84R11340 MCK-D

By: Hall S.B. No. 1433

A BILL TO BE ENTITLED

AN ACT

relating to the identification of programs and activities in the general appropriations bill and the review of state agency performance and rules.

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

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

(b-1) The general appropriations bill must, for each state agency or other entity to which an appropriation is proposed under the bill:

(1) include a line item for each specific program or activity administered by the agency or entity or by an organizational unit of the agency or entity, arranged according to the agency's, entity's, or unit's organizational structure, except that if a specific program or activity administered by the agency, entity, or unit includes identifiable components or subprograms, the bill must include a line item for each of those components or subprograms;

(2) specify the amount of the proposed appropriation for each line item; and

(3) include, for each line item that represents a specific program or activity or, if applicable, each group of line items representing the components or subprograms of a specific program or activity:

(A) a description of the program or activity and a citation to the authorization in law for the program or activity; and

(B) a statement regarding whether the source of the proposed appropriation is nondedicated general revenue money, dedicated general revenue money, federal money, or another source.

SECTION 2. Sections 325.008(a) and (b), Government Code, are amended to read as follows:

(a) Before January 1 of the year in which a state agency subject to this chapter and its advisory committees are abolished, the commission shall:

(1) review and take action necessary to verify the reports submitted by the agency under Section 325.007;

(2) consult the Legislative Budget Board, the Governor's Budget, Policy, and Planning Division, the State Auditor, and the comptroller of public accounts, or their successors, on the application to the agency of the criteria provided in Section 325.011;

(3) have [conduct] a review of the agency based on the criteria provided in Section 325.011 conducted by a private performance auditor with whom the commission contracts under Section 325.0081 and have the performance auditor prepare a written report; and

(4) review the implementation of commission recommendations contained in the reports presented to the legislature during the preceding legislative session and the resulting legislation.

(b) The written report prepared by the performance auditor [commission] under Subsection (a)(3) is a public record.

SECTION 3. Chapter 325, Government Code, is amended by adding Section 325.0081 to read as follows:

Sec. 325.0081. PERFORMANCE AUDITOR CONTRACT. The commission shall contract with a person to perform the performance audits required by this chapter. The contract must require the auditor to conduct the performance audits as prescribed by this chapter.

SECTION 4. Section 325.010(b), Government Code, is amended to read as follows:

(b) In the report the commission shall include:

(1) the performance auditor's [its] findings regarding the criteria prescribed by Section 325.011;

(2) its recommendations based on the matters prescribed by Section 325.012; and

(3) other information the commission considers necessary for a complete review of the agency.

SECTION 5. Section 325.011, Government Code, is amended to read as follows:

Sec. 325.011. CRITERIA FOR REVIEW. The commission, [and] its staff, and the performance auditor shall consider the following criteria in determining whether a public need exists for the continuation of a state agency or its advisory committees or for the performance of the functions of the agency or its advisory committees:

(1) the efficiency and effectiveness with which the agency or the advisory committee operates;

(2)(A) an identification of the mission, goals, and objectives intended for the agency or advisory committee and of the problem or need that the agency or advisory committee was intended to address; and

(B) the extent to which the mission, goals, and objectives have been achieved and the problem or need has been addressed;

(3)(A) an identification of any activities of the agency in addition to those granted by statute and of the authority for those activities; and

(B) the extent to which those activities are needed;

(4) an assessment of authority of the agency relating to fees, inspections, enforcement, and penalties;

(5) whether less restrictive or alternative methods of performing any function that the agency performs could adequately protect or provide service to the public;

(6) the extent to which the jurisdiction of the agency and the programs administered by the agency overlap or duplicate those of other agencies, the extent to which the agency coordinates with those agencies, and the extent to which the programs administered by the agency can be consolidated with the programs of other state agencies;

(7) the promptness and effectiveness with which the agency addresses complaints concerning entities or other persons affected by the agency, including an assessment of the agency's administrative hearings process;

(8) an assessment of the agency's rulemaking process and the extent to which the agency has encouraged participation by the public in making its rules and decisions and the extent to which the public participation has resulted in rules that benefit the public;

(9) the extent to which the agency has complied with:

(A) federal and state laws and applicable rules regarding equality of employment opportunity and the rights and privacy of individuals; and

(B) state law and applicable rules of any state agency regarding purchasing guidelines and programs for historically underutilized businesses;

(10) the extent to which the agency issues and enforces rules relating to potential conflicts of interest of its employees;

(11) the extent to which the agency complies with Chapters 551 and 552 and follows records management practices that enable the agency to respond efficiently to requests for public information;

(12) the effect of federal intervention or loss of federal funds if the agency is abolished; and

(13) the extent to which the purpose and effectiveness of reporting requirements imposed on the agency justifies the continuation of the requirement.

SECTION 6. Section 325.0127, Government Code, is amended by adding Subsection (c) to read as follows:

(c) Each state agency reviewed under this chapter shall pay the costs incurred by the commission in performing the review. The commission shall determine the costs of the review, and the agency shall pay the amount of those costs promptly on receipt of a statement from the commission regarding those costs. Any reduction in the state agency's operating expenses that result from implementing the performance auditor's recommendations shall be used to pay for the cost of the performance review.

SECTION 7. Sections 325.019(b) and (c), Government Code, are amended to read as follows:

(b) In carrying out its functions under this chapter, the commission, [or] its designated staff member, the performance auditor, or an employee of the performance auditor may attend any meetings and proceedings of any state agency, including any meeting or proceeding of the governing body of the agency that is closed to the public, and may inspect the records, documents, and files of any state agency, including any record, document, or file that is:

(1) attorney work product;

(2) an attorney-client communication; or

(3) made privileged or confidential by law.

(c) It is the intent of the legislature to allow the commission, [and] its designated staff members, the performance auditor, or an employee of the performance auditor to have access to all meetings or proceedings of a state agency being reviewed by the commission under this chapter and to all records, documents, and files of that agency. To the extent that this section conflicts with other law that purports to limit the commission's or auditor's access to meetings or proceedings or to records, documents, and files, this section controls. If federal law prohibits a state agency from disclosing information in a record, document, or file to the commission or auditor, including information in a record, document, or file created as a result of or considered during a meeting or proceeding, the state agency may redact the protected information from the record, document, or file.

SECTION 8. Sections 325.0195(a), (b), (c), and (d), Government Code, are amended to read as follows:

(a) A working paper, including all documentary or other information, prepared or maintained by the commission staff or the performance auditor in performing [its] duties under this chapter or other law to conduct an evaluation and prepare a report is excepted from the public disclosure requirements of Section 552.021.

(b) A record held by another entity that is considered to be confidential by law and that the commission or the performance auditor receives in connection with the performance of the commission's or auditor's duties [functions] under this chapter or another law remains confidential and is excepted from the public disclosure requirements of Section 552.021.

(c) A state agency that provides the commission or the performance auditor with access to a privileged or confidential communication, record, document, or file under Section 325.019 for purposes of a review under this chapter does not waive the attorney-client privilege, or any other privilege or confidentiality requirement protected or required by the Texas Constitution, common law, statutory law, or rules of evidence, procedure, or professional conduct, with respect to the communication, record, document, or file provided to the commission or auditor. For purposes of this subsection, a communication includes a discussion that occurs at a meeting or proceeding of the state agency that is closed to the public.

(d) The state agency may require the commission, [or] the members of the commission's staff, the performance auditor, or the employees of the performance auditor who view, handle, or are privy to information, or who attend a meeting that is not accessible to the public, to sign a confidentiality agreement that covers the information and requires that:

(1) the information not be disclosed outside the commission or the auditor's office for purposes other than the purpose for which it was received;

(2) the information be labeled as confidential;

(3) the information be kept securely; and

(4) the number of copies made of the information or the notes taken from the information that implicate the confidential nature of the information be controlled, with all copies or notes that are not destroyed or returned to the governmental body remaining confidential and subject to the confidentiality agreement.

SECTION 9. Chapter 325, Government Code, is amended by adding Section 325.025 to read as follows:

Sec. 325.025. REVIEW OF RULES. (a) The commission, with the assistance of the appropriate standing committee of each house of the legislature, shall review each state agency's rules to determine whether:

(1) the agency has authority to adopt the rule;

(2) the rule is necessary for the administration of the agency's functions; and

(3) the rule should be repealed or, if applicable, the agency should be given authority to adopt the rule.

(b) The commission shall prepare a report with the commission's findings and recommendations and submit the report to the legislature.

(c) The commission shall establish a schedule to ensure that each state agency's rules are reviewed every six years.

SECTION 10. This Act takes effect September 1, 2015.