SRC-JFA H.B. 2520 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2520
By: Gallego (Ellis)
Jurisprudence
5-17-97
Engrossed


DIGEST 

The Joint General Investigating Committee (GIC) studied the
conservatorship process while working to help the Texas Commission on
Alcohol and Drug Abuse (TCADA) improve its administration and functions.
TCADA has been the only state agency ever placed in conservatorship.  GIC
found the experience helpful in finding ways to improve the
conservatorship process.  This bill would change the current structure and
function of the State Conservatorship Board.   
 
PURPOSE

As proposed, H.B. 2520 changes the current structure and function of the
State Conservatorship Board. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to a conservator appointed by the governor
to act as the conservator of a state agency or public junior college in
accordance with Chapter 2104, Government Code, Conservatorship as a Result
of Fiscal Mismanagement, in SECTION 1 (Section 2104.014, Government Code)
of this bill.    

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 2104, Government Code, as follows:

CHAPTER 2104.  CONSERVATORSHIP AS A RESULT OF FISCAL
MISMANAGEMENT

SUBCHAPTER A.  GENERAL PROVISIONS

Sec. 2104.001.  DEFINITIONS.  Deletes the definition of "board."  Defines
"conservator." 

SUBCHAPTER B.  New heading:  CONSERVATORS

Sec. 2104.011.  New heading:  APPOINTMENT OF CONSERVATOR; TERMS.  Provides
that a conservator, rather than the State Conservatorship Board (board),
is appointed by the governor with the advice and consent of the senate.
Deletes text providing that the board is composed of three members.
Provides that a conservator's term expires on the earlier of the date the
conservatorship for which the conservator is appointed dissolves or the
second anniversary of the date of the conservator's appointment.
Authorizes a conservator whose term expires before the conservatorship is
dissolved to be reappointed to continue the conservatorship.  Deletes
existing Subsection (d).  Makes conforming changes.     

Sec. 2104.012.  New heading:  COMPENSATION OF CONSERVATOR.  Provides that
a conservator appointed to act as the conservator of a state agency or
public junior college under this chapter is entitled to receive a salary
for performing those duties that is equal to the salary of the chief
administrative officer of the state agency or public junior college under
conservatorship.  Deletes existing Subsection (a).  Requires the state
agency or public junior college under conservatorship to pay the salary of
the conservator from money appropriated or otherwise available to the
state agency or public junior college, except to the extent that  money to
pay the salary is specifically appropriated or made available through the
budget execution process for that purpose.  Deletes existing Subsection
(d).   

Sec. 2104.013.  New heading:  EXPENSES OF CONSERVATOR.  Deletes text in
regard to board members.  Provides that a limit provided by appropriation
on the amount of reimbursement that state officers or members of state
boards and commissions may generally receive does not apply to
reimbursement of the reasonable and necessary expenses incurred by a
conservator in the course of performing duties under this chapter.
Requires the reasonable and necessary expenses incurred by a conservator
in the course of performing duties under this chapter to be paid from
funds appropriated or otherwise available to the agency or public junior
college under conservatorship, except to the extent that money to pay
those expenses is specifically appropriated or made available through the
budge execution process for that purpose.  Deletes text in regard to
expenses of the board.   

Sec. 2104.014.  RULES.  Authorizes a conservator to adopt and enforce
rules necessary to administer the conservatorship for which the
conservator is appointed under this chapter. Authorizes a conservator to
adopt initial rules on an emergency basis for the period prescribed by
Section 2001.034 if the conservator determines that rules with immediate
effect are necessary to ameliorate the effect of the gross fiscal
mismanagement.  Makes a conforming change.  

Sec. 2104.015.  ADMINISTRATIVE SERVICES.  Makes a conforming change.  

SUBCHAPTER C.  CONSERVATORSHIP OF STATE AGENCIES

Sec. 2104.021.  New heading:  MISMANAGEMENT FINDING; RECOMMENDATION;
CONSERVATORSHIP ORDER.  Authorizes the legislative audit committee, on
finding that a condition of gross fiscal mismanagement exists in a state
agency, to notify the governor of the finding and recommend that the
governor appoint a conservator for that agency; or recommend to the agency
that it agree within a specified time to enter into a rehabilitation plan
in accordance with Section 2104.0215.  Deletes language requiring the
legislative audit committee to notify the governor of certain findings of
the committee.  Authorizes the governor, after receipt of a notice under
Subsection (a), by proclamation, to appoint a conservator, in accordance
with the recommendation, to act as conservator of the agency. Makes a
conforming change.   

Sec. 2104.0215.  REHABILITATION PLAN IN LIEU OF CONSERVATORSHIP.  (a)
Requires a state agency that agrees to enter into a rehabilitation plan to
engage the services of an independent management consulting team approved
by the governor and by the presiding officer and assistant presiding
officer of the legislative audit committee. Authorizes the independent
management consulting team to include the state auditor, one or more
appropriate state agencies, and private consultants.  

(b)  Requires a state agency entering into the rehabilitation plan to pay
the costs of the independent management consulting team's services from
money appropriated or otherwise available to the agency, except that money
to pay the costs is specifically appropriated or made available through
the budget execution process for that purpose.   

(c)  Requires the independent management consulting team to assist the
state agency in developing its rehabilitation plan.  Requires the
rehabilitation plan to include specific performance goals and the period
in which the goals must be achieved.  Requires the plan to be approved by
the governing body of the agency and by the governor and the legislative
audit committee.   

(d)  Authorizes the governor, if the state agency does not adopt the
rehabilitation plan within a reasonable time or if the state auditor
determines and informs the governor that the state agency is not making
sufficient progress in implementing its rehabilitation plan, to appoint a
conservator for the agency under Section 2104.021.   

 Sec. 2104.022.  ASSUMPTION OF POLICY FUNCTIONS.  Makes conforming
changes.  

Sec. 2104.023.  New heading:  CONSERVATORSHIP POWERS AND DUTIES.  Makes
conforming changes.  

Sec. 2104.024.  REPORT.  Makes conforming changes. 

Sec. 2104.025.  DURATION OF CONSERVATORSHIP.  Makes no changes. 

SUBCHAPTER D.  CONSERVATORSHIP OF PUBLIC JUNIOR COLLEGES

Sec. 2104.031.  MISMANAGEMENT FINDING; CONSERVATORSHIP ORDER.  Makes
conforming changes.  

Sec. 2104.032.  REPORTS.  Makes a conforming change. 

Sec. 2104.033.  DURATION OF CONSERVATORSHIP.  Makes no changes. 

SECTION 2. (a)  Provides that the board as constituted on the effective
date of this Act is abolished on the effective date of this Act unless on
that date a state agency or public junior college is under the
conservatorship of the board.  Provides that if on the effective date of
this Act a state agency or public junior college is under the
conservatorship of the board, the board continues in existence under the
law in effect immediately before the effective date of this Act, and the
prior law is continued in effect for that purpose. Provides that the board
is abolished on the date the conservatorship is dissolved.   

(b)  Makes application of this Act prospective.

SECTION 3. Emergency clause.
  Effective date: upon passage.