Previous Texas Performance Review Recommendations

Challenging the Status Quo (1999)

RR 1 Create a Bill of Rights for Business

This proposal recommended creating a "Bill of Rights" for Texas businesses to describe the Legislature's expectation that every state agency provide the best service possible. The Bill of Rights would have held each agency responsible for responding accurately and promptly to all requests for information, clarification, and materials. Agencies would be required to make an ongoing commitment to streamlining their regulations.

Result: This proposal was not adopted.

RR 2 Add Agency Regulation Review to the Sunset Process

This recommendation was designed to ensure that state regulations expire at the end of their usefulness by making agency rules subject to Sunset review and requiring that administrative rules be updated before their scheduled review.

Result: This proposal was enacted with modifications.

RR 3 Create a Regulatory Impact Review Process

The proposal suggested ways to provide for better analysis of the effect of state regulations on Texas business. An independent review of the fiscal impact of proposed rules on the public would have been required to supplement the impact statement prepared by the state agency proposing the rule.

Result: This proposal was not adopted.

RR 4 Eliminate Physician and Medical Liquor Permits

TPR recommended amending state law to eliminate medical and physician's liquor permits. This proposal would have eliminated outdated licensing requirements such as a pharmacy and physician license to dispense and prescribe liquor for medicinal purposes. No one had applied for such a permit in more than 30 years.

Result: This proposal was not adopted.

RR 5 Provide Better OnLine Access to Regulatory Information

This proposal required state agencies to enter the age of electronic commerce by working together to develop more extensive links between agency Web sites, provide easier online access to agency information, and allow electronic submission of forms and payments.

Result: The Legislature adopted this proposal intact.

RR 6 Emphasize Environmental Goals with Regulatory Flexibility

This proposal required the Texas Natural Resource Conservation Commission (TNRCC) to aggressively market its existing Regulatory Flexibility Program to ease the burden of environmental regulations while protecting environmental quality. Businesses would be afforded flexibility in meeting fixed environmental standards in a manner that enhanced environmental outcomes. In addition, TNRCC would allocate additional funding to support an expanded Small Business Assistance Program and consider sharing the cost of environmental audits with mid-size businesses to free up resources for additional audits.

Result: The Legislature adopted this proposal intact.

RR 7 Eliminate Tasting and Market Research Permits for Package Stores

This proposal suggested eliminating the tasting permit issued by the Texas Alcoholic Beverage Commission. Instead of having to obtain yet another permit, a business would notify TABC whenever it planned to conduct a tasting. In addition, the market research packager's permit would be eliminated since no one had been issued this permit since 1991.

Result: This proposal was not adopted.

RR 8 Simplify Licensing Requirements for Businesses Modifying Motor Vehicles for Disabled Drivers

The Texas Department of Transportation should consolidate processing of the three licenses required for businesses that modify vehicles for disabled drivers.

Result: This proposal was not adopted.

RR 9 Improve Wholesale License Revenue Processing at the Texas Department of Health

This proposal outlined ways for the Texas Department of Health to streamline the license processing times from several weeks to a maximum of 48 hours by using a lockbox or payment-by-phone system, while yielding a significant savings for the state.

Result: The Legislature adopted this proposal intact.

RR 10 Streamline Policies Connected with Intermediate Care Facilities for the Mentally Retarded

Intermediate care facilities for the mentally retarded were subject to regulation by several state agencies including the Texas Department of Mental Health and Mental Retardation (MHMR), the Texas Department of Protective and Regulatory Services, the Texas Department of Licensing and Regulation, the Office of the Attorney General and the Texas Department of Human Services (DHS).

Vendors complained about inadequate communication between MHMR and DHS, which sometimes resulted in payment delays and created a financial hardship on vendors, which by their nature tended to be small businesses. The recommendation was designed to ensure that vendors would not be bounced from MHMR to DHS when questions about the status of a facility arose. In addition, a new model for licensing and certifying facilities would also be developed.

Result: HB 1396 implemented the development of a model, but the recommendation concerning intermediate care facilities was not adopted.

RR 11 Consolidate Regulation of Certain Child Nutrition Programs

The Summer Food Service Program was administered by the Texas Department of Human Services (DHS) and provided free nutritious meals to low-income children during school vacations. The Texas Education Agency administered the school lunch and breakfast programs for school districts and was the logical agency in which to consolidate the Summer Food Service Programs. By doing so, the state could take advantage of federal laws that would result in a gain of almost $2 million annually, while providing better service to Texas schoolchildren. Additional recommendations were made to require DHS to accept electronically produced forms for the Child and Adult Care Food Program and submit all changes in rules, policies, and policy interpretations for the Child and Adult Care Program to an Advisory Committee for review and comment.

Result: HB 937 enacted the recommendations to require DHS to accept electronically produced forms for the Child and Adult Care Food Program and submit all changes to rules and policies to the Child and Adult Care food Program Advisory Committee for review and comment. The recommendation, which would have transferred the Summer Food Service Program to the Texas Education Agency, however, was not adopted.

RR 12 Coordinate Expiration Dates on Alcoholic Beverage Secondary Permits

State law should be amended to coordinate expiration dates so that a business's secondary permits with the Texas Alcoholic Beverage Commission expire on the same date as its primary permits. The Texas Alcoholic Beverage Commission (TABC) issued 58 different licenses, permits, and certificates relating to the sale, distribution, and production of alcoholic beverages. The licenses and permits that could not be issued independently were called secondary; licenses and permits that could be issued independently were called primary. A business could hold several different permits, all issued on different dates for 12 months each. By coordinating business's permit renewal dates, the processing burden on both businesses and TABC would be reduced.

Result: The Legislature adopted the proposal intact.

RR 13 Consolidate Aquaculture Licenses and Exotic Species Permits

This proposal would consolidate certain licensing requirements for aquaculture activities under the Texas Parks and Wildlife Department and reduce the number of state agencies regulating aquaculture activities from three to two.

Result: This proposal was not adopted.

Disturbing the Peace (1997)

GG 2 Simplify and Ease Business Regulatory Processes

The proposal recommended a performance review of regulatory processes to include statewide hearings and electronic ways for businesses to voice their concerns. It also recommended that the review should investigate regulatory improvement efforts in other states and recommend improvements to simplify regulatory processes, reduce turnaround times, and eliminate obsolete requirements.

Result: No legislation was needed to implement this proposal.

GG 3 Streamline State Grocery Store Regulation

The proposal recommended the Texas Parks and Wildlife Department enter into an interagency agreement with the Texas Department of Health to consolidate the application and inspection process for retail fish dealers and food retailers. Although the two agencies had different regulatory goals, the application and inspection processes involved were similar and consolidating these processes would reduce the regulatory burden on business, improve compliance, and save tax dollars.

Result: No legislation was needed to implement this proposal.

Gaining Ground (1995)

CG 1 Eliminate Barriers to Doing Business in Texas

The proposal suggested the state's overall regulatory environment would improve by improving access to information, establishing a single point of contact for business permit applicants, improving the adversarial relationship between regulated entities and state government, and encouraging coordination and cooperation among regulatory agencies.

Result: This proposal was not adopted.

Against the Grain (1993)

GG 4 Reengineer Business Permitting In Texas

TPR recommended requiring the Texas Department of Commerce to reengineer the business permitting process in Texas to move toward the goal of creating a one-stop permitting process.

Result: The Legislature adopted a modified version of this proposal to be administered by the State Auditor.

GG 6 Abolish the State Banking Board and Transfer its Function to the Commissioner of Banking

This proposal recommended transferring all functions performed by the State Banking Board (SBB) to the Commissioner of Banking, with oversight by and appeals made to the Finance Commission.

Result: This proposal was not adopted.

GG 7 Consolidate State Gaming Regulation Into One Agency

This proposal recommended that effective January 1, 1995, all functions and responsibilities for pari-mutuel wagering, lottery and bingo be consolidated and transferred to the Texas Racing Commission (TxRC) and the agency renamed the Texas Gaming Commission. The consolidated agency would provide staff services and handle administrative duties. Since the TxRC members had experience in regulating pari-mutuel wagering, it was recommended that these members carry out their terms as commissioners of the newly consolidated agency.

Result: A modified version of this proposal was adopted. It did not include horse and greyhound racing.

GG 8 Abolish the Texas Space Commission and Transfer its Functions

The proposal recommended making the Texas Space Commission an advisory body and changing its name to the Advisory Committee on the Promotion of Aerospace Industries. It was further recommended that state law require the advisory board's functions be self-supporting through license place fees and private contributions except for administrative support provided by the Texas Department of Commerce.

Result: A modified version of this proposal was adopted in an Appropriations Bill rider. All property and appropriations of the Texas Space Commission were transferred to the Texas Department of Commerce.

GG 9 Transfer the Board of Tax Professional Examiners to Texas Department of Licensing and Regulation

This proposal recommended transferring the licensing function of the Board of Tax Professional Examiners to the Texas Department of Licensing and Regulation, which would mean a more standardized approach to licensure with additional fiscal and program control. Consolidating administrative services also would save the state money.

Result: This proposal was not introduced.

GG 21 Adopt a Semi-Annual Schedule for the Prepayment of the Insurance Premium Tax

TPR recommended converting the quarterly prepayment schedule to a semi-annual prepayment schedule. The May 15 payment would be accelerated to the March 1 due date; and the August 15 and November 15 quarterly prepayments would be accelerated to August 1. This change would reduce paperwork and processing costs for insurers as well as for the Department of Insurance. Under a separate recommendation in the report, the functions would be transferred to the Comptroller's office which would ensure that all August collections would be processed by the end of the fiscal year. In addition, the recommendation would provide a one-time revenue boost by shifting the November payment in to the current fiscal year.

Result: The Legislature adopted this proposal intact.

GG 22 Eliminate or Reduce Discounts for Tax Report Filers

TPR recommended eliminating or reducing certain discounts for those who file tax reports for the sales tax, alcoholic beverage excise tax, hotel/motel tax and motor fuels tax. State law allowed those who filed certain tax reports to take a deduction against the tax owed to help cover the costs associated with remitting those taxes to the state. Eliminating or reducing the filer discount was recommended as preferable to a general tax increase.

Result: This proposal was not introduced.

GG 35 Grant Financial Regulatory Agencies the Ability to Assess Appropriate Penalties and Fines

This proposal recommended state law authorize the Department of Banking, the Savings and Loan Department, the Office of Consumer Credit Commissioner and the State Securities Board assess fines or civil monetary penalties against persons or organizations found to have violated any provision of the act applicable to their agency, board rule or written agreement entered into with the respective agency.

Result: This proposal was not adopted.

CG 4 Establish a Single Identification Number for Entities Doing Business with the State

The state should move toward the use of the Comptroller's "core"; 11-digit taxpayer number as a universal identification number for state transactions since it is a widely used number among taxpayers and is based on common federal identifiers. An integrated system would improve the delivery of services and minimize the unnecessary duplication of databases, efforts and costs. Common identifiers would greatly assist legislative and agency researchers in performing data analysis for special studies, program analysis and auditing and fraud detection.

Result: The Legislature adopted this proposal intact.

Breaking the Mold (1991)

GG 17 Regulate Credit Life Insurance

TPR recommended amending statute to extend the scope of credit insurance regulation from "less than five years duration"; to "ten years or less' duration and authorize a fee not to exceed $200 for the agency to review the filing. Credit life insurance and credit accident and health insurance were types of insurance designed to protect against the risk that a debtor might fail to fulfill his obligations in situations where a firm or institution extended credit either as a lender or facilitated the sale of goods and services.

Recommended changes to statute would increase consumer protection. The proposal required the State Board of Insurance to review additional filings on policies or forms where the transaction was between five and 10 years. The overall effect on the agency was expected to be minimal. In addition, the agency would be authorized to charge a fee to recover its costs, with a $200 ceiling placed on the fee. The result of this recommendation would be that the consumer would have greater assurance that the cost of credit insurance was reasonable in relation to the benefits of the coverage.

Result: The Legislature adopted this proposal intact.

GG 18 Transfer the Regulation of Premium Finance Companies

TPR recommended transferring the regulation of premium finance companies from the State Board of Insurance to the Office of the Consumer Credit Commissioner. This proposal would have resulted in the regulation being conducted by an agency that already oversaw similar programs. The recommendation also would have eliminated the annual license and registration renewal process and in its place institute a biennial process.

Result: This proposal was not adopted.

GG 20 Regulation of Prepaid Funeral Services

TPR recommended transferring the prepaid funeral and perpetual care cemetery regulatory functions from the Texas Department of Banking to the State Board of Insurance. State law provided that businesses which sold pre-arranged or prepaid funeral services or merchandise obtain a permit from the Texas Department of Banking. Funds received by vendors as part of a prepaid funeral contract were placed in trust until the service was provided or the contract was canceled. Prepaid funeral contract funds were increasingly being placed in insurance policies instead of trust accounts. The State Board of Insurance was involved in the regulation of industries similar in nature to the prepaid funeral and perpetual care cemetery industries.

Result: This proposal was not adopted.

GG 27 Reorganize Office of State-Federal Regulations

The Texas Office of State-Federal Relations (OSFR) began in 1965 as a division of the Office of the Governor and was established as an independent agency in 1971. OSFR was required to monitor federal legislation and federal funding trends; provide Congress and federal agencies with information about state programs, policies and legislation; inform the Governor and the Legislature of federal programs which would affect the state; coordinate activities between the two levels of government; and prepare an annual report to the Governor and the Legislature summarizing the year's achievements and recommendations.

OSFR lacked focus and had failed to build credibility as a reliable service provider to the Legislature and state agencies. To correct the problem, the proposal recommended amending state law to provide an advisory board for the agency, require specific information in OSFR's annual report pertaining to federal funds and formulas, assist agencies with grant applications, authorize additional statutory responsibilities related to federal funds monitoring for both state and local governments, and permit contracting with other state agencies for staff in Washington D.C.

Result: The Legislature adopted this proposal intact.