IMF H.B. 66 75(R)BILL ANALYSIS STATE AFFAIRS H.B. 66 By: Cuellar 5-2-97 Committee Report (Substituted) BACKGROUND The state government has passed unfunded mandates, requiring local governments to conduct activities, but not providing funding for those activities. Local governments have requested relief from these unfunded mandates. By mandating local governmental agencies to undertake certain actions, the state controls policy control but places the financial responsibility of implementation on the local level. State governments often compound the problem of unfunded federal mandates by interpreting federal laws beyond what is actually required. Unfunded mandates also hide the true costs of state laws by passing costs to local governments. This in turn requires local governments to raise taxes to pay for policies they do not control. PURPOSE This bill proposes to establish an interagency work group to catalogue and to review unfunded mandates. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subtitle B, Title 3, Government Code, by adding Chapter 320, Unfunded Mandates on Political Subdivisions, as follows: Sec. 320.001. Definitions. Defines "Interagency work group" and "State mandate." Sec. 320.002. Unfunded Mandates Interagency Work Group. a) Indicates that the work group consists of the state auditor, the director of the Legislative Budget Board, the director of the Sunset Advisory Commission, the Comptroller, a senator appointed by the Lieutenant Governor, and a representative appointed by the Speaker of the House. b) States that the work group members are not entitled to more pay for service on the work group. c) Allows the work group members' staffs to help with the work. d) Allows the work group members to enter into an interagency memorandum of understanding about completing the work. e) Outlines the duties of the work group: to compile a list of unfunded mandates and present a report on them to the legislature and the governor each regular legislative session. Sec. 320.003. List of Unfunded Mandates. a) Requires the work group to publish a list of all unfunded mandates enacted in a session, on September 1 after a regular session or by the 90th day after a special session. Requires the work group to remove from the list mandates that are inapplicable. b) Defines two categories of mandates that are not considered unfunded: 1) if the statute expressly states that the mandate is not subject to reimbursement and is approved by a record vote of 2/3 of the members of each house; or 2) if the legislature appropriates funding from a source other than the local government's revenue. c) Exempts certain mandates: 1) those not published on the list; 2) those imposed in order to comply with the Texas Constitution, federal law, court order, or to maximize federal funds for certain programs; 3) those creating a new criminal offense or changing the elements of a criminal offense; or 4) those approved by voters at a general election. Sec. 320.004. Review of Unfunded Mandates. a) Requires the work group to conduct a sunset review of unfunded mandates identified under Section 320.003, at their fifth year, by the following specific activities: 1) reviewing legislative history; 2) evaluating costs and benefits; and 3) presenting a written report to the legislature and the governor. b) Allows the legislature of the next regular session after the report's issuance to continue the mandate for no more than three years, to repeal the mandate, or to take no action on the mandate. SECTION 2. Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE Adds a State Representative appointed by the Speaker of the House of Representatives and a State Senator appointed by the Lieutenant Governor to the Interagency Work Group in SECTION 1 of the bill. Adds to the list of mandates that the bill does not apply to those imposed by the legislature to maximize receipt of federal funds in areas such as criminal justice, health and human services and education, in SECTION 1 of the bill. Changes the review date of mandates from the fifth anniversary of the date the mandate was passed to the third anniversary in SECTION 1 of the bill. Reduces the period for which the legislature may continue a mandate from five years to three years in SECTION 1 of the bill.