  <director;>
   2-48              <(2)>  make the information available to the public and
   2-49  appropriate state agencies; and
   2-50              (2)  establish methods by which consumers and service
   2-51  recipients are notified of the name, mailing address, and a
   2-52  telephone number of the office for the purpose of directing
   2-53  complaints to the office
   2-54              <(3)  maintain an information file on each complaint
   2-55  filed relating to an office activity>.
   2-56        (b)  The office shall keep information about each complaint
   2-57  filed with the office.  The information shall include:
   2-58              (1)  the date the complaint is received;
   2-59              (2)  the name of the complainant;
   2-60              (3)  the subject matter of the complaint;
   2-61              (4)  a record of all persons contacted in relation to
   2-62  the complaint;
   2-63              (5)  a summary of the results of the review or
   2-64  investigation of the complaint; and
   2-65              (6)  for complaints for which the office took no
   2-66  action, an explanation of the reason the complaint was closed
   2-67  without action.
   2-68        (c)  The office shall keep a file about each written
   2-69  complaint filed with the office that the office has authority to
   2-70  resolve.  The office shall provide to the person filing the
    3-1  complaint and the persons or entities complained about the office's
    3-2  policies and procedures pertaining to complaint investigation and
    3-3  resolution.  The office <If a written complaint relating to an
    3-4  office activity is filed with the director, the director>, at least
    3-5  quarterly and until final disposition of the complaint, shall
    3-6  notify the person filing the complaint and the persons or entities
    3-7  complained about <parties to the complaint> of the status of the
    3-8  complaint unless the notice would jeopardize an undercover
    3-9  investigation.
   3-10        SECTION 6.  Section 751.010, Government Code, is amended by
   3-11  amending Subsections (c) and (e) and adding Subsection (f) to read
   3-12  as follows:
   3-13        (c)  The board, by majority vote, shall select a presiding
   3-14  officer <chairman> of the board.
   3-15        (e)  The board shall meet before the beginning of each
   3-16  congressional session and at the call of the presiding officer
   3-17  <chairman>.
   3-18        (f)  The board shall work with the director to hold periodic
   3-19  meetings in the city of Austin at times determined by the presiding
   3-20  officer to discuss upcoming federal activities and issues with
   3-21  state agency representatives.
   3-22        SECTION 7.  Section 751.011, Government Code, is amended to
   3-23  read as follows:
   3-24        Sec. 751.011.  Board Duties.  (a)  The board shall review the
   3-25  office's priorities and strategies set forth in the annual report
   3-26  and deliver to the director any suggested modifications.
   3-27        (b)  The board shall review any interagency contract under
   3-28  Section 751.012 and shall approve a contract only if the contract
   3-29  meets the requirements of that section.
   3-30        SECTION 8.  Section 751.012, Government Code, is amended to
   3-31  read as follows:
   3-32        Sec. 751.012.  Interagency Contracts.  (a)  The office may
   3-33  enter into interagency contracts with other state agencies to
   3-34  locate staff of the other state agency in Washington, D.C., to work
   3-35  under the <office's> supervision of the director and shall
   3-36  coordinate activities conducted on behalf of the other agency with
   3-37  those of the office.
   3-38        (b)  The office shall enter into a contract described by
   3-39  Subsection (a) with the Legislative Budget Board.
   3-40        (c)  A contract under this section must include provisions
   3-41  under which staff of the other state agency:
   3-42              (1)  report directly to that agency's administrative
   3-43  head or the presiding officer of that agency's governing body;
   3-44              (2)  have an officially recognized role in that
   3-45  agency's budget planning process;
   3-46              (3)  provide periodic updates of activities at meetings
   3-47  of that agency's governing body; and
   3-48              (4)  receive a salary established under Subsection (d).
   3-49        (d)  The state auditor shall establish a salary schedule for
   3-50  state employees subject to a contract under this section.  The
   3-51  schedule shall:
   3-52              (1)  be based on specifications for expertise and
   3-53  experience in state-federal relations; and
   3-54              (2)  include a standard cost-of-living adjustment to
   3-55  compensate an employee for the cost of living in Washington, D.C.
   3-56        (e)  A state agency identified by the Legislative Budget
   3-57  Board as receiving significant federal funding or significantly
   3-58  affected by federal policy decisions, other than a state agency
   3-59  that is headed by a statewide-elected official, shall:
   3-60              (1)  develop a plan of state-federal coordination;
   3-61              (2)  study the benefits of entering a contract under
   3-62  Subsection (a); and
   3-63              (3)  submit the coordination plan and study to the
   3-64  office and to the Legislative Budget Board.
   3-65        (f)  The Health and Human Services Commission shall satisfy
   3-66  the requirements of Subsection (e) for all health and human
   3-67  services agencies listed in Section 19, Article 4413(502), Revised
   3-68  Statutes.
   3-69        SECTION 9.  Subchapter A, Chapter 751, Government Code, is
   3-70  amended by adding Section 751.013 to read as follows:
    4-1        Sec. 751.013.  PROGRAM AND FACILITY ACCESSIBILITY.  The
    4-2  office shall comply with federal and state laws related to program
    4-3  and facility accessibility.  The director shall also prepare and
    4-4  maintain a written plan that describes how a person who does not
    4-5  speak English can be provided reasonable access to the office's
    4-6  programs and services.
    4-7        SECTION 10.  Subchapter A, Chapter 751, Government Code, is
    4-8  amended by adding Section 751.014 to read as follows:
    4-9        Sec. 751.014.  FUNDS SUBJECT TO STATE FUNDS REFORM ACT.  All
   4-10  money paid to the office under this chapter is subject to
   4-11  Subchapter F, Chapter 404.
   4-12        SECTION 11.  Section 751.021, Government Code, is amended to
   4-13  read as follows:
   4-14        Sec. 751.021.  DEFINITION <DEFINITIONS>.  In this subchapter
   4-15  "federal formula funds" means only those funds coming to the state
   4-16  based on federal funding formulas or as otherwise legislated by
   4-17  congress, excluding those funds known as federal discretionary
   4-18  grant funds<:>
   4-19              <(1)  "Earned federal funds" means funds that are
   4-20  received or earned in connection with a federally funded program
   4-21  but that are not required by the governing agreement to be
   4-22  disbursed on that program.  The term includes indirect cost
   4-23  receipts and interest earned on advances of federal funds.>
   4-24              <(2)  "Federal funds" means all assistance provided or
   4-25  potentially available to state agencies from the federal government
   4-26  in the form of grants, contracts, loans, loan guarantees, property,
   4-27  cooperative agreements, interest subsidies, insurance, direct
   4-28  appropriations, or any other method of disbursement.>
   4-29              <(3)  "Indirect costs" means costs, as defined by
   4-30  Federal Management Circular A 87 or subsequent revisions of that
   4-31  circular, that are incurred by state agencies in support of
   4-32  federally funded programs and that are eligible for reimbursement
   4-33  from the federal government.>
   4-34              <(4)  "Local governmental entity" means a county,
   4-35  municipality, special purpose district, including a school
   4-36  district, or any other political subdivision of this state.>
   4-37              <(5)  "State funds" means all assistance provided or
   4-38  potentially available to state agencies from the state government
   4-39  in the form of grants, contracts, loans, loan guarantees, property,
   4-40  cooperative agreements, interest subsidies, insurance, direct
   4-41  appropriations, or any other method of disbursement>.
   4-42        SECTION 12.  Section 751.022, Government Code, is amended to
   4-43  read as follows:
   4-44        Sec. 751.022.  POWERS AND DUTIES.  (a)  The office has
   4-45  primary responsibility for monitoring, coordinating, and reporting
   4-46  on the state's efforts to ensure receipt of an equitable share of
   4-47  federal formula funds.
   4-48        (b)  The office shall:
   4-49              (1)  serve as the state's clearinghouse for information
   4-50  on federal formula <and state> funds;
   4-51              (2)  prepare reports on federal funds and earned
   4-52  federal formula funds;
   4-53              (3)  <monitor the federal register, the Texas Register,
   4-54  and other federal or state publications to identify federal and
   4-55  state funding opportunities, with special emphasis on discretionary
   4-56  grants or other funding opportunities that the state is not
   4-57  pursuing;>
   4-58              <(4)  develop procedures to formally notify appropriate
   4-59  state and local agencies of the availability of federal funds and
   4-60  coordinate the application process;>
   4-61              <(5)  periodically review the funding strategies and
   4-62  methods of those states that rank significantly above the national
   4-63  average in the per capita receipt of federal funds to determine
   4-64  whether those strategies and methods could be successfully employed
   4-65  by this state;>
   4-66              <(6)>  analyze proposed and pending federal and state
   4-67  legislation to determine whether the legislation would have a
   4-68  significant negative effect on the state's ability to receive an
   4-69  equitable share of federal formula funds;
   4-70              (4) <(7)>  make recommendations for coordination
    5-1  between state agencies and local governmental entities and between
    5-2  state agencies; and
    5-3              (5) <(8)>  adopt rules under the rule-making procedures
    5-4  of the administrative procedure law, Chapter 2001, Government Code
    5-5  <Administrative Procedure and Texas Register Act (Article 6252 13a,
    5-6  Vernon's Texas Civil Statutes)>, as necessary to carry out the
    5-7  responsibilities assigned by this subchapter.
    5-8        (c)  The office shall annually prepare a comprehensive report
    5-9  to the legislature on the effectiveness of the state's efforts to
   5-10  ensure a receipt of an equitable share of federal formula funds for
   5-11  the preceding federal fiscal year.  The report must include:
   5-12              (1)  an executive summary that provides an overview of
   5-13  the major findings and recommendations included in the report;
   5-14              (2)  a comparative analysis of the state's receipt of
   5-15  federal formula funds relative to other states, prepared using the
   5-16  best available sources of data;
   5-17              (3)  an analysis of federal formula funding trends that
   5-18  may have a significant effect on resources available to the state;
   5-19              <(4)  a description of any instances in which the state
   5-20  or a state agency has not pursued available opportunities to
   5-21  receive federal funds or earned federal funds and the reason for
   5-22  the failure to pursue the opportunity;> and
   5-23              (4) <(5)>  recommendations, developed in consultation
   5-24  with the Legislative Budget Board, the Governor's Office of Budget
   5-25  and Planning, and the comptroller, for any state legislative or
   5-26  administrative action necessary to increase the state's receipt of
   5-27  federal formula funds<, enhance the recovery of indirect costs, or
   5-28  otherwise improve the state's management of federal funds or earned
   5-29  federal funds>.
   5-30        <(d)  Each state agency shall designate an employee on the
   5-31  management or senior staff level to serve as the agency's federal
   5-32  funds coordinator.  An agency may not create a staff position for a
   5-33  federal funds coordinator.  The coordinator's duties are additional
   5-34  duties of an employee of the agency.  Each federal funds
   5-35  coordinator shall:>
   5-36              <(1)  oversee and coordinate the agency's efforts in
   5-37  acquiring federal funds;>
   5-38              <(2)  send the office a quarterly report listing the
   5-39  grants for which the agency has applied and listing the catalogue
   5-40  of federal domestic assistance number and giving a short
   5-41  description of the grant; and>
   5-42              <(3)  notify the office of the award or denial of a
   5-43  federal grant to the agency.>
   5-44        <(e)  Each state agency or institution shall file an annual
   5-45  report with the office concerning the agency's efforts in acquiring
   5-46  available federal funds during the preceding state fiscal year.
   5-47  The office shall establish guidelines for information included in
   5-48  the annual report required by this section.  The office shall
   5-49  evaluate the effectiveness of each agency in acquiring federal
   5-50  funds and shall evaluate the effectiveness of each agency in
   5-51  acquiring federal funds and shall report to the governor and the
   5-52  Legislative Budget Board.>
   5-53        <(f)  If the governor or Legislative Budget Board, after
   5-54  reviewing the reports under Subdivision (e), determines that any
   5-55  agency's efforts were unsatisfactory, either entity may, without a
   5-56  finding of an existing emergency, take action under Chapter 317 to
   5-57  affect the agency's appropriation.>
   5-58        SECTION 13.  Subchapter B, Chapter 751, Government Code, is
   5-59  amended by adding Section 751.023 to read as follows:
   5-60        Sec. 751.023.  AGENCY COMMUNICATIONS.  A state agency shall,
   5-61  to the extent practicable, contact the office before the agency
   5-62  provides information to a federal agency or to the United States
   5-63  Congress about state policy or conditions.  This section does not
   5-64  apply to a state agency that is headed by a statewide-elected
   5-65  official.
   5-66        SECTION 14.  Subchapter B, Chapter 751, Government Code, is
   5-67  amended by adding Section 751.024 to read as follows:
   5-68        Sec. 751.024.  REPORTS TO LEGISLATIVE BUDGET BOARD.  (a)
   5-69  Each agency and each institution of higher education shall report
   5-70  to the Legislative Budget Board:
    6-1              (1)  each application or request made to the United
    6-2  States government for grant funds;
    6-3              (2)  the award or designation, by the United States
    6-4  government, of any funds for expenditure by a state agency; and
    6-5              (3)  waivers of grant requirements.
    6-6        (b)  In consultation with the director, the Legislative
    6-7  Budget Board may develop reporting procedures and time schedules
    6-8  necessary to implement Subsection (a).
    6-9        (c)  In prescribing a report form under Subsection (b), the
   6-10  Legislative Budget Board shall consult with the director.
   6-11        SECTION 15.  Chapter 772, Government Code, is amended by
   6-12  adding Section 772.009 to read as follows:
   6-13        Sec. 772.009.  GRANT ASSISTANCE.  (a)  The director of the
   6-14  Governor's Office of Budget and Planning shall establish a state
   6-15  grant writing team.  The grant writing team shall:
   6-16              (1)  develop a plan for increased state access to
   6-17  available federal funds;
   6-18              (2)  coordinate with state agencies to develop a plan
   6-19  for the use of federal grant funds;
   6-20              (3)  monitor the federal register, the Texas Register,
   6-21  and other federal or state publications to identify federal and
   6-22  state funding opportunities, with special emphasis on discretionary
   6-23  grants or other funding opportunities that the state is not
   6-24  pursuing;
   6-25              (4)  develop procedures to formally notify appropriate
   6-26  state and local agencies of the availability of discretionary
   6-27  federal funds and coordinate the application process; and
   6-28              (5)  periodically review the funding strategies and
   6-29  methods of those states that rank significantly above the national
   6-30  average in the per capita receipt of federal funds to determine
   6-31  whether those strategies and methods could be successfully employed
   6-32  by this state.
   6-33        (b)  The grant writing team may:
   6-34              (1)  establish a clearinghouse of information relating
   6-35  to the availability of state, federal, and private grants;
   6-36              (2)  establish an automated information system database
   6-37  for grant information and make it available for use by state
   6-38  agencies and political subdivisions;
   6-39              (3)  provide counseling to state agencies, political
   6-40  subdivisions of the state, nonprofit charitable institutions,
   6-41  educational institutions, and residents of the state concerning the
   6-42  availability and means of obtaining state, federal, and private
   6-43  grants;
   6-44              (4)  provide grant writing assistance and training to
   6-45  state agencies, political subdivisions of the state, individuals,
   6-46  and other entities either directly or through interagency
   6-47  contracts, cooperative agreements, or contracts with third-party
   6-48  providers;
   6-49              (5)  publicize the services and activities of the grant
   6-50  writing team through chambers of commerce, councils of government,
   6-51  department newsletters, local governments, state agencies,
   6-52  institutions of higher education, business organizations, private
   6-53  philanthropic organizations, and other appropriate entities and
   6-54  methods;
   6-55              (6)  establish and maintain a database of state
   6-56  agencies designated under state and federal law to receive federal
   6-57  categorical and block grant funds; and
   6-58              (7)  analyze the criteria for grants for which state
   6-59  agencies are denied access because of state law or rules or agency
   6-60  organization and suggest changes in agency rules or organization
   6-61  that would increase the probability of the agency's receiving
   6-62  federal or other grants.
   6-63        (c)  When appropriate, the grant writing team shall charge
   6-64  and collect fees from a person who uses the grant writing team's
   6-65  services.  The fee shall be set in an amount necessary to cover all
   6-66  or a part of the costs of the services.
   6-67        (d)  The grant writing team shall monitor and identify
   6-68  federal grants that are available to state and local criminal
   6-69  justice agencies and assist the agencies in applying for and
   6-70  obtaining those grants.
    7-1        (e)  The grant writing team may initiate negotiations for and
    7-2  enter into a memorandum of understanding with other state agencies
    7-3  to cooperate with the grant writing team in providing:
    7-4              (1)  information on federal and state funding
    7-5  opportunities;
    7-6              (2)  technical assistance; or
    7-7              (3)  assistance in writing grant proposals for
    7-8  political subdivisions of the state, nonprofit charitable
    7-9  institutions, educational institutions, and residents of the state.
   7-10        (f)  Each state agency shall designate an employee on the
   7-11  management or senior staff level to serve as the agency's federal
   7-12  funds coordinator.  An agency may not create a staff position for a
   7-13  federal funds coordinator.  The coordinator's duties are additional
   7-14  duties of an employee of the agency.  Each federal funds
   7-15  coordinator shall:
   7-16              (1)  oversee and coordinate the agency's efforts in
   7-17  acquiring discretionary federal funds;
   7-18              (2)  send the grant writing team a quarterly report
   7-19  listing the grants for which the agency has applied and the
   7-20  catalogue of federal domestic assistance number and giving a short
   7-21  description of the grant; and
   7-22              (3)  notify the grant writing team of an award or
   7-23  denial of a federal grant to the agency.
   7-24        (g)  Each state agency or institution shall file an annual
   7-25  report with the grant writing team concerning the agency's efforts
   7-26  in acquiring available discretionary federal funds during the
   7-27  preceding state fiscal year.  The grant writing team shall
   7-28  establish guidelines for information included in the annual report
   7-29  required by this section.  The grant writing team shall evaluate
   7-30  the effectiveness of each agency in acquiring discretionary federal
   7-31  funds and shall report the evaluation to the governor and the
   7-32  Legislative Budget Board.
   7-33        (h)  After reviewing the reports under Subsection (g), if the
   7-34  governor or Legislative Budget Board determines that an agency's
   7-35  efforts were unsatisfactory, either entity may, without a finding
   7-36  of an existing emergency, take action under Chapter 317 to affect
   7-37  the agency's appropriation.
   7-38        (i)  In this section:
   7-39              (1)  "Earned federal funds" means funds that are
   7-40  received or earned in connection with a federally funded program
   7-41  but that are not required by the governing agreement to be
   7-42  distributed on that program.  The term includes indirect cost
   7-43  receipts and interest earned on advances of federal funds.
   7-44              (2)  "Federal funds" means all assistance provided or
   7-45  potentially available to state agencies from the federal government
   7-46  in the form of grants, contracts, loans, loan guarantees, property,
   7-47  cooperative agreements, interest subsidies, insurance, direct
   7-48  appropriations, or any other method of disbursement.
   7-49              (3)  "Indirect costs" means costs, as defined by
   7-50  Federal Management Circular A-87 or subsequent revisions of that
   7-51  circular, that are incurred by state agencies in support of
   7-52  federally funded programs and that are eligible for reimbursement
   7-53  from the federal government.
   7-54              (4)  "Local governmental entity" means a county,
   7-55  municipality, special purpose district, including a school
   7-56  district, or any other political subdivision of this state.
   7-57        SECTION 16.  The Office of State-Federal Relations shall
   7-58  enter into a contract with the Legislative Budget Board, as
   7-59  required by Section 751.012(b), Government Code, as added by this
   7-60  Act, by January 1, 1996.
   7-61        SECTION 17.  Subchapter C, Chapter 751, Government Code, is
   7-62  repealed.
   7-63        SECTION 18.  (a)  As soon as practicable after the effective
   7-64  date of this Act, the Office of State-Federal Relations shall
   7-65  transfer to the Governor's Office of Budget and Planning all
   7-66  records in the office's possession that relate to the
   7-67  administration of Subchapter C, Chapter 751, Government Code.
   7-68        (b)  On the effective date of this Act, the Governor's Office
   7-69  of Budget and Planning assumes the outstanding obligations of the
   7-70  Office of State-Federal Relations with respect to any existing
    8-1  contracts entered into by the office before the effective date of
    8-2  this Act under Subchapter C, Chapter 751, Government Code.
    8-3        SECTION 19.  This Act takes effect September 1, 1995.
    8-4        SECTION 20.  The importance of this legislation and the
    8-5  crowded condition of the calendars in both houses create an
    8-6  emergency and an imperative public necessity that the
    8-7  constitutional rule requiring bills to be read on three several
    8-8  days in each house be suspended, and this rule is hereby suspended.
    8-9                               * * * * *