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A BILL TO BE ENTITLED
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AN ACT
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relating to the control of conditional federal funds for state |
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programs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 10, Government Code, is |
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amended by adding Chapter 2116 to read as follows: |
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CHAPTER 2116. CONTROL OF CONDITIONAL FEDERAL FUNDS |
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Sec. 2116.001. DEFINITIONS. In this chapter: |
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(1) "Coercive conditions" are conditions in coercive |
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federal funding programs that pertain to matters other than the |
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manner in which the federal funds are to be spent, such as |
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conditions that pertain to how the state must spend its own revenue |
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or that pertain to collateral state policies. |
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(2) "Coercive federal funding program" means a program |
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under which the federal government transfers funds to state |
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agencies, or to persons or local entities through state agencies, |
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to which the federal government has attached coercive conditions. |
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The term does not include a federal program that offers to return to |
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the state a pro rata share of the state residents' tax contributions |
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to the federal program if the state refuses to comply with the |
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conditions attached to the program. |
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Sec. 2116.002. COORDINATED MULTISTATE REJECTION OF |
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COERCIVE FEDERAL FUNDING PROGRAMS. (a) The attorney general shall |
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annually prepare a comprehensive report for the legislature |
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designating all the coercive federal funding programs that deliver |
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more than $100 million annually to the state and detailing the |
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coercive conditions in those programs. |
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(b) Where feasible, the attorney general shall sue to enjoin |
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enforcement of coercive conditions in coercive federal funding |
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programs. In any case where the federal government rejects a state |
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plan or application for funds under a coercive federal funding |
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program because of the state's refusal to comply with any coercive |
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condition, the attorney shall sue for relief. |
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(c) The governor shall work with governors of other states |
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to develop a coordinated approach with respect to all coercive |
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federal funding programs. |
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(d) Agencies and officers of the state shall implement all |
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coercive federal funding programs without regard to any conditions |
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designated as coercive conditions by the attorney general under |
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Subsection (a). Applications for federal approval of state |
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programs shall make no reference to any coercive condition. |
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SECTION 2. Section 751.001, Government Code, is amended by |
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adding Subdivision (1-a), to read as follows: |
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(1-a) "Coercive federal funding program" and |
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"coercive conditions" have the meanings assigned to those terms |
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under Section 2116.001. |
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SECTION 3. Subsection (b), Section 751.005, Government |
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Code, is amended to read as follows: |
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(b) The office shall: |
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(1) help coordinate state and federal programs dealing |
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with the same subject; |
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(2) inform the governor and the legislature of federal |
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programs that may be carried out in the state or that affect state |
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programs, with particular attention given to programs that may be |
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coercive federal funding programs; |
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(3) provide federal agencies and the United States |
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Congress with information about state policy and state conditions |
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on matters that concern the federal government; |
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(4) provide the legislature with information useful in |
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measuring the effect of federal actions on the state and local |
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programs; |
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(5) prepare and supply to the governor and all members |
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of the legislature an annual report that: |
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(A) describes the office's operations; |
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(B) contains the office's priorities and |
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strategies for the following year; |
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(C) details projects and legislation pursued by |
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the office; |
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(D) discusses issues in the following |
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congressional session of interest to this state;[and] |
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(E) contains an analysis of federal funds |
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availability and formulae; |
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(F) sets forth a catalog of all the conditions |
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attached to federal funding programs in a format that clearly |
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designates the coercive conditions; and |
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(G) contains the office's strategy for ensuring |
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that the state regains freedom of choice in fact with respect to |
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coercive federal funding programs by resisting compliance with |
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coercive conditions while also ensuring receipt of an equitable |
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share of federal funds under the programs; |
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(6) notify the governor, the lieutenant governor, the |
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speaker of the house of representatives, and the legislative |
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standing committees in each house with primary jurisdiction over |
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intergovernmental affairs of federal activities relevant to the |
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state and inform the Texas congressional delegation of state |
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activities; |
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(7) conduct frequent conference calls with the |
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lieutenant governor and the speaker of the house of representatives |
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or their designees regarding state-federal relations and programs; |
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(8) respond to requests for information from the |
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legislature, the United States Congress, and federal agencies; |
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(9) coordinate with the Legislative Budget Board |
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regarding the effects of federal funding on the state budget and the |
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impact of coercive conditions on the state's ability to remain |
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responsive to the preferences of its residents; and |
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(10) report to, and on request send appropriate |
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representatives to appear before, the legislative standing |
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committees in each house with primary jurisdiction over |
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intergovernmental affairs. |
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SECTION 4. Section 751.022, Government Code, is amended to |
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read as follows: |
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Sec. 751.022. POWERS AND DUTIES. (a) The office has |
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primary responsibility for monitoring, coordinating, and reporting |
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on the state's efforts to restore freedom of choice with respect to |
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coercive federal funding programs and ensure receipt of an |
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equitable share of federal formula funds. |
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(b) The office shall: |
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(1) serve as the state's clearinghouse for information |
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on federal formula funds and coercive conditions attached to the |
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funds; |
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(2) prepare reports on federal funds and earned |
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federal formula funds; |
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(3) analyze proposed and pending federal and state |
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legislation to determine whether the legislation would have a |
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significant negative effect on the state's ability to maintain |
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freedom of choice with respect to coercive federal funding programs |
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and receive an equitable share of federal formula funds; |
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(4) make recommendations for coordination between |
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state agencies and local governmental entities, between state |
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agencies and agencies of other states, and between state agencies, |
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particularly with respect to formulating strategies for escaping |
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restrictions imposed by coercive federal funding programs; and |
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(5) adopt rules under the rule-making procedures of |
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the administrative procedure law, Chapter 2001, Government Code, as |
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necessary to carry out the responsibilities assigned by this |
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subchapter. |
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(c) The office shall annually prepare a comprehensive |
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report to the legislature on the effectiveness of the state's |
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efforts to escape restrictions imposed by coercive federal funding |
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programs and ensure a receipt of an equitable share of federal |
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formula funds for the preceding federal fiscal year. The report |
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must include: |
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(1) an executive summary that provides an overview of |
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the major findings and recommendations included in the report; |
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(2) a comparative analysis of the state's receipt of |
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federal formula funds relative to other states, prepared using the |
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best available sources of data; |
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(3) an analysis of federal formula funding trends that |
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may have a significant effect on resources available to the state; |
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[and] |
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(4) recommendations as to what policies and programs |
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the state could implement if it were not subject to the restrictions |
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imposed by the 10 largest coercive federal funding programs in the |
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state budget and were able to receive an equitable share of federal |
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funding under the programs; and |
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(5) recommendations, developed in consultation with |
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the Legislative Budget Board, the Governor's Office of Budget and |
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Planning, and the comptroller, for any state legislative or |
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administrative action necessary to escape restrictions imposed by |
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coercive federal funding programs and increase the state's receipt |
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of federal formula funds. |
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SECTION 5. (a) Subsection (d), Section 2116.002, |
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Government Code, as added by this Act, takes effect on the date that |
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a substantially similar requirement regarding coercive conditions |
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has been adopted by 20 other states. |
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(b) Except as provided by Subsection (a) of this section, |
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this Act takes effect immediately if it receives a vote of |
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two-thirds of all the members elected to each house, as provided by |
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Section 39, Article III, Texas Constitution. If this Act does not |
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receive the vote necessary for immediate effect, this Act takes |
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effect September 1, 2013. |