(a) After a governor’s proposal under this chapter is published in the Texas Register, the Legislative Budget Board may conduct a public hearing on the proposal. The board shall give notice of a hearing under this section in the manner provided by law for notice of regular meetings of the board. The board also shall provide notice by mail of its meetings to each member of the Legislature. The notice of the meeting must include a description of the nature of the proposal or order to be considered. If the agenda includes a public hearing on a proposal, the notice must so state.
After a hearing and at a meeting held not less than 10 days after the date notice of the meeting was given in the manner provided for regular board meetings, in response to a governor’s proposal the board, subject to the restrictions provided by Subsection (e), may:
(1) ratify the proposal by adopting an order changing the relevant appropriation in the manner specified in the proposal;
(2) reject the proposal; or
(3) recommend changes in the proposal.

(b) In response to a proposal by the board, the governor may take any action specified by Subsection (a) for board action on a governor’s proposal.
(c) A recommended change in a proposal may include recommendations for a change in:
(1) the proposed amount of money withheld or transferred;
(2) the proposed purpose for which the appropriation may be used;
(3) the proposed period for which an appropriation may not be expended, obligated, or distributed;
(4) the source or recipient of a proposed transfer; or
(5) a proposed time of distribution or availability of the appropriation that is the subject of the proposal.
(d) If the governor or the board recommends a change in a proposal by the other entity, the recommending entity may adopt a contingent order changing the relevant appropriation in the manner specified in the recommendations.
(e) Neither the governor nor the board may adopt an order under this section:
(1) expressly postponing the time, whether set by appropriations act or general law, that an appropriation is distributed or otherwise made available to a state agency, for a period that exceeds 180 days;
(2) reducing or eliminating an appropriation for the salary of an elected state official or a member of a board or commission appointed by the governor; or
(3) reducing or eliminating an appropriation to a state agency that receives appropriations under the article of the General Appropriations Act that makes appropriations to the legislative branch.
(f) The governor or board may adopt an order under this section withholding or transferring any portion of the total amount appropriated to finance the foundation school program for a fiscal year. The governor or board may not adopt such an order if it would result in an allocation of money between particular programs or statutory allotments under the foundation school program contrary to the statutory proration formula provided by Section 48.266(f), Education Code. The governor or board may transfer an amount to the total amount appropriated to finance the foundation school program for a fiscal year and may increase the basic allotment. The governor or board may adjust allocations of amounts between particular programs or statutory allotments under the foundation school program only for the purpose of conforming the allocations to actual pupil enrollments or attendance.
(g) The affirmative vote of a majority of the members of the board from each house is necessary for the adoption of an order by the board under this section.
(h) If either the governor or the board adopts an order under this section, the entity adopting the order shall notify the proposing entity, the comptroller, and the affected state agencies. Unless the order is a contingent order, the entity adopting the order shall file a copy of the order with the secretary of state for publication in the Texas Register.