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.