2005 Texas Government Code CHAPTER 322. LEGISLATIVE BUDGET BOARD

GOVERNMENT CODE

CHAPTER 322. LEGISLATIVE BUDGET BOARD


	§ 322.001. MEMBERSHIP.  (a) The Legislative Budget Board 
consists of:     
		(1)  the lieutenant governor;                                                 
		(2)  the speaker of the house of representatives;                             
		(3)  the chairman of the senate finance committee;                            
		(4)  the chairman of the house appropriations 
committee;                    
		(5)  the chairman of the house ways and means 
committee;                    
		(6)  three members of the senate appointed by the 
lieutenant governor;  and 
		(7)  two other members of the house appointed by the 
speaker.               
	(b)  The lieutenant governor and the speaker are joint chairs 
of the board.  

Acts 1985, 69th Leg., ch. 479, § 1, eff. Sept. 1, 1985.  Amended 
by Acts 2003, 78th Leg., ch. 1328, § 5, eff. June 21, 2003;  Acts 
2003, 78th Leg., 3rd C.S., ch. 3, § 6.03, eff. Jan. 11, 2004.


	§ 322.003. QUORUM;  MEETINGS.  (a) A majority of the 
members of the board from each house constitutes a quorum to 
transact business.  If a quorum is present, the board may act on any 
matter that is within its jurisdiction by a majority vote.
	(b)  The board shall meet as often as necessary to perform 
its duties.  Meetings may be held at any time at the request of 
either of the joint chairs of the board or on written petition of a 
majority of the members of the board from each house.
	(c)  The board shall meet in Austin, except that if a 
majority of the members of the board from each house agree, the 
board may meet in any location determined by the board.
	(d)  As an exception to Chapter 551 and other law, if a 
meeting is located in Austin and the joint chairs of the board are 
physically present at the meeting, then any number of the other 
members of the board may attend the meeting by use of telephone 
conference call, video conference call, or other similar 
telecommunication device.  This subsection applies for purposes of 
constituting a quorum, for purposes of voting, and for any other 
purpose allowing a member of the board to otherwise fully 
participate in any meeting of the board.  This subsection applies 
without exception with regard to the subject of the meeting or 
topics considered by the members.
	(e)  A meeting held by use of telephone conference call, 
video conference call, or other similar telecommunication device:
		(1)  is subject to the notice requirements applicable 
to other meetings;    
		(2)  must specify in the notice of the meeting the 
location in Austin of the meeting at which the joint chairs will be 
physically present;
		(3)  must be open to the public and shall be audible to 
the public at the location in Austin specified in the notice of the 
meeting as the location of the meeting at which the joint chairs 
will be physically present;  and
		(4)  must provide two-way audio communication between 
all members of the board attending the meeting during the entire 
meeting, and if the two-way audio communication link with any 
member attending the meeting is disrupted at any time, the meeting 
may not continue until the two-way audio communication link is 
reestablished.

Acts 1985, 69th Leg., ch. 479, § 1, eff. Sept. 1, 1985.  Amended 
by Acts 2003, 78th Leg., 3rd C.S., ch. 3, § 4.01, 6.04, eff. Jan. 
11, 2004;  Acts 2005, 79th Leg., ch. 741, § 3, eff. June 17, 2005.


	§ 322.004. DIRECTOR.  (a) The board shall appoint a 
director to serve at the pleasure of the board.  The director is 
accountable only to the board.
	(b)  The director may make recommendations and, when the 
board specifically requests, shall make recommendations on a matter 
before the board relating to a function or duty of any state 
institution, department, agency, officer, or employee.
	(c)  The director may not vote on a question or issue before 
the board.      
	(d)  The board shall set the salary of the director.                           

Acts 1985, 69th Leg., ch. 479, § 1, eff. Sept. 1, 1985.                    


	§ 322.005. PERSONNEL.  (a) The director may employ 
personnel as necessary to perform the functions of the board.
	(b)  The director shall set the salaries of the personnel 
employed by the director.

Acts 1985, 69th Leg., ch. 479, § 1, eff. Sept. 1, 1985.  Amended 
by Acts 2005, 79th Leg., ch. 741, § 4, eff. June 17, 2005.


	§ 322.007. ESTIMATES AND REPORTS.  (a) Each institution, 
department, agency, officer, employee, or agent of the state shall 
submit any estimate or report relating to appropriations requested 
by the board or under the board's direction.
	(b)  Each estimate or report shall be submitted at a time set 
by the board and in the manner and form prescribed by board rules.
	(c)  An estimate or report required under this section is in 
addition to an estimate or report required by other law, including 
those estimates or reports relating to appropriations required by 
Chapter 401.

Acts 1985, 69th Leg., ch. 479, § 1, eff. Sept. 1, 1985.  Amended 
by Acts 1995, 74th Leg., ch. 76, § 5.95(10), eff. Sept. 1, 1995.


	§ 322.008. APPROPRIATIONS BILL.  (a) The director, under 
the direction of the board, shall prepare the general 
appropriations bill for introduction at each regular legislative 
session.
	(b)  The general appropriations bill may include for 
purposes of information the funding elements computed by the 
Legislative Budget Board under Section 42.007, Education Code, 
excluding the values for each school district calculated under 
Section 42.007(c)(2), Education Code. If the funding elements are 
included, the funding elements under Section 42.007(c)(3), 
Education Code, shall be reported in dollar amounts per pupil.
	(c)  Not later than the fifth day after a regular legislative 
session convenes, the director shall transmit a copy of the budget 
of estimated appropriations prepared by the director to the 
governor and each member of the legislature.
	(d)  Not later than the seventh day after a regular 
legislative session convenes, the director shall transmit a copy of 
the general appropriations bill to the governor and each member of 
the legislature.

Acts 1985, 69th Leg., ch. 479, § 1, eff. Sept. 1, 1985.  Amended 
by Acts 1990, 71st Leg., 6th C.S., ch. 1, § 1.19, eff. Sept. 1, 
1990;  Acts 1997, 75th Leg., ch. 165, § 6.12, eff. Sept. 1, 1997;  
Acts 1997, 75th Leg., ch. 1071, § 26, eff. Sept. 1, 1997.


	§ 322.009. INSPECTION COMMITTEES.  Either of the joint 
chairs of the board, with the approval of the board, may appoint a 
committee to visit, inspect, and report on any state institution, 
department, agency, officer, or employee.

Acts 1985, 69th Leg., ch. 479, § 1, eff. Sept. 1, 1985.  Amended 
by Acts 2003, 78th Leg., 3rd C.S., ch. 3, § 6.06, eff. Jan. 11, 
2004.


	§ 322.010. INSPECTIONS AND HEARINGS.  (a) The board or an 
employee under the direction of the board may inspect the property, 
equipment, and facilities of a state department or agency for which 
an appropriation is to be made and may inspect all accounts and 
general and local funds.
	(b)  An inspection performed under Subsection (a) may be made 
either before or after an estimate required under Section 322.007 
has been submitted.
	(c)  The board may hold hearings to consider the estimates 
required under Section 322.007 and any information gathered under 
Subsection (a).

Acts 1985, 69th Leg., ch. 479, § 1, eff. Sept. 1, 1985.                    


	§ 322.011. PERFORMANCE AUDITS AND REPORTS.  (a) The board 
shall establish a system of performance audits and evaluations 
designed to provide a comprehensive and continuing review of the 
programs and operations of each state institution, department, 
agency, or commission.
	(b)  The board may evaluate the programs and operations of 
any institution, department, agency, or commission that received an 
appropriation in the most recent General Appropriations Act or is a 
state agency.  An institution, department, agency, or commission 
may not be evaluated until after the end of the first full fiscal 
year of its operation.
	(c)  On the third Tuesday of each January in which the 
legislature meets in regular session, the board shall make a 
performance report to the legislature.
	(d)  The report shall analyze the operational efficiency and 
program performance of each institution, department, agency, and 
commission evaluated.  The report shall explicitly state the 
statutory function each entity is to perform and how, in terms of 
unit-cost measurement, work load efficiency data, and program 
output standards established by the board, these statutory 
functions are being accomplished.
	(e)  The performance report shall be published in the form 
prescribed by the board.
	(f)  The director, with the approval of the board, shall 
appoint an assistant director for program evaluation.  The 
assistant director shall report to and be responsible to the 
director.
	(g)  The director shall employ sufficient personnel to carry 
out the provisions of this section.

Acts 1985, 69th Leg., ch. 479, § 1, eff. Sept. 1, 1985.  Amended 
by Acts 1993, 73rd Leg., ch. 963, § 1, eff. Aug. 30, 1993.


	§ 322.012. GIFTS AND GRANTS.  (a) The board may accept 
gifts, grants, and donations from any organization described in 
Section 501(c)(3) of the Internal Revenue Code  for the purpose of 
funding any activity under this chapter.
	(b)  All gifts, grants, and donations must be accepted in an 
open meeting by a majority of the voting members of the board and 
reported in the public record of the board with the name of the 
donor and purpose of the gift, grant, or donation.

Added by Acts 1987, 70th Leg., ch. 617, § 3, eff. Sept. 1, 1987.           


	§ 322.013. REVIEW OF EDUCATIONAL POLICY 
IMPLEMENTATION.  (a) The standing committees of the senate and 
house of representatives with primary jurisdiction over the public 
school system shall oversee and review the implementation of 
legislative education policy by state agencies that have the 
statutory duty to implement that policy, including policy relating 
to:
		(1)  fiscal matters;                                                          
		(2)  academic expectations;  and                                              
		(3)  evaluation of program cost-effectiveness.                                
	(b)  The committees shall periodically review the actions or 
proposed actions of the State Board of Education for the purpose of 
ensuring compliance with legislative intent.  If a committee 
determines that any action or proposed action of the State Board of 
Education conflicts with legislative educational policy, the 
committee shall submit its comments on the conflict to the State 
Board of Education in writing.  If a committee determines that a 
final action of the board conflicts with the intent of legislative 
educational policy, the committee may:
		(1)  request additional information from the State 
Board of Education relating to the intent of the board's action;
		(2)  request a joint meeting with the State Board of 
Education to discuss the conflict between the action and 
legislative educational policy;
		(3)  request that the State Board of Education 
reconsider its action;  or   
		(4)  notify the governor, lieutenant governor, speaker 
of the house, and the legislature of the conflict presented.
	(c)  The board shall assist the committees in administering 
this section.    
	(d)  For purposes of carrying out its duties, the board may 
administer oaths and issue subpoenas, signed by either of the joint 
chairs of the board, to compel the attendance of witnesses and the 
production of books, records, and documents.  A subpoena of the 
board shall be served by a peace officer in the manner in which 
district court subpoenas are served.  On application of the board, a 
district court of Travis County shall compel compliance with a 
subpoena issued by the board in the same manner as for district 
court subpoenas.

Added by Acts 1993, 73rd Leg., ch. 520, § 24, eff. Sept. 1, 1993.  
Amended by Acts 2003, 78th Leg., 3rd C.S., ch. 3, § 6.07, eff. 
Jan. 11, 2004.


	§ 322.014. REPORT ON MAJOR INVESTMENT FUNDS.  (a) In this 
section, "state investment fund" means any investment fund 
administered by or under a contract with any state governmental 
entity, including a fund:
		(1)  established by statute or by the Texas 
Constitution;  or               
		(2)  administered by or under a contract with:                                
			(A)  a public retirement system as defined by 
Section 802.001 that provides service retirement, disability 
retirement, or death benefits for officers or employees of the 
state;
			(B)  an institution of higher education as defined 
by Section 61.003, Education Code;  or
			(C)  any other entity that is part of state 
government.                    
	(b)  The board shall evaluate and publish an annual report on 
the risk-adjusted performance of each state investment fund that in 
the opinion of the board contains a relatively large amount of 
assets belonging to or administered by the state.  The board in its 
report shall:
		(1)  compare the risk-adjusted performance of the 
funds;  and               
		(2)  examine the risk-adjusted performance, within and 
among the funds, of similar asset classes and comparable portfolios 
within asset classes.
	(c)  Each state governmental entity that administers a state 
investment fund and each person that administers a state investment 
fund under contract shall provide the board with the information 
the board requests regarding the performance of the fund.
	(d)  The board shall publish the annual report in a format 
and using terminology that a person without technical investment 
expertise can understand.

Added by Acts 2001, 77th Leg., ch. 1410, § 1, eff. June 16, 2001.          


	§ 322.015. REVIEW OF INTERSCHOLASTIC COMPETITION.  The 
board may periodically review and analyze the effectiveness and 
efficiency of the policies, management, fiscal affairs, and 
operations of an organization that is a component or part of a state 
agency or institution and that sanctions or conducts 
interscholastic competition.  The board shall report the findings 
to the governor and the legislature.  The legislature may consider 
the board's reports in connection with the legislative 
appropriations process.

Added by Acts 2003, 78th Leg., 3rd C.S., ch. 3, § 6.09, eff. Jan. 
11, 2004.


	§ 322.016. PERFORMANCE REVIEW OF SCHOOL DISTRICTS.  (a) 
The board may periodically review the effectiveness and efficiency 
of the operations of school districts, including the district's 
expenditures for its officers' and employees' travel services.  A 
review of a school district may be initiated by the board at its 
discretion or on the request of the school district.  A review may 
be initiated by a school district only by resolution adopted by a 
majority of the members of the board of trustees of the district.
	(b)  If a review is initiated on the request of the school 
district, the district shall pay 25 percent of the cost incurred in 
conducting the review.
	(c)  The board shall:                                                          
		(1)  prepare a report showing the results of each 
review conducted under this section;
		(2)  file the report with the school district, the 
governor, the lieutenant governor, the speaker of the house of 
representatives, the chairs of the standing committees of the 
senate and the house of representatives with jurisdiction over 
public education, and the commissioner of education;  and
		(3)  make the entire report and a summary of the report 
available to the public on the Internet.
	(d)  Until the board has completed a review under this 
section, all information, documentary or otherwise, prepared or 
maintained in conducting the review or preparing the review report, 
including intra-agency and interagency communications and drafts 
of the review report or portions of those drafts, is excepted from 
required public disclosure as audit working papers under Section 
552.116.  This subsection does not affect whether information 
described by this subsection is confidential or excepted from 
required public disclosure under a law other than Section 552.116.

Added by Acts 2003, 78th Leg., 3rd C.S., ch. 3, § 6.09, eff. Jan. 
11, 2004.  Amended by Acts 2005, 79th Leg., ch. 741, § 5, eff. 
June 17, 2005.


	§ 322.0165. PERFORMANCE REVIEW OF INSTITUTIONS OF HIGHER 
EDUCATION.  (a) In this section, "public junior college" and " 
general academic teaching institution" have the meanings assigned 
by Section 61.003, Education Code.
	(b)  The board may periodically review the effectiveness and 
efficiency of the budgets and operations of:
		(1)  public junior colleges;  and                                             
		(2)  general academic teaching institutions.                                  
	(c)  A review under this section may be initiated by the 
board or at the request of:
		(1)  the governor;  or                                                        
		(2)  the public junior college or general academic 
teaching institution.    
	(d)  A review may be initiated by a public junior college or 
general academic teaching institution only at the request of the 
president of the college or institution or by a resolution adopted 
by a majority of the governing body of the college or institution.
	(e)  If a review is initiated by a public junior college or 
general academic teaching institution, the college or institution 
shall pay 25 percent of the cost incurred in conducting the review.
	(f)  The board shall:                                                          
		(1)  prepare a report showing the results of each 
review conducted under this section;
		(2)  file the report with:                                                    
			(A)  the chief executive officer of the public 
junior college or general academic teaching institution that is the 
subject of the report;  and
			(B)  the governor, the lieutenant governor, the 
speaker of the house of representatives, the chairs of the standing 
committees of the senate and of the house of representatives with 
primary jurisdiction over higher education, and the commissioner of 
higher education;  and
		(3)  make the entire report and a summary of the report 
available to the public on the Internet.
	(g)  Until the board has completed a review under this 
section, all information, documentary or otherwise, prepared or 
maintained in conducting the review or preparing the review report, 
including intra-agency and interagency communications and drafts 
of the review report or portions of those drafts, is excepted from 
required public disclosure as audit working papers under Section 
552.116.  This subsection does not affect whether information 
described by this subsection is confidential or excepted from 
required public disclosure under a law other than Section 552.116.

Added by Acts 2003, 78th Leg., 3rd C.S., ch. 3, § 6.09, eff. Jan. 
11, 2004.  Amended by Acts 2005, 79th Leg., ch. 741, § 6, eff. 
June 17, 2005.


	§ 322.017. EFFICIENCY REVIEW OF STATE AGENCIES.  (a) In 
this section, "state agency" has the meaning assigned by Section 
2056.001.
	(b)  The board periodically may review and analyze the 
effectiveness and efficiency of the policies, management, fiscal 
affairs, and operations of state agencies.
	(c)  The board shall report the findings of the review and 
analysis to the governor and the legislature.
	(d)  The legislature may consider the board's reports in 
connection with the legislative appropriations process.
	(e)  Until the board has completed a review and analysis 
under this section, all information, documentary or otherwise, 
prepared or maintained in conducting the review and analysis or 
preparing the review report, including intra-agency and 
interagency communications and drafts of the review report or 
portions of those drafts, is excepted from required public 
disclosure as audit working papers under Section 552.116.  This 
subsection does not affect whether information described by this 
subsection is confidential or excepted from required public 
disclosure under a law other than Section 552.116.

Added by Acts 2003, 78th Leg., 3rd C.S., ch. 3, § 6.09, eff. Jan. 
11, 2004.  Amended by Acts 2005, 79th Leg., ch. 741, § 7, eff. 
June 17, 2005.


	§ 322.018. RECORDS MANAGEMENT REVIEW.  (a) In this 
section, " state agency" has the meaning assigned by Section 
2056.001.
	(b)  The board may periodically review and analyze the 
effectiveness and efficiency of the policies and management of a 
state governmental committee or state agency that is involved in:
		(1)  analyzing and recommending improvements to the 
state's system of records management;  and
		(2)  preserving the essential records of this state, 
including records relating to financial management information.

Added by Acts 2003, 78th Leg., 3rd C.S., ch. 3, § 6.09, eff. Jan. 
11, 2004.


	§ 322.019. CRIMINAL JUSTICE POLICY ANALYSIS.  (a) The 
board may develop and perform functions to promote a more effective 
and cohesive state criminal justice system.
	(b)  The board may serve as the statistical analysis center 
for the state and as the liaison for the state to the United States 
Department of Justice on criminal justice issues of interest to the 
state and federal government relating to data, information systems, 
and research if an executive branch agency or institution of higher 
education is not designated by the governor to perform those 
functions.
	(c)  The director may consult the lieutenant governor, the 
speaker of the house of representatives, and the presiding officer 
of each standing committee of the senate and house of 
representatives having primary jurisdiction over matters relating 
to criminal justice and state finance or appropriations from the 
state treasury.
	(d)  The Department of Public Safety, the Texas Department of 
Criminal Justice, the Texas Juvenile Probation Commission, and the 
Texas Youth Commission shall provide the board with data relating 
to a criminal justice policy analysis under this section in the 
manner requested.

Added by Acts 2005, 79th Leg., ch. 741, § 8, eff. June 17, 2005.