SRC-AMY S.B. 19 78(1)   BILL ANALYSIS


Senate Research Center   S.B. 19
78S10094 MTB-FBy: Ellis, Rodney
Government Organization
7/7/2003
As Filed


DIGEST AND PURPOSE 

As proposed, S.B. 19 seeks to improve the efficiency and effectiveness of
state government by eliminating the Texas Board of Paroles and Pardons
(TBPP) Policy Board and folding its duties into TBPP and eliminating the
State Aircraft Pooling Board and transferring its duties and
responsibilities to the Texas Department of Public Safety.  This bill also
establishes the select committee on prison privatization and abolishes the
Texas Commission on Private Security.  S.B. 19 abolishes the Texas
Legislative Council, creates the Legislative Information Services Board,
transfers responsibility for financial audits from the state auditor to
the Legislative Budget Board, and creates a Performance Review Commission
to take the place of the Sunset Advisory Commission. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the office of the governor in
SECTION 3.02 (Section 391.009, Local Government Code) of this bill. 

Rulemaking authority is expressly granted to the Texas Board of Pardons
and Paroles (TBPP) in SECTION 8.05 (Section 508.036, Government Code) of
this bill. 

Rulemaking authority is transferred to TBPP from TBPP's Policy Board in
SECTION 8.10 (Section 508.0441, Government Code) and SECTION 8.22 of this
bill. 

Rulemaking authority is transferred to the office of the governor from the
Office of State-Federal Relations in SECTION 11.19 of this bill. 

Rulemaking authority is transferred to the Texas Department of Public
Safety from TBPP in SECTION 12.07 (Section 2205.038, Government Code) of
this bill. 

SECTION BY SECTION ANALYSIS

ARTICLE 1.  TELECONFERENCE MEETING OF LEGISLATIVE BUDGET BOARD

SECTION 1.01.  Amends Section 322.003, Government Code, by adding
Subsections (d) and (e), as follows: 

(d) Authorizes any number of the other members of the Legislative Budget
Board (LBB), as an exception to Chapter 551 and other law, if the LBB
chairman and vice-chairman of LBB are physically present at a meeting, to
attend an LBB meeting by use of telephone conference call, video
conference call, or other similar telecommunication device. Provides that
this subsection applies for purposes of constituting a quorum, for
purposes of voting, and for any other purpose allowing a member of LBB to
otherwise fully participate in any meeting of LBB.  Provides that this
subsection applies without exception with regard to the subject of the
meeting or topics considered by the members. 

(e) Sets forth the requirements of a meeting held by use of telephone
conference call, video conference call, or other similar telecommunication
device. 

ARTICLE 2.  GOVERNOR'S BUDGET AUTHORITY
 
SECTION 2.01.  Amends Section 401.046(a), Government Code, to require the
governor to deliver a copy of the governor's  budget to each member of the
legislature before the governor gives the message to the legislature
required by Section 9, Article IV, Texas Constitution, at the commencement
of each regular legislative session.  Deletes text requiring the delivery
to be made by the sixth day of the regular session. 

Section 2.02.  Repealer: Section 401.047 (Penalty), Government Code.

ARTICLE 3. OVERSIGHT OF REGIONAL PLANNING COMMISSIONS

SECTION 3.01.  Amends the heading to Section 391.009, Local Government
Code, to read as follows: 

Sec. 391.009.  ROLE OF STATE AUDITOR, GOVERNOR, AND STATE AGENCIES.

SECTION 3.02.  Amends Section 391.009, Local Government Code, by amending
Subsection (a) and adding Subsections (a-1) and (a-2), as follows: 

(a) Authorizes the governor, with the technical assistance of the state
auditor, to protect the public interest and, rather than or, promote the
efficient use of public funds, to adopt certain rules and guidelines. 

(a-1)  Authorizes the governor to draft and adopt rule under Subsection
(a) using negotiated rulemaking procedures under Chapter 2008, Government
Code. 

(a-2) Requires the state auditor's office, based on a risk assessment
performed by the state auditor and subject to the legislative audit
committee's approval for inclusion in the audit plan under Section
321.013, Government Code, to assist the governor as provided by Subsection
(a). 

SECTION 3.03.  Amends Section 391.0095, Local Government Code, as amended
by S.B. 19, Acts of the 78th Legislature, Regular Session, as follows: 

Sec. 391.0095.  AUDIT AND REPORTING REQUIREMENTS.  (a) Requires a regional
planning commission (commission) to report certain information to the
state auditor, rather than to the governor. 

(b) Authorizes the annual audit of a commission to be commissioned by the
commission or at the direction of the governor's office, as determined by
the governor's office. 

(c) Makes a conforming change.

(d) Requires the state auditor to report a failure to comply with a rule,
requirement, or guideline under Section 391.009 to the governor's office. 

(e) Includes the governor in the list of required recipients of a
commission's report and audit.  Requires the state auditor, if the state
auditor reviews the audit or the report, to be given access to working
papers and other supporting documentation that the state auditor
determines is necessary to perform the review. 

SECTION 3.04.  Amends Section 391.0117(e), Local Government Code, to
require the state auditor, if the state auditor, subject to the
legislative audit committee's approval for inclusion in the audit plan
under Section 321.013, Government Code, has recommendations to improve a
commission's salary schedule or a portions of the schedule, to report the
recommendations to the governor's office.  Prohibits the governor's office
from allowing the portions of the schedule for which the state auditor has
recommendations to go into effect until revisions or explanations are
given that are satisfactory to the governor based on recommendations from
the sate auditor.  Deletes text referring to the governor approving
portions of the schedule. Makes a conforming change. 

SECTION 3.05.  Provides that on the effective date of this article, a
rule, requirement, or guideline adopted by the governor relating to the
oversight of commissions remains in effect until amended or repealed by
the governor. 

ARTICLE 4.  ABANDONMENT OF PROCEEDS ON DEMUTUALIZATION

SECTION 4.01.  Amends Section 72.101, Property Code, by adding Subsections
(c) and (d), as follows: 

(c) Provides that property distributable in the course of a
demutualization, rehabilitation, or related reorganization of an insurance
company is presumed abandoned on the first anniversary of the date the
property becomes distributable if, on that date, the last known address of
the owner according to the records of the holder of the property is known
to be incorrect or the distribution or statements related to the
distribution are returned by the post office as undeliverable and the
owner has not taken certain actions. 

(d) Provides that property distributable in the course of a
demutualization, rehabilitation, or related reorganization of an insurance
company that is not subject to Subsection (c) is presumed abandoned as
otherwise provided by this section. 

SECTION 4.02.  Amends Section 74.301, Property Code, amending Subsection
(a) and adding Subsection (d), as amended by H.B. 826, Acts of the 78th
Legislature, Regular Session, as follows: 

(a)  Makes a conforming change.

(d) Requires the holder, if the property subject to delivery under
Subsection (a) is proceeds from the demutualization, rehabilitation, or
related reorganization of an insurance company, to deliver the property
and required report to the comptroller on or before the following August
1. 

SECTION 4.03.  Effective date of Article 4:  September 1, 2003, or
November 1, 2003. 

ARTICLE 5. MEMBERS OF TEXAS VETERANS COMMISSION

SECTION 5.01.  Amends Section 434.003(c), Government Code, to delete text
referring to the restriction that not more than one member may be from a
senatorial district composed of a single county. 

ARTICLE 6.  COMMISSIONER OF INSURANCE

SECTION 6.01.  Amends Section 31.023, Insurance Code, to delete the
requirement that the commissioner of insurance have at least five years of
insurance and insurance regulation experience. 

SECTION 6.02.  Makes application of this article prospective. 

ARTICLE 7.  MEMBERS OF THE PARKS AND WILDLIFE COMMISSION

SECTION 7.01.  Amends Section 11.012(d), Parks and Wildlife Code, to
require the governor to attempt to include persons with expertise in
diverse fields, including fields such as historic preservation,
conservation, and outdoor recreation and to consider certain aspects of
the commission's composition, and authorizes the governor to include
persons who have an interest in and knowledge of hunting, fishing,
wildlife, environmental concerns, land or water use issues, or water
quality issues. 

 SECTION 7.02.  (a) Requires the governor, as soon as possible on or after
November 1, 2003, the governor to appoint nine members to the Parks and
Wildlife Commission under Section 11.012, Parks and Wildlife Code, as
amended by this article.  Requires the governor to designate three
members, including one public member, for terms expiring February 1, 2005;
three members, including one public member, for terms expiring February 1,
2007; and three members, including one public member, for terms expiring
February 1, 2009. 

(b) Authorizes the governor to reappoint a person who served as a member
of the Parks and Wildlife Commission before November 1, 2003. 

(c) Provides that the position of a member of the Parks and Wildlife
Commission serving immediately before November 1, 2003, is abolished at
the time five or more of the newly appointed directors qualify for office.
Provides that until the abolition of the members' positions occurs under
this section, the members serving immediately before November 1, 2003,
have the same powers and duties that the members had immediately before
that date and the commission continues to be composed in the way it was
composed before that date, and the former law is continued in effect for
that purpose. 

ARTICLE 8.  PARDONS AND PAROLES

SECTION 8.01.  Amends Section 508.001, Government Code, by amending
Subdivision (8) and adding Subdivision (10), as follows: 

(8) Defines "parole commissioner" and deletes the definition of "policy
board." 

(10) Defines "presiding officer."

SECTION 8.02.  Amends Section 508.031(a), Government Code, to decrease the
number of members on the Texas Board of Pardons and Paroles (TBPP) from 18
to seven. 

SECTION 8.03.  Amends Section 508.034, Government Code, as follows:

Sec. 508.034.  GROUNDS FOR REMOVAL.  (a) Provides that it is a ground for
removal from TBPP that a member is absent from more than half of the
regularly scheduled TBPP or panel meetings that the member is eligible to
attend during each calendar year, except when the absence is excused by
the presiding officer, rather than by majority vote of TBPP. 

(b) Deletes text referring to grounds for removal from the policy board.
Redesignates Subsection (c) as Subsection (b) and deletes a reference to
members of the policy board. 

(c) Redesignates this subsection from Subsection (d).  Makes a conforming
change. 

(d) Redesignates this subsection from Subsection (e). 

(e) Redesignates this subsection from Subsection (f).

SECTION 8.04.  Amends Section 508.035, Government Code, by amending
Subsection (c) and adding Subsection (d), as follows: 

(c) Makes a conforming change.

(d) Sets forth the authorized duties of the presiding officer.

SECTION 8.05.  Amends Section 508.036, Government Code, as amended by
Section 31.01, S.B. 287, Acts of the 78th Legislature, Regular Session,
as follows: 

 Sec. 508.036.  New heading: GENERAL ADMINISTRATIVE DUTIES.  (a)  Sets
forth the required duties of the presiding officer.  Deletes text
referring to the Texas Board of Pardons and Paroles Policy Board. 

(b) Sets forth the required duties of TBPP, including rulemaking.

(c) Requires TBPP's administrator to prepare and maintain a written plan
that describes how a person who does not speak English can be provided
reasonable access to TBPP's programs and services. 

(d) Provides that TBPP, in performing its duties, is subject to the open
meetings law, Chapter 551 (Open Meetings), and the administrative
procedure law, Chapter 2001 (Administrative Procedure).  Provides that
this subsection does not affect the provisions of Section 2001.223
(Exceptions From Declaratory Judgement, Court Enforcement, and Contested
Case Provisions) exempting hearings and interviews conducted by the board
or the division from Section 2001.038 (Declaratory Judgement) and
Subchapters C-H, Chapter 2001 (Administrative Procedure). 

SECTION 8.06.  Amends Section 508.0362, Government Code, as follows:

Sec. 508.0362.  TRAINING REQUIRED.  (a)(1)  Creates this subdivision from
existing text.  Makes conforming changes. 

(2) Prohibits a parole commissioner employed by TBPP from voting or
deliberating on a matter described by Section 508.0441 until the person
completes at least one course of a training program that complies with
this section. 

(b) Deletes from the list of required information provided by a training
program, information about the TBPP's policy board and includes in the
required information regarding the role and functions of parole
commissioners.  

(c) Makes a conforming change.

SECTION 8.07.  Amends Section 508.040(a), Government Code, to provide that
the presiding officer is responsible for the employment and supervision of
parole commissioners and for personnel to assist in clemency and hearing
matters.  Makes conforming and nonsubstantive changes. 

SECTION 8.08. Amends Section 508.041, Government Code, is amended to read
as follows: 

Sec. 508.041.  DESIGNEE TRAINING; HANDBOOK.  (a)  Sets forth the programs
TBPP, rather than the policy board, is required to develop and implement. 

(b) and (c) Make conforming changes.

SECTION 8.09. Amends Section 508.042, Government Code, as follows:

Sec. 508.042.  New heading: TRAINING PROGRAM FOR MEMBERS AND PAROLE
COMMISSIONERS.  (a) Requires TBPP to develop for TBPP members and parole
commissioners a comprehensive training and education program on the
criminal justice system, with special emphasis on the parole process. 

(b)(1)  Creates this subdivision from existing text.  Makes a conforming
change. 

(2) Prohibits a new parole commissioner from participating in a vote of a
panel until the commissioner completes the program.  Provides that this
subdivision does not apply to a new parole commissioner who as a TBPP
member completed the program. 
 
SECTION 8.10.  Amends Subchapter B, Chapter 508, Government Code, by
amending Section 508.044 and adding Section 508.0441, as follows: 

Sec. 508.044.  POWERS AND DUTIES OF BOARD.  Requires a TBPP member to give
full time to the duties of the member's office, including duties imposed
on the board by the Texas Constitution and other law. 

Sec. 508.0441.  RELEASE AND REVOCATION DUTIES.  (a) Sets forth the
determinations required to be made by TBPP members and parole
commissioners. 

(b)  Redesignates this subsection from Subsection (c).  Requires TBPP to
develop and implement a policy that clearly defines circumstances under
which a TBPP member or parole commissioner should disqualify himself or
herself from voting on a parole decision or a decision to revoke parole or
mandatory supervision. 

(c) Redesignates this subsection from Subsection (d).  Makes conforming
changes. 

(d) Redesignates this subsection from Subsection (e).  Authorizes the
presiding officer to provide a written plan for the administrative review
of actions taken by a parole panel by a review panel, rather than the
entire membership or by a subset of the entire membership of TBPP. Makes a
conforming change.  

(e) Redesignates this subsection from Subsection (f).  Requires TBPP
members and parole commissioners to, at the direction of the presiding
officer, file activity reports on duties performed under this chapter. 

SECTION 8.11.  Amends Sections 508.045(a) and (b), Government Code, as
follows: 

(a) Requires TBPP members and parole commissioners, except as provided by
Section 508.046, to act in panels composed of three in matters of release
on parole, release to mandatory supervision, and revocation of parole or
mandatory supervision. 

(b) Requires the presiding officer to designate the composition of each
panel, and authorizes the presiding officer to designate panels composed
only of TBPP members, composed only of parole commissioners, or composed
of any combination of TBPP members and parole commissioners. 

SECTION 8.12.  Amends Section 508.047(a), Government Code, to make a
conforming change. 

SECTION 8.13.  Amends Section 508.049, Government Code, to make conforming
changes. 

SECTION 8.14.  Amends Section 508.082, Government Code, to make a
conforming change. Adds a parole commissioner to the list of persons for
whom TBPP is required to adopt certain rules. 

SECTION 8.15.  Amends Section 508.141(g), Government Code, as added by
S.B. 917, Acts of the 78th Legislature, Regular Session, 2003, to make a
conforming change. 

SECTION 8.16.  Amends Section 508.144(b), Government Code, to require the
member or parole commissioner, if a board member or parole commissioner
deviates from the parole guidelines in voting on a parole decision, to
take certain actions. 

SECTION 8.17.  Amends Section 508.153(b), Government Code, to make
conforming changes.   

SECTION 8.18.  Amends Section 508.281(a), Government Code, to make a
conforming change. 

SECTION 8.19.  Amends Section 508.313(c), Government Code, as amended by
Section 3, S.B. 519, Acts of the 78th Legislature, Regular Session, 2003,
to make a conforming change. 
 
SECTION 8.20.  Amends Section 492.0131, Government Code, to require the
Texas Board of Criminal Justice and the presiding officer of TBPP to
jointly review all rules, policies, and procedures of the Texas Department
of Criminal Justice and TBPP that relate to or affect the operation of the
parole process.  Makes conforming changes. 

SECTION 8.21.  Repealer: Section 508.0361 (Policy Board: General
Administrative Properties), Government Code. 

SECTION 8.22.  (a) Requires the governor to appoint new members to TBPP on
or before January 1, 2004, and provides that the terms of members serving
on December 31, 2003, expire on the appointment of the new members.
Authorizes but does not require the governor to appoint as new members
persons who served on TBPP before January 1, 2004. 

(b) Requires the governor, of the new members of TBPP, to appoint two to
serve terms expiring February 1, 2005, two to serve terms expiring
February 1, 2007, and three to serve terms expiring February 1, 2009.
Provides that on the expiration of the terms of the initial members of the
new TBPP, the term of a member appointed by the governor is six years. 

(c) Provides that on November 1, 2003, a rule of the Board of Pardons and
Paroles Policy Board is a rule of TBPP. 

ARTICLE 9.  ADMINISTRATION OF TEXAS BUILDING AND PROCUREMENT COMMISSION

SECTION 9.01.  Amends Section 2152.051, Government Code, as follows:

(a) Provides that the Texas Building and Procurement Commission (TBPC)
consists of five members appointed by the governor. 

(b) Provides that Subsection (a) governs the composition of TBPC after
January 31, 2007. Provides that on or before that date, this subsection
governs the composition of TBPC. Provides that TBPC consists of seven
members who meet certain conditions.  Deletes existing Subsection (b)
relating to the governor rejecting certain nominees.  

SECTION 9.02.  Amends Section 2152.052(b), to delete the lieutenant
governor as a person making appointments under this section. 

SECTION 9.03.  Amends Section 2152.057, Government Code, to provide that
TBPC members serve staggered six-year terms with one or two, rather than
three, members' terms expiring January 31 of each odd-numbered year. 

ARTICLE 10.  DESIGNATION OF PRESIDING OFFICERS

SECTION 10.01.  Amends Chapter 651, Government Code, by adding Section
651.010, as follows: 

Sec. 651.010.  APPOINTMENT OF PRESIDING OFFICERS BY GOVERNOR.  (a) Defines
"state agency." 

(b) Authorizes the governor, notwithstanding other law, to designate a
member of the governing body of each state agency as the presiding officer
of that governing body to serve in that capacity at the pleasure of the
governor. 

ARTICLE 11.  OFFICE OF STATE-FEDERAL RELATIONS

SECTION 11.01.  Amends the heading to Chapter 751, Government Code, to
read as follows: 

CHAPTER 751.  STATE-FEDERAL RELATIONS
 
SECTION 11.02.  Amends the heading to Subchapter A, Chapter 751,
Government Code, to read as follows: 

SUBCHAPTER A.  OFFICE OF STATE-FEDERAL RELATIONS

SECTION 11.03.  Amends Sections 751.001(1) and (4), Government Code, to
redefine "board" and "state agency." 

SECTION 11.04.  Amends Section 751.002(a), Government Code, to provide
that the Office of State-Federal Relations is established in the office of
the governor, rather than being an agency of the state and operated within
the executive department. 

SECTION 11.05.  Amends the heading to Section 751.004, Government Code, to
read as follows: 

Sec. 751.004.  APPOINTMENT OF DIRECTOR

SECTION 11.06.  Amends Section 751.004(a), Government Code, to delete
existing text relating to the advice and consent of the senate regarding
the governor's appointment of a director of the office. 

SECTION 11.07.  Amends Section 751.005(b), Government Code, to require the
director to take certain actions.  Deletes text requiring the director to
annually prepare a report accounting for all funds received and disbursed
by the office during the preceding fiscal year. 

SECTION 11.08.  Amends the heading to Section 751.006, Government Code, to
read as follows: 

Sec. 751.006.  STAFF.

SECTION 11.09.  Amends Section 751.006(a), Government Code, to delete
existing text relating to certain persons providing certain information to
office employees. 

SECTION 11.10.  Amends the heading to Section 751.010, Government Code, to
read as follows: 

Sec. 751.010.  STATE-FEDERAL RELATIONS ADVISORY BOARD.

SECTION 11.11.  Amends Section 751.010, Government Code, by amending
Subsections (a), (e), and (f) and adding Subsection (g), as follows: 

(a) Authorizes the governor to appoint members to an advisory board
(board) to assist in the administration of this chapter.  Deletes existing
text relating to the Office of StateFederal Relations Advisory Policy
Board consisting of certain persons. 

(e) Authorizes, rather than requires, the board to meet before the
beginning of each congressional session and at the call of the director,
rather than the presiding officer. 

(f) Authorizes, rather than requires, the board to work with the director
to hold periodic meetings to discuss upcoming federal activities and
issues with state agency representatives.  Deletes existing text relating
to the board meeting in the city of Austin at times determined by the
presiding officer. 

(g) Provides that a member of the board serves without compensation, but
is entitled to reimbursement to the member's necessary and actual expenses
incurred in performing duties under this chapter. 

SECTION 11.12.  Amends Section 751.012(c), Government Code, as amended by
S.B. 19, Acts of the 78th Legislature, Regular Session, 2003, to require a
contract under this section to include  provisions under which staff of
the other state agency meet certain requirements. 

SECTION 11.13.  Amends Section 751.012(e), Government Code, to require a
state agency identified by the Legislative Budget Board or the governor's
office of budget, planning, and policy as receiving significant federal
funding or being significantly affected by federal policy decisions, other
than a state agency that is headed by a statewide-elected official, to
take certain actions. 

SECTION 11.14.  Amends Subchapter A, Chapter 751, Government Code, by
adding Section 751.015, as follows: 

Sec. 751.015.  AGENCY COMMUNICATIONS.  Requires a state agency, to the
extent practicable, to contact the office before the agency provides
information to a federal agency or to the United States Congress about
state policy or conditions.  Provides that this section does not apply to
a state agency that is headed by statewide-elected official. 

SECTION 11.15.  Amends Section 751.022, Government Code, to make
conforming changes. 

SECTION 11.16.  Amends Sections 751.024(a) and (b), Government Code, as
follows: 

(a) Requires each agency and each institution of higher education to
report certain information to certain entities. 

(b) Makes a conforming change.  Deletes existing text relating to the
Legislative Budget Board consulting with the director.  

SECTION 11.17.  Amends Section 322.004, Government Code, by adding
Subsection (e) to authorize the director to maintain office space at
locations chosen by the director, including at locations outside of the
state. 

SECTION 11.18.  Repealer: Sections 751.002(b) (Office of State-Federal
Relations), 751.003 (Sunset Provision), 751.005(d) (General Powers and
Duties of Director), 751.006(b)-(f) (Staff; Personnel Policies), 751.008
(Public Information and Complaints), 751.010(b)-(d) (Office of
State-Federal Relations Advisory Policy Board), 751.011(Board Duties),
751.012(b) (Interagency Contracts), and 751.023 (Agency Communications),
Government Code. 

SECTION 11.19.  Provides that certain actions and responsibilities of the
Office of State-Federal Relations are transferred to the office of the
governor on November 1, 2003. 

ARTICLE 12.  STATE AIRCRAFT POOLING BOARD

SECTION 12.01.  Amends the heading to Chapter 2205, Government Code, to
read as follows: 

CHAPTER 2205.  STATE-OPERATED AIRCRAFT

SECTION 12.02.  Amends Subchapter B, Chapter 2205, Government Code, by
adding Section 2205.0315, as follows: 

Sec. 2205.0315.  DEFINITION.  Defines "department."

SECTION 12.03.  Amends Section 2205.032, Government Code, as follows:

Sec. 2205.032.  New heading: TRANSPORTATION AND MAINTENANCE.  Deletes
existing text from heading relating to custody, control, and operation. 

(a) Requires the Department of Public Safety of the State of Texas (DPS)
to maintain all aircraft owned or leased by the state.  Deletes existing
language relating to operating a pool for the custody, control, operation,
and maintenance of certain aircraft. 
 
(b) Authorizes DPS to provide aircraft transportation under Section
2205.036. Deletes existing text relating to authorizing the State Aircraft
Pooling Board (SAPB) to purchase aircraft with funds appropriated for that
purpose.  Deletes existing Subsection (c) relating to a long-range plan
for pooling certain aircraft. 

SECTION 12.04.  Amends Section 2205.034, Government Code, to make
conforming changes. 

SECTION 12.05.  Amends Section 2205.036, Government Code, as follows:

(a) Authorizes DPS, rather than require SAPB, to provide aircraft
transportation, to the extent that its aircraft are available, to certain
persons.  

(b)-(c) Make conforming changes.

(d) Requires DPS to monitor and ensure compliance with the requirements of
this section. 

SECTION 12.06.  Amends Subchapter B, Chapter 2205, Government Code, by
adding Section 2205.0365, as follows: 

Sec. 2205.0365.  CONTRACTS.  (a) Authorizes DPS to negotiate contracts
with private charter aircraft providers to obtain the most cost-effective
rates possible for transportation of state officers and employees
traveling on official business. 

(b) Authorizes DPS to contract with a flight safety consultant in
developing safety guidelines for charter aircraft providers. 

(c) Authorizes a contract described by Subsection (a) to provide certain
conditions relating to the use of charter services. 

SECTION 12.07.  Amends Section 2205.038, Government Code, as follows:

(a)-(c) Make conforming changes.

(d) Authorizes DPS, by rule, to require appropriate advance, rather than a
12-hour, notice by the officer to obtain the priority in scheduling.
Makes a conforming change. 

SECTION 12.08.  Amends Section 2205.039, Government Code, as follows:

(a)-(c) Make conforming changes.

(d) Requires DPS to monitor and ensure compliance by state agencies with
the requirements of this section. 

(e) Requires DPS to annually report to the Legislative Budget Board on air
travel information received under this section. 

SECTION 12.09.  Amends Section 2205.040, Government Code, as follows:

Sec.  2205.040.  RATES AND BILLING PROCEDURES.  (a)  Requires DPS, rather
than State Aircraft Pooling Board (SAPB), to adopt rates for interagency
aircraft services that are sufficient to recover, in the aggregate and to
the extent possible, all direct and indirect costs for the services
provided. 
 
  (b)  Makes a conforming change.

SECTION 12.10.  Amends Section 2205.041(a), Government Code, to make a
conforming change. 

SECTION 12.11.  Amends Section 2205.043(b), Government Code, to replace
the reference to  Article 6139f, Revised Statutes, with Subtitle A, Title
11.  Makes a conforming change. 

SECTION 12.12.  Amends Section 2205.044, Government Code, to make a
conforming change. 

SECTION 12.13.  Amends Section 2205.045(a), Government Code, to require
DPS to negotiate, rather than SAPB to purchase, insurance contracts to
protect the state, rather than SAPB, from loss caused by damage, loss,
theft, or destruction of aircraft owned or leased by the state and to
negotiate, rather than purchase, liability insurance contracts to protect
the officers and employees of each state agency from loss arising from the
operation of state-owned aircraft. 

SECTION 12.14.  Amends Section 2205.047, Government Code, to make
conforming changes. 

SECTION 12.15  Repealer: Subchapter A (State Aircraft Pooling Board;
General Provisions), Chapter 2205 (Aircraft Pooling), Section 2205.035
(Aircraft Leases), Section 2205.042 (Pilots), and Section 2205.046
(Aircraft for Flight Training Programs), Government Code. 

SECTION 12.16.  (a)  Requires DPS, the State Aircraft Pooling Board, and
the Texas Public Finance Authority, in consultation with TBPC and the
General Land Office, to establish a transition team to oversee the
transition from the State Aircraft Board to DPS.  Requires the team to
perform certain functions. 

(b)  Provides that the transition team and the State Aircraft Pooling
Board are abolished on April 1, 2004. 

SECTION 12.17.  (a)  Requires TBPC, in consultation with DPS, to sell
certain state aircraft and equipment by a certain date.  Requires the
proceeds of the sale to be used to pay off any bonds issued in connection
with acquiring or maintaining the aircraft or equipment. 

(b)  Requires the General Land Office, in consultation with the Texas
Public Finance Authority, to sell certain State Aircraft Pooling Board
facilities located at the AustinBergstrom International Airport by a
certain date and for a certain amount.  Requires the proceeds of the sale
to be used to pay off any bonds issued in connection with the purchase,
maintenance, or construction of the Austin-Bergstrom facilities.
Authorizes the General Land Office, at the discretion of the commissioner
of the General Land Office, to offer the facilities for sale by
competitive bid or to negotiate a direct sale of the facilities to certain
individuals or entities. 

(c)  Requires the General Land Office to sell State Aircraft Pooling Board
facilities located at the site of the former Robert Mueller Municipal
Airport for a certain amount. 
Requires the proceeds of the sale to be used to pay off any bonds issued
in connection with acquiring or maintaining the facilities.  Authorizes
the General Land Office, at the discretion of the commissioner of the
General Land Office, to offer the facilities for sale by competitive bid
or to negotiate a direct sale of the facilities to certain individuals or
entities. 

ARTICLE 13.  PRISON PRIVATIZATION STUDY

SECTION 13.01.  CREATION.  Creates the select committee on prison
privatization. 

SECTION 13.02.  COMPOSITION.  (a)  Provides the composition of the select
committee. 

 (b)  Requires appointments to be made by a certain date.

SECTION 13.03  DUTIES.  (a)  Requires the select committee to prepare a
report analyzing certain issues. 

(b)  Requires the report to analyze the impact that the privatization of a
Texas Department of Criminal Justice facility or function would have on
the community in which the function is performed or the facility is
located. 
 
(c)  Requires the report to contain a qualitative and quantitative
comparison of the performance of vendors operating facilities under this
subtitle and the performance of facilities operated by DPS that provide
the same level of programs and services.  Requires the comparison to
provide certain information. 

 (d)  Requires the select committee to present copies of the report to the
governor, the  lieutenant governor, and the speaker of the house of
representatives, not later than November 1, 2004. 

SECTION 13.04.  HEARINGS.  Requires the select committee to hold at least
four public hearings.  Requires the hearings to be held in certain
locations. 

SECTION 13.05.  FUNDS TRANSFER.  Requires the Texas Department of Criminal
Justice (TDCJ) to enter into a memorandum of understanding with the select
committee to provide the committee with certain funds.  Requires the
select committee to use the funds in a certain manner.  Requires the
memorandum of understanding to be entered into no later than October 1,
2003.  Requires the memorandum to specify that the funds will be
transferred to the select committee according to a certain schedule.   

SECTION 13.06.  EXPIRATION.  Provides that the select committee is
abolished and this article expires November 30, 2004. 

ARTICLE 14.  ABOLITION OF TEXAS COMMISSION ON PRIVATE SECURITY

SECTION 14.01.  Amends Subchapter A, Chapter 1702, Occupations Code, by
adding Section 1702.005, as follows: 

Sec.  1702.005.  COMMISSION ABOLISHED AND FUNCTIONS TRANSFERRED. (a)
Provides that the Texas Commission on Private Security (commission) is
abolished, and all powers, duties, personnel, property, assets, and
obligations of the commission are transferred to DPS.  Provides that the
validity of a prior action of the commission is not affected by the
abolishment. 

(b)  Provides that all rules of the commission relating to a transferred
power or duty remain in effect as rules of DPS until amended or repealed
by DPS. 

(c)  Provides that a reference in this chapter or another law to the
commission means DPS. 

ARTICLE 15.  REVIEW OF UNIVERSITY SYSTEM ADMINISTRATION

SECTION 15.01.  Amends Subchapter C, Chapter 61, Education Code, by adding
Section 61.0515, as follows: 

 Sec.  61.0515.  REVIEW OF UNIVERSITY SYSTEM ADMINISTRATION.
(a)  Requires the Texas Higher Education Coordinating Board (THECB) to
perform a review of the organization and operations of each university
system office. 

  (b)  Requires THECB to identify certain information in the review.

  (c)  Requires THECB to prepare a report of the review and deliver the
report to  
certain individuals, not later than November 1, 2004. Requires THECB to
state its findings and identify opportunities for legislative and
administrative action relating to certain areas. 

  (d)  Requires THECB to identify certain issues in the report.

  (e)  Provides that this section expires September 1, 2005.

 ARTICLE 16.  REPORTS

SECTION 16.01.  Amends Section 363.064(a), Health and Safety Code, to
require a regional or local solid waste management plan to follow certain
guidelines. 

SECTION 16.02.  Amends the heading to Section 5.178, Water Code, to read
as follows: 

 Sec.  5.178.  ANNUAL REPORTS;  BIENNIAL APPENDICES.

SECTION 16.03.  Amends Section 5.178(b), Water Code, to require the report
due by December 1 of an even-numbered year to include certain information. 

SECTION 16.04.  (a)  Repealer:  Sections 361.020, 361.0201, 361.0232,
361.0233, 361.0234, 361.040(d), 361.0871(c), 361.510, 371.063, and
382.141, Health and Safety Code. 

 (b)  Repealer:  Section 5.178(c), Water Code.

ARTICLE 17.  PERMITS OF THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY

SECTION 17.01.  Provides that it is the policy of this state to be
effective and efficient with public funds, to provide for effective and
efficient management of natural resources, and to serve the people of
Texas by making the government more visible, accessible, coherent,
consistent, and accountable to the people of Texas.  Provides that the
legislature finds the Texas Commission on Environmental Quality's (TCEQ)
procedures for processing permits are cumbersome, confusing, lengthy, and
inefficient. 

(b)  Provides that TCEQ's permitting processes warrant, and the
legislature directs, an indepth evaluation.  Requires the evaluation to
solicit and consider input from all stakeholders.  Requires the solutions
identified in the final assessment to ensure certain items. 

(c)  Requires a seven-member study committee to conduct the evaluation and
final assessment required by Subsection (b) of this committee.  Requires
the study committee to consist of certain members.   

 (d)  Provides that is the intent of the legislature to effectuate the
appropriate solutions  through legislation at the earliest opportunity
subsequent to receipt of the study committee's final assessment. 

ARTICLE 18.  ORGANIZATION OF CERTAIN STATE AGENCIES; TRANSFER OF CERTAIN
FUNCTIONS 

PART 1.  CREATION OF LEGISLATIVE INFORMATION SERVICES BOARD; ABOLITION OF
TEXAS LEGISLATIVE COUNCIL AND TRANSFER OF ITS FUNCTIONS 

SECTION 18.01.  Amends Subtitle C, Title 3, Government Code, by adding
Chapter 327, as follows: 

CHAPTER 327.  LEGISLATIVE INFORMATION SERVICES BOARD

 Sec.  327.001.  DEFINITIONS.  Defines "board" and  "director."

Sec.  327.002.  CREATION.  Provides that the Legislative Information
Services Board (board) is an agency of the legislative branch of state
government. 

Sec.  327.003.  LEGISLATIVE INFORMATION SERVICES BOARD.  (a) Sets forth
the members of the board. 

 (b)  Provides that the lieutenant governor and the speaker of the house
of representatives serve alternate terms as the chairman and vice chairman
of the board.  Provides the terms. 

(c)  Provides the terms of compensation and reimbursement of expenses for
board members. 

(d)  Provides that actual and necessary expenses are paid from funds
appropriated to the board. 

Sec.  327.004.  DIRECTOR.  (a)  Requires the board to appoint a director
to serve at the pleasure of the board. 

  (b)  Requires the board to set the salary of the director.

Sec.  327.005.  PERSONNEL.  (a) Authorizes the director, with the approval
of the board, to employ professional and clerical personnel. 

(b)  Requires the board to set the salaries of the personnel employed by
the director. 

Sec. 327.006.  GIFTS AND GRANTS.  (a) Authorizes the board to accept
gifts, grants, and donations from any organization described in Section
501(c)(3), Internal Revenue Code of 1986, for the purposes of funding any
activity under this chapter. 

(b) Requires all gifts, grants,  and donations to be accepted in an open
meeting by a majority of the voting members of the board and reported in
the public record of the board with the name of the donor and purpose of
the gift, grant, or donation. 

Sec. 327.007.  DUTIES.  Requires the board to provide certain computer
support services to the legislative branch of state government. 

Sec.  327.008.  ELECTRONIC AVAILABILITY OF LEGISLATIVE INFORMATION THROUGH
THE INTERNET.  (a)  Defines "Internet" and "legislative information." 

(b)  Authorizes the board to make legislative information available to the
public through the Internet. 

(c)  Authorizes the board to make available to the public through the
Internet any documentation that describes the electronic digital formats
of legislative information. 

(d)  Provides that the access to legislative information provided for
under this section is in addition to the public's access to the
information through other electronic or print distribution of the
information; does not alter, diminish, or relinquish any copyright or
other proprietary interest or entitlement of the State of Texas or a
private entity under contract with the state; and is subject to Section
327.009. 

Sec. 327.009.  COMPUTER ACCESS, INFORMATION, AND USE.  (a)  Requires the
board to consider each application for direct access to a computer under
its control in which confidential information is stored or processed or
that is connected with another computer in which confidential information
is stored or processed and solely to determine whether or not to permit
direct access by the applicant.  Prohibits permitting direct access to
such a computer unless protection of confidential information is ensured. 

(b)  Provides that if public information of the board is stored in a
computerreadable form, the board has exclusive authority to determine the
form in which the information will be reproduced for the requestor of the
information. 
 
(c)  Provides that, notwithstanding Subchapter F, Chapter 552, the board
has exclusive authority to determine the charge for direct access to a
computer under its control and the charge for information reproduced for a
requestor. 

(d)  Authorizes the board to consider the needs of persons with
disabilities when making decisions regarding the formats in which
information is made available under this chapter. 

Sec. 327.010.  COMPUTER SECURITY; PENALTY.  (a)  Provides that a person
commits an offense if the person intentionally or knowingly gains access
to information stored or maintained by a computer under the control of the
board and the person is not authorized by the board to have access to that
information. 
 
(b)  Provides that a person commits an offense if the person
intentionally, knowingly, or recklessly damages, destroys, deletes, or
alters or impairs access to or use of information stored or maintained by
a computer under the control of the board and the person is not authorized
by the board to do so. 

(c)  Provides that Subsection (b) does not apply to an interruption of
utility service or other service that causes the damage, destruction,
deletion, or alteration of or impairment of access to or use of the
information unless the interruption was intended to have that result. 

(d)  Provides that an offense under this section is a Class A misdemeanor.

SECTION 18.02.  Repealers:

(1)  Section 276.008 (Information Provided to Texas Legislative Council),
Election Code; 
(2)  Chapter 323 (Texas Legislative Council), Government Code;
(3)  Section 2053.004 (Legislation), Government Code;
(4)  Section 6.14 (Information Provided to Texas Legislative Council), Tax
Code. 

PART 2.  TRANSFER OF FINANCIAL AUDIT FUNCTIONS FROM STATE AUDITOR TO
LEGISLATIVE BUDGET BOARD 

SECTION 18.03.  Amends Chapter 322, Government Code, by adding Section
322.002, as follows: 

Sec. 322.002.  DEFINITIONS.  Defines "board" and "department."

SECTION 18.04.  Amends Chapter 322, Government Code, by adding Sections
322.0155 through 322.026, as follows: 

Sec. 322.0155.  FINANCIAL AND COMPLIANCE AUDITS:  POWERS AND DUTIES.  (a)
Requires the Legislative Budget Board (LBB) to conduct financial audits of
all departments, including institutions of higher education, as specified
in the audit plan required under Subsection (c).  Authorizes LBB to
conduct an audit or investigation of any entity receiving funds from the
state. 

(b)  Requires LBB to conduct the audits in accordance with generally
accepted auditing standards as prescribed by the American Institute of
Certified Public Accountants, the Governmental Accounting Standards
Boards, the United States General Accounting Office, or other
professionally recognized entities that prescribe auditing standards. 

(c)  Requires LBB to devise an audit plan for the state for each fiscal
year. Requires LBB, in the plan, to consider recommendations concerning
coordination of agency functions made by representatives of the
Performance Review Commission.  Requires LBB to also consider the extent
to which a department has  received a significant increase in
appropriations, including a significant increase in federal or other money
passed through to the department, and to review procurement activities for
compliance with Section 2161.123.  Requires the plan to provide for the
auditing of federal programs at least once in each fiscal biennium and to
ensure that audit requirements of all bond covenants and other credit or
financial agreements are satisfied. 

(d)  Authorizes LBB, at any time during an audit or investigation, to
require the assistance of the administrative head, official, auditor,
accountant, or other employees of the entity being audited or
investigated. 

(e)  Entitles LBB to access to all of the books, accounts, confidential or
nonconfidential reports, vouchers, or other records of information in any
department or entity subject to audit, including access to all electronic
data. 

(f)  Provides that LBB has access to information and data the release of
which is restricted under federal law only with the approval of the
appropriate federal administrative agency.  Requires LBB to have access to
copyrighted or restricted information obtained by the office of the
comptroller under subscription agreements and used in the preparation of
economic estimates only for audit purposes. 

(g)  Authorizes LBB to conduct compliance and financial audits as defined
by Sections 322.016 and 322.017 and specified in the audit plan. 

(h)  Requires LBB, to the extent that the performance of the powers and
duties of LBB under law is not impeded, to make reasonable efforts to
coordinate requests for employee assistance under Subsection (d) or
requests for access to books, accounts, vouchers, records, or data under
Subsection (e) or (f) so as not to hinder the daily operations of the
audited entity. 

(i)  Prohibits LBB from conducting audits of private entities concerning
collection or remittance of taxes or fees to the state if the entity is
subject to audit by another state agency for the taxes or fees. 

(j)  Requires LBB, if it determines that a change in an accounting system
is necessary, to consider the present system of books, records, accounts,
and reports to ensure that the transition will be gradual and that the
past and present records will be coordinated into the new system. 

Sec. 322.016.  COMPLIANCE AUDIT.  Defines a compliance audit.

Sec. 322.017.  FINANCIAL AUDIT.  Defines a financial audit.

Sec. 322.018.  FINANCIAL AND COMPLIANCE AUDIT REPORTS.  (a)  Requires LBB
to prepare a written report for each financial or compliance audit
conducted by LBB. 

(b)  Requires the written report to include certain information.

(c)  Requires LBB to file a copy of each report with certain officials.

(d)  Requires LBB to maintain a complete file containing certain
information. 

(e)  Requires LBB to maintain the files required by Subsection (d) for at
least eight years. 

(f)  Requires each audited department or entity to report on the manner in
which the department or entity addressed the findings and recommendations
that are included in a report prepared by LBB under this section.
Requires LBB to  prescribe the form and schedule for a report by the
department or entity under this subsection. 

(g)  Requires a department or entity that does not implement a change
recommended by LBB to file a report with the persons specified by
Subsection (c).  Requires the report to include certain information. 

Sec. 322.019.  IMPROPER PRACTICES AND ILLEGAL TRANSACTIONS.  (a) Requires
LBB, if in the course of an audit it finds evidence of improper practices
of financial administration, inadequate fiscal records, or uneconomical
use of resources, after consulting with the head of the department being
audited, to immediately report the evidence to certain persons. 

(b)  Requires LBB, if in the course of an audit it finds evidence of an
illegal transaction, after consulting with the head of the department, to
immediately report the transaction to the governor and the appropriate
legal authority. 

(c)  Requires LBB, immediately after receiving a report alleging improper
practices of financial administration or uneconomical use of resources, to
review the report and to consult with and, if desired, hold hearings with,
the administrative head and the chairman of the governing body of the
affected department regarding the report. 

(d)  Requires LBB, if the administrative head or the governing body of the
affected department refuses to make the changes recommended by LBB at a
hearing under Subsection (c) or refuses to provide any additional
information or reports requested, to report the refusal to the
legislature. 

Sec. 322.020.  REVIEW AND OVERSIGHT OF FUNDS AND ACCOUNTS RECEIVING COURT
COSTS.  (a)  Authorizes LBB to review each fund and account into which
money collected as a court cost is directed by law to be deposited to
determine whether the money is being used for the purpose for which the
money is collected, and whether the amount of the court cost is
appropriate, considering the purpose for which the cost is collected. 

(b)  Authorizes LBB to perform reviews under this section as specified in
the audit plan developed under Section 322.0155. 

(c)  Requires LBB to make the findings of a review performed under this
section available to the public and to report the findings to the
governor, the chief justice of the supreme court, and the presiding judge
of the court of criminal appeals. Authorizes the report to include LBB's
recommendations for legislation or policy changes. 

Sec. 322.021.  SUBPOENAS.  (a) Authorizes LBB to subpoena witnesses or any
books, records, or other documents reasonably necessary to conduct an
examination under this chapter. 

(b)  Requires each subpoena to be signed by the chairman or the secretary
of LBB. 

(c)  Requires the sergeant at arms or an assistant sergeant at arms of
either house of the legislature or any peace officer, on the request of
the chairman or the secretary of LBB, to serve the subpoena in the manner
prescribed for service of a district court subpoena.  

(d)  Authorizes LBB to bring suit in district court to enforce a subpoena
if the person to whom a subpoena is directed fails to comply. 

(e)  Authorizes LBB to provide for the compensation of subpoenaed
witnesses.  Prohibits the amount of compensation from exceeding the amount
paid to a witness subpoenaed by a district court in a civil proceeding. 

Sec. 322.022.  INTERFERENCE WITH AUDIT OR INVESTIGATION.  (a)  Sets forth
the circumstances under which an officer or employee of this state or of
an entity subject to audit or investigation by LBB commits an offense. 

(b)  Provides that an offense under this section is a Class A misdemeanor.

Sec. 322.023.  COORDINATION OF CERTAIN AUDITS.  (a)  Authorizes a state
agency or a corporation that is dedicated to the benefit of a state agency
and meets certain criteria to employ a private auditor to audit the state
agency or corporation only under certain circumstances. 

(b)  Requires LBB, at the joint direction of the lieutenant governor and
the speaker of the house of representatives to provide contract management
services to the agency or corporation for an audit described by this
section. 

Sec. 322.024.  GIFTS AND GRANTS.  (a)  Authorizes LBB to accept gifts,
grants, and donations from any organization described in Section
501(c)(3), Internal Revenue Code of 1986, for the purpose of funding any
activity under this chapter. 

(b)  Requires all gifts, grants, and donations to be accepted in an open
meeting by a majority of the voting members of LBB and reported in the
public record of the committee with the name of the donor and purpose of
the gift, grant, or donation. 

Sec. 322.025.  COORDINATION OF INVESTIGATIONS.  (a)  Requires the
administrative head of a department or entity that is subject to audit by
LBB, if the administrative head has reasonable cause to believe that money
received from the state by the department or entity or by a client or
contractor of the department or entity may have been lost,
misappropriated, or misused or that other fraudulent or unlawful conduct
has occurred in relation to the operation of the department or entity, to
report the reason and basis for the belief to LBB.  Authorizes LBB to
investigate the report or to monitor any investigation conducted by the
department or entity. 

(b)  Requires LBB, in consultation with state agencies and institutions,
to prescribe the form, content, and timing of a report required by this
section. 

(c)  Provides that all records of a communication by or to LBB relating to
a report to LBB under Subsection (a) are audit working papers of the
board. 

(d)  Defines "audit working papers."

Sec. 322.026.  SEAL.  Requires LBB to obtain a seal with "Legislative
Budget Board, State of Texas" engraved around the margin and a
five-pointed star in the center to be used to authenticate official
documents issued by LBB. 

SECTION 18.05.  Repealer:  Chapter 321 (State Auditor), Government Code.

PART 3.  CREATION OF PERFORMANCE REVIEW COMMISSION; ABOLITION OF SUNSET
ADVISORY COMMISSION AND TRANSFER OF FUNCTIONS TO PERFORMANCE REVIEW
COMMISSION 

SECTION 18.06.  Amends Section 325.002, Government Code, to redefine
"commission" as the Performance Review Commission (PRC), rather than the
Sunset Advisory Commission (SAC) and to define "department" and "state
agency." 

SECTION 18.07.  Amends Section 325.003, Government Code, by amending the
heading and Subsections (a), (d), and (i), as follows: 
 
Sec. 325.003.  PERFORMANCE REVIEW COMMISSION.  (a)  Provides that PRC
consists of the lieutenant governor and three other members of the senate,
the speaker of the house of representatives and three other house members,
and two public members. Deletes a provision authorizing each appointing
authority to designate himself as one of the legislative appointees. 

(d)  Provides that legislative members other than the lieutenant governor
and the speaker of the house of representatives serve four-year terms.
Provides that the lieutenant governor and speaker serve on PRC until
resignation from PRC or the lieutenant governor or speaker ceases to hold
the office. 

(i)  Makes the speaker of the house chair of PRC.  Deletes text regarding
the presiding officers of PRC. 

SECTION 18.08.  Amends Section 325.008(a), Government Code, to delete a
reference to the state auditor. 

SECTION 18.09.  Amends Chapter 325, Government Code, by adding Sections
325.0081 through 325.0086, as follows: 

Sec. 325.0081.  OTHER POWERS AND DUTIES.  (a)  Requires PRC to conduct
performance audits of all departments, including institutions of higher
education, as specified in the audit plan developed under Subsection (c). 

(b)  Requires PRC to conduct the audits in accordance with generally
accepted auditing standards as prescribed by the American Institute of
Certified Public Accountants, the Governmental Accounting Standards Board,
the United States General Accounting Office, or other professionally
recognized entities that prescribe auditing standards. 

(c)  Requires PRC to develop and approve an audit plan for the state for
each fiscal year.  Requires PRC, in devising the plan, to consider
recommendations concerning coordination of agency functions made jointly
by representatives of PRC and LBB.  

(d)  Authorizes PRC, at any time during an audit, to require the
assistance of the administrative head, official, auditor, accountant, or
other employees of the entity being audited or investigated. 

(e)  Entitles PRC to access all of the books, accounts, confidential or
nonconfidential reports, vouchers, or other records of information in any
department or entity subject to audit, including access to all electronic
data except as provided by Subsection (f). 

(f)  Provides that PRC has access to information and data the release of
which is restricted under federal law only with the approval of the
appropriate federal administrative agency.  Requires PRC to have access to
copyrighted or restricted information obtained by the office of the
comptroller under subscription agreements and used in the preparation of
economic estimates only for audit purposes. 

(g)  Authorizes PRC to conduct economy and efficiency audits and
effectiveness audits as defined by this chapter and specified in the audit
plan. 

(h)  Requires PRC, to the extent that the performance of the powers and
duties of PRC under law is not impeded, to make reasonable efforts to
coordinate requests for employee assistance under Subsection (d) or
requests for access to books, accounts, vouchers, records, or data under
Subsection (e) or (f) so as not to hinder the daily operations of the
audited entity. 
 
Sec. 325.0082.  ECONOMY AND EFFICIENCY AUDIT.  Defines "economy and
efficiency audit." 

Sec. 325.0083.  EFFECTIVENESS AUDIT.  Defines "effectiveness audit."

Sec. 325.0084.   IMPROPER PRACTICES AND ILLEGAL TRANSACTIONS.  (a)
Requires PRC, if in the course of an audit it finds evidence of
uneconomical use of resources or ineffective program performance, after
consulting with the head of the department, to immediately report the
evidence to certain persons. 

(b)  Requires PRC, if in the course of an audit it finds evidence of an
illegal transaction, after consulting with the head of the department, to
immediately report the transaction to the governor and appropriate legal
authority. 

(c)  Requires PRC, immediately after receiving a report alleging
uneconomical use of resources or ineffective program performance, to
review the report.  Requires PRC to consult with, and authorizes PRC to
hold hearings with, the administrative head and the chairman of the
governing body of the affected department regarding the report. 

(d)  Requires PRC, if the administrative head or the governing body of the
affected department refuses to make the changes recommended by PRC at a
hearing under Subsection (c) or refuses to provide any additional
information or reports requested, to report the refusal to the
legislature. 

Sec. 325.0085.  REVIEW OF INTERSCHOLASTIC COMPETITION.  Authorizes PRC to
periodically review and analyze the effectiveness and efficiency of the
policies, management, fiscal affairs, and operations of an organization
that is a component or part of a state agency or institution and that
sanctions or conducts interscholastic competition. Requires PRC to report
the findings to certain persons.  Authorizes the legislature to consider
PRC's reports in connection with the legislative appropriations process. 

Sec. 325.0086.  RECORDS MANAGEMENT REVIEW.  (a)  Authorizes PRC to
periodically review and analyze the effectiveness and efficiency of the
policies and management of a state governmental committee or agency that
is involved in certain processes. 

(b)  Defines "state agency."

SECTION 18.10.  Repealer:  Section 403.0205 (Review by Comptroller --
Interscholastic Competition), Government Code. 

PART 4.  POWERS AND FUNCTIONS OF THE STATE PRESERVATION BOARD

SECTION 18.11.  Amends Section 443.007, Government Code, by adding
Subsection (e), to authorize the State Preservation Board to adopt any
management or oversight method or procedure reasonably necessary to ensure
that the requirements under Subsection (a) are met in the most economical
and efficient manner. 

SECTION 18.12.  Amends Chapter 443, Government Code, by adding Section
443.0232, as follows: 

Sec. 443.0232.  CONSULTATION WITH THE LEGISLATIVE INFORMATION SERVICES
BOARD.  (a)  Requires the State Preservation Board to consult with the
Legislative Information Services Board regarding the installation of
information technology equipment in certain buildings and their grounds.
Requires the interest of preservation to be balanced against the need of
the legislative branch of state government for computer hardware and other
types of office machinery and communication tools. 

 (b)  Requires certain analyses to be included in the consultation under
Subsection (a). 

PART 5.  CONFORMING AMENDMENTS

SECTION 18.13.  Amends Section 81.113(a), Government Code, to make
conforming changes. 

SECTION 18.14.  Amends Section 301.021(a), Government Code, to make
conforming changes.  
SECTION 18.15.  Amends Section 301.028(a), Government Code, to make
conforming changes.  

SECTION 18.16.  Amends Sections 301.041(a) and (d), Government Code, to
make conforming changes. 

SECTION 18.17  Amends Section 302.032, Government Code, to make
conforming changes. 

SECTION 18.18.  Amends Section 302.033, Government Code, to make a
conforming change. 

SECTION 18.19.  Amends Section 306.007, Government Code, to make a
conforming change. 

SECTION 18.20.  Amends Section 326.001, Government Code, to redefine
"legislative agency." 

SECTION 18.21.  Amends Sections 326.003(a) and (b), Government Code, as
follows: 

(a)  Makes conforming changes.

(b)  Requires the director of the Legislative Budget Board, rather than
the State Auditor, to call each meeting. 

SECTION 18.22.  Amends Section 468.003(b), Government Code, to make a
conforming change. 

SECTION 18.23.  Amends Section 531.203(d), Government Code, to delete text
authorizing the committee to use the State Auditor and the Legislative
Council in carrying out its responsibilities. 

SECTION 18.24.  Amends Section 572.002, Subdivision (11), Government Code,
to redefine "state employee." 

SECTION 18.25.  Amends Section 660.203(a), Government Code, to delete text
providing that the executive director of the Texas Legislative Council is
entitled to be reimbursed for the actual expense of meals and lodging
incurred while performing the duties of employment.  Makes conforming
changes. 

SECTION 18.26.  Amends Section 660.206, Government Code, to make
conforming changes. 

SECTION 18.27.  Amends Section 762.003(a), Government Code, to provide
that the Commission on Uniform State Laws (CUSL) is composed of nine
members appointed by the governor in addition to the persons described in
Subdivision (1), rather than Subdivisions (1) and (2).  Deletes text
providing that the executive director of the Texas Legislative Council or
a person designated by the executive director is a member of CUSL. 

SECTION 18.28.  Amends Section 762.011, Government Code, to make a
conforming change. 

SECTION 18.29.  Amends Section 2052.0021(c), Government Code, to make a
conforming change. 

SECTION 18.30.  Amends Section 2056.002(d), Government Code, to make a
conforming change. 
 
SECTION 18.31.  Amends Section 2056.010, Government Code, to require the
Performance Review Commission, the Legislative Budget Board, or another
state agency that conducts performance audits of state agency to consider
in the evaluation of an agency the extent to which the agency conforms to
the agency's strategic plan.  Deletes text requiring the comptroller of
public accounts and the Sunset Advisory Commission to consider in the
evaluation of an agency the extent to which the agency conforms to the
agency's strategic plan. 

SECTION 18.32.  Amends Section 2102.009, Government Code, to require that
the Legislative Budge Board prescribe the form and content of the report.
Deletes text requiring the State auditor to prescribe the form and content
of the report, subject to the approval of the legislative audit committee.
Makes conforming changes. 

SECTION 18.33.  Amends Section 2102.0091(a) and (c), Government Code, as
follows: 

 (a)  Makes a conforming change.

(c)  Deletes text requiring the state auditor to file with the budget
division of the governor's office and the LBB any action plan or other
response issued by the state agency's governing board or the administrator
of the state agency if the state agency does not have a governing board in
response to the report of the state agency internal auditor. 

SECTION 18.34.  Amends Section 2155.203, Government Code, to make
conforming changes. 

SECTION 18.35.  Amends Section 2158.065, Government Code, to delete text
requiring the secretary of state to distribute 10 printed copies of
enrolled legislation to the Texas Legislative Council.  Makes conforming
changes. 

SECTION 18.36.  Amends Section 201.403(c), Transportation Code, to make a
conforming change. 

SECTION 18.37.  Amends Section 41.060(c), Utilities Code, to make a
conforming change. 

SECTION 18.38.  Amends Section 12(a), Chapter 357, Acts of the 64th
Legislature, Regular Session, 1975 (Article 4413(32e), V.T.C.S.), to
delete text requiring the Texas Legislative Council and the Legislative
Audit Committee to furnish staff assistance to the committee upon request. 

SECTION 18.39.  Amends Section 11(a), Chapter 672, Acts of the 65th
Legislature, Regular Session, 1977 (Article 4413(42a), V.T.C.S.) to make a
conforming change. 

PART 6.  TRANSITION 

SECTION 18.40.  (a)  Provides that the Texas Legislative Council is
abolished effective November 1, 2003. 

(b)  Provides that on November 1, 2003, all functions and activities
assigned to or performed by the information systems division of the Texas
Legislative Council immediately before that date are transferred to the
Legislative Information Services Board; all funds, obligations, contracts,
property and records of the Texas Legislative Council relating to the
services performed by the information systems division of the Texas
Legislative Council are transferred to the Legislative Information
Services Board; all employees of the information systems division of the
Texas Legislative Council become employees of the Legislative Information
Services Board; all of the property and records of the Texas Legislative
Council relating to the services performed by the legal and research
divisions of the Texas Legislative Council are transferred to either the
senate or the house of representatives, as determined by the lieutenant
governor and the speaker of the house of representatives; all employees of
the legal and research divisions of the Texas Legislative Council become
employees of either the senate or house of representative, as determined
by the lieutenant governor and the speaker of the house of
representatives; and a reference in law to the Texas Legislative Council
that relates to the services performed by the information system divisions
of the Texas Legislative Council means the Legislative Information
Services Board. 

SECTION 18.41.  (a)  Provides that the office of state auditor and the
legislative audit committee are abolished but continue in effect until
December 1, 2003, for the sole purpose of transferring to the Legislative
Budget Board and the Performance Review Commission all the rights, powers,
duties, and functions exercised by the state auditor and the legislative
audit committee immediately before the effective date of this Act.
Requires the transfer to be completed not later than December 1, 2003. 

(b)  Provides that all the funds, contracts, property, personnel and
records of the office of the state auditor and the legislative audit
committee are transferred to the Legislative Budget Board and the
Performance Review Commission, as determined by the lieutenant governor
and the speaker of the house of representatives, for the purpose of
performing the audit functions that the state auditor was authorized or
required to perform immediately before the effective date of this Act.   

(c)  Provides that a reference in law or in an administrative rule to the
state auditor or the office of the state auditor or the legislative audit
committee means the Legislative Budget Board or the Performance Review
Commission for the purposes of administering Chapter 325, Government Code
(Texas Sunset Act), as amended by this Act. 

(d)  Establishes that a reference in law to a financial or compliance
audit under Chapter 321, Government Code, as repealed by this Act, means
an audit under Chapter 322, Government Code, as amended by this Act. 

  (e)  Provides that a reference in law to an efficiency audit, an economy
audit, or a program audit under Chapter 321,  Government Code, as repealed
by this Act, means an audit under Chapter 325, Government Code (Texas
Sunset Act), as amended by this Act. 

SECTION 18.42.  (a) Provides that the Sunset Advisory Commission is
abolished and the offices of the members of the commission serving on the
effective date of this Act are abolished. Provides that members of the
commission serving immediately prior to the effective date of this Act are
eligible for reappointment to the Performance Review Commission.
Prohibits prior service on the Sunset Advisory Commission from
disqualifying a member of the legislature or a member of the public from
appointment to the Performance Review Commission.  Requires the lieutenant
governor and the speaker of the house of representatives, in making
initial appointments to the Performance Review Commission, to comply with
Chapter 325, Government Code ( Texas  Sunset Act), as amended by this Act,
to stagger the appointments of legislative members by specifying two-year
and four-year terms for those members.  Requires the chairman of the
Performance Review Commission to be designated by the speaker of the house
of representatives, and the vice chairman of the commission to be
designated by the lieutenant governor. 

(b)  Provides that the validity of an action taken by the Sunset Advisory
Commission before it is abolished under Subsection (a) of this section is
not affected by the abolishment. 

SECTION 18.43.  Provides that on November 1, 2003, a rule, standard, or
form adopted by the Sunset Advisory Commission is a rule, standard, or
form of the Performance Review Commission and remains in effect until
changed by the Performance Review Commission; a reference in law to the
Sunset Advisory Commission means the Performance Review Commission; all
money, contracts, leases, rights, and obligations of the Sunset Advisory
Commission are transferred to the Performance Review Commission; all
property, including records, in the custody of the Sunset Advisory
Commission becomes the property of the of the Performance Review
Commission; all employees of the Sunset Advisory Commission becomes
employees of the Performance Review Commission; requires the executive
director of the Sunset Advisory Commission to serve as the executive
director of the Performance Review Commission  until such time as the
commission convenes to  either continue the employment of that executive
director or appoint another executive director; and all funds appropriated
by the legislature to the Sunset Advisory Commission are transferred to
the Performance Review Commission. 

SECTION 18.44.  Requires the lieutenant governor, on November 1, 2003, to
assume the chairmanship of the Legislative Information Services Board and
requires the speaker of the house of representatives to assume the vice
chairmanship of the Legislative Information Services Board.  Provides that
the initial terms of the lieutenant governor and the speaker of the house
of representatives expires February, 2005. 

ARTICLE 19.  EFFECTIVE DATE

SECTION  19.01.  Effective date: November, 1, 2003, except as otherwise
provided by this Act.