83R473 KJM-D

By: Perry H.B. No. 98

A BILL TO BE ENTITLED

AN ACT

relating to zero-based budgeting for certain entities funded by this state.

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

SECTION 1. Section 322.007, Government Code, is amended to read as follows:

Sec. 322.007. ESTIMATES AND REPORTS; SCHEDULED ZERO-BASED BUDGET PLANNING. (a) Each institution, department, agency, officer, employee, or agent of the state shall submit to the board any estimate or report relating to appropriations requested by the board or under the board's direction.

(b) The board shall adopt a schedule for the submission of zero-based budget plans by institutions, departments, and agencies of this state so that:

(1) one-third of the entities, or as near as possible to one-third of the entities, is scheduled to submit a zero-based budget plan before each regular legislative session; and

(2) each entity is scheduled to submit a zero-based budget plan before every third regular legislative session.

(c) Each institution, department, and agency of this state that receives an appropriation shall submit to the board a zero-based budget plan in accordance with the schedule adopted under Subsection (b). A zero-based budget plan must contain:

(1) a description of the discrete activities the entity is charged with conducting or performing together with a justification for each activity by reference to a statute or other legal authority;

(2) for each activity identified under Subdivision (1), a quantitative estimate of any adverse effects that reasonably may be expected to result if the activity were discontinued, together with a description of the methods by which the adverse effects were estimated;

(3) for each activity identified under Subdivision (1), an itemized account of expenditures required to maintain the activity at the minimum level of service required by the statute or other legal authority, together with a concise statement of the quantity and quality of service required at that minimum level;

(4) for each activity identified under Subdivision (1), an itemized account of expenditures required to maintain the activity at the current level of service, together with a concise statement of the quantity and quality of service provided at that level; and

(5) a ranking of activities identified under Subdivision (1) that illustrates the relative importance of each activity to the overall goals and purposes of the institution, department, or agency at current service levels.

(d) Each zero-based budget plan and each estimate or report shall be submitted at a time set by the board and in the manner and form prescribed by board rules.

(e) Each zero-based budget plan and each [(c) An] estimate or report required under this section is in addition to a budget plan or an estimate or report required by other law, including those estimates or reports relating to appropriations required by Chapter 401.

SECTION 2. Section 322.008(a), Government Code, is amended to read as follows:

(a) Based on information provided under Section 322.007, the [The] director, under the direction of the board, shall prepare the general appropriations bill for introduction at each regular legislative session.

SECTION 3. Section 401.0445(a), Government Code, is amended to read as follows:

(a) The governor shall compile the biennial appropriation budget using information:

(1) submitted to the governor in the uniform budget estimate forms; [and]

(2) obtained at public hearings, from inspections, and from other sources; and

(3) submitted to the Legislative Budget Board under Section 322.007.

SECTION 4. The changes in law made by this Act apply only in regard to information for developing a biennial appropriation budget for a state fiscal biennium beginning on or after the effective date of this Act.

SECTION 5. This Act takes effect September 1, 2013.