H.B. No. 3770 aims to enhance the efficiency and strategic fiscal reviews of state agencies by the Legislative Budget Board. The bill amends Section 322.017 of the Government Code, expanding the definition of "state agency" to include institutions of higher education and mandating the board to conduct regular reviews of state agencies' effectiveness and efficiency. The board is required to establish a review schedule, ensuring that at least 25 state agencies and 40 programs are analyzed each fiscal biennium. Additionally, the bill stipulates that the board must report its findings to the governor and legislature by September 1 of each even-numbered year, with specific requirements for the content and format of these reports.

Furthermore, the bill modifies Section 322.0175, allowing the board to perform strategic fiscal reviews of state agencies as deemed appropriate, rather than mandating reviews for all agencies. It outlines the necessary components of the strategic fiscal review report, including evaluations of agency activities, cost estimates, and recommendations for legislative funding. The bill also establishes that information gathered during these reviews is exempt from public disclosure until the review is completed. Lastly, it repeals certain sections of the Government Code and sets a requirement for the Legislative Budget Board to review a reduced number of agencies and programs for the fiscal biennium ending August 31, 2027. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Government Code 322.017, Government Code 322.011 (Government Code 322)
House Committee Report: Government Code 322.017, Government Code 322.0175, Government Code 322.011 (Government Code 322)