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A BILL TO BE ENTITLED
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AN ACT
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relating to zero-based budgeting for certain entities funded by |
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this state and submission of a zero-based budget by and performance |
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of a financial audit of an agency undergoing review by the Sunset |
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Advisory Commission. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 322.007, Government Code, is amended to |
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read as follows: |
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Sec. 322.007. ESTIMATES AND REPORTS; SCHEDULED ZERO-BASED |
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BUDGET PLANNING. (a) Each institution, department, agency, |
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officer, employee, or agent of the state shall submit to the board |
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any estimate or report relating to appropriations requested by the |
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board or under the board's direction. |
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(b) The board shall adopt a schedule for the submission of |
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zero-based budget plans by institutions, departments, and agencies |
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of this state so that: |
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(1) one-third of the entities, or as near as possible |
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to one-third of the entities, are scheduled to submit a zero-based |
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budget plan before each regular legislative session; and |
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(2) each entity is scheduled to submit a zero-based |
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budget plan before every third regular legislative session. |
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(c) Each institution, department, and agency of this state |
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that receives an appropriation shall submit to the board a |
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zero-based budget plan in accordance with the schedule adopted |
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under Subsection (b). A zero-based budget plan must contain: |
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(1) a description of the discrete activities the |
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entity is charged with conducting or performing, together with a |
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justification for each activity by reference to a statute or other |
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legal authority; |
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(2) for each activity identified under Subdivision |
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(1), a quantitative estimate of any adverse effects that reasonably |
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may be expected to result if the activity were discontinued, |
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together with a description of the methods by which the adverse |
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effects were estimated; |
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(3) for each activity identified under Subdivision |
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(1), an itemized account of expenditures required to maintain the |
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activity at the minimum level of service required by the statute or |
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other legal authority, together with a concise statement of the |
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quantity and quality of service required at that minimum level; |
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(4) for each activity identified under Subdivision |
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(1), an itemized account of expenditures required to maintain the |
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activity at the current level of service, together with a concise |
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statement of the quantity and quality of service provided at that |
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level; and |
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(5) a ranking of activities identified under |
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Subdivision (1) that illustrates the relative importance of each |
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activity to the overall goals and purposes of the institution, |
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department, or agency at current service levels. |
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(d) Each zero-based budget plan and each estimate or report |
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shall be submitted at a time set by the board and in the manner and |
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form prescribed by board rules. |
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(e) Each zero-based budget plan and each [(c) An] estimate |
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or report required under this section is in addition to a budget |
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plan or an estimate or report required by other law, including those |
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estimates or reports relating to appropriations required by Chapter |
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401. |
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SECTION 2. Section 322.008(a), Government Code, is amended |
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to read as follows: |
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(a) Based on information provided under Section 322.007, |
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the [The] director, under the direction of the board, shall prepare |
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the general appropriations bill for introduction at each regular |
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legislative session. |
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SECTION 3. The heading to Section 325.007, Government Code, |
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is amended to read as follows: |
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Sec. 325.007. AGENCY REPORT TO COMMISSION; ZERO-BASED |
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BUDGET REPORTS. |
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SECTION 4. Section 325.007, Government Code, is amended by |
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amending Subsection (b) and adding Subsection (c) to read as |
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follows: |
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(b) Before November 1 of the odd-numbered year before the |
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year in which a state agency subject to this chapter is abolished, |
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the agency shall present to the commission a zero-based budget for |
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the state fiscal year that begins on the date the agency is |
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scheduled to be abolished that: |
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(1) describes the discrete activities the entity is |
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charged with conducting or performing, together with a |
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justification for each activity by reference to a statute or other |
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legal authority; |
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(2) for each activity identified under Subdivision |
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(1), provides a quantitative estimate of any adverse effects that |
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reasonably may be expected to result if the activity were |
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discontinued, together with a description of the methods by which |
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the adverse effects were estimated; |
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(3) for each activity identified under Subdivision |
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(1), provides an itemized account of expenditures required to |
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maintain the activity at the minimum level of service required by |
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the statute or other legal authority, together with a concise |
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statement of the quantity and quality of service required at that |
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minimum level; |
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(4) for each activity identified under Subdivision |
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(1), provides an itemized account of expenditures required to |
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maintain the activity at the current level of service, together |
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with a concise statement of the quantity and quality of service |
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provided at that level; and |
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(5) ranks activities identified under Subdivision (1) |
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in a manner that illustrates the relative importance of each |
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activity to the overall goals and purposes of the institution, |
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department, or agency at current service levels. |
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(c) The reports under this section [Subsection (a)] must be |
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submitted in electronic format only. The commission shall |
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prescribe the electronic format to be used. |
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SECTION 5. Chapter 325, Government Code, is amended by |
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adding Section 325.0074 to read as follows: |
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Sec. 325.0074. FINANCIAL AUDIT. The state auditor shall |
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conduct a financial audit under Section 321.0131 of each state |
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agency scheduled to be abolished on a date certain if not continued |
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in accordance with this chapter. The state auditor shall conduct |
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the audit at a time so that the completed audit may be sent to the |
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commission on September 1 of the odd-numbered year before the year |
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the agency is scheduled to be abolished. |
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SECTION 6. Section 401.0445(a), Government Code, is amended |
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to read as follows: |
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(a) The governor shall compile the biennial appropriation |
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budget using information: |
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(1) submitted to the governor in the uniform budget |
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estimate forms; [and] |
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(2) obtained at public hearings, from inspections, and |
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from other sources; and |
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(3) submitted to the Legislative Budget Board under |
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Section 322.007. |
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SECTION 7. (a) The changes in law made by Sections 1, 2, and |
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6 of this Act apply only in regard to information for developing a |
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biennial appropriation budget for a state fiscal biennium beginning |
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on or after the effective date of this Act. |
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(b) The changes in law made by Sections 4 and 5 of this Act |
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apply only in relation to the review by the Sunset Advisory |
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Commission of agencies scheduled to be abolished on or after |
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September 1, 2019, if not continued in accordance with Chapter 325, |
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Government Code, and in relation to any other agencies that by law |
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are reviewed during those review periods by the Sunset Advisory |
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Commission. |
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SECTION 8. This Act takes effect September 1, 2015. |