By Gallego H.B. No. 2520
75R5378 JRD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the conservatorship of state agencies and public junior
1-3 colleges as a result of fiscal mismanagement.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2104.001(1), Government Code, is amended
1-6 to read as follows:
1-7 (1) "Board" means a state conservatorship board
1-8 appointed under this chapter [the State Conservatorship Board].
1-9 SECTION 2. The heading to Subchapter B, Chapter 2104,
1-10 Government Code, is amended to read as follows:
1-11 SUBCHAPTER B. STATE CONSERVATORSHIP BOARDS [BOARD]
1-12 SECTION 3. Sections 2104.011(a) and (d), Government Code,
1-13 are amended to read as follows:
1-14 (a) A [The] board is composed of five [three] members
1-15 appointed by the governor with the advice and consent of the
1-16 senate.
1-17 (d) A member's term expires on the earlier of the date the
1-18 conservatorship for which the board is created dissolves or the
1-19 second anniversary of the date of the member's appointment to the
1-20 board. A member whose term expires before the conservatorship is
1-21 dissolved may be reappointed to the board. [Members serve
1-22 staggered six-year terms with the term of one member expiring on
1-23 January 31 of each odd-numbered year.]
1-24 SECTION 4. Section 2104.012(a), Government Code, is amended
2-1 to read as follows:
2-2 (a) The governor shall designate a board member to serve as
2-3 presiding officer. A member serves as presiding officer at the will
2-4 of the governor [for a two-year period expiring on January 31 of
2-5 odd-numbered years].
2-6 SECTION 5. Section 2104.013(a), Government Code, is amended
2-7 to read as follows:
2-8 (a) A board member may not receive compensation but is
2-9 entitled to reimbursement for actual and necessary expenses
2-10 incurred in the performance of official duties. A limit provided
2-11 by appropriation on the amount of reimbursement that members of
2-12 state boards and commissions may generally receive does not apply
2-13 to reimbursement of members of a board [the State Conservatorship
2-14 Board].
2-15 SECTION 6. Section 2104.014, Government Code, is amended to
2-16 read as follows:
2-17 Sec. 2104.014. RULES. A [The] board may adopt and enforce
2-18 rules necessary to administer its conservatorship under this
2-19 chapter. A board may adopt its initial rules on an emergency basis
2-20 for the period prescribed by Section 2001.034 if the board
2-21 determines that rules with immediate effect are necessary to
2-22 ameliorate the effect of the gross fiscal mismanagement.
2-23 SECTION 7. Section 2104.021, Government Code, is amended to
2-24 read as follows:
2-25 Sec. 2104.021. MISMANAGEMENT FINDING; RECOMMENDATION;
2-26 CONSERVATORSHIP ORDER. (a) The legislative audit committee, on
2-27 [shall notify the governor of the committee's] finding that a
3-1 condition of gross fiscal mismanagement exists in a state agency,
3-2 may:
3-3 (1) notify the governor of the finding and recommend
3-4 that the governor appoint a board to act as conservator of the
3-5 agency;
3-6 (2) recommend to the agency that it agree within a
3-7 specified time to enter into a rehabilitation plan in accordance
3-8 with Section 2104.0215; or
3-9 (3) notify the governor of the finding and recommend
3-10 that the governor appoint a board to act as conservator of the
3-11 agency if the agency does not agree within the specified time to
3-12 enter into a rehabilitation plan or does not make sufficient
3-13 progress in implementing a rehabilitation plan.
3-14 (b) After receipt of a [the] notice under Subsection (a),
3-15 the governor by proclamation may appoint a [order the] board to act
3-16 as conservator of the agency.
3-17 SECTION 8. Subchapter C, Chapter 2104, Government Code, is
3-18 amended by adding Section 2104.0215 to read as follows:
3-19 Sec. 2104.0215. REHABILITATION PLAN IN LIEU OF
3-20 CONSERVATORSHIP. (a) A state agency that agrees to enter into a
3-21 rehabilitation plan shall engage the services of an independent
3-22 management consulting team approved by the governor and the
3-23 legislative audit committee. The independent management consulting
3-24 team may include the state auditor, one or more appropriate state
3-25 agencies, and private consultants.
3-26 (b) The state agency entering into the rehabilitation plan
3-27 shall pay the costs of the independent management consulting team's
4-1 services out of its current appropriations.
4-2 (c) The independent management consulting team shall assist
4-3 the state agency to develop its rehabilitation plan. The
4-4 rehabilitation plan must include specific performance goals and the
4-5 period in which the goals must be achieved.
4-6 (d) If the state auditor determines that the state agency is
4-7 not making sufficient progress in implementing its rehabilitation
4-8 plan, the state auditor shall notify the legislative audit
4-9 committee of that fact.
4-10 SECTION 9. Section 2104.022, Government Code, is amended to
4-11 read as follows:
4-12 Sec. 2104.022. ASSUMPTION OF POLICY FUNCTIONS. A [The]
4-13 board created by[, acting on an order of] the governor under
4-14 Section 2104.021[,] shall assume all the powers and duties of the
4-15 officers responsible for policy direction of the state agency that
4-16 is the subject of [to] the proclamation [order], and those officers
4-17 may not act unless authorized by the board.
4-18 SECTION 10. Sections 2104.031(b) and (c), Government Code,
4-19 are amended to read as follows:
4-20 (b) If the coordinating board finds a condition of gross
4-21 fiscal mismanagement of a public junior college, the governor by
4-22 proclamation may appoint a [order the] board to act as conservator
4-23 of the college.
4-24 (c) Except as otherwise provided by this subchapter, the
4-25 board shall act as conservator of a public junior college in the
4-26 manner provided by this chapter for conservatorship of state
4-27 agencies by a [the] board.
5-1 SECTION 11. (a) The terms of all members of the State
5-2 Conservatorship Board as constituted on the effective date of this
5-3 Act expire on the effective date of this Act unless on that date a
5-4 state agency or public junior college is under the conservatorship
5-5 of the board. If on the effective date of this Act a state agency
5-6 or public junior college is under the conservatorship of the board,
5-7 the terms of all members of the State Conservatorship Board as it
5-8 is constituted on the effective date of this Act expire on the date
5-9 the conservatorship is dissolved.
5-10 (b) The changes in law made by this Act do not apply to an
5-11 ongoing conservatorship of a state agency or public junior college
5-12 on the effective date of this Act. A conservatorship that is
5-13 ongoing on the effective date of this Act is governed by the law in
5-14 effect immediately before the effective date of this Act until the
5-15 conservatorship is dissolved, and the prior law is continued in
5-16 effect for that purpose.
5-17 SECTION 12. The importance of this legislation and the
5-18 crowded condition of the calendars in both houses create an
5-19 emergency and an imperative public necessity that the
5-20 constitutional rule requiring bills to be read on three several
5-21 days in each house be suspended, and this rule is hereby suspended,
5-22 and that this Act take effect and be in force from and after its
5-23 passage, and it is so enacted.