82R23478 KJM-F
  By: Callegari H.B. No. 3684
  Substitute the following for H.B. No. 3684:
  By:  Callegari C.S.H.B. No. 3684
  relating to evaluating governmental financial matters.
         SECTION 1.  Section 107.002, Civil Practice and Remedies
  Code, is amended by adding Subsection (c) to read as follows:
         (c)  A fiscal note prepared by the Legislative Budget Board
  as described by Chapter 314, Government Code, must be attached to a
  resolution granting permission to sue before a legislative
  committee hearing may be held on the resolution.
         SECTION 2.  Section 314.001, Government Code, is amended to
  read as follows:
         Sec. 314.001.  SYSTEM OF FISCAL NOTES. The Legislative
  Budget Board shall establish a system of fiscal notes identifying
  the probable costs of each bill or resolution, including a joint or
  concurrent resolution, that authorizes or requires the expenditure
  or diversion of state funds for a purpose other than one provided
  for in the general appropriations bill.
         SECTION 3.  Section 315.004(a), Government Code, is amended
  to read as follows:
         (a)  At the request of the lieutenant governor or speaker of
  the house of representatives, a state agency shall prepare an
  economic impact statement for any pending bill, concurrent
  resolution, or joint resolution that directly affects that agency.
  Preparation of the statement shall be coordinated through the
  Legislative Budget Board director.
         SECTION 4.  Section 320.001, Government Code, is amended to
  read as follows:
         Sec. 320.001.  DEFINITION. In this chapter, "mandate" means
  a requirement or restriction made by a statute enacted by the
  legislature or a rule adopted by a state agency [on or after January
  1, 1997,] 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 or
  administrative rule.  The term includes a requirement for a report,
  but does not include a requirement or restriction that only creates
  flexibility in allocating resources.
         SECTION 5.  Section 320.004, Government Code, is amended to
  read as follows:
         Sec. 320.004.  REVIEW OF UNFUNDED MANDATES. (a) The Sunset
  Advisory Commission in performing a review of a state agency whose
  functions affect political subdivisions may [Before September 1 of
  the even-numbered year before the third anniversary of the date of
  enactment of a mandate identified by the interagency work group
  under Section 320.003, the interagency work group shall]:
               (1)  review the legislative history of any [the]
  mandate related to the functions of the state agency being
               (2)  conduct an evaluation on the benefits of the
  mandate and the costs of the mandate on affected political
  subdivisions; and
               (3)  include any information gathered under this
  section in the report required under Section 325.010  [present a
  written report to the legislature and the governor on the
  interagency work group's findings].
         (b)  During a review of a state agency, a political
  subdivision affected by a mandate related to the functions of the
  agency may present information to the commission regarding the
  mandate and costs associated with the mandate and may recommend
  changes to current law that may provide more efficient use of
         (c)  A political subdivision may periodically review each
  mandate to which the political subdivision is subject and recommend
  changes for making an activity or measure more efficient, including
  elimination of [the regular session immediately following the
  issuance of a report under Subsection (a), the legislature by law
  may continue the mandate for a period not to exceed three years, by
  law may repeal the mandate, or may take no action on] the mandate,
  to the governor, the lieutenant governor, the speaker of the house
  of representatives, the Senate Finance Committee, the House
  Appropriations Committee, and the Sunset Advisory Commission.
         SECTION 6.  Section 2001.024, Government Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  A fiscal note required under Subsection (a)(4) that is
  included with a notice for a proposed rule that affects a political
  subdivision may include a statement identifying any requirement or
  restriction that the rule imposes on the political subdivision and
  whether the requirement or restriction includes an additional
  commitment of time or expense by the political subdivision.
         SECTION 7.  The following provisions are repealed:
               (1)  Section 320.003, Government Code;
               (2)  Section 2056.011, Government Code;
               (3)  Section 303.004, Labor Code; and
               (4)  Section 240.903, Local Government Code.
         SECTION 8.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2011.