82R23478 KJM-F
	By: Callegari	H.B. No. 3684
	Substitute the following for H.B. No. 3684:
	By:  Callegari	C.S.H.B. No. 3684

	A BILL TO BE ENTITLED
	AN ACT
	relating to evaluating governmental financial matters.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 107.002, Civil Practice and Remedies
	Code, is amended by adding Subsection (c) to read as follows:
	(c)  A fiscal note prepared by the Legislative Budget Board
	as described by Chapter 314, Government Code, must be attached to a
	resolution granting permission to sue before a legislative
	committee hearing may be held on the resolution.
	SECTION 2.  Section 314.001, Government Code, is amended to
	read as follows:
	Sec. 314.001.  SYSTEM OF FISCAL NOTES. The Legislative
	Budget Board shall establish a system of fiscal notes identifying
	the probable costs of each bill or resolution, including a joint or
	concurrent resolution, that authorizes or requires the expenditure
	or diversion of state funds for a purpose other than one provided
	for in the general appropriations bill.
	SECTION 3.  Section 315.004(a), Government Code, is amended
	to read as follows:
	(a)  At the request of the lieutenant governor or speaker of
	the house of representatives, a state agency shall prepare an
	economic impact statement for any pending bill, concurrent
	resolution, or joint resolution that directly affects that agency.
	Preparation of the statement shall be coordinated through the
	Legislative Budget Board director.
	SECTION 4.  Section 320.001, Government Code, is amended to
	read as follows:
	Sec. 320.001.  DEFINITION. In this chapter, "mandate" means
	a requirement or restriction made by a statute enacted by the
	legislature or a rule adopted by a state agency [on or after January
	1, 1997,] that requires a political subdivision to establish,
	expand, or modify an activity in a way that requires the expenditure
	of revenue by the political subdivision that would not have been
	required in the absence of the statutory provision or
	administrative rule.  The term includes a requirement for a report,
	but does not include a requirement or restriction that only creates
	flexibility in allocating resources.
	SECTION 5.  Section 320.004, Government Code, is amended to
	read as follows:
	Sec. 320.004.  REVIEW OF UNFUNDED MANDATES. (a) The Sunset
	Advisory Commission in performing a review of a state agency whose
	functions affect political subdivisions may [Before September 1 of
	the even-numbered year before the third anniversary of the date of
	enactment of a mandate identified by the interagency work group
	under Section 320.003, the interagency work group shall]:
	(1)  review the legislative history of any [the]
	mandate related to the functions of the state agency being
	reviewed;
	(2)  conduct an evaluation on the benefits of the
	mandate and the costs of the mandate on affected political
	subdivisions; and
	(3)  include any information gathered under this
	section in the report required under Section 325.010  [present a
	written report to the legislature and the governor on the
	interagency work group's findings].
	(b)  During a review of a state agency, a political
	subdivision affected by a mandate related to the functions of the
	agency may present information to the commission regarding the
	mandate and costs associated with the mandate and may recommend
	changes to current law that may provide more efficient use of
	resources.
	(c)  A political subdivision may periodically review each
	mandate to which the political subdivision is subject and recommend
	changes for making an activity or measure more efficient, including
	elimination of [the regular session immediately following the
	issuance of a report under Subsection (a), the legislature by law
	may continue the mandate for a period not to exceed three years, by
	law may repeal the mandate, or may take no action on] the mandate,
	to the governor, the lieutenant governor, the speaker of the house
	of representatives, the Senate Finance Committee, the House
	Appropriations Committee, and the Sunset Advisory Commission.
	SECTION 6.  Section 2001.024, Government Code, is amended by
	adding Subsection (d) to read as follows:
	(d)  A fiscal note required under Subsection (a)(4) that is
	included with a notice for a proposed rule that affects a political
	subdivision may include a statement identifying any requirement or
	restriction that the rule imposes on the political subdivision and
	whether the requirement or restriction includes an additional
	commitment of time or expense by the political subdivision.
	SECTION 7.  The following provisions are repealed:
	(1)  Section 320.003, Government Code;
	(2)  Section 2056.011, Government Code;
	(3)  Section 303.004, Labor Code; and
	(4)  Section 240.903, Local Government Code.
	SECTION 8.  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, 2011.