1-1     By:  Cuellar, Pitts, et al.                             H.B. No. 66

 1-2          (Senate Sponsor - Zaffirini)

 1-3           (In the Senate - Received from the House May 12, 1997;

 1-4     May 13, 1997, read first time and referred to Committee on State

 1-5     Affairs; May 18, 1997, reported favorably, as amended, by the

 1-6     following vote:  Yeas 11, Nays 0; May 18, 1997, sent to printer.)

 1-7     COMMITTEE AMENDMENT NO. 1                           By:  Armbrister

 1-8     Amend H.B. 66, in Section 320.002 (engrossed version, page 1, line

 1-9     36) by striking all of subdivision (3) and renumbering the

1-10     subsequent subdivisions accordingly.

1-11     COMMITTEE AMENDMENT NO. 2                               By:  Carona

1-12     Amend H.B. 66, in Section 320.003 (engrossed version) as follows:

1-13           (1)  On page 2, line 23, strike "or".

1-14           (2)  On page 2, line 25, strike "." and insert "; or

1-15                 (4)  affecting employee pensions and benefits."

1-16                            A BILL TO BE ENTITLED

1-17                                   AN ACT

1-18     relating to unfunded state mandates on political subdivisions.

1-19           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-20           SECTION 1.  Subtitle B, Title 3, Government Code, is amended

1-21     by adding Chapter 320 to read as follows:

1-22          CHAPTER 320.  UNFUNDED MANDATES ON POLITICAL SUBDIVISIONS

1-23           Sec. 320.001.  DEFINITIONS.  In this chapter:

1-24                 (1)  "Interagency work group" means the unfunded

1-25     mandates interagency work group.

1-26                 (2)  "State mandate" means a requirement made by a

1-27     statute enacted by the legislature on or after January 1, 1997,

1-28     that requires a political subdivision to establish, expand, or

1-29     modify an activity in a way that requires the expenditure of

1-30     revenue by the political subdivision that would not have been

1-31     required in the absence of the statutory provision.

1-32           Sec. 320.002.  UNFUNDED MANDATES INTERAGENCY WORK GROUP.  (a)

1-33     The unfunded mandates interagency work group consists of:

1-34                 (1)  the state auditor;

1-35                 (2)  the director of the Legislative Budget Board;

1-36                 (3)  the director of the Sunset Advisory Commission;

1-37                 (4)  the comptroller;

1-38                 (5)  a senator appointed by the lieutenant governor;

1-39     and

1-40                 (6)  a house member appointed by the speaker of the

1-41     house of representatives.

1-42           (b)  A member of the interagency work group is not entitled

1-43     to additional compensation for service on the work group.

1-44           (c)  A member of the interagency work group may use any

1-45     person employed by the member's agency to complete the member's

1-46     work on the interagency work group.

1-47           (d)  The members of the interagency work group may enter into

1-48     an interagency memorandum of understanding regarding the completion

1-49     of the work required by this chapter.

1-50           (e)  The interagency work group shall:

1-51                 (1)  compile a list of unfunded mandates under the

1-52     requirements of Section 320.003; and

1-53                 (2)  present, at the time of each regular legislative

1-54     session, to the legislature and governor a report on the unfunded

1-55     mandates scheduled to be reviewed under Section 320.004.

1-56           Sec. 320.003.  LIST OF UNFUNDED MANDATES.  (a)  On or before

1-57     the September 1 following a regular session of the legislature and

1-58     on or before the 90th day after the last day of a special session

1-59     of the legislature, the interagency work group shall publish a list

1-60     of mandates for which the legislature has not provided

1-61     reimbursement under Subsection (b) and that were enacted by the

1-62     legislature during that legislative session.  By that same date the

1-63     interagency work group shall remove from the list of mandates for a

1-64     previous legislative session those mandates for which the

 2-1     legislature has provided reimbursement under Subsection (b), those

 2-2     that are no longer subject to reimbursement, and those that are no

 2-3     longer in effect.

 2-4           (b)  A mandate is considered to be a mandate for which the

 2-5     legislature has provided reimbursement if the legislature:

 2-6                 (1)  by statute enacted by a record vote of two-thirds

 2-7     of the members elected to each house expressly provides that the

 2-8     mandate is not subject to reimbursement under this section; or

 2-9                 (2)  appropriates or otherwise provides for the payment

2-10     or reimbursement, from a source other than revenue of the political

2-11     subdivision, of the costs incurred in the calendar year by the

2-12     political subdivision in complying with the mandate.

2-13           (c)  This section does not apply to a mandate:

2-14                 (1)  not included in the appropriate list of mandates

2-15     published by the interagency work group under this section;

2-16                 (2)  imposed by the legislature or a state agency to

2-17     comply with a requirement of the Texas Constitution, federal law,

2-18     or a court order or to maximize the receipt of federal funds by the

2-19     state in areas such as education, health and human services, and

2-20     criminal justice; or

2-21                 (3)  approved by the voters of this state at a general

2-22     election.

2-23           Sec. 320.004.  REVIEW OF UNFUNDED MANDATES.  (a)  Before

2-24     September 1 of the even-numbered year before the third anniversary

2-25     of the date of enactment of a mandate identified by the interagency

2-26     work group under Section 320.003, the interagency work group shall:

2-27                 (1)  review the legislative history of the mandate;

2-28                 (2)  conduct an evaluation on the benefits of the

2-29     mandate and the costs of the mandate on affected political

2-30     subdivisions; and

2-31                 (3)  present a written report to the legislature and

2-32     the governor on the interagency work group's findings.

2-33           (b)  During the regular session immediately following the

2-34     issuance of a report under Subsection (a), the legislature by law

2-35     may continue the mandate for a period not to exceed three years, by

2-36     law may repeal the mandate, or may take no action on the mandate.

2-37           SECTION 2.  The importance of this legislation and the

2-38     crowded condition of the calendars in both houses create an

2-39     emergency and an imperative public necessity that the

2-40     constitutional rule requiring bills to be read on three several

2-41     days in each house be suspended, and this rule is hereby suspended,

2-42     and that this Act take effect and be in force from and after its

2-43     passage, and it is so enacted.

2-44                                  * * * * *