83R1696 JJT-D

By: West S.B. No. 142

A BILL TO BE ENTITLED

AN ACT

relating to zero-based budgeting for state agencies as a part of the sunset review process.

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

SECTION 1. Section 322.008, Government Code, is amended by adding Subsection (c-1) to read as follows:

(c-1) The budget of estimated appropriations prepared and delivered by the director under this section must provide for an allocation of zero dollars for each proposed item of appropriation for each agency that is subject to review and abolition under Chapter 325 (Texas Sunset Act) during that calendar year. The budget must include for each of those agencies a zero-based budget and performance review report prepared for the agency as provided by Section 325.0076.

SECTION 2. Chapter 325, Government Code, is amended by adding Section 325.0076 to read as follows:

Sec. 325.0076. ZERO-BASED BUDGET AND PERFORMANCE REVIEW REPORT TO COMMISSION. Before September 1 of the odd-numbered year before the year in which a state agency subject to this chapter is abolished, the Legislative Budget Board shall prepare and present to the commission and to the governor a zero-based budget and performance review report that contains:

(1) a description of the discrete activities the agency is charged with conducting or performing together with:

(A) a justification for each activity by reference to a statute or other legal authority; and

(B) an evaluation of the effectiveness and efficiency of the agency's policies, management, fiscal affairs, and operations in relation to each activity;

(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 or performance, together with a concise statement of the quantity and quality of service or performance provided at that current level;

(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 agency at current service levels; and

(6) recommendations to the legislature regarding whether the legislature should continue funding each activity identified under Subdivision (1) and, if so, at what level.

SECTION 3. Section 325.012(a), Government Code, is amended to read as follows:

(a) In its report on a state agency, the commission shall:

(1) make recommendations on the abolition, continuation, or reorganization of each affected state agency and its advisory committees and on the need for the performance of the functions of the agency and its advisory committees;

(2) make recommendations on the consolidation, transfer, or reorganization of programs within state agencies not under review when the programs duplicate functions performed in agencies under review;

(3) make recommendations to improve the operations of the agency, its policy body, and its advisory committees, including management recommendations that do not require a change in the agency's enabling statute;[and]

(4) make recommendations on the continuation or abolition of each reporting requirement imposed on the agency by law; and

(5) include the report of the Legislative Budget Board presented under Section 325.0076 together with the commission's evaluation of the board's recommendations on funding the agency's activities.

SECTION 4. Section 325.019, Government Code, is amended to read as follows:

Sec. 325.019. ASSISTANCE OF AND ACCESS TO STATE AGENCIES. (a) The commission or the Legislative Budget Board may request the assistance of state agencies and officers in carrying out its functions under this chapter. When assistance is requested, a state agency or officer shall assist the commission or board.

(b) In carrying out its functions under this chapter, the commission, the Legislative Budget Board, or a [its] designated staff member of the commission or board may inspect the records, documents, and files of any state agency.

SECTION 5. Section 401.043, Government Code, is amended by adding Subsection (a-1) to read as follows:

(a-1) At a public hearing held under Subsection (a) regarding appropriations for an agency that is then currently the subject of Sunset Advisory Commission review under Chapter 325, the governor or the governor's representative shall consider the zero-based budget presented under Section 325.0076 in addition to any information the agency presents for consideration in the budgeting process.

SECTION 6. 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.