83R16619 CJC-F

By: Toth, Callegari, Kolkhorst, Creighton, H.B. No. 1379

et al.

Substitute the following for H.B. No. 1379:

By: Turner of Collin C.S.H.B. No. 1379

A BILL TO BE ENTITLED

AN ACT

relating to coercive conditions placed on the receipt by this state of federal money.

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

SECTION 1. Subtitle C, Title 10, Government Code, is amended by adding Chapter 2116 to read as follows:

CHAPTER 2116. COERCIVE CONDITIONS ON RECEIPT OF FEDERAL MONEY

Sec. 2116.001. DEFINITIONS. In this chapter:

(1) "Coercive condition" in relation to federal funding means a condition that is placed on the receipt by this state or a political subdivision of this state of federal money to be provided under a federal program that requires:

(A) the amendment, enactment, or adoption of a state or local law, regulation, or order the subject of which is unrelated to how the money is to be spent; or

(B) a particular use of state or local revenue.

(2) "Coercive federal funding program" means a program that involves a transfer of federal money to this state or a political subdivision of this state by the federal government the receipt of which is subject to a coercive condition. The term does not include a federal program that returns to this state a pro-rata share of this state's residents' total tax contributions to the program if this state refuses to comply with the conditions attached to the program.

Sec. 2116.002. IDENTIFICATION OF COERCIVE FEDERAL FUNDING PROGRAMS; REPORT. Not later than December 1 of each even-numbered year, the attorney general and the Legislative Budget Board jointly shall:

(1) identify each coercive federal funding program from which this state received more than $100 million during a state fiscal year in the preceding state fiscal biennium; and

(2) prepare and submit a report to the legislature that lists the coercive federal funding programs described by Subdivision (1) and the coercive conditions associated with each of those programs.

Sec. 2116.003. SUIT TO ENJOIN ENFORCEMENT OF OR TO CONTEST COERCIVE CONDITION. (a) The attorney general may, to the extent authorized by law:

(1) bring an action to enjoin the enforcement of a coercive condition and recover reasonable expenses incurred in obtaining injunctive relief under this section; and

(2) sue for appropriate relief if the federal government:

(A) rejects a request by this state for a waiver of one or more provisions of a coercive federal funding program identified under Section 2116.002; or

(B) attempts to condition the continued receipt of federal money under an existing federal funding program on this state's expansion of that funding program, if the legislature has determined that it is in this state's best interest not to expand the funding program.

(b) During the pendency of an action brought by the attorney general as authorized under this section, a state agency or state officer, as applicable, shall apply for and administer all programs that result in the receipt of federal money by this state, including a coercive federal funding program, in a manner that complies with federal law.

Sec. 2116.004. MULTISTATE RESPONSE TO COERCIVE FEDERAL FUNDING PROGRAMS. The governor shall consult with the governors of other states to develop a coordinated approach to issues relating to coercive federal funding programs.

SECTION 2. Section 751.001, Government Code, is amended to read as follows:

Sec. 751.001. DEFINITIONS. In this chapter:

(1) "Board" means the Office of State-Federal Relations Advisory Policy Board.

(2) "Coercive condition" has the meaning assigned by Section 2116.001.

(3) "Coercive federal funding program" has the meaning assigned by Section 2116.001.

(4) [(2)] "Director" means the director of the Office of State-Federal Relations.

(5) [(3)] "Office" means the Office of State-Federal Relations.

(6) [(4)] "State agency" means a state board, commission, department, institution, or officer having statewide jurisdiction, including a state college or university.

SECTION 3. Section 751.005(b), Government Code, is amended to read as follows:

(b) The office shall:

(1) help coordinate state and federal programs dealing with the same subject;

(2) inform the governor and the legislature of federal programs that may be carried out in the state or that affect state programs and identify which of those programs may be defined as a coercive federal funding program;

(3) provide federal agencies and the United States Congress with information about state policy and state conditions on matters that concern the federal government;

(4) provide the legislature with information useful in measuring the effect of federal actions on the state and local programs;

(5) prepare and supply to the governor and all members of the legislature an annual report that:

(A) describes the office's operations;

(B) contains the office's priorities and strategies for the following year;

(C) details projects and legislation pursued by the office;

(D) discusses issues in the following congressional session of interest to this state; [and]

(E) contains an analysis of federal funds availability and formulae;

(F) lists all conditions attached to federal funding programs, in a format that clearly identifies each condition that may be a coercive condition; and

(G) contains the office's strategy for ensuring that this state receives an equitable share of federal money from all federal funding programs while resisting compliance with coercive conditions;

(6) notify the governor, the lieutenant governor, the speaker of the house of representatives, and the legislative standing committees in each house with primary jurisdiction over intergovernmental affairs of federal activities relevant to the state and inform the Texas congressional delegation of state activities;

(7) conduct frequent conference calls with the lieutenant governor and the speaker of the house of representatives or their designees regarding state-federal relations and programs;

(8) respond to requests for information from the legislature, the United States Congress, and federal agencies;

(9) coordinate with the Legislative Budget Board regarding the effects of federal funding on the state budget and the effect of coercive conditions on this state's ability to remain responsive to the preferences of its residents; and

(10) report to, and on request send appropriate representatives to appear before, the legislative standing committees in each house with primary jurisdiction over intergovernmental affairs.

SECTION 4. Section 751.022, Government Code, is amended to read as follows:

Sec. 751.022. POWERS AND DUTIES. (a) The office has primary responsibility for monitoring, coordinating, and reporting on the state's efforts to:

(1) ensure receipt of an equitable share of federal formula funds; and

(2) resist compliance with coercive conditions placed on federal formula funds.

(b) The office shall:

(1) serve as this [the] state's clearinghouse for information on federal formula funds and on the coercive conditions, if any, placed on those funds;

(2) prepare reports on federal funds and earned federal formula funds;

(3) analyze proposed and pending federal and state legislation to determine whether the legislation would have a significant negative effect on the state's ability to receive an equitable share of federal formula funds and to resist compliance with coercive conditions placed on federal formula funds;

(4) make recommendations for coordination, including the coordinated resistance against compliance with coercive conditions placed on federal formula funds, between:

(A) state agencies and local governmental entities;

(B) [and between] state agencies; and

(C) state agencies and the agencies of other states; and

(5) adopt rules under the rule-making procedures of the administrative procedure law, Chapter 2001, Government Code, as necessary to carry out the responsibilities assigned by this subchapter.

(c) The office shall annually prepare a comprehensive report to the legislature on the effectiveness of this [the] state's efforts to ensure a receipt of an equitable share of federal formula funds and to resist compliance with coercive conditions placed on federal formula funds for the preceding federal fiscal year. The report must include:

(1) an executive summary that provides an overview of the major findings and recommendations included in the report;

(2) a comparative analysis of the state's receipt of federal formula funds relative to other states, prepared using the best available sources of data;

(3) an analysis of federal formula funding trends that may have a significant effect on resources available to the state; [and]

(4) an analysis of the effect that the conditions imposed by the 10 coercive federal funding programs that have the greatest effect on the state budget have on the ability of this state and political subdivisions of this state to implement policies and programs to deliver necessary and beneficial services to residents of this state; and

(5) recommendations, developed in consultation with the Legislative Budget Board, the Governor's Office of Budget, [and] Planning, and Policy, and the comptroller, for any state legislative or administrative action necessary to increase this [the] state's receipt of federal formula funds and to resist compliance with coercive conditions placed on federal formula funds.

SECTION 5. 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, 2013.