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.