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By:  Fraser                                                       S.B. No. 1675
	(In the Senate - Filed March 14, 2003; March 20, 2003, read 
first time and referred to Committee on State Affairs; 
May 12, 2003, reported adversely, with favorable Committee 
Substitute by the following vote:  Yeas 5, Nays 0; May 12, 2003, 
sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 1675                                   By:  Fraser

A BILL TO BE ENTITLED
AN ACT
relating to the administration of state-federal relations and federal formula grant programs, including the use of office space outside the state by certain state agencies. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading to Chapter 751, Government Code, is amended to read as follows:
CHAPTER 751. [OFFICE OF] STATE-FEDERAL RELATIONS
SECTION 2. The heading to Subchapter A, Chapter 751, Government Code, is amended to read as follows:
SUBCHAPTER A. OFFICE OF STATE-FEDERAL RELATIONS [GENERAL PROVISIONS]
SECTION 3. Sections 751.001 and 751.002, Government Code, are amended to read as follows: Sec. 751.001. DEFINITIONS. In this chapter: (1) "Board" means the [Office of] State-Federal Relations Advisory [Policy] Board. (2) "Director" means the director of the Office of State-Federal Relations. (3) "Office" means the Office of State-Federal Relations. (4) "State agency" means a state board, commission, department, institution, or officer within the executive department having statewide jurisdiction, including a state college or university. Sec. 751.002. OFFICE OF STATE-FEDERAL RELATIONS. [(a)] The Office of State-Federal Relations is established in the office of the governor [an agency of the state and operates within the executive department. [(b) The office is subject to the administrative procedure law, Chapter 2001]. SECTION 4. Sections 751.004, 751.005, and 751.006, Government Code, are amended to read as follows: Sec. 751.004. APPOINTMENT [AND TERM] OF DIRECTOR. (a) The governor[, with the advice and consent of the senate,] shall appoint a director of the office. (b) The director serves at the pleasure of the governor. Sec. 751.005. GENERAL POWERS AND DUTIES OF DIRECTOR. (a) The director shall exercise the powers and carry out the duties prescribed by this section in order to act as a liaison from the state to the federal government. (b) The director shall: (1) help coordinate state and federal programs dealing with the same subject; (2) inform the governor, lieutenant governor, and speaker of the house of representatives [the legislature] of federal programs that may be carried out in the state or that affect state programs; (3) provide federal agencies and the United States Congress with information about state policy and state conditions on matters that concern the federal government; (4) regularly provide the governor, lieutenant governor, and speaker of the house of representatives [legislature] with information useful in measuring the effect of federal actions on the state and local programs; (5) prepare and supply to the governor, lieutenant governor, and speaker of the house of representatives [all members of the legislature] an annual report that: (A) describes the office's operations; (B) contains the office's priorities and strategies for the following year; (C) details projects and legislation pursued by the office; (D) discusses issues in the following congressional session of interest to this state; and (E) contains an analysis of federal funds availability and formulae[; and [(6) prepare annually a complete and detailed written report accounting for all funds received and disbursed by the office during the preceding fiscal year]. (c) The director may maintain office space at locations inside and outside the state as chosen by the director. [(d) The annual report required under Subsection (b)(6) must meet the reporting requirements applicable to financial reporting provided in the General Appropriations Act.] Sec. 751.006. STAFF; PERSONNEL POLICIES. (a) The director may employ staff necessary to carry out the director's powers and duties under this chapter. [The director or the director's designee shall provide to office employees, as often as necessary, information regarding their qualification for employment under this chapter and their responsibilities under applicable laws relating to standards of conduct for state employees.] (b) [The director or the director's designee shall develop an intraagency career ladder program that addresses opportunities for mobility and advancement for employees within the office. The program shall require intraagency posting of all positions concurrently with any public posting. [(c) The director or the director's designee shall develop a system of annual performance evaluations that are based on documented employee performance. All merit pay for office employees must be based on the system established under this subsection. [(d) The director or the director's designee shall prepare and maintain a written policy statement to assure implementation of a program of equal employment opportunity under which all personnel transactions are made without regard to race, color, disability, sex, religion, age, or national origin. The policy statement must include: [(1) personnel policies, including policies relating to recruitment, evaluation, selection, appointment, training, and promotion of personnel that are in compliance with the requirements of Chapter 21, Labor Code; [(2) a comprehensive analysis of the office workforce that meets federal and state guidelines; [(3) procedures by which a determination can be made about the extent of underuse in the office workforce of all persons for whom federal or state guidelines encourage a more equitable balance; and [(4) reasonable methods to appropriately address those areas of underuse. [(e) A policy statement prepared under Subsection (d) must cover an annual period, be updated annually and reviewed by the Texas Commission on Human Rights for compliance with Subsection (d)(1), and be filed with the governor's office. [(f) The governor's office shall deliver a biennial report to the legislature based on the information received under Subsection (e). The report may be made separately or as a part of other biennial reports made to the legislature. [(g)] The director and the staff of the office working in Washington, D.C., may receive the same cost-of-living salary adjustment as is established for an employee of another state agency under Section 751.012(c) [751.012(d)]. SECTION 5. Section 751.010, Government Code, is amended to read as follows: Sec. 751.010. [OFFICE OF] STATE-FEDERAL RELATIONS ADVISORY [POLICY] BOARD. (a) The governor may appoint members to an advisory board to assist in the administration of this chapter [Office of State-Federal Relations Advisory Policy Board consists of: [(1) the governor; [(2) the lieutenant governor; and [(3) the speaker of the house of representatives]. (b) [A member of the board may designate a person to perform the member's duties on the board. [(c) The board, by majority vote, shall select a presiding officer of the board. [(d) A majority of the members of the board constitutes a quorum to transact business. [(e)] The board may [shall] meet before the beginning of each congressional session and at the call of the director [presiding officer]. (c) [(f)] The board may [shall] work with the director to hold periodic meetings [in the city of Austin at times determined by the presiding officer] to discuss upcoming federal activities and issues with state agency representatives. (d) An advisor serves without compensation but is entitled to necessary and actual expenses incurred in performing duties under this chapter. SECTION 6. Section 751.012, Government Code, is amended to read as follows: Sec. 751.012. INTERAGENCY CONTRACTS. (a) The office may enter into interagency contracts with other state agencies to locate staff of the other state agency in Washington, D.C., to work under the supervision of the director and shall coordinate activities conducted on behalf of the other agency with those of the office. (b) [The office shall enter into a contract described by Subsection (a) with the Legislative Budget Board. [(c)] A contract under this section must include provisions under which staff of the other state agency: (1) report directly to the director; (2) report directly to that agency's administrative head or the presiding officer of that agency's governing body; (3) [(2)] have an officially recognized role in that agency's budget planning process; (4) [(3)] provide periodic updates of activities to [at meetings of] that agency's governing body; and (5) [(4)] receive a salary established under Subsection (c) [(d)]. (c) [(d)] The state auditor shall establish a salary schedule for state employees subject to a contract under this section. The schedule shall: (1) be based on specifications for expertise and experience in state-federal relations; and (2) include a standard cost-of-living adjustment to compensate an employee for the cost of living in Washington, D.C. (d) [(e)] A state agency identified by the Legislative Budget Board or Governor's Office of Budget, Planning and Policy as receiving significant federal funding or significantly affected by federal policy decisions, other than a state agency that is headed by a statewide-elected official, shall: (1) develop a plan of state-federal coordination; (2) study the benefits of entering a contract under Subsection (a); and (3) submit the coordination plan and study to the office and to the Legislative Budget Board. (e) [(f)] The Health and Human Services Commission shall satisfy the requirements of Subsection (d) [(e)] for all health and human services agencies listed in Section 19, Article 4413(502), Revised Statutes. SECTION 7. Subchapter A, Chapter 751, Government Code, is amended by adding Section 751.015 to read as follows: Sec. 751.015. AGENCY COMMUNICATIONS. A state agency shall, to the extent practicable, contact the office before the agency provides information to a federal agency or to the United States Congress about state policy or conditions. This section does not apply to a state agency that is headed by a statewide-elected official. SECTION 8. Section 751.022, Government Code, is amended to read as follows: Sec. 751.022. POWERS AND DUTIES. (a) The Governor's Office of Budget, Planning and Policy [office] has primary responsibility for monitoring, coordinating, and reporting on the state's efforts to ensure receipt of an equitable share of federal formula funds. (b) The Governor's Office of Budget, Planning and Policy [office] shall: (1) serve as the state's clearinghouse for information on federal formula funds; (2) prepare reports on federal funds and earned federal formula funds; (3) analyze proposed and pending federal and state legislation to determine whether the legislation would have a significant negative effect on the state's ability to receive an equitable share of federal formula funds; (4) make recommendations for coordination between state agencies and local governmental entities and between state agencies; and (5) adopt rules under the rule-making procedures of the administrative procedure law, Chapter 2001, Government Code, as necessary to carry out the responsibilities assigned by this subchapter. (c) The Governor's Office of Budget, Planning and Policy [office] shall annually prepare a comprehensive report to the governor and legislature on the effectiveness of the state's efforts to ensure a receipt of an equitable share of federal formula funds for the preceding federal fiscal year. The report must include: (1) an executive summary that provides an overview of the major findings and recommendations included in the report; (2) a comparative analysis of the state's receipt of federal formula funds relative to other states, prepared using the best available sources of data; (3) an analysis of federal formula funding trends that may have a significant effect on resources available to the state; and (4) recommendations, developed in consultation with the Legislative Budget Board, the office [Governor's Office of Budget and Planning], and the comptroller, for any state legislative or administrative action necessary to increase the state's receipt of federal formula funds. SECTION 9. Section 751.024, Government Code, is amended to read as follows: Sec. 751.024. REPORTS CONCERNING GRANT FUNDS. (a) Each agency and each institution of higher education shall report to [the office,] the Legislative Budget Board[,] and the Governor's Office of Budget, Planning and Policy [budget division of the governor's office]: (1) each application or request made to the United States government for grant funds; (2) the award or designation, by the United States government, of any funds for expenditure by a state agency; and (3) waivers of grant requirements. (b) In consultation with the Governor's Office of Budget, Planning and Policy [director], the Legislative Budget Board may prescribe reporting procedures and time schedules necessary to implement Subsection (a). SECTION 10. Section 322.004, Government Code, is amended by adding Subsection (e) to read as follows: (e) The director may maintain office space at locations inside and outside the state as chosen by the director. SECTION 11. Sections 751.003, 751.008, 751.011, and 751.023, Government Code, are repealed. SECTION 12. On September 1, 2003, any powers, duties, obligations, rights, contracts, records, employees, property, funds, appropriations, and authorized full-time equivalent positions of the Office of State-Federal Relations are transferred to the office of the governor. SECTION 13. This Act takes effect September 1, 2003.
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