82R10757 JSA-D

By: Cain H.B. No. 3300

A BILL TO BE ENTITLED

AN ACT

relating to mechanisms to address the adverse impact of unfunded state mandates on local governments.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Chapter 320, Government Code, is amended to read as follows:

CHAPTER 320. REVIEW OF UNFUNDED LEGISLATIVE MANDATES

ON POLITICAL SUBDIVISIONS

SECTION 2. Section 320.001, Government Code, is amended to read as follows:

Sec. 320.001. DEFINITIONS [DEFINITION]. In this chapter:

(1) "Interagency work group" means the unfunded mandates interagency work group.

(2) "Mandate" [, "mandate"] means a requirement made by a statute enacted by the legislature on or after January 1, 2011 [1997], that requires a political subdivision to establish, expand, or modify a duty or [an] activity in a way that requires the expenditure of revenue by the political subdivision that would not have been required in the absence of the statutory provision.

SECTION 3. Chapter 320, Government Code, is amended by adding Section 320.002 to read as follows:

Sec. 320.002. UNFUNDED MANDATES INTERAGENCY WORK GROUP. (a) The unfunded mandates interagency work group consists of:

(1) the state auditor;

(2) the director of the Legislative Budget Board;

(3) the comptroller;

(4) a senator appointed by the lieutenant governor; and

(5) a member of the house of representatives appointed by the speaker of the house of representatives.

(b) A member of the interagency work group is not entitled to additional compensation for service on the work group.

(c) A member of the interagency work group may use any person employed by the member's agency to complete the member's work on the work group.

(d) The members of the interagency work group may enter into an interagency memorandum of understanding regarding the completion of the work required by this chapter.

SECTION 4. The heading to Section 320.003, Government Code, is amended to read as follows:

Sec. 320.003. ADVISORY LIST OF UNFUNDED MANDATES.

SECTION 5. Section 320.003(a), Government Code, is amended to read as follows:

(a) On or before the September 1 following a regular session of the legislature and on or before the 90th day after the last day of a special session of the legislature, the interagency work group shall publish an advisory [a] list of mandates for which the legislature has not provided reimbursement under Subsection (b) and that were enacted by the legislature during that legislative session. By that same date the interagency work group shall:

(1) remove from the advisory list of mandates for a previous legislative session those mandates for which the legislature has provided reimbursement under Subsection (b), those that are no longer subject to reimbursement, and those that are no longer in effect; and

(2) add to the advisory list a mandate from a previous legislative session for which reimbursement was provided under Subsection (b) in the previous session but for which reimbursement was not provided in the most recent regular session or in any subsequent special sessions.

SECTION 6. Chapter 320, Government Code, is amended by adding Section 320.005 to read as follows:

Sec. 320.005. APPLICABILITY OF MANDATES. (a) A political subdivision is only required to comply with a mandate for which the legislature has provided reimbursement under Section 320.003(b).

(b) For purposes of determining compliance with a mandate, a political subdivision may act in reliance on the advisory list of unfunded mandates published under Section 320.003(a).

SECTION 7. Subtitle B, Title 3, Government Code, is amended by adding Chapter 320A to read as follows:

CHAPTER 320A. STATE-LOCAL COOPERATION

REGARDING STATE MANDATES

Sec. 320A.001. PURPOSE. The purpose of this chapter is to strengthen the partnership between the state and local governments in order to prevent the imposition of state regulatory and statutory mandates on local governments without adequate funding in a manner that may displace other essential local governmental priorities by promoting informed and deliberate decisions by the legislature and state agencies on the appropriateness of state mandates through:

(1) consultation with affected units of local government; and

(2) full consideration of the costs of those mandates on local governments.

Sec. 320A.002. DEFINITIONS. In this chapter:

(1) "Board" means the Legislative Budget Board.

(2) "Rule" has the meaning assigned by Section 2001.003.

(3) "State agency" means any entity in the executive or judicial branch of state government.

(4) "State mandate" means a requirement made by a statute enacted by the legislature or by a rule or policy adopted by a state agency that requires a political subdivision to establish, expand, or modify an activity in a way that requires the expenditure of revenue by the political subdivision that would not have been required in the absence of the statutory provision, rule, or policy.

Sec. 320A.003. CONSULTATION WITH LOCAL GOVERNMENTS REGARDING REGULATORY MANDATES. (a) Each state agency that proposes to adopt or amend a rule that directly affects one or more classes of political subdivisions shall solicit comments and advice regarding the probable costs and other adverse impact on affected political subdivisions from:

(1) representatives or advisory panels with appropriate expertise and experience from each affected class of political subdivision; and

(2) statewide organizations representing a substantial number of members of each affected class of political subdivision.

(b) Not later than the 10th day before the date a state agency adopts or amends a rule that directly affects one or more classes of political subdivisions, the agency shall:

(1) prepare a local government impact statement that takes into account the comments and advice received under Subsection (a) and includes an analysis of the probable costs to affected political subdivisions of compliance with the rule; and

(2) deliver a copy of the impact statement and the proposed rule to the board, to the lieutenant governor and the speaker of the house of representatives, and to the standing committees of each house with primary jurisdiction over the agency or the subject matter to which the proposed rule applies.

(c) The board shall prescribe recommended procedures for compliance by state agencies with this section.

(d) For purposes of Subsection (a)(1), the Texas Juvenile Probation Commission shall establish a panel of professionals representing county juvenile probation departments to review proposed rules of the commission. In consultation with the panel, the commissions shall develop a feasibility and cost analysis profile for each proposed rule to be included in the impact statement prepared under Subsection (b).

Sec. 320A.004. IMPACT STATEMENTS FOR STATE LEGISLATIVE MANDATES. (a) The board shall establish procedures by which the board examines each bill or proposed constitutional amendment filed in either house of the legislature to:

(1) identify any state mandates included in the measure;

(2) estimate the probable costs to affected political subdivisions of compliance with any state mandate identified by the board; and

(3) determine whether the measure provides a specific, sufficient source of funding of any identified state mandate.

(b) To the extent practicable, the board shall consult with appropriate representatives of the various classes of political subdivisions to give those political subdivisions an opportunity to provide assistance to the board in identifying state mandates in proposed legislation and estimating the probable costs of those mandates on affected political subdivisions.

(c) The board shall prepare a state mandate impact analysis based on the board's examination under Subsection (a) and shall deliver a copy of the impact analysis to:

(1) each author or sponsor of the measure; and

(2) each legislative committee considering the measure.

Sec. 320A.005. REVIEW OF EXISTING STATE REGULATORY MANDATES. (a) Each state agency, not later than January 1, 2012, shall submit to the interagency work group established under Chapter 320 in the form prescribed by the work group a list of all rules adopted by the agency on or after January 1, 2003. For each rule on the list, the agency shall:

(1) state the statutory or other legal authority for the rule;

(2) provide a brief statement of the background and purpose of the rule; and

(3) include an analysis of the direct impact, including compliance costs, of the rule on political subdivisions.

(b) Not later than January 1, 2013, the interagency work group shall:

(1) review each rule submitted under Subsection (a) to determine whether the rule includes one or more state mandates;

(2) estimate the probable costs to affected political subdivisions of compliance with any state mandate included in the rule;

(3) determine whether, for a rule that includes a state mandate, the state has provided a source of funding other than general revenue of the affected political subdivisions to cover the costs to those political subdivisions to comply with the mandate; and

(4) for any state mandate identified by the work group, recommend to the legislature and the state agency that adopted the rule:

(A) whether the rule should be repealed or modified to reduce the unfunded impact of the rule on political subdivisions; and

(B) whether the state should provide a source of funding to cover the costs to political subdivisions to comply with the mandate.

(c) This section expires January 1, 2014.

SECTION 8. Section 320.004, Government Code, is repealed.

SECTION 9. This Act takes effect September 1, 2011.