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A BILL TO BE ENTITLED
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AN ACT
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relating to the abolishment of the Office of State-Federal  | 
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Relations as an independent agency and the transfer of the duties  | 
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and functions of that agency to the office of the governor. | 
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       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
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       SECTION 1.  Sections 751.001 through 751.004, Government  | 
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Code, are amended to read as follows: | 
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       Sec. 751.001.  DEFINITIONS.  In this chapter: | 
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             (1)  "Executive director" ["Board" means the Office of 
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State-Federal Relations Advisory Policy Board.
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             [(2)"Director"] means the executive director of the  | 
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Office of State-Federal Relations. | 
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             (2) [(3)]  "Office" means the Office of State-Federal  | 
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Relations. | 
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             (3) [(4)]  "State agency" means a state board,  | 
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commission, department, institution, or officer having statewide  | 
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jurisdiction, including a state college or university. | 
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       Sec. 751.002.  OFFICE OF STATE-FEDERAL RELATIONS.  (a)  The  | 
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Office of State-Federal Relations is a program within the office of  | 
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the governor.  The governor shall provide guidance to the office and  | 
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direct the activities of the office [an agency of the state and 
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operates within the executive department]. | 
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       (b)  The office shall consult with the lieutenant governor  | 
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and the speaker of the house of representatives regarding relations  | 
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between the state and federal governments and shall inform the  | 
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legislative leadership of the office's progress on, and the status  | 
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of, federal issues, including federal funding and policy decisions.  | 
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[The office is subject to the administrative procedure law, Chapter 
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2001.] | 
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       Sec. 751.003.  SUNSET PROVISION.  The Office of  | 
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State-Federal Relations is subject to Chapter 325 (Texas Sunset  | 
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Act).  Unless continued in existence as provided by that chapter,  | 
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the office is abolished and this chapter expires September 1, 2013 | 
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[2007]. | 
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       Sec. 751.004.  APPOINTMENT AND TERM OF EXECUTIVE  | 
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DIRECTOR.  (a)  The governor[, with the advice and consent of the 
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senate,] shall appoint the executive [a] director of the office.   | 
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The executive director is accountable to the governor. | 
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       (b)  The executive director serves at the pleasure of the  | 
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governor. | 
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       SECTION 2.  The heading to Section 751.005, Government Code,  | 
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is amended to read as follows: | 
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       Sec. 751.005.  GENERAL POWERS AND DUTIES OF OFFICE   | 
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[DIRECTOR].   | 
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       SECTION 3.  Section 751.005, Government Code, is amended by  | 
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amending Subsections (a), (b), and (c) and adding Subsection (e) to  | 
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read as follows: | 
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       (a)  The office [director] shall exercise the powers and  | 
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carry out the duties prescribed by this section in order to act as a  | 
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liaison from the state to the federal government. | 
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       (b)  The office [director] shall: | 
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             (1)  help coordinate state and federal programs dealing  | 
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with the same subject; | 
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             (2)  inform the governor and the legislature of federal  | 
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programs that may be carried out in the state or that affect state  | 
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programs; | 
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             (3)  provide federal agencies and the United States  | 
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Congress with information about state policy and state conditions  | 
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on matters that concern the federal government; | 
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             (4)  provide the legislature with information useful in  | 
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measuring the effect of federal actions on the state and local  | 
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programs; | 
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             (5)  prepare and supply to the governor and all members  | 
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of the legislature an annual report that: | 
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                   (A)  describes the office's operations; | 
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                   (B)  contains the office's priorities and  | 
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strategies for the following year; | 
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                   (C)  details projects and legislation pursued by  | 
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the office; | 
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                   (D)  discusses issues in the following  | 
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congressional session of interest to this state; and | 
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                   (E)  contains an analysis of federal funds  | 
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availability and formulae; [and] | 
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             (6)  prepare annually a complete and detailed written  | 
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report accounting for all funds received and disbursed by the  | 
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office during the preceding fiscal year; | 
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             (7)  notify the governor, the lieutenant governor, and  | 
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the speaker of the house of representatives of federal activities  | 
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relevant to the state and inform the Texas congressional delegation  | 
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of state activities; | 
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             (8)  conduct weekly conference calls with the  | 
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lieutenant governor and the speaker of the house of representatives  | 
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or their designees regarding state-federal relations and programs; | 
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             (9)  respond to requests for information from the  | 
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legislature, the United States Congress, and federal agencies; and | 
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             (10)  coordinate with the Legislative Budget Board  | 
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regarding the effects of federal funding on the state budget. | 
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       (c)  The office [director] may maintain office space at  | 
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locations inside and outside the state as chosen by the office | 
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[director]. | 
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       (e)  The priorities of the office, as stated in the report  | 
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required under Subsection (b)(5), must be approved by the governor  | 
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in consultation with the lieutenant governor and the speaker of the  | 
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house of representatives.  The report must include an evaluation of  | 
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the performance of the office based on performance measures that  | 
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are  developed by the governor in consultation with the lieutenant  | 
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governor and the speaker of the house of representatives. | 
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       SECTION 4.  Sections 751.006(a) and (g), Government Code,  | 
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are amended to read as follows: | 
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       (a)  The executive director may employ staff necessary to  | 
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carry out the [director's] powers and duties of the office under  | 
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this chapter.  The executive director or the executive director's  | 
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designee shall provide to office employees, as often as necessary,  | 
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information regarding their qualification for employment under  | 
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this chapter and their responsibilities under applicable laws  | 
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relating to standards of conduct for state employees. | 
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       (g)  The executive director and the staff of the office  | 
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working in Washington, D.C., may receive a [the same]  | 
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cost-of-living salary adjustment [as is established for an employee 
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of another state agency under Section 751.012(d)]. | 
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       SECTION 5.  Sections 751.012(a) and (c), Government Code,  | 
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are amended to read as follows: | 
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       (a)  The office may enter into interagency contracts with  | 
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[other] state agencies to locate staff of the [other] state  | 
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agencies [agency] in Washington, D.C., to work under the  | 
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supervision of the executive director and shall coordinate  | 
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activities conducted on behalf of the state agencies [other agency]  | 
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with those of the office. | 
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       (c)  A contract under this section must include provisions  | 
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under which staff of the [other] state agency: | 
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             (1)  report directly to the [that] agency's  | 
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administrative head or the presiding officer of the [that] agency's  | 
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governing body; | 
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             (2)  have an officially recognized role in the [that]  | 
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agency's budget planning process; and | 
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             (3)  provide periodic updates of activities at meetings  | 
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of the [that] agency's governing body. | 
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       SECTION 6.  Subchapter A, Chapter 751, Government Code, is  | 
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amended by adding Sections 751.015 and 751.016 to read as follows: | 
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       Sec. 751.015.  CONTRACTS BETWEEN OFFICE AND CONSULTANTS.   | 
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(a)  If the office elects to contract with federal-level government  | 
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relations consultants, the office shall adopt written procedures  | 
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for those contracts.  The procedures must include: | 
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             (1)  guidelines regarding contract management; | 
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             (2)  a competitive procurement process and method to  | 
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assess the effectiveness of a prospective consultant; | 
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             (3)  a technique for assigning a value to a prospective  | 
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consultant's ability to provide services at a reasonable price and  | 
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level of experience; | 
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             (4)  a process for determining a prospective  | 
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consultant's ability to work with influential members of the United  | 
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States Congress and serve as an effective advocate on behalf of the  | 
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state; and | 
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             (5)  a method to verify that the interests of a  | 
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prospective consultant or the consultant's other clients do not  | 
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create a conflict of interest that may jeopardize the state's  | 
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interest. | 
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       (b)  A contract between the office and a federal-level  | 
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government relations consultant must include: | 
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             (1)  an agreement regarding the goals of the service to  | 
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be provided by the consultant and targeted performance measures; | 
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             (2)  a provision governing the manner in which the  | 
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contract may be terminated by the parties to the contract; and | 
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             (3)  a provision allowing the office and other  | 
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specified oversight entities to audit the contractor's performance  | 
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under the contract. | 
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       (c)  The governor must sign any contract between the office  | 
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and a federal-level government relations consultant. | 
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       Sec. 751.016.  CONTRACTS BY STATE AGENCIES OR POLITICAL  | 
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SUBDIVISIONS.  (a)  In this section, "political subdivision"  | 
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includes a river authority. | 
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       (b)  An agency or political subdivision of the state shall  | 
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report to the office annually on any contract between the agency or  | 
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subdivision and a federal-level government relations consultant.   | 
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The report  must include: | 
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             (1)  the name of the consultant or consulting firm; | 
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             (2)  the issue on which the consultant was hired to  | 
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consult; and | 
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             (3)  the amount of compensation paid or to be paid to  | 
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the consultant under the contract. | 
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       (c)  If a state agency contracts with a federal-level  | 
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government relations consultant and the consultant subcontracts  | 
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the work to another firm or individual, the state agency shall  | 
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report the subcontract to the office. | 
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       SECTION 7.  Sections 751.006(b), (c), (d), (e), and (f),  | 
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751.007, 751.008, 751.010, 751.011, 751.012(b), (e), and (f),  | 
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751.013, 751.014, and 751.024, Government Code, are repealed. | 
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       SECTION 8.  (a)  The Office of State-Federal Relations is  | 
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abolished as an independent agency and created as a program in the  | 
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office of the governor. The Office of State-Federal Relations  | 
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Advisory Policy Board is abolished. | 
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       (b)  The validity of an action taken by the Office of  | 
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State-Federal Relations before it is abolished under Subsection (a)  | 
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of this section is not affected by the abolishment. | 
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       SECTION 9.  On September 1, 2007: | 
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             (1)  the director of the Office of State-Federal  | 
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Relations becomes the executive director of the Office of  | 
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State-Federal Relations in the office of the governor; | 
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             (2)  an employee of the Office of State-Federal  | 
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Relations becomes an employee of the Office of State-Federal  | 
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Relations in the office of the governor; | 
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             (3)  a reference in law to the Office of State-Federal  | 
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Relations means the Office of State-Federal Relations in the office  | 
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of the governor; | 
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             (4)  all money, contracts, leases, rights, and  | 
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obligations of the Office of State-Federal Relations are  | 
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transferred to the Office of State-Federal Relations in the office  | 
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of the governor; | 
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             (5)  all property, including records, in the custody of  | 
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the Office of State-Federal Relations becomes the property of the  | 
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Office of State-Federal Relations in the office of the governor;  | 
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and | 
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             (6)  all funds appropriated by the legislature to the   | 
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Office of State-Federal Relations are transferred to the Office of  | 
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State-Federal Relations in the office of the governor. | 
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       SECTION 10.  A function or activity performed by the Office  | 
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of State-Federal Relations is transferred to the Office of  | 
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State-Federal Relations in the office of the governor as provided  | 
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by this Act. | 
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       SECTION 11.  The Office of State-Federal Relations and the  | 
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office of the governor shall establish a transition plan for the  | 
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transfer described in Section 9 of this Act. | 
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       SECTION 12.  This Act takes effect September 1, 2007. |