HB12 - Relating to the review and audit of certain state agency operations.

      H.B. No. 12         AN ACT   relating to the review and audit of certain state agency   operations.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 325.002, Government Code, is amended by   adding Subdivision (4) to read as follows:                 (4)     "Regulatory agency" means a department,   commission, board, or other agency that:                       (A)  is created by the constitution or by statute;                       (B)     is in the executive branch of state   government;                       (C)  has statewide authority; and                       (D)     has authority to deny, grant, renew, revoke,   or suspend a license, certification, or other authorization to   engage in an activity.          SECTION 2.  Section 325.008, Government Code, is amended by   adding Subsections (d), (e), and (f) to read as follows:           (d)     The commission shall provide information on how the   public may participate in the commission's review of a state agency   and provide input on a state agency's performance. The commission   shall, to the extent practicable, solicit input from parties   interested in a state agency's operations.           (e)     Each state agency being reviewed by the commission under   this chapter shall at the beginning of the review:                 (1)     post a notice on the state agency's Internet   website informing the public:                       (A)     that the state agency is being reviewed by   the commission; and                       (B)     how the public may participate in the   commission's review of the state agency and provide input on the   state agency's performance; and                 (2)     to the extent practicable, if the state agency   being reviewed is a regulatory agency:                       (A)     notify each person licensed, certified, or   otherwise authorized by the regulatory agency to engage in an   activity regulated by the agency of a public hearing under Section   325.009 at which the agency will be reviewed; and                       (B)     solicit input from persons provided notice   under Paragraph (A) regarding the regulatory agency's performance.           (f)     Subsection (e)(2) does not apply to a river authority   subject to review under this chapter.          SECTION 3.  Section 325.010(b), Government Code, is amended   to read as follows:          (b)  In the report the commission shall include:                (1)  its findings regarding the criteria prescribed by   Section 325.011, except Section 325.011(14);                (2)  its recommendations based on the matters   prescribed by Section 325.012, except recommendations relating to   criteria prescribed by Section 325.011(14); [ and ]                (3)   if the agency being reviewed is a regulatory   agency, an analysis of the regulatory agency's performance during   the preceding 10 years or since the last review of the agency under   this chapter, whichever is longer, based on the agency's   performance measures and related targets, including those listed in   the General Appropriations Act;                 (4)     an evaluation of the agency's performance measures   and related targets, including whether the targets are:                       (A)     aligned with the mission, goals, and   objectives of the agency; and                       (B)     appropriate for assessing the agency's   achievement of the goals listed; and                 (5)   other information the commission considers   necessary for a complete review of the agency.          SECTION 4.  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)     after consulting the Legislative Budget Board,   make recommendations to improve the agency's key performance   measures through the addition, amendment, or removal of the   performance measures and related targets, including those listed in   the General Appropriations Act .          SECTION 5.  Chapter 325, Government Code, is amended by   adding Section 325.016 to read as follows:           Sec.   325.016.     LIMITED REVIEW OF CERTAIN REGULATORY   AGENCIES. (a) In the commission's recommendations to the   legislature under Section 325.012, the commission may recommend   that a limited review of a regulatory agency be conducted prior to   the regulatory agency's next sunset review.           (b)     If the commission's recommendations to the legislature   under Section 325.012 include any identified deficiencies or   recommendations for improvement in the regulatory agency's   rulemaking process, the commission shall recommend that a limited   review of a regulatory agency be conducted prior to the next sunset   review.           (c)     For the commission's recommendation for a limited   review to take effect, the legislature must include the   recommendation in its legislation for the regulatory agency under   Section 325.012(c).   Such review shall be limited to:                 (1)     an assessment of the regulatory agency's   rulemaking process and the extent to which the regulatory 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;                 (2)     the extent to which the regulatory agency adopts   and enforces rules relating to potential conflicts of interest of   its employees;                 (3)     an assessment of the regulatory agency's efforts   to identify rules that are unnecessary, ineffective, or   inefficient;                 (4)     any commission recommendations under Section   325.012(a)(3) that the legislature adopted in the legislation for   the regulatory agency under Section 325.012(c); and                 (5)     any additional rulemaking-related recommendations   adopted by the legislature and included in the legislation for the   regulatory agency under Section 325.012(c).           (d)     The regulatory agency shall report to the commission its   progress on addressing the items described in Subsection (c) not   later than September 1 of the odd-numbered year specified by the   legislature in its legislation for the regulatory agency under   Section 325.012(c).           (e)     Not later than January 1 of the odd-numbered year after   the date the regulatory agency report is due under Subsection (d),   the commission shall prepare a written report on the commission's   review under this section.           (f)     The report prepared by the commission under this section   is a public record.          SECTION 6.  Subtitle C, Title 3, Government Code, is amended   by adding Chapter 327 to read as follows:   CHAPTER 327. EFFICIENCY AUDITS OF STATE AGENCIES           Sec. 327.001.  DEFINITIONS.  In this chapter:                 (1)     "Audit plan" has the meaning assigned by Section   321.001.                 (2)     "Commission" means the Sunset Advisory   Commission.                 (3)     "Efficiency audit" means an evaluation of the   economy, efficiency, and effectiveness of state agency operations,   including:                       (A)     determining whether the state agency is   managing or using its resources, including state money, personnel,   property, equipment, and space, in an economical and efficient   manner;                       (B)     identifying causes of inefficiencies or   uneconomical practices, including inadequacies in management   information systems, internal and administrative procedures,   organizational structure, use of resources, allocation of   personnel, purchasing, agency policies, and equipment;                       (C)     determining whether financial, program, and   statistical reports of the state agency contain useful data and are   fairly presented;                       (D)     determining whether the objectives and   intended benefits of the agency's program are being achieved   efficiently and effectively, according to:                             (i)  established or designated:                                   (a)  program objectives;                                   (b)  responsibilities or duties;                                   (c)  program performance criteria; or                                   (d)  program evaluation standards; or                      &#xA0 [Text truncated for display. Full text available on Congress.gov.]