Sunset Advisory Commission – January 11, 2023

The Sunset Advisory Commission met on January 11 to report decisions on the:

• San Jacinto River Authority;
• Texas Economic Development and Tourism Office;
• Texas Commission on Law Enforcement;
• Office of State-Federal Relations;
• Public Utility Commission of Texas;
• Office of Public Utility Counsel;
• Electric Reliability Council of Texas;
• Anatomical Board of the State of Texas;
• Bandera County River Authority and Groundwater District;
• Lavaca-Navidad River Authority; and the
• Upper Guadalupe River Authority

The Commission also heard proposed options to address issues at the State Board of Veterinary Medical Examiners.

This report is intended to give you an overview and highlight the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

 

Opening Comments

• Chair Schwertner – This is the last Sunset Commission of this biennium; will take a vote to send this information on to the 88^th Legislature
• Will vote on recommendations and modifications in a blanket motion; removed items to be voted on separately from the blanket motion

 

Decisions on Sunset Agency Recommendations

Upper Guadalupe River Authority

San Jacinto River Authority

Bandera County River Authority and Groundwater District

Lavaca-Navidad River Authority

• Issue 1 – LNRA Lacks Some Standard Practices to Ensure Fairness and Accountability, Including in Its Grant Program
  • 1 Apply the standard across-the-board requirement regarding public membership on the board.
  • 2 Apply the standard across-the-board requirement regarding the governor’s appointment of the presiding officer to LNRA’s board.
  • 3 Apply the standard across-the-board requirement regarding grounds for removal of a board member to LNRA.
  • 4 Apply the standard across-the-board requirement regarding board member training to LNRA.
  • 5 Apply the standard across-the-board requirement regarding the separation of
  • 6 Apply the standard across-the-board requirement regarding public testimony to LNRA.
  • 7 Apply the standard across-the-board requirement related to developing and maintaining a complaints system and making information on complaint procedures available to the public.
  • 8 Amend LNRA’s board member terms to four years to comply with constitutional requirements.
  • 9 Amend LNRA’s Sunset review date to 2035.
  • 10 Direct LNRA to establish policies requiring conflicted members of its grant review committee, staff, and the board to recuse themselves from the grant award process.
  • 11 Direct LNRA to establish and document in writing the goals, terms, and conditions for partnership grants.
  • 12 Direct LNRA to establish policies and procedures for formally monitoring grant awardees.
  • 13 Direct LNRA to develop policies to consider the past performance of grantees before awarding future grants.
  • 14 Direct LNRA to create and publish policies and procedures governing the service grant and publicly post information about the grant.
  • 15 Direct LNRA to develop and implement a reserve fund balance policy.
  • 16 Direct the Texas Legislative Council to update LNRA’s governing law.
• Johnson – Move to remove 1.2 from the blanket motion; Apply the standard across-the-board requirement regarding the governor’s appointment of the presiding officer to LNRA’s board
  • Johnson – Question is if directors be appointed by the Governor; heard testimony it may be more helpful if they could vote for their own board of directors in
  • With a vote of 8-2 recommendation passes
• Motion to adopt a blanket motion on Issue 1 passes (10-0)
• Issue 2 – UGRA Would Benefit from Implementing Common Good Governance Practices To Ensure Greater Fairness, Transparency, and Accountability
  • 1 Apply the standard across-the-board requirement regarding the appointment of the presiding officer to UGRA’s board.
  • 2 Apply the standard across-the-board requirement regarding grounds for removal of a board member to UGRA.
  • 3 Apply the standard across-the-board requirement regarding board member training to UGRA.
  • 4 Apply the standard across-the-board requirement regarding the separation of duties of board members from those of staff to UGRA.
  • 5 Apply the standard across-the-board requirement regarding public testimony to UGRA.
  • 6 Apply the standard across-the-board requirement related to developing and maintaining a complaints system and making information on complaint procedures available to the public.
  • 7 Amend UGRA’s board member terms to four years to comply with constitutional requirements.
  • 8 Amend UGRA’s Sunset review date to 2035.
  • 9 Direct UGRA to improve its contracting processes to ensure sufficient consistency and transparency.
  • 10 Direct UGRA’s board to develop and adopt a reserve fund balance policy.
  • 11 Direct the Texas Legislative Council to update UGRA’s governing law.
• Johnson – Will not remove any; still have the same concerns
• Issue 3 – SJRA Would Benefit From Improved Communication and Common Good Governance Practices
  • 1 Statutorily require SJRA to adopt a public engagement policy that guides and encourages public involvement on key decisions.
  • 2 Apply the standard across-the-board requirement regarding the governor’s appointment of the presiding officer to SJRA’s board.
  • 3 Apply the standard across-the-board requirement regarding grounds for removal of a board member to SJRA.
  • 4 Apply the standard across-the-board requirement regarding board member training to SJRA.
  • 5 Apply the standard across-the-board requirement regarding the separation of duties of board members from those of staff to SJRA.
  • 6 Apply the standard across-the-board requirement regarding public testimony to SJRA.
  • 7 Apply the standard across-the-board requirement related to developing and maintaining a complaints system and making information on complaint procedures available to the public.
  • 8 Amend SJRA’s board member terms to four years to comply with constitutional requirements.
  • 9 Amend SJRA’s Sunset review date to 2035.
  • 10 Direct the Texas Legislative Council to update SJRA’s governing law.
  • Adopted
• Issue 4 – The Bandera County River Authority and Groundwater District Is Not Subject to Sunset Review
  • 1 Remove the Bandera County River Authority from Sunset review.
  • Adopted
• New Recommendation 1: Holland – Laying this out for Canales; Sunset to bring recommendations to harmonize river authorities with the Sunset review
  • Adopted

 

Texas Economic Development and Tourism Office

• Issue 1 – The State Has a Continuing Need for the Texas Economic Development and Tourism Office
  • 1 Continue EDT for 12 years and remove the Sunset date of EDT’s enabling statute.
  • 2 Authorize EDT to create advisory committees in rule.
  • 3 Remove the Aerospace and Aviation Advisory Committee from statute.
  • 4 Continue the Small Business Advisory Task Force and exempt it from automatic abolishment.
  • 5 Consolidate four of EDT’s reporting requirements and abolish one.
  • Adopted
• Issue 2 – EDT Has Not Adequately Addressed or Communicated Problems With Its Bank Programs
  • 1 Require EDT to adopt rules governing how it disburses funds for OCAP and its other access to capital programs.
  • 2 Require EDT to develop a plan for administering and communicating about its lending programs.
  • 3 Require the Annual Bank Report to include additional information on the status of each program to better inform the Legislature.
  • 4 EDT should report to the Legislature on how to adjust or terminate the PDSBI program while limiting state losses.
  • Adopted
• Issue 3 – EDT Could Provide More Efficient and Effective Assistance to Communities for Tourism Expansion
  • 1 Require EDT and its MOU partners to produce the state’s strategic tourism plan biennially, and update statutory submission deadlines.
  • 2 EDT should consider adjusting its community tourism assessment procedures to improve their efficiency and expand their impact.
  • 3 EDT should consider increasing accessible research and educational opportunities for communities attempting to boost their tourism economies.
  • 4 EDT should consider creating a Tourism Friendly Community designation to foster additional economic development across Texas.
  • Adopted
• Issue 4 – The State Has a Continuing Need for the Office of State-Federal Relations
  • 1 Continue OSFR for 12 years and remove the Sunset date of the office’s enabling statute.
  • 2 Repeal outdated and unnecessary statutory provisions relating to OSFR’s federal funds management.
  • 3 Amend OSFR’s annual reporting requirement to remove outdated provisions and require OSFR to post each annual report on its website.
  • 4 OSFR should consider opportunities for improving the distribution process for its weekly update.
  • Adopted
• No new recommendations offered

 

Anatomical Board of the State of Texas

• New recommendation 1 (Schwertner) – transfers function to the Texas Funeral Service Commission; would establish a whole-body donation advisory committee to advise and provide expertise to TFSC
  • NADOs would be required to have American Association of Tissue Banks accreditation and would be exempted from certain WBP requirements, including inspections
  • Would require tracking and other data requirements
  • Perry – Have a few concerns; not comfortable with the idea that NADOs can maintain 10% ownership of selling those bodies
  • Perry – American Association of Tissue Banks required accreditation now?
  • Schwertner – Yes
  • Perry – Question is if the state should have oversight and verification with inspection; concerned there is no state oversight
  • Schwertner – AATB is the appropriate oversight entity; hits the right balance
  • Recommendation is adopted

 

Texas Commission on Law Enforcement

• Issue 1 – Texas’ Approach to Regulating Law Enforcement Is Ineffective
  • 1 Establish a blue ribbon panel on law enforcement professionalism to comprehensively evaluate and make recommendations on the needed professional standards for law enforcement in Texas.
  • 2 Continue the Texas Commission on Law Enforcement for two years
• Springer – Move to remove recommendation 1.1 and proposed modification from the blanket modification
  • Adopted
• Issue 2 – Key Elements of TCOLE’s Statute and Procedures Do Not Conform to Common Licensing and Regulatory Standards
  • 1 Remove a subjective qualification for licensure from statute.
  • 2 Clearly authorize TCOLE to maintain confidentiality of complainants when possible.
  • 3 Clearly define TCOLE’s authority to issue administrative subpoenas.
  • 4 Require TCOLE to establish and maintain a system for LEAs to report failed fit-for-duty exams or refusals to be examined, and authorize TCOLE to suspend licensees under limited circumstances.
  • 5 Explicitly authorize TCOLE to temporarily suspend a license in cases of imminent threat to public health, safety, or welfare, and require a timeline for due process hearings.
  • 6 Direct TCOLE to work with DPS to subscribe to rap backs on fingerprint-based criminal background checks for all licensure applicants and licensees.
  • Adopted
• Issue 3 – TCOLE’s Statute Does Not Reflect Some Standard Elements of Sunset Reviews
  • 1 Update the standard across-the-board requirement related to commission member training.
  • 2 Update the commission’s statute to reflect the requirements of the person-first respectful language initiative.
  • 3 Authorize the commission to establish advisory committees in rule.
  • Adopted
• Recommends approval of the six new recommendations
  • Adopted
• Perry – Came in with three options to reform and got rid of those recommendations; are depending on the legislature to get to where we want to be
• Perry – History of this agency is they do not do what we tell them to; if we are going to be prescriptive in statute, would like a review process shorter than its current 12-year review
• Schwertner – Is still standards work to be done
• Holland – Believe this is important and need to have further discussion; still have time to get legislation moving
• Holland – Removing recommendation with intent to work with agency/interested parties

 

Office of Public Utility Counsel

Electric Reliability Council of Texas

Public Utility Commission of Texas

• Issue 1 – Without Additional Resources and Clear Decision-Making Processes in Place, PUC Cannot Truly Fulfill Expectations for Ensuring a Reliable Electric Grid.
  • 1 The House Appropriations and Senate Finance committees should consider appropriating PUC its exceptional item requests for funding a data analytics team and additional engineering expertise.
  • 2 Authorize PUC to issue directives to ERCOT outside formal rulemaking and contested cases and authorize stakeholders to formally provide input on these directives.
  • 3 Clarify PUC’s authority over ERCOT protocols to include the ability to reject or remand them.
  • 4 Authorize ERCOT to restrict commissioners’ presence at executive sessions.
  • 5 Consolidate three electric-related reporting requirements.
  • 6 Direct PUC to develop a state reliability definition.
  • 7 Direct ERCOT to re-evaluate its performance measures, with input from PUC.
  • 8 Direct PUC, in coordination with ERCOT, to approve assumptions used in electric industry reports.
  • 9 Direct the commission to develop policies regarding separating commissioner roles and responsibilities.
  • Adopted
• Issue 2 – To Restore Trust, PUC Needs to Further Improve Its Public Communication Efforts.
  • 1 Require PUC to develop and regularly update a strategic communications plan.
  • 2 Require PUC to allow public testimony at commission meetings on agenda items.
  • 3 Direct PUC and ERCOT to create a guidance document to better coordinate public communications.
  • 4 Direct PUC to provide up-to-date, easily accessible information as part of its current website redesign efforts.
  • 5 Direct PUC to prepare minutes of commission meetings and provide them on its website.
  • Adopted
• Issue 3 – PUC Needs Additional Resources and Attention Focused on Its Water and Wastewater Regulation to Avoid Overburdening Utilities and Their Customers.
  • 1 The House Appropriations and Senate Finance committees should consider increasing PUC’s appropriation to ensure it can recover its costs to regulate water and wastewater utilities efficiently.
  • 2 Amend statute to extend the length of an emergency temporary manager appointment.
  • 3 Direct PUC to comprehensively review its water and wastewater rules, processes, and guidance documents to identify and address areas for improvement.
  • Adopted
• Issue 4 – PUC’s Poor Data Practices and Lack of Policies and Procedures Limit Its Ability to Best Allocate Resources and Serve the Regulated Community.
  • 1 Direct PUC to develop a plan to prioritize improving its case data collection and analysis.
  • 2 Direct PUC’s Legal Division and Office of Policy and Docket Management to develop comprehensive policies and procedures.
  • 3 Direct PUC to create and maintain a precedent manual, prioritizing rulings related to water and wastewater regulation.
  • 4 Direct PUC to update its contract manager guide and handbook.
  • Adopted
• Issue 5 – Texas Has a Continuing Need for PUC.
  • 1 Continue PUC for six years and remove the Sunset date of the agency’s enabling statute.
  • 2 Update the standard across-the-board requirement related to commissioner training.
  • 3 Abolish two and modify four of PUC’s reporting requirements.
  • 4 Direct PUC to update its policy guiding the agency’s rule review process to ensure identified deficiencies in the rules are addressed.
  • Adopted
• Issue 6 – The State Has a Continuing Need for OPUC, but the Agency Should Strengthen Its Processes for Contracting With Legal Expert Witnesses.
  • 1 Continue OPUC for six years and remove the Sunset date of the agency’s enabling statute.
  • 2 Direct OPUC to formalize and document certain contracting processes for legal expert witnesses.
  • Adopted
• Schwertner – Move to adopt all new recommendations as a blanket motion
  • Holland – Move to remove new recommendation 1 (Schwertner) from the blanket motion
  • Perry – Was about rotating chairs?
  • Schwertner – Yes, is a discussion to have in the legislature
    • New recommendation 1 is removed from the blanket motion
  • The rest of the new recommendations are adopted

 

Proposed Options for the State Board of Veterinary Medical Examiners

Steven Ogle, Sunset Staff

• After staff presentation on database at TBVME, staff looked at systemic issues at TBVME; found lack of policies to make use of limited data available & bad quality data
• 3 options:
  • Attach to TDLR, similar to Board of Podiatry; standard of care left to Veterinary Board, but admin processes left to TDLR & TDLR would work with DIR on procurement of a new database
  • Bring in Texas Tech, TAMU, and TMB
  • Statutory changes for minimum standards & best practices for agencies to follow
• Sen. Perry – TDLR is a stellar agency, who would be responsible for making sure this goes well?
  • Ogle, Sunset Staff – Day to day licensing and enforcement would be TDLR dreiving, at the end of the 2 years expectation is TDLR would come back to Legislature and present options
  • Idea is both agencies would work together to improve data, TBVME wants to improve data
• Sen. Perry – Does TDLR have the resources to do this?
  • Yes, appropriation attached
• Sen. Perry – Not transferring TBVME to TDLR permanently, fair statement?
• Chair Schwertner – Idea of option 1 would be for TBVME to obtain full autonomy, corresponds with review on a 4-year timeframe
• Rep. Holland – Want to make sure we double down that this is just temporary, 4 year period to help with data & licensing so they can become autonomous again
• Rep. Holland – Board would remain the same, advisory to TDLR for the 4 year period?
  • Yes
• Rep. Holland – Does TDLR have authority to appoint or remove members?
  • No, remains responsibility of the Governor
• Sen. Springer – What level would the appropriation need to be?
  • Have not specified
• Sen. Springer – If appropriation is minimal, likely not a problem
• Sen. Springer – Did you discuss the vendors for the database with TBVME?
  • Have not received an update
• Chair Schwertner – TBVME would continue to receive licensing fee
• Rep. Holland – What is the surplus from the licensing?
  • Over $1m
• Rep. Holland – Without using GR, can possibly do this
• Austin – I would assume the Board has already filled out an LAR? Would this just move to TDLR?
  • Would likely be a contingency rider to direct the funds
• Austin – After 4 years of temporary, TBVME would move back to existing format?
  • Yes, and there would be a Sunset review to ensure everything has worked as it should
• Motion to adopt option 1 (attachment to TDLR) passes
• Sunset forwards all previously adopted recommendations to the 88th Legislature

 

Implement of 2021 Sunset Recommendations

Andrew McConnell, Sunset Staff

• Sunset staff conducts compliance checks on statutory changes, expecting SAO to publish report on management actions later this month
• Overall Sunset found agencies implemented 71% of 98 action items; compliance report contains information on status
• Most agencies expect full implementation by the end of this year
• Chair Schwertner – 71% in 2 years is not too bad

 

Appointment of Acting Director

• Schwertner – Sunset could be without acting director for extended period of time
• Request Commission authorize Chair & Vice Chair to appoint acting director and permanent director later, motion passes