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A BILL TO BE ENTITLED
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AN ACT
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relating to the powers and duties of, and the entities reviewed by,  | 
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the Sunset Advisory Commission. | 
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       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
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ARTICLE 1.  CHANGES TO TEXAS SUNSET ACT | 
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       SECTION 1.01.  Sections 325.003(a), (b), (d), (e), and (j),  | 
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Government Code,  are amended to read as follows: | 
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       (a)  The Sunset Advisory Commission consists of five members  | 
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of the senate and one public member appointed by the lieutenant  | 
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governor and five members of the house of representatives and one  | 
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public member appointed by the speaker of the house.  The lieutenant  | 
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governor and the speaker of the house [Each appointing authority]  | 
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may serve [designate himself] as one of the legislative appointees. | 
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       (b)  An individual is not eligible for appointment as a  | 
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public member if the individual or the individual's spouse is: | 
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             (1)  regulated by a state agency that the commission  | 
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will review during the term for which the individual would serve;  | 
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[or] | 
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             (2)  employed by, participates in the management of, or  | 
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directly or indirectly has more than a 10 percent interest in a  | 
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business entity or other organization regulated by a state agency  | 
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the commission will review during the term for which the individual  | 
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would serve; or | 
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             (3)  required to register as a lobbyist under Chapter  | 
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305 because of the person's activities for compensation on behalf  | 
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of a profession or entity related to the operation of an agency  | 
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under review. | 
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       (d)  Legislative members serve four-year terms, with terms  | 
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staggered so that the terms of as near to one-half of the  | 
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legislative members appointed by the lieutenant governor as  | 
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possible and the terms of as near to one-half of the legislative  | 
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members appointed by the speaker as possible expire September 1 of  | 
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each odd-numbered year.  If the lieutenant governor or the speaker  | 
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serves on the commission, service [he] continues [to serve] until  | 
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resignation from the commission or until the individual [he] ceases  | 
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to hold the office.  Public members serve two-year terms expiring  | 
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September 1 of each odd-numbered year. | 
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       (e)  Members other than the lieutenant governor and the  | 
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speaker are subject to the following restrictions: | 
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             (1)  after an individual serves six years on the  | 
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commission, the individual is not eligible for appointment to  | 
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another term or part of a term; | 
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             (2)  a legislative member who serves [more than half 
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of] a full term may not be appointed to an immediately succeeding  | 
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term; and | 
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             (3)  a public member may not serve more than two  | 
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consecutive terms, and, for purposes of this prohibition, a member  | 
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is considered to have served a term only if the member has served  | 
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more than half of the term. | 
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       (j)  Seven members of the commission constitute a quorum.  A  | 
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final action or recommendation may not be made unless approved by a  | 
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record vote of a majority of the commission's full membership.  All  | 
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other actions by the commission shall be decided by a majority of  | 
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the members present and voting. | 
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       SECTION 1.02.  Section 325.007, Government Code, is amended  | 
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to read as follows: | 
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       Sec. 325.007.  AGENCY REPORT TO COMMISSION.  Before  | 
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September 1 [October 30] of the odd-numbered year before the year in  | 
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which a state agency subject to this chapter is abolished, the  | 
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agency shall report to the commission: | 
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             (1)  information regarding the application to the  | 
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agency of the criteria in Section 325.011; and | 
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             (2)  any other information that the agency considers  | 
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appropriate or that is requested by the commission. | 
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       SECTION 1.03.  Section 325.008(a), Government Code, is  | 
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amended to read as follows: | 
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       (a)   Before January [September] 1 of [the even-numbered year 
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before] the year in which a state agency subject to this chapter and  | 
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its advisory committees are abolished, the commission shall: | 
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             (1)  review and take action necessary to verify the  | 
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reports submitted by the agency under Section 325.007; | 
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             (2)  consult the Legislative Budget Board, the  | 
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Governor's Budget, Policy, and Planning Division [Office], the  | 
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State Auditor, and the comptroller of public accounts, or their  | 
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successors, on the application to the agency of the criteria  | 
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provided in Section 325.011; | 
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             (3)  conduct a review [performance evaluation] of the  | 
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agency based on the criteria provided in Section 325.011 and  | 
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prepare a written report; and | 
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             (4)  review the implementation of commission  | 
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recommendations contained in the reports presented to the  | 
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legislature during the preceding legislative session and the  | 
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resulting legislation. | 
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       SECTION 1.04.  Section 325.009, Government Code, is amended  | 
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to read as follows: | 
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       Sec. 325.009.  PUBLIC HEARINGS AND DECISIONS.  (a)  Before  | 
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January [Between September 1 and December] 1 of [the calendar year 
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before] the year a state agency subject to this chapter and its  | 
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advisory committees are abolished, the commission shall conduct  | 
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public hearings concerning but not limited to the application to  | 
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the agency of the criteria provided in Section 325.011. | 
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       (b)  The commission may hold the public hearings after | 
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[before September 1 if] the review [evaluation] of the agency  | 
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required by Section 325.008(a)(3) is complete and available to the  | 
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public. | 
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       (c)  The commission shall complete its decision on an agency  | 
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before February 1 of the year of the agency's abolition. | 
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       SECTION 1.05.  Section 325.010, Government Code, is amended  | 
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to read as follows: | 
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       Sec. 325.010.  COMMISSION REPORT.  (a)  At each regular  | 
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legislative session, the commission shall present to the  | 
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legislature and the governor a report on the agencies and advisory  | 
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committees reviewed [scheduled to be abolished]. | 
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       (b)  In the report the commission shall include: | 
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             (1)  its [specific] findings regarding [each of] the  | 
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criteria prescribed by Section 325.011; | 
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             (2)  its recommendations based on the matters  | 
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prescribed by Section 325.012; and | 
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             (3)  other information the commission considers  | 
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necessary for a complete review [evaluation] of the agency. | 
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       SECTION 1.06.  Section 325.011, Government Code, is amended  | 
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to read as follows: | 
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       Sec. 325.011.  CRITERIA FOR REVIEW.  The commission and its  | 
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staff shall consider the following criteria in determining whether  | 
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a public need exists for the continuation of a state agency or its  | 
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advisory committees or for the performance of the functions of the  | 
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agency or its advisory committees: | 
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             (1)  the efficiency and effectiveness with which the  | 
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agency, its policy body, or the advisory committee operates; | 
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             (2)(A)  an identification of the mission, goals, and  | 
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objectives intended for the agency or advisory committee and of the  | 
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problem or need that the agency or advisory committee was intended  | 
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to address; and | 
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                   (B)  [,] the extent to which the mission, goals,  | 
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and objectives have been achieved and the problem or need has been  | 
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addressed; | 
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             (3)(A)  an identification of[, and] any activities of  | 
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the agency in addition to those granted by statute and of the  | 
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authority for those [these] activities; and | 
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                   (B)  the extent to which those activities are  | 
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needed; | 
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             (4) [(3)]  an assessment of authority of the agency  | 
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relating to fees, inspections, enforcement, and penalties; | 
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             (5)  whether less restrictive or alternative methods of  | 
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performing any function [regulation] that the agency performs  | 
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[that] could adequately protect or provide service to the public; | 
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             (6) [(4)  the extent to which the advisory committee is 
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needed and is used;
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             [(5)]  the extent to which the jurisdiction of the  | 
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agency and the programs administered by the agency overlap or  | 
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duplicate those of other agencies, the extent to which the agency  | 
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coordinates with those agencies, and the extent to which the  | 
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programs administered by the agency can be consolidated with the  | 
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programs of other state agencies; | 
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             (7) [(6)  whether the agency has recommended to the 
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legislature statutory changes calculated to be of benefit to the 
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public rather than to an occupation, business, or institution that 
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the agency regulates;
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             [(7)]  the promptness and effectiveness with which the  | 
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agency addresses [disposes of] complaints concerning entities or  | 
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other persons affected by the agency, including an assessment of  | 
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the agency's administrative hearings process; | 
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             (8)  an assessment of the agency's rulemaking process  | 
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and the extent to which the agency has encouraged participation by  | 
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the public in making its rules and decisions [as opposed to 
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participation solely by those it regulates] and the extent to which  | 
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the public participation has resulted in rules that benefit the  | 
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public [compatible with the objectives of the agency]; | 
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             (9)  the extent to which the agency has complied with  | 
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[applicable requirements of]: | 
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                   (A)  federal and state laws and applicable rules | 
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[an agency of the United States or of this state] regarding equality  | 
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of employment opportunity and the rights and privacy of  | 
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individuals; and | 
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                   (B)  state law and applicable rules of any state  | 
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agency regarding purchasing guidelines [goals] and programs for  | 
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historically underutilized businesses; | 
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             (10)  [the extent to which changes are necessary in the 
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enabling statutes of the agency so that the agency can adequately 
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comply with the criteria listed in this section;
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             [(11)]  the extent to which the agency issues and  | 
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enforces rules relating to potential conflicts of interest of its  | 
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employees; | 
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             (11) [(12)]  the extent to which the agency complies  | 
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with Chapters 551 and 552 and follows records management practices  | 
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that enable the agency to respond efficiently to requests for  | 
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public information; and | 
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             (12) [(13)]  the effect of federal intervention or loss  | 
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of federal funds if the agency is abolished. | 
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       SECTION 1.07.  Section 325.012, Government Code, is amended  | 
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to read as follows: | 
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       Sec. 325.012.  RECOMMENDATIONS.  (a)  In its report on a  | 
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state agency, the commission shall: | 
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             (1)  make recommendations on the abolition,  | 
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continuation, or reorganization of each affected state agency and  | 
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its advisory committees and on the need for the performance of the  | 
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functions of the agency and its advisory committees; | 
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             (2)  make recommendations on the consolidation,  | 
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transfer, or reorganization of programs within state agencies not  | 
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under review when the programs duplicate functions performed in  | 
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agencies under review; and | 
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             (3)  make recommendations to improve the operations of  | 
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the agency, its policy body, and its advisory committees, including  | 
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management recommendations that do not require a change in the  | 
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agency's enabling statute. | 
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       (b)  The commission shall include the estimated fiscal  | 
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impact of its recommendations and may recommend appropriation  | 
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levels for certain programs to improve the operations of the state  | 
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agency. | 
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       (c)  The commission shall have [recommend appropriation 
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levels for each state agency and advisory committee for which 
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abolition or reorganization is recommended under Subdivision (1) or 
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(2); and
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             [(4)include] drafts of legislation prepared | 
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[necessary] to carry out the commission's recommendations under  | 
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this section [Subdivisions (1) and (2)]. | 
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       (d)  After the legislature acts on the report [(b) On the 
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date the commission presents its report to the legislature] under  | 
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Section 325.010, the commission shall present to the state auditor  | 
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the commission's recommendations that do not require a statutory  | 
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change to be put into effect.  Based on a risk assessment and  | 
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subject to the legislative audit committee's approval of including  | 
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the examination in the audit plan under Section 321.013, the state  | 
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auditor may examine the recommendations and include as part of the  | 
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next approved audit of the agency a report on whether the agency has  | 
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implemented the recommendations and, if so, in what manner. | 
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       SECTION 1.08.  Section 325.0125, Government Code, is amended  | 
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to read as follows: | 
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       Sec. 325.0125.  REVIEW OF CERTAIN AGENCIES.  (a)  In the  | 
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two-year period preceding the date scheduled for the abolition of a  | 
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state agency under this chapter, the commission may exempt certain  | 
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agencies from the requirements of this chapter relating to staff  | 
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reports, hearings, and reviews [evaluations]. | 
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       (b)  The commission may only exempt agencies that have been  | 
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inactive for a period of two years preceding the date the agency is  | 
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scheduled for abolition or that have been rendered inactive by an  | 
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action of the legislature. | 
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       (c)  The commission's action in exempting agencies under  | 
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this section must be done by an affirmative record vote and must be  | 
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decided by a majority vote as provided by Section 325.003(j) [of all 
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members of the commission]. | 
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       SECTION 1.09.  The heading to Section 325.016, Government  | 
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Code, is amended to read as follows: | 
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       Sec. 325.016.  SUNSET LEGISLATION [LEGISLATIVE 
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CONSIDERATION]. | 
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       SECTION 1.10.  Section 325.016, Government Code, is amended  | 
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by amending Subsections (a) and (c) and adding Subsection (d) to  | 
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read as follows: | 
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       (a)  Except as provided by Subsections [Subsection] (b) and  | 
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(d), the legislature may not consider in one bill the continuation,  | 
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transfer, or modification of more than one state agency and the  | 
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agency's functions and advisory committees. | 
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       (c)  A bill to continue a state agency, to transfer its  | 
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functions, or to consolidate it with another agency must mention  | 
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the affected agencies in the caption [title] of the bill. | 
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       (d)  The legislature may consider the continuation of more  | 
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than one agency in a single bill for the purpose of adjusting the  | 
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commission's review schedule. | 
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       SECTION 1.11.  Section 325.017(e), Government Code, is  | 
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amended to read as follows: | 
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       (e)  Unless the governor designates an appropriate state  | 
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agency as prescribed by Subsection (f), property and records in the  | 
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custody of an abolished state agency or advisory committee on  | 
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September 1 of the even-numbered year after abolishment shall be  | 
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transferred to the Texas Building and Procurement [State Purchasing 
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and General Services] Commission.  If the governor designates an  | 
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appropriate state agency, the property and records shall be  | 
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transferred to the designated state agency. | 
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       SECTION 1.12.  Section 325.020, Government Code, is amended  | 
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to read as follows: | 
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       Sec. 325.020.  RELOCATION OF EMPLOYEES.  If an employee is  | 
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displaced because a state agency or its advisory committee is  | 
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abolished, reorganized, or continued, the state agency and the  | 
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Texas Workforce [Employment] Commission shall make a reasonable  | 
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effort to relocate the displaced employee. | 
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       SECTION 1.13.  Section 325.022, Government Code, is amended  | 
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to read as follows: | 
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       Sec. 325.022.  REVIEW OF PROPOSED LEGISLATION CREATING AN | 
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[REGULATORY] AGENCY.  (a)  Each bill filed in a house of the  | 
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legislature that would create a new state agency [having regulatory 
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authority] or a new advisory committee to a state agency [having 
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regulatory authority] shall be reviewed by [forwarded to] the  | 
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commission. | 
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       (b)  The commission shall review the bill to determine if: | 
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             (1)  the proposed [regulatory and other] functions of  | 
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the agency or committee could be administered by one or more  | 
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existing state agencies or advisory committees; | 
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             (2)  the form of regulation, if any, proposed by the  | 
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bill is the least restrictive form of regulation that will  | 
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adequately protect the public; | 
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             (3)  the bill provides for adequate public input  | 
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regarding any regulatory function proposed by the bill; and | 
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             (4)  the bill provides for adequate protection against  | 
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conflicts of interest within the agency or committee. | 
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       (c)  On request [After reviewing the bill], the commission  | 
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shall forward a written comment on the legislation to the author of  | 
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the bill and to the presiding officer of the committee to which the  | 
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bill is referred. | 
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ARTICLE 2.  ENTITY GIVEN 2011 SUNSET DATE | 
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       SECTION 2.01.  TEXAS STATE AFFORDABLE HOUSING CORPORATION.  | 
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Section 2306.5521, Government Code, is amended to read as follows: | 
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       Sec. 2306.5521.  SUNSET PROVISION.  The Texas State  | 
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Affordable Housing Corporation is subject to Chapter 325 (Texas  | 
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Sunset Act). Unless continued in existence as provided by that  | 
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chapter, the corporation is abolished and this subchapter expires  | 
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September 1, 2011 [2009]. | 
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ARTICLE 3.  ENTITY GIVEN 2013 SUNSET DATE | 
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       SECTION 3.01.  TEXAS COUNCIL ON PURCHASING FROM PEOPLE WITH  | 
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DISABILITIES.  Section 122.006, Human Resources Code, is amended to  | 
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read as follows: | 
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       Sec. 122.006.  SUNSET PROVISION.  The Texas Council on  | 
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Purchasing from People with Disabilities is subject to Chapter 325,  | 
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Government Code (Texas Sunset Act). Unless continued in existence  | 
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as provided by that chapter, the council is abolished and this  | 
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chapter expires September 1, 2013 [2015]. | 
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       ARTICLE 4.  ENTITY REMOVED FROM SPECIFIC SUNSET REVIEW | 
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       SECTION 4.01.  REPEALER.  Section 435.003, Government Code  | 
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(Texas Military Facilities Commission), is repealed. | 
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ARTICLE 5.  EFFECTIVE DATE | 
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       SECTION 5.01.  EFFECTIVE DATE.  This Act takes effect  | 
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immediately if it receives a vote of two-thirds of all the members  | 
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elected to each house, as provided by Section 39, Article III, Texas  | 
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Constitution.  If this Act does not receive the vote necessary for  | 
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immediate effect, this Act takes effect September 1, 2007. |