LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 18, 1995



 TO:     Honorable Bob Hunter, Chair            IN RE:  House Bill No. 1399
         Committee on State, Federal, &                 By: Gray
         International Relations
         House of Representatives
         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 functions of the Office of
State-Federal Relations) this office has determined the
following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would require the Office of State-Federal Relations
(OSFR) to develop annually, 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 would establish certain provisions to be included in
interagency contracts with state agencies, including the
requirement that the State Auditor 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.


No significant fiscal implication to the State is anticipated.

No fiscal implication to units of local government is
anticipated.


Source:   Sunset Advisory Commission, State Auditor's Office,
                          Office of State-Federal Relations, 
                          Health and Human Services Commission
          LBB Staff: JK, MS, RR