Office of House Bill AnalysisH.B. 3702
By: Shields
State Affairs


H.B. 3702 establishes the Texas Private Sector Committee on Cost Control in
State Government (committee) to study and recommend cost control in state
government by examining the management and cost control procedures of the
Public Utilities Commission (PUC), the 9-1-1 Commission (9-11), the Texas
Workforce Commission (TWC), and the Texas Health and Human Services
Commission (HHSC).  This bill requires the committee to make
recommendations concerning combining PUC and 9-1-1 with the Texas Railroad
Commission, and combining TWC with HHSC. This bill further provides that
the legislature must accept or reject the recommendation of the committee
and that the legislature may not modify the recommendations. 


It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the state auditor in SECTION 1 (Section
2059.003, Government Code) of this bill. 


SECTION 1.  Amends Subtitle B, Title 10, Government Code, by adding Chapter
2059, as follows: 


Sec.  2059.001.  DEFINITION.  Defines "state agency."

Sec.  2059.002.  COMMITTEE COMPOSITION.  (a)  Provides that the Texas
Private Sector Committee on Cost Control in State Government (committee) is
composed of nine members appointed by the governor.  Requires a member of
the committee to be a private business owner or executive who has the
qualifications determined by the governor.  Requires the governor, as soon
as possible after September 1, 1999, to appoint a  number of members to
allow the committee to begin its work, and the remaining members as soon
thereafter as is practicable. 

(b)  Provides that the members of the committee serve at the pleasure of
the governor. 

(c)  Prohibits a person required to register as a lobbyist under Chapter
305 (Registration of Lobbyists) from serving as a member of the committee. 

(d)  Requires the state auditor to provide advice and staff support to the

Sec.  2059.003.  OFFICERS; COMPENSATION; MEETINGS.  (a)  Requires the
governor to designate a presiding officer for the committee.  Authorizes
the committee to elect other officers from its membership as the committee
deems appropriate, or as directed by the governor. 

(b)  Prohibits a member, including officers, of the committee from
receiving compensation for service on the committee. 

(c)  Requires the committee to meet upon the state auditor's or the
presiding officer's call,  or as provided by rule established by the state
auditor's office.  Requires the committee to hold its initial meeting not
later than October 1, 1999. 

Sec.  2059.004.  DUTIES.  (a)  Requires the committee, considering
cost-control methods used in the private sector, to examine the management
and cost control procedures and make recommendations concerning combining
at least the Public Utilities Commission and the 91-1 Commission into the
Railroad Commission, and Texas Workforce Commission and the Texas Health
and Human Services Commission. 

(b)  Requires the committee to advise the governor, the legislature, and
the governing bodies of state agencies how to improve management and reduce

(c)  Requires the committee to make recommendations to the governor and
legislature concerning the consolidations under Subsection (a) into a
single governmental agency tasked to provide services and to assist in
obtaining employment for all able to work Texans. 

(d)  Lists the issues on which the committee is required to provide

(e)  Authorizes the committee, in its examination of the specified agencies
in Subsection (a), to hold public hearings in various locations around the

Sec. 2059.005.  AGENCY COOPERATION.  Authorizes the committee to request
information relating to the structure, organization, personnel, budget, and
operations of an agency.  Requires the administrative head of each agency
to provide to the committee information which the committee requests in
performing its duties, unless disclosure of the information is prohibited
under Sections 552.101 (Exception: Confidential Information), 552.109
(Exception: Certain Private Communications of an Elected Official), 552.110
(Exception: Trade Secrets, Commercial Information, or Financial
Information), 552.114 (Exception: Student Records), and 552.119 (Exception:
Photograph of Peace Officer or Security Guards). 

Sec.  2059.006.  GIFTS AND GRANTS; STAFF; RESOURCES.  (a)  Authorizes the
state auditor's office to accept gifts and grants, including the donation
of labor or in-kind resources, on behalf of the committee to accomplish the
objectives of this chapter. 

(b)  Requires the state auditor's office and a state agency, upon request
of the state auditor, to provide staff support and other resources to
support the transportation, housing, and work of the committee. 

(c)  Requires the legislative council staff, upon request by the committee,
to prepare drafts of legislation proposed by the committee. 

Sec. 2059.007.  APPLICABILITY.  Provides that Article 6252-33, Revised
Statutes (Recodified under Section 2110.001, Government Code (relating to
the definition of "advisory committee")), does not apply to the committee
except for the provisions of Section 4 of that law. 

Sec.  2059.008.  FINAL REPORT; ABOLITION OF COMMITTEE.  (a)  Requires the
committee to submit its final report to the governor, state auditor, and
the presiding officer of each house of the legislature not later than
October 1, 2000.  Requires that the report include specific recommendations
to merge or not merge the agencies examined.  Requires that a draft of
legislation required to implement a recommendation to be included with the

(b)  Prohibits the legislature from being authorized to modify or amend the
proposed legislation.  Requires the legislature to vote for or against the
proposed legislation. 

(c)  Provides that the committee is abolished and that this chapter expires
on the date the  final report is submitted. 

SECTION 2.  Emergency clause.
  Effective date: upon passage.