HBA-NMO H.B. 81 76(R) BILL ANALYSIS
Office of House Bill AnalysisH.B. 81
By: Gallego
State Affairs
2/8/1999
Introduced
BACKGROUND AND PURPOSE
Currently, the governor appoints the three-member State Conservatorship
Board to oversee state agencies and public junior colleges that have
demonstrated fiscal mismanagement. The board may be assigned to one or
more agencies, and board members do not receive a salary. H.B. 81
authorizes the governor to appoint a conservator, rather than a board, as
needed, for specific agencies; entitles a conservator to receive a salary;
and provides that the governor may recommend that a state agency or public
junior college enter into a rehabilitation plan in lieu of a
conservatorship.
RULEMAKING AUTHORITY
It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to a conservator 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. Defines "conservator" as a person appointed
by the governor to act as the conservator of a state agency or public
junior college in accordance with this chapter. Deletes the definition of
"board."
Sec. 2104.002. APPLICABILITY OF CHAPTER. Makes no change.
SUBCHAPTER B. CONSERVATORS.
Sec. 2104.011. APPOINTMENT OF CONSERVATOR; TERMS. Provides that a
conservator, rather than a three-member board, is appointed by the governor
with advice and consent from the senate. Establishes a two-year term for a
conservator. Provides that a conservator may be reappointed. Deletes
language referring to the board.
Sec. 2104.012. COMPENSATION OF CONSERVATOR. Entitles a conservator to
receive a salary that is equal to the salary of the chief administrative
officer of the state agency or public junior college under conservatorship.
Requires the conservator's salary be paid from money appropriated or
otherwise available to the state agency or public junior college, unless
money for the salary is specifically made available through the budget
execution process. Deletes language referring to the board.
Sec. 2104.013. EXPENSES OF CONSERVATOR. Provides that the limit on
reimbursement to state officers or members of state boards and commissions
does not apply to the reimbursement of the reasonable and necessary
expenses incurred by a conservator. Requires these expenses be reimbursed
from money appropriated or otherwise available to the agency or public
junior college under conservatorship, unless money to pay these expenses
is specifically made available through the budget execution process.
Deletes language referring to 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. Authorizes a conservator to adopt initial emergency rules
effective for not longer than 120 days, to be renewed for not more than 60
days, if the conservator determines that rules with immediate effect are
necessary to alleviate the effect of gross fiscal mismanagement. Deletes
language referring to the board.
Sec. 2104.015. ADMINISTRATIVE SERVICES. Requires the governor to provide
a conservator with administrative services. Deletes language referring to
the board.
SUBCHAPTER C. CONSERVATORSHIP OF STATE AGENCIES
Sec. 2104.021. MISMANAGEMENT FINDING; RECOMMENDATION; CONSERVATORSHIP
ORDER. Authorizes the legislative audit committee, on finding that a gross
mismanagement exists in a state agency, to notify the governor and
recommend that the governor appoint a conservator for the agency or
recommend to the agency that it agree to enter into a rehabilitation plan
in accordance with Section 2104.0215, Government Code. Authorizes the
governor, after receipt of a notice, to appoint a conservator for the
agency. Deletes language referring to the board. Makes a conforming
change.
Sec. 2104.0215. REHABILITATION PLAN IN LIEU OF CONSERVATORSHIP. Requires
a state agency that agrees to enter into a rehabilitation plan to employ
the services of an independent management consulting team (team) approved
by the governor and the legislative audit committee. Authorizes the team
to include the state auditor, appropriate state agencies, and private
consultants. Requires the agency to pay the costs of the team's services
from money appropriated or otherwise available to the agency, unless money
to pay the costs is specifically made available through the budget
execution process. Requires the team to assist the agency in developing
its rehabilitation plan. Provides that the plan must include specific
performance goals to be achieved within a specific time frame. Provides
that the plan must be approved by the governing body of the agency, the
governor, and the legislative audit committee. Authorizes the governor to
appoint a conservator if the state agency does not adopt the rehabilitation
plan within a reasonable time or if the state auditor determines that the
agency is not making sufficient progress in the implementation of the
rehabilitation plan.
Sec. 2104.022. ASSUMPTION OF POLICY FUNCTIONS. Requires the conservator
to assume all powers and duties of the officers of the state agency
responsible for policy direction. Prohibits those officers from acting
unless authorized by the conservator. Deletes language referring to the
board. Makes conforming and nonsubstantive changes.
Sec. 2104.023. CONSERVATORSHIP POWERS AND DUTIES. Makes conforming
changes.
Sec. 2104.024. REPORT. Makes conforming changes.
Sec. 2104.025. DURATION OF CONSERVATORSHIP. Makes no change.
SUBCHAPTER D. CONSERVATORSHIP OF PUBLIC JUNIOR COLLEGES
Sec. 2104.031. MISMANAGEMENT FINDING; CONSERVATORSHIP ORDER. Authorizes
the governor to appoint a conservator for a public junior college, if the
Texas Higher Education Coordinating Board, with the assistance of the state
auditor, finds a condition of gross fiscal mismanagement at the college.
Requires a conservator of a public junior college to act in the manner
provided for conservatorship of state agencies, unless otherwise provided.
Makes a conforming change.
Sec. 2104.032. REPORTS. Makes a conforming change.
Sec. 2104.033. DURATION OF CONSERVATORSHIP. Makes no change.
SECTION 2. Makes application of this Act prospective.
SECTION 3. Emergency clause.
Effective date: upon passage.