(1)

1. (a) Before obligating the state to accept or receive new federal funds or to participate in a new federal program, and no later than three months after submitting a new federal funds request, and, where possible, before formally submitting the new federal funds request, an executive branch agency shall submit a federal funds request summary to the governor or the governor's designee for approval or rejection when:

   1. (i) the state will receive total payments of $1,000,000 or less per year if the new federal funds request is approved;
   2. (ii) receipt of the new federal funds will require no additional permanent full-time employees, permanent part-time employees, or combination of additional permanent full-time employees and permanent part-time employees; and
   3. (iii) no new state money will be required to match the new federal funds or to implement the new federal program for which the grant is issued.

2. (b) The Governor's Office of Management and Budget shall report each new federal funds request that is approved by the governor or the governor's designee and each new federal funds request granted by the federal government to:

   1. (i) the Legislature's Executive Appropriations Committee;
   2. (ii) the Office of the Legislative Fiscal Analyst; and
   3. (iii) the Office of Legislative Research and General Counsel.

(3)

1. (a) If the governor or the governor's designee approves the new federal funds request, the executive branch agency may accept the new federal funds or participate in the new federal program.
2. (b) If the governor or the governor's designee rejects the new federal funds request, the executive branch agency may not accept the new federal funds or participate in the new federal program.

(4) If an executive branch agency fails to obtain the governor's or the governor's designee's approval under this section, the governor may require the agency to:

1. (a) withdraw the new federal funds request;
2. (b) return the federal funds;
3. (c) withdraw from the federal program; or
4. (d) any combination of Subsections (4)(a), (4)(b), and (4)(c).