Entry Criteria for Self-Directed Semi-Independent Agencies

Final Results of Last Sunset Review

Although the 83rd Legislature required the Sunset Commission to develop recommendations for the administration of the State’s self-directed semi-independent (SDSI) process, the 84th Legislature did not pass the Sunset bill containing these recommendations. The eight state agencies that currently have SDSI status would have been affected by the Sunset Commission recommendations. However, since the agencies themselves and their SDSI status were not under Sunset review specifically, the agencies will continue to operate as SDSI agencies.

The Sunset Commission concluded the State lacks a comprehensive approach to granting, overseeing, and revoking SDSI status resulting in agencies being granted SDSI status in a haphazard way, with inconsistent ongoing oversight. The Commission recommended that the Legislative Budget Board develop and oversee an application process for all agencies seeking SDSI status, and provide ongoing monitoring for State agencies with SDSI status. In addition, the Commission found that having SDSI agencies operating under different SDSI statutes limits effective oversight of these agencies and recommended placing all the SDSI agencies under the SDSI Act.

The Sunset Commission’s statutory recommendations were incorporated into Senate Bill 217. The Senate passed the bill, with changes made to accommodate each of the agencies that would have been placed under the SDSI Act, but in the end, Senate Bill 217 never passed out of the House State Affairs Committee. The Legislature did support the Sunset Commission’s recommendation to establish a moratorium on expanding SDSI status during the 84th Legislative Session by not granting SDSI status to any new agencies.

For additional information see the Self-Directed Semi-Independent Status of State Agencies Staff Study with Final Results.