82R4542 KLA-D
 
  By: Watson S.B. No. 704
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to interim budget reduction requests.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 322, Government Code, is amended by
  adding Section 322.022 to read as follows:
         Sec. 322.022.  PUBLIC HEARING ON INTERIM BUDGET REDUCTION
  REQUEST. (a) In this section:
               (1)  "Interim budget reduction request" means a request
  communicated in any manner for a state agency to make adjustments to
  the strategies, methods of finance, performance measures, or riders
  applicable to the agency through the state budget in effect on the
  date the request is communicated that, if implemented, would reduce
  the agency's total expenditures for the current state fiscal
  biennium to an amount less than the total amount that otherwise
  would be permissible based on the appropriations made to the agency
  in the budget.
               (2)  "State agency" means an office, department, board,
  commission, institution, or other entity to which a legislative
  appropriation is made.
         (b)  A state agency shall provide to the board a detailed
  report of any expenditure reduction plan that:
               (1)  the agency develops in response to an interim
  budget reduction request made by the governor, the lieutenant
  governor, or a member of the legislature, or any combination of
  those persons; and
               (2)  if implemented, would reduce the agency's total
  expenditures for the current state fiscal biennium to an amount
  less than the total amount that otherwise would be permissible
  based on the appropriations made to the agency in the state budget
  for the biennium.
         (c)  The board shall hold a public hearing to solicit
  testimony on an expenditure reduction plan a state agency reports
  to the board as required by Subsection (b) as soon as practicable
  after receiving the report. The agency may not implement any
  element of the plan until the conclusion of the hearing.
         (d)  This section does not apply to an expenditure reduction
  a state agency desires to make that does not directly or indirectly
  result from an interim budget reduction request made by the
  governor, the lieutenant governor, or a member of the legislature,
  or any combination of those persons.
         SECTION 2.  This Act takes effect September 1, 2011.