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  H.B. No. 2460
 
 
 
 
AN ACT
  relating to the continuation and functions of the Texas Commission
  on the Arts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 444.002(a), Government Code, is amended
  to read as follows:
         (a)  The Texas Commission on the Arts is subject to Chapter
  325 (Texas Sunset Act). Unless continued in existence as provided
  by that chapter, the commission is abolished and this chapter
  expires September 1, 2013 [2007].
         SECTION 2.  Section 444.003(b), Government Code, is amended
  to read as follows:
         (b)  A person may not be a member of [is not eligible for
  appointment to] the commission if the person or the person's
  spouse:
               (1)  is employed by or participates in the management
  of a business entity or other organization receiving money from the
  commission;
               (2)  owns or controls, directly or indirectly,
  [directly owns or controls] more than a 10 percent interest in a
  business entity or other organization receiving money [funds] from
  the commission; or
               (3) [(2)] uses or receives a substantial amount of
  tangible goods, services, or money [funds] from the commission,
  other than compensation or reimbursement authorized by law for
  commission membership, attendance, or expenses.
         SECTION 3.  Sections 444.006(a), (b), (d), (f), and (g),
  Government Code, are amended to read as follows:
         (a)  A person may not be [serve as] a member of the commission
  or act as the general counsel to the commission if the person is
  required to register as a lobbyist under Chapter 305 because of the
  person's activities for compensation on behalf of a profession
  related to the operation of the commission.
         (b)  A person may not be a member of the commission and may
  not be a commission employee employed in a "bona fide executive,
  administrative, or professional capacity," as that phrase is used
  for purposes of establishing an exemption to the overtime
  provisions of the federal Fair Labor Standards Act of 1938 (29
  U.S.C. Section 201 et seq.) if:
               (1)  the person is an officer, employee, or paid
  consultant of a Texas trade association in the field of art; or
               (2)  the person's spouse is an officer, manager, or paid
  consultant of a Texas trade association in the field of art [An
  officer, employee, or paid consultant of a Texas trade association
  in the field of art may not be a member of the commission or employee
  of the commission who is exempt from the state's position
  classification plan or is compensated at or above the amount
  prescribed by the General Appropriations Act for step 1, salary
  group 17, of the position classification salary schedule].
         (d)  It is a ground for removal from the commission that [if]
  a member:
               (1)  does not have at the time of taking office the
  qualifications required by Section 444.003(a) [violates a
  prohibition established by this section];
               (2)  does not maintain during service on the commission
  the qualifications required by Section 444.003(a);
               (3)  is ineligible for membership under Subsection (a)
  or (b);
               (4)  cannot because of illness or disability discharge
  the member's duties for a substantial part of the member's term [for
  which the member is appointed]; or
               (5) [(3)]  is absent from more than half of the
  regularly scheduled commission meetings that the member is eligible
  to attend during a calendar year without an excuse approved [unless
  the absence is excused] by majority vote of the commission.
         (f)  If the executive director has knowledge that a potential
  ground for removal exists, the executive director shall notify the
  presiding officer of the commission of the potential ground. The
  presiding officer shall then notify the governor and the attorney
  general that a potential ground for removal exists. If the
  potential ground for removal involves the presiding officer, the
  executive director shall notify the next highest ranking officer of
  the commission, who shall then notify the governor and the attorney
  general that a potential ground for removal exists.
         (g)  In [For the purposes of] this section, [a] "Texas trade
  association" means [is] a [nonprofit,] cooperative[,] and
  voluntarily joined statewide association of business or
  professional competitors in this state designed to assist its
  members and its industry or profession in dealing with mutual
  business or professional problems and in promoting their common
  interest [obtaining public money or influencing governmental
  policy].
         SECTION 4.  Section 444.012, Government Code, is amended to
  read as follows:
         Sec. 444.012.  [INFORMATION OF INTEREST;] COMPLAINTS. (a)  
  The commission shall maintain a system to promptly and efficiently
  act on complaints filed with the commission. The commission shall
  maintain information about parties to the complaint, the subject
  matter of the complaint, a summary of the results of the review or
  investigation of the complaint, and its disposition.
         (b)  The commission shall make information available
  describing its procedures for complaint investigation and
  resolution.
         (c)  The commission shall periodically notify the complaint
  parties of the status of the complaint until final disposition
  [prepare information of public interest describing the functions of
  the commission and the procedures by which complaints are filed
  with and resolved by the commission. The commission shall make the
  information available to the public and appropriate state
  agencies].
         [(b)     The commission by rule shall establish methods by which
  consumers and grant recipients are notified of the name, mailing
  address, and telephone number of the commission for the purpose of
  directing complaints to the commission.
         [(c)     The commission shall keep information about each
  complaint filed with the commission. The information must include:
               [(1)  the date the complaint is received;
               [(2)  the name of the complainant;
               [(3)  the subject matter of the complaint;
               [(4)     a record of all persons contacted in relation to
  the complaint;
               [(5)     a summary of the results of the review or
  investigation of the complaint; and
               [(6)     for complaints for which the commission took no
  action, an explanation of the reason the complaint was closed
  without action.
         [(d)     The commission shall keep a file about each written
  complaint filed with the commission that the commission has
  authority to resolve. The commission shall provide to the person
  filing the complaint, and the persons or entities complained about,
  the commission's policies and procedures pertaining to complaint
  investigation and resolution. The commission, at least quarterly
  and until final disposition of the complaint, shall notify the
  person filing the complaint, and the persons or entities complained
  about, of the status of the complaint unless the notice would
  jeopardize an undercover investigation.]
         SECTION 5.  Section 444.014, Government Code, is amended by
  amending Subsections (b) and (c) and by adding Subsection (d) to
  read as follows:
         (b)  A person who is appointed to and qualifies for office as
  a member of the commission may not vote, deliberate, or be counted
  as a member in attendance at a meeting of the commission until the
  person completes a training program that complies with [Before a
  member of the commission may assume the member's duties and before
  the member may be confirmed by the senate, the member must complete
  at least one course of the training program established under] this
  section.
         (c)  The training program must provide the person with
  information [to the member] regarding:
               (1)  the [enabling] legislation that created the
  commission; its programs, functions, rules, and budget [and its
  policy-making body to which the member is appointed to serve];
               (2)  the results of the most recent formal audit of [the
  programs operated by] the commission;
               (3)  the requirements of laws relating to open
  meetings, public information, administrative procedure, and
  conflict of interest [role and functions of the commission]; and
               (4)  [the rules of the commission, with an emphasis on
  the rules that relate to disciplinary and investigatory authority;
               [(5)  the current budget for the commission;
               [(6)     the results of the most recent formal audit of the
  commission;
               [(7)  the requirements of the:
                     [(A)  open meetings law, Chapter 551;
                     [(B)  open records law, Chapter 552; and
                     [(C)  administrative procedure law, Chapter 2001;
               [(8)     the requirements of the conflict of interest laws
  and other laws relating to public officials; and
               [(9)]  any applicable ethics policies adopted by the
  commission or the Texas Ethics Commission.
         (d)  A person appointed to the commission is entitled to
  reimbursement, as provided by the General Appropriations Act, for
  the travel expenses incurred in attending the training program
  regardless of whether the attendance at the program occurs before
  or after the person qualifies for office. 
         SECTION 6.  Subchapter A, Chapter 444, Government Code, is
  amended by adding Sections 444.015, 444.016, and 444.017 to read as
  follows:
         Sec. 444.015.  USE OF TECHNOLOGY.  The commission shall
  implement a policy requiring the commission to use appropriate
  technological solutions to improve the commission's ability to
  perform its functions. The policy must ensure that the public is
  able to interact with the commission on the Internet. 
         Sec. 444.016.  NEGOTIATED RULEMAKING AND ALTERNATIVE
  DISPUTE RESOLUTION POLICY.  (a)  The commission shall develop and
  implement a policy to encourage the use of:
               (1)  negotiated rulemaking procedures under Chapter
  2008 for the adoption of commission rules; and
               (2)  appropriate alternative dispute resolution
  procedures under Chapter 2009 to assist in the resolution of
  internal and external disputes under the commission's
  jurisdiction.
         (b)  The commission's procedures relating to alternative
  dispute resolution must conform, to the extent possible, to any
  model guidelines issued by the State Office of Administrative
  Hearings for the use of alternative dispute resolution by state
  agencies.
         (c)  The commission shall designate a trained person to:
               (1)  coordinate the implementation of the policy
  adopted under Subsection (a);
               (2)  serve as a resource for any training needed to
  implement the procedures for negotiated rulemaking or alternative
  dispute resolution; and
               (3)  collect data concerning the effectiveness of those
  procedures, as implemented by the commission.
         Sec. 444.017.  COMPLIANCE WITH SUNSET RECOMMENDATIONS. (a)
  The commission shall:
               (1)  comply with and implement the management action
  recommendations regarding the commission adopted by the Sunset
  Advisory Commission on January 10, 2007, as a result of its review
  of the commission; and
               (2)  report to the Sunset Advisory Commission not later
  than November 1, 2008, the information the Sunset Advisory
  Commission requires regarding the commission's implementation of
  the recommendations under Subdivision (1).
         (b)  This section expires June 1, 2009.
         SECTION 7.  Section 444.024, Government Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  The commission shall adopt rules to govern the review,
  approval, and oversight of special initiative grants.  The rules
  must provide for:
               (1)  commission approval of special initiative grants,
  including expedited approval of the grants in limited circumstances
  for cases requiring immediate action;
               (2)  criteria to be used in reviewing and evaluating
  special initiative grant applications; and
               (3)  procedures to be used in determining the amounts
  of the special initiative grants.
         SECTION 8.  Section 444.025, Government Code, is amended by
  adding Subsection (j) to read as follows:
         (j)  The commission shall adopt rules to govern its
  acceptance of private gifts, grants, and donations to ensure that
  the use of the money or property supports the commission's primary
  functions. At a minimum, the rules must:
               (1)  require the commission to evaluate a gift, grant,
  or donation before acceptance to ensure that the purpose of the
  gift, grant, or donation supports the commission's priorities as
  established by statute and the commission's appropriations
  pattern;
               (2)  prohibit the commission from creating and directly
  administering programs for the purpose of qualifying for or
  complying with a condition for the acceptance of private funding;
  and
               (3)  require the commission, before acceptance of a
  gift, grant, or donation, to evaluate any obligations the
  commission would have to meet in order to accept the gift, grant, or
  donation, including required matching funds, the amount of staff
  time and effort, and any other additional costs.
         SECTION 9.  Section 444.006(c), Government Code, is
  repealed.
         SECTION 10.  (a)  In this section:
               (1)  "Sunset commission" means the Sunset Advisory
  Commission.
               (2)  "Commission" means the Texas Commission on the
  Arts.
         (b)  In performing its duties under Chapter 325, Government
  Code (Texas Sunset Act), during the period before the commission is
  scheduled to be abolished, the sunset commission shall focus on the
  commission's expenditures, including determining the percentage of
  available funding spent by the commission on overhead and
  administrative costs. The sunset commission may include any
  recommendations it considers appropriate in its report to the 83rd
  Legislature.
         (c)  This section expires September 1, 2013.
         SECTION 11.  Not later than March 1, 2008, the Texas
  Commission on the Arts shall:
               (1)  adopt the rules required by Sections 444.024(d)
  and 444.025(j), Government Code, as added by this Act; and
               (2)  adopt the policies required by Sections 444.015
  and 444.016, Government Code, as added by this Act.
         SECTION 12.  (a) The changes in law made by this Act in the
  prohibitions or qualifications applying to a member of the Texas
  Commission on the Arts do not affect the entitlement of a member
  serving on the Texas Commission on the Arts immediately before
  September 1, 2007, to continue to serve and function as a member of
  the Texas Commission on the Arts for the remainder of the member's
  term. Those changes in law apply only to a member appointed on or
  after September 1, 2007.
         (b)  The changes in law made by this Act to Section 444.012,
  Government Code, relating to the investigation of a complaint filed
  with the Texas Commission on the Arts apply only to a complaint
  filed on or after September 1, 2007. A complaint filed with the
  commission before September 1, 2007, is governed by the law as it
  existed immediately before that date, and the former law is
  continued in effect for that purpose.
         SECTION 13.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2460 was passed by the House on May
  10, 2007, by the following vote:  Yeas 140, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2460 on May 25, 2007, by the following vote:  Yeas 140, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2460 was passed by the Senate, with
  amendments, on May 23, 2007, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor