LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 21, 1995 TO: Honorable Bob Hunter, Chair IN RE: Committee Substitute Committee on State, Federal, & for International Relations House Bill House of Representatives No. 1399 Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 1399 (relating to the continuation and function of the Office of State Federal Relations) this office has determined the following: The bill would require the Office of State-Federal Relations (OSFR) to annually develop a personnel policy statement subject to review by the Texas Commission on Human Rights. The Governor's Office would be required to report to the Legislature biennially on the information reported by the OSFR. The bill would require that periodic meetings be held in Austin, Texas to discuss federal activities and issues with state agency representatives. The bill would require the governing board to enter into an interagency contract with the Legislative Budget Board (LBB), not later than January 1, 1996 to locate staff in Washington, D.C. The bill establishes certain provisions to be included in interagency contracts with state agencies, including the requirement that the State Auditor to establish a salary schedule which would include a cost of living adjustment for state employees working in Washington. The bill would provide that agencies identified by the LBB as receiving significant federal funds or significantly affected by federal actions develop state-federal coordination plan, study the benefits of entering in to an interagency contract with the OSFR, and submit the plan and study to the Legislative Budget Board. The Health and Human Services Commission would be required to submit plans and studies for all health and human services agencies listed in Section 19, Article 4413(502), Revised Statutes. The bill would require that all state agencies, except those headed by elected officials, contact the OSFR prior to providing information to a federal agency or the United States Congress on state policy or conditions. The bill would require the LBB to develop a report format, in consultation with the OSFR, which state agencies would use to notify the LBB of applications for federal grant and loan assistance and waivers from federal program funding requirements. The bill would repeal Subchapter C, Chapter 751, Government Code, relating to Grant Assistance in the OSFR and create the program in the Governor's Office of Budget and Planning (GOBP). This action would allocate approximately $201,828 annually in general revenue funds including funding for five FTEs from the OSFR to the GOBP. No significant fiscal implication to the State is anticipated. No fiscal implication to units of local government is anticipated. Source: Sunset Advisory Commission, Office of the Governor, Office of State-Federal Relations, LBB Staff: JK, MS, RR