85R1385 SCL-D
	By: Bettencourt	S.B. No. 641

	A BILL TO BE ENTITLED
	AN ACT
	relating to periodic zero-based budgeting for certain political
	subdivisions.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter A, Chapter 44, Education Code, is
	amended by adding Section 44.0025 to read as follows:
	Sec. 44.0025.  PERIODIC ZERO-BASED BUDGET REQUIRED FOR
	CERTAIN SCHOOL DISTRICTS AND COUNTY DEPARTMENTS OF EDUCATION;
	CONTENTS. (a) This section applies only to:
	(1)  a school district with a student enrollment of
	50,000 or more; and
	(2)  a county department of education in a county with a
	population of 3.3 million or more.
	(b)  In addition to the required annual itemized budget, the
	superintendent of the school district or county department of
	education shall prepare, in plain language and an easily readable
	and understandable format, a zero-based budget every 12th year that
	contains:
	(1)  a description of the discrete activities the
	district or department conducts or performs with:
	(A)  a justification for each activity by
	reference to a statute, rule, or other legal authority; and
	(B)  an evaluation of the effectiveness and
	efficiency of the district's or department's policies, management,
	fiscal affairs, and operations in relation to each activity;
	(2)  for each activity identified under Subdivision
	(1), a quantitative estimate of any adverse effects that reasonably
	may be expected to result if the activity were discontinued,
	together with a description of the methods by which the adverse
	effects were estimated;
	(3)  for each activity identified under Subdivision
	(1), an itemized account of expenditures required to maintain the
	activity at any minimum level of service required by statute, rule,
	or other legal authority, together with a concise statement of the
	quantity and quality of service required at that minimum level;
	(4)  for each activity identified under Subdivision
	(1), an itemized account of expenditures required to maintain the
	activity at the current level of service or performance, together
	with a concise statement of the quantity and quality of service or
	performance provided at that level;
	(5)  a ranking of activities identified under
	Subdivision (1) that illustrates the relative importance of each
	activity to the overall goals and purposes of the district or
	department at current service levels; and
	(6)  recommendations to the board of trustees of the
	district or department regarding whether the district or department
	should continue funding each activity identified under Subdivision
	(1) and, if so, at what level.
	(c)  In preparing the zero-based budget, the superintendent
	of the school district or county department of education may
	require any district or department officer or employee to provide
	information necessary to properly prepare the budget.
	(d)  The superintendent of the school district or county
	department of education shall file a copy of the zero-based budget
	with the agency on or before the date the proposed budget is filed,
	and the copy of the zero-based budget shall be available for public
	inspection in the district's or department's central administrative
	office. If the district or department maintains an Internet
	website, the district or department shall take action to ensure
	that the zero-based budget is posted on the website.
	(e)  At a public meeting held to adopt a budget, the board of
	trustees of the school district or county department of education
	shall consider information presented in the zero-based budget in
	addition to the proposed budget.
	SECTION 2.  Chapter 102, Local Government Code, is amended
	by adding Section 102.0055 to read as follows:
	Sec. 102.0055.  PERIODIC ZERO-BASED BUDGET REQUIRED;
	CONTENTS. (a) This section applies only to a municipality with a
	population of 225,000 or more.
	(b)  In addition to the annual itemized budget required under
	Section 102.003, the budget officer shall prepare, in plain
	language and an easily readable and understandable format, a
	zero-based budget every 12th year that contains:
	(1)  a description of the discrete activities the
	municipality conducts or performs with:
	(A)  a justification for each activity by
	reference to a statute, charter provision, ordinance, or other
	legal authority; and
	(B)  an evaluation of the effectiveness and
	efficiency of the municipality's policies, management, fiscal
	affairs, and operations in relation to each activity;
	(2)  for each activity identified under Subdivision
	(1), a quantitative estimate of any adverse effects that reasonably
	may be expected to result if the activity were discontinued,
	together with a description of the methods by which the adverse
	effects were estimated;
	(3)  for each activity identified under Subdivision
	(1), an itemized account of expenditures required to maintain the
	activity at any minimum level of service required by statute,
	charter provision, ordinance, or other legal authority, together
	with a concise statement of the quantity and quality of service
	required at that minimum level;
	(4)  for each activity identified under Subdivision
	(1), an itemized account of expenditures required to maintain the
	activity at the current level of service or performance, together
	with a concise statement of the quantity and quality of service or
	performance provided at that level;
	(5)  a ranking of activities identified under
	Subdivision (1) that illustrates the relative importance of each
	activity to the overall goals and purposes of the municipality at
	current service levels; and
	(6)  recommendations to the governing body of the
	municipality regarding whether the municipality should continue
	funding each activity identified under Subdivision (1) and, if so,
	at what level.
	(c)  In preparing the zero-based budget, the budget officer
	may require any municipal officer or board to provide information
	necessary for the budget officer to properly prepare the budget.
	(d)  The budget officer shall file a copy of the zero-based
	budget with the municipal clerk on or before the date the proposed
	budget is filed, and the copy of the zero-based budget shall be
	available for public inspection. If the municipality maintains an
	Internet website, the municipal clerk shall take action to ensure
	that the zero-based budget is posted on the website.
	(e)  At a public hearing held to adopt a budget under this
	chapter, the governing body of the municipality shall consider
	information presented in the zero-based budget in addition to the
	proposed budget.
	SECTION 3.  Subchapter B, Chapter 111, Local Government
	Code, is amended by adding Section 111.0375 to read as follows:
	Sec. 111.0375.  PERIODIC ZERO-BASED BUDGET REQUIRED;
	CONTENTS. (a) In addition to the annual itemized budget required
	under Section 111.034, the county auditor shall prepare, in plain
	language and an easily readable and understandable format, a
	zero-based budget every 12th year that contains:
	(1)  a description of the discrete activities the
	county conducts or performs with:
	(A)  a justification for each activity by
	reference to a statute, order, or other legal authority; and
	(B)  an evaluation of the effectiveness and
	efficiency of the county's policies, management, fiscal affairs,
	and operations in relation to each activity;
	(2)  for each activity identified under Subdivision
	(1), a quantitative estimate of any adverse effects that reasonably
	may be expected to result if the activity were discontinued,
	together with a description of the methods by which the adverse
	effects were estimated;
	(3)  for each activity identified under Subdivision
	(1), an itemized account of expenditures required to maintain the
	activity at any minimum level of service required by statute,
	order, or other legal authority, together with a concise statement
	of the quantity and quality of service required at that minimum
	level;
	(4)  for each activity identified under Subdivision
	(1), an itemized account of expenditures required to maintain the
	activity at the current level of service or performance, together
	with a concise statement of the quantity and quality of service or
	performance provided at that level;
	(5)  a ranking of activities identified under
	Subdivision (1) that illustrates the relative importance of each
	activity to the overall goals and purposes of the county at current
	service levels; and
	(6)  recommendations to the commissioners court of the
	county regarding whether the county should continue funding each
	activity identified under Subdivision (1) and, if so, at what
	level.
	(b)  In preparing the zero-based budget, the county auditor
	may require any district, county, or precinct officer of the county
	to provide information necessary for the auditor to properly
	prepare the budget.
	(c)  The county auditor shall file a copy of the zero-based
	budget with the county clerk on or before the date the proposed
	budget is filed, and the copy of the zero-based budget shall be
	available for public inspection. If the county maintains an
	Internet website, the county clerk shall take action to ensure that
	the zero-based budget is posted on the website.
	(d)  At a public hearing held to adopt a budget under this
	subchapter, the commissioners court shall consider information
	presented in the zero-based budget in addition to the proposed
	budget.
	SECTION 4.  Subchapter C, Chapter 111, Local Government
	Code, is amended by adding Section 111.0665 to read as follows:
	Sec. 111.0665.  PERIODIC ZERO-BASED BUDGET REQUIRED;
	CONTENTS. (a) This section applies only to a county with a
	population of 225,000 or more.
	(b)  In addition to the annual itemized budget required under
	Section 111.063, the budget officer shall prepare, in plain
	language and an easily readable and understandable format, a
	zero-based budget every 12th year that contains:
	(1)  a description of the discrete activities the
	county conducts or performs with:
	(A)  a justification for each activity by
	reference to a statute, order, or other legal authority; and
	(B)  an evaluation of the effectiveness and
	efficiency of the county's policies, management, fiscal affairs,
	and operations in relation to each activity;
	(2)  for each activity identified under Subdivision
	(1), a quantitative estimate of any adverse effects that reasonably
	may be expected to result if the activity were discontinued,
	together with a description of the methods by which the adverse
	effects were estimated;
	(3)  for each activity identified under Subdivision
	(1), an itemized account of expenditures required to maintain the
	activity at any minimum level of service required by statute,
	order, or other legal authority, together with a concise statement
	of the quantity and quality of service required at that minimum
	level;
	(4)  for each activity identified under Subdivision
	(1), an itemized account of expenditures required to maintain the
	activity at the current level of service or performance, together
	with a concise statement of the quantity and quality of service or
	performance provided at that level;
	(5)  a ranking of activities identified under
	Subdivision (1) that illustrates the relative importance of each
	activity to the overall goals and purposes of the county at current
	service levels; and
	(6)  recommendations to the commissioners court of the
	county regarding whether the county should continue funding each
	activity identified under Subdivision (1) and, if so, at what
	level.
	(c)  In preparing the zero-based budget, the budget officer
	may require the county auditor or any other district, county, or
	precinct officer of the county to provide information necessary for
	the budget officer to properly prepare the budget.
	(d)  The budget officer shall file a copy of the zero-based
	budget with the county clerk and county auditor on or before the
	date the proposed budget is filed, and the copy of the zero-based
	budget shall be available for public inspection.
	(e)  At a public hearing held to adopt a budget under this
	subchapter, the commissioners court shall consider information
	presented in the zero-based budget in addition to the proposed
	budget.
	SECTION 5.  The superintendent of a school district or
	county department of education, the budget officer of a
	municipality, or the county auditor or budget officer of a county,
	as applicable, shall prepare an initial zero-based budget as
	described by Section 44.0025, Education Code, or Section 102.0055,
	111.0375, or 111.0665, Local Government Code, as added by this Act,
	as applicable, for the fiscal year beginning on or after September
	1, 2019.
	SECTION 6.  This Act takes effect September 1, 2017.