LBJ SCHOOL OF PUBLIC AFFAIRS
Sunset Commission
Center for Politics & Governance
Executive Summary
Every two years, twenty to thirty Texas state agencies will automatically expire unless the
Texas Legislature passes and the governor signs laws renewing them. The Sunset Advisory
Commission, also commonly called the “Sunset Commission,” spearheads this renewal
process. The Sunset Commission is composed of five members of the Texas House, five
members of the Texas Senate, and two members of the public. A professional staff of policy
analysts supports the commission’s review of agencies up for renewal.
During a year long process, the commission receives input from its professional staff,
interest groups, the public at large, and other agencies. The Sunset Commission then
recommends and drafts legislation for the legislature’s consideration. The legislature has
numerous options, including not passing the agency’s sunset bill, resulting in the automatic
abolishment of the agency.
In the 83rd Legislative Session, legislators will vote on renewing and reforming several
major state agencies, including the Railroad Commission of Texas, the Texas Education
Agency, and the Public Utility Commission of Texas. In all, the Sunset Commission has
reviewed and made recommendations on twenty-four state agencies. During the legislative
session,lawmakers can act on these recommendations.
History
The Legislature created the Sunset Advisory Commission in 1977, to eliminate waste,
duplication and inefficiency in the Texas government. The Sunset Commission initially
focused on issues of occupational regulation. Over the years, the legislature expanded the
Sunset Commission’s role to include analyzing state policies and investigating concerns
regarding the way state agencies run. Today, the sunset process allows the legislature to
guide the mission of state agencies as they come up for review.
Since 1979, the Sunset Advisory Commission has reviewed 339 agencies and abolished 78
agencies. The Sunset Commission abolished thirty-seven agencies (about 9%) outright and
abolished forty-one agencies (about 10%) with some of their functions transferring to
other agencies.
The work of the Sunset Commission also has substantial financial benefits to the state.
From 1982-2011, the Sunset Commission cost the state approximately $32.8 million.
However, the efficiency reforms recommended by the Sunset Commission have saved the
state approximately $945.4 million. This amounts to a return of approximately $29 for
every $1 spent on the Sunset Process.1
General Information
When the Texas Legislature creates an agency, it mandates a specific agency expiration
date. After the expiration date, the agency will be abolished, if a bill is not passed to renew
it. In the 82nd Legislative Session, the Sunset Commission adopted 89% of the Sunset
Commission staff’s recommendations, while the legislature adopted about 75% of the
Sunset Commission’s recommendations.2
One hundred and thirty agencies are subject to the Texas Sunset Act. Some agencies,
including the Board of Pardons and Paroles, the Board of Trustees of the Teacher
Retirement System and Universities, are eligible for Sunset review, but not elimination.
Reviewing these agencies allows the commission to make recommendations to improve
their efficiency, but the agencies cannot be abolished because they provide services
deemed vital. The Sunset Commission evaluates twenty to thirty agencies during each
legislative session. Agencies generally are grouped by topic, so that the agencies working
in a particular area are up for review during the same session. The legislature can also
single out problem agencies for special review. In the 83rd Legislative Session, the agencies
up for review include agencies that work on education, criminal justice, and the arts.3
Personnel and Roles
The Sunset Advisory Commission is a twelve-member panel comprised of five senators, five
representatives, and two members of the public. The Lieutenant Governor appoints five
senators and one public member. The Speaker of the House appoints five representatives
and one public member. Chairmanship of the Sunset Commission alternates each session
between the house and the senate. For the 83rd Legislative Session, the chair will be
Representative Dennis Bonnen of Angleton.4
Executive Director Ken Levine and a staff of fifteen policy analysts carry out the agency
review process and make recommendations to the Sunset Advisory Commission.5 The
Sunset Advisory Commission staff is professional and independent. The conclusions and
recommendations are based on objective methodical analysis, not political ideology. The
legislature can also direct the Sunset Commission to conduct additional research and
analysis during a legislative session.
Review Process
The Sunset Review process begins well in advance of the legislative session when the
legislature establishes a timeline for the next review. The timeline for the Sunset Review
process during the 83rd Legislative Session came out of the 82nd Legislative Session. The
first step in the review process requires the Sunset Advisory Commission staff to publish
reports on the agencies up for review. These reports are based on, among other things,
agency self-evaluation reports (SERs), meetings between Sunset and agency staff, and
meetings between Sunset staff and interest groups and other interested parties.
For the current Sunset Review process, agencies submitted their SERs in September 2011.
Agency reports take between three to eight months to complete, depending on the
agency.7 The Sunset Commission staff completed some agency reports as early as March
2012 (Texas Ethics Commission, Texas Higher Education Coordinating Board, State
Commission on Judicial Conduct, Texas Lottery Commission, and the State Preservation
Board) and other agency reports as late as November 2012 (Texas Facilities Commission,
Department of Information Resources, Procurement and Support Services Division of the
Comptroller of Public Accounts, Public Utility Commission of Texas, Railroad Commission
of Texas).8
Next, the twelve-member Sunset Advisory Commission becomes involved. The Commission
conducts public hearings typically a month or two after the staff reports are published.9
During these hearings, the Commission receives staff recommendations, agency responses,
and public testimony. The Commission compiles the facts and opinions from the public
hearings and, along with the staff reports, bases its recommendation for each agency on
this information. The Commission's recommendations must be ready no later than
February 2013, when it submits its report to the legislature.10
The Commission's report must include a recommendation to either continue or abolish
each agency up for review. It also may contain other recommendations, such as
streamlining or merging an agency.11 If the Commission recommends that a particular
agency be renewed, it must also draft a bill extending that agency for up to twelve years. It
is common for legislators who are also Sunset Commission members to introduce and carry
these bills. Once introduced, these bills follow the same path as any other bill before the
legislature. If the Commission recommends abolishing an agency, no further action is
needed from commission members. Assuming no other legislator introduces a bill to renew
the agency, the agency is dissolved following a one-year wind-down period.12
In addition to making agency-specific recommendations, the Sunset Advisory
Commission can also make Across-the-Board (ATB) recommendations that apply to
all state agencies. These are general policies that are designed to promote
responsive and transparent government. Past ATB recommendations have included
that: as close to one-third of state agency boards represent the public (as opposed to
industry or interest groups); the governor appoint a presiding officer or chair of
state agency boards to ensure accountability; and agencies develop written
alternative procedures for disputes within and concerning the agency.
13
Major Agencies Under Review
Texas Education Agency
The Texas Education Agency (TEA) is one of the major agencies up for review in the 83rd
Legislative Session. The mission of TEA is “to provide leadership, guidance, and resources
to help schools meet the educational needs of all students.”14 The TEA has many functions,
including distribution of funding to Texas public schools, administration of testing and
assisting schools that fail to meet accountability standards.15
The Sunset Commission Staff has filed a report suggesting changes to TEA. The Sunset
Commission recommends transferring non-related functions to different agencies,
including adult education and regulation of the private driver training industry. The Sunset
Commission also suggests streamlining the TEA by removing requirements, reports, and
programs that do not further the mission of the agency. Additionally, the Sunset
Commission advises giving TEA the power to evaluate and close Low-Performing Charter
Schools. Finally, the Sunset Commission called attention to problems in TEA’s contracting
practices.
Railroad Commission of Texas
The oldest regulatory agency in Texas, the Railroad Commission initially regulated rail
industry rates and operations when the legislature created it in 1891. Today, its scope is
vastly different and does not include regulation of the railroads, which the legislature
transferred to the Texas Department of Transportation in 2005.16 According to the Railroad
Commission, its "overarching agency goal is to encourage the responsible development of
natural resources while protecting the environment."17
In its 2011 SER, the railroad commission listed four main objectives: regulating energy
resources, ensuring safe transportation and use of energy resources, protecting the
environment, and providing public access to information.18 Its regulatory jurisdiction
included 10,718 businesses with over 285,937 active oil and gas wells19 , 169,000 miles of
pipeline20, 5.5 billion barrels of proven oil reserves, and 80 trillion cubic feet of proven
natural gas reserves.21
Although the Sunset Commission reviewed the agency in 2011, none of the recommended
changes were implemented because the house and senate could not reach an agreement on
a final bill. Instead, the legislature passed a bill extending the Railroad Commission in its
present form for two years, resulting in it being reviewed again for the 2013 session.22
The Sunset Advisory Commission published its staff report on the Railroad Commission in
November 2012. The report recommended continuing the agency but changing its name to
the Texas Energy Resources Commission. The Sunset Commission also recommended that
the Railroad Commission impose restrictions on when commissioners can raise money,
implement a pipeline permit fee and get authorization for the legislature to enforce
pipeline safety rules, and eliminate the $20 million cap on the Oil and Gas Regulation and
Cleanup Fund.23
State Pension Review Board
The legislature created The State Pension Review Board (PRB) in 1979 to oversee state
and local public retirement systems. The board evaluates retirement system finances,
collects data and offers education for public retirement system trustees and
administrators. The Sunset Commission has highlighted some issues regarding the PRB.
First, the report states that many public pension funds in Texas do not need a lot of
oversight because they generally do not hold significant risk. Second, the PRB needs to
improve its data collection methods. Finally, the PRB’s training effort needs to be expanded
to target the highest risk private pension funds.
Public Utility Commission
The Public Utility Commission of Texas (PUC) is the Texas agency that oversees electric and
telecommunications companies in Texas.24 The legislature created the PUC in 1975 to
regulate the rates and services of monopoly utilities, but the legislature has since
deregulated much of the electric market and the telecommunications market. The PUC now
supervises aspects of the legislative changes in addition to: regulating the rates, services,
and service quality of utilities that operate as utilities; overseeing rates and services of
utilities; overseeing ERCOT operations; administering renewable energy and efficiency
programs; regulating telecommunications providers; and administering assistance
programs for low-income customers.
In 2010, the Sunset Commission reviewed the PUC and made recommendations to the
82nd Legislature, including the continuation of the agency, but the bill failed to pass.25
Other legislation called for a limited review of the PUC for the 83rd Legislature regarding
the appropriateness of the 2010 recommendations. Sunset staff issued an updated report
in November 2012. Its recommendations include: increasing the PUC’s penalty authority to
$100,000 per violation per day for violating Energy Reliability Council of Texas (ERCOT)
reliability standards, granting the PUC increased oversight powers over ERCOT, and
transferring the Texas Commission on Environmental Quality’s (TCEQ) regulatory
authority over water and wastewater utilities to the PUC.26
Texas Board and Department of Criminal Justice
The Texas Board of Criminal Justice is a nine member supervisory agency that oversees the
Texas Department of Criminal Justice. The Department of Criminal Justice, according to its
website, "provides confinement, supervision, rehabilitation, and reintegration of the state's
convicted felons."27 In its August 2011 SER, the department listed seven "key functions":
support alternatives to incarceration, provide continuity of care for special needs
offenders, provide safe and secure places of confinement for adult felons, provide health
care for the prison population, ensure there is capacity for felons at correctional facilities,
assist parolees with reintegration into society, and provide the means to administer the
agency operations.28
In its staff report published in May 2012, the Sunset Advisory Commission staff
recommended continuing the agency and drafting a clear plan for prisoners' reentry into
society and establishing evaluation measures.29
All Agencies Under Review
Architectural Examiners, Texas Board of
Arts, Texas Commission on the
Correctional Managed Health Care Committee
Criminal Justice, Texas Board and Department of
Education Agency, Texas
Engineers, Texas Board of Professional
Ethics Commission, Texas
Facilities Commission, Texas
Fire Fighters' Pension Commissioner, Office of
Higher Education Coordinating Board, Texas
Housing and Community Affairs, Texas Department of*
Information Resources, Department of
Judicial Conduct, State Commission on
Lottery Commission, Texas
Pardons and Paroles, Board of
Pension Review Board, State
Port of Houston Authority
Preservation Board, State
Procurement and Support Services Division of the Comptroller of Public Accounts*
Public Utility Commission of Texas*
Railroad Commission of Texas
Self-Directed Semi-Independent Agency Project Act
State Employee Charitable Campaign Policy Committee
Windham School District within Texas Department of Criminal Justice*
* Subject to a limited scope or special purpose review.
http://www.sunset.state.tx.us/suntx.pdf, p. 11.
http://www.sunset.state.tx.us/suntx.pdf, p. 11.
3 http://www.sunset.state.tx.us/2013.htm.
4 http://www.sunset.state.tx.us/suntx.pdf, p.1.
5 http://www.sunset.state.tx.us/staff.html.
7 http://www.sunset.state.tx.us/suntx.pdf, p. 4.
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2
http://www.sunset.state.tx.us/reviewdetsch.pdf.
http://www.sunset.state.tx.us/reviewdetsch.pdf.
10 http://www.sunset.state.tx.us/suntx.pdf, p. 4.
11 http://www.sunset.state.tx.us/suntx.pdf, p. 5.
12 http://www.sunset.state.tx.us/suntx.pdf, p. 5.
13 http://www.sunset.state.tx.us/suntx.pdf, pp. 7-8.
14 http://www.sunset.state.tx.us/83rd/tea/tea_sr.pdf.
15 http://www.sunset.state.tx.us/83rd/tea/tea_sr.pdf, pp. 27- 139.
16 http://www.sunset.state.tx.us/83rd/rc/ser.pdf, p. 12.
17 http://www.sunset.state.tx.us/83rd/rc/ser.pdf, p. 7.
18 http://www.sunset.state.tx.us/83rd/rc/ser.pdf, pp. 8-10.
19 http://www.sunset.state.tx.us/83rd/rc/ser.pdf, p. 7.
20 http://www.sunset.state.tx.us/83rd/rc/ser.pdf, p. 10.
21 http://www.sunset.state.tx.us/83rd/rc/ser.pdf, p. 11.
22 http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/6147443.
23 http://www.sunset.state.tx.us/83rd/RC/RC_SR.pdf.
24 http://www.sunset.state.tx.us/82ndReports/Final82nd/puc.pdf, p.113.
25 http://www.puc.texas.gov/agency/topic_files/PUC_Sunset_Notification.pdf.
26 http://www.sunset.state.tx.us/83rd/PUC/PUC_SR.pdf.
27 http://www.tdcj.state.tx.us/tbcj/index.html.
28 http://www.sunset.state.tx.us/83rd/cj/ser.pdf, pp. 1-2.
29 http://www.sunset.state.tx.us/83rd/CJ/CJ_SR.pdf, pp. 2-3.
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