BILL ANALYSIS C.S.S.B. 670 By: Armbrister (Eiland) 05-19-95 Committee Report (Substituted) BACKGROUND The comptroller of public accounts has three general duties. First, the comptroller issues warrants and initiates direct deposits to pay the bills of state agencies and the compensation of state officers and employees. Second, the comptroller operates and maintains the uniform statewide payroll system and the human resource information system. Third, the comptroller is the sole accounting officer of the state and is required to supervise and manage the state's fiscal concerns. Currently, each state agency does not have a completely uniform system for carryover of employee benefits and compensation transferring from one state agency to another state agency. PURPOSE S.B. 670 amends the provisions relating to expenses of state agencies the compensation of employment of state officers and employees in order to create a more uniform system. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the state comptroller in SECTION 9 (Sec. 403.024(a)), SECTION 21 (Sec. 403.0165(i), Government Code), SECTION 25 (Sec. 3, Article 6813h, Revised Statutes), SECTION 27 (Subchapter G, Chapter 659, Government Code), SECTION 28 (Section 659.062, Government Code), SECTION 29 (Subchapter B, Chapter 661, Government Code), SECTION 30 (Subchapter C, Chapter 661, Government Code), SECTION 31 (Subchapter D, Chapter 661, Government Code), and SECTION 32 (Subchapter A, Chapter 662.012) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. This section would amend Sec. 659.083(c) Government Code, which defines "working day". SECTION 2. Amends the following sections: Sec. 2254.021 which defines "Consulting service", "Major consulting service contract", "Consulting", "State Agency", and "State governmental entity." Sec. 2254.022 establishes how the subchapter shall be interpreted. SECTION 3. Amends Subsections (a), (b), and (e), Section 2254.025, Government Code by striking the word "private" whenever it appeared relating to consulting services or consultants. SECTION 4. Section 2254.026, Government Code, is amended by striking the word "private" from the title and the section language. Also, changes the phrase "another agency" with "a state governmental entity." Section 2254.027, Government Code, is amended by striking the word "private" whenever it appeared in the language. SECTION 5. Amends Section 2254.028(a), Government Code, by striking the word "private"as it relates to a consultant. SECTION 6. Amends Sec. 2254.029 and Sec. 2254.030 by striking the word "private" whenever it appeared relating to a consultant. SECTION 7. Amends Section 2254.036(a) and (b) by striking the word "private" whenever it appeared relating to a consultant. SECTION 8. Amends Section 2254.037, Government Code, by striking the word "private" as it related to a consultant. SECTION 9. Adds Section 403.024 to Subchapter B, Chapter 403, Government Code. The new section would authorize the comptroller of public accounts to adopt rules to interpret, implement, and administer a state statute if: the statute specifically authorizes or requires the comptroller to interpret, implement, or administer the statute; or the comptroller determines that the rules are necessary for fulfillment of the comptroller's constitutional or statutory duties. Section 403.024 would not apply to a state statute if the statute specifically authorizes the comptroller or another state agency to adopt rules to interpret, implement, and administer the statute. Therefore, Section 403.024 would not diminish or repeal any state agency's existing rulemaking authority. SECTION 10. Amends Sec. 481.0841(d)(2) to repeal the exception to the prohibition against a state agency paying a person who has defaulted on a state guaranteed loan under the Texas Rural Economic Development Act. The exception is that the agency may pay the person if the agency does not know about the default. SECTION 11. Amends Section 57.48(e), Education Code, to repeal the prohibition against the comptroller of public accounts and state agencies paying the compensation of a person who is paid by a private person through the state. SECTION 12. Amends Section 57.48(f)(4), Education Code, to repeal the prohibition against the comptroller of public accounts and state agencies paying the compensation of a person who is paid by a private person through the state. SECTION 13. Amends Section 403.055(c), Government Code, to repeal the prohibition against the comptroller of public accounts and state agencies paying the compensation of a person who is paid by a private person through the state. SECTION 14 Amends Section 403.055(e)(4), Government Code, to repeal the prohibition against the comptroller of public accounts and state agencies paying the compensation of a person who is paid by a private person through the state. SECTION 15. Amends Section 481.0841(c), Government Code, to repeal the prohibition against the comptroller of public accounts and state agencies paying the compensation of a person who is paid by a private person through the state. SECTION 16. Amends Section 481.0841(d)(4), Government Code, to repeal the prohibition against the comptroller of public accounts and state agencies paying the compensation of a person who is paid by a private person through the state. SECTION 17. Section 403.252, Government Code, to update a statutory reference and to enable the legislature to create petty cash accounts through riders in the GAA. SECTION 18. Amends the following sections of the Government Code: Sec. 662.001 defines "Part-time state employee", "State Agency","State employee", and "Workday." Sec. 662.005 establishes criteria for entitlement to paid days off. Sec. 662.006 establishes criteria for entitlement to optional holiday. SECTION 19. Amends Section 662.007(a), Government Code, to establish criteria for when a state employee is entitled to compensatory time. SECTION 20. Amends Section 662.010, Government Code, to establish criteria for when a state employee shall be eligible for a paid holiday. SECTION 21. Amends Sections 403.0165(h) and (i), Government Code, as follows: (h) Authorizes the comptroller to charge an administrative fee to cover the cost incurred as a result of administering this section. Makes nonsubstantive changes. (i) Requires the comptroller to adopt rules for the administration of this section. Deletes existing Subsection (i). SECTION 22. Amends Section 659.041, Government Code, to define "appointment," "full-time state employee," "part-time state employee," and "state employee." SECTION 23. Amends Chapter 659D, Government Code, by adding Section 659.0411, as follows: Sec. 659.0411. APPOINTMENTS AT STATE INSTITUTIONS OF HIGHER EDUCATION. (a) Requires a state institution of higher education to determine whether a state employee who has more than one appointment with the institution holds only one position or holds one position for each appointment. (b) Requires a board of regents to determine whether a state employee who has an appointment with each of at least two state institutions of higher education under the board's jurisdiction holds only one position or holds one position for each appointment. (c) Provides a state employee who has an appointment with each of at least two state institutions of higher education holds more than one position if those institutions are not governed by the same board of regents. SECTION 24. Amends Section 2, Article 6813h, V.T.C.S., as follows: Sec. 2. DEDUCTION AUTHORIZED. (a) Makes a nonsubstantive change. (b) Authorizes a state employee to authorize a deduction only during a state employee charitable campaign. (c) Authorizes a state employee who begins working for the state when a campaign is not being conducted to authorize a deduction according to the comptroller's requirements. (d) Authorizes a state employee who works for a state agency that does not allow deduction authorizations to authorize a deduction that is effective with the first full payroll period after the agency is converted to a system in which uniform statewide payroll procedure are followed. (e) Authorizes state employee who works for a state agency that does not allow deduction authorizations to authorize a deduction after transferring from that agency to certain state agencies. (f) Authorizes a state employee who authorized a deduction while working for a state agency to continue the deduction after transferring to another state agency if the comptroller's rules for continuing the deduction are followed. (g)-(j) Conforming subsection lettering. SECTION 25. Amends Section 3, Article 6813h, V.T.C.S., as follows: Sec. 3. DURATION OF DEDUCTION. (a) Provides that a deduction under this article begins on the date designated by the comptroller by rule. (b) Sets forth the duration for which this article is effective. (c) Authorizes a state employee to revoke or change a deduction authorization by giving notice to the employing state agency. Prohibits a state employee from changing the eligible charitable organization designated to receive the employee's deductions. Provides that a revocation or change takes effect on the date designated by the comptroller by rule. SECTION 26. Amends Section 13(d), Article 6813h, V.T.C.S., to authorize the comptroller to decline to charge an administrative fee if the comptroller determines the costs that would be covered by the fee are insignificant. Makes nonsubstantive changes. SECTION 27. Amends Chapter 659, Government Code, by adding Subchapter G, as follows: SUBCHAPTER G. SUPPLEMENTAL DEDUCTIONS Sec. 659.101. DEFINITION. Defines "state agency." Sec. 659.102. DEDUCTION FOR SUPPLEMENTAL OPTIONAL BENEFITS PROGRAM. (a) Authorizes an employee of a state agency to authorize in writing a deduction each pay period from the employee's salary or wage payment for coverage of the employee under eligible supplemental optional benefits program. (b) Requires the Employees Retirement System of Texas to designate supplemental optional benefits programs that are eligible under this section and that promote the interests of the state and state agency employees. (c) Authorizes the supplemental optional benefits program to include permanent life insurance, catastrophic illness insurance, disability insurance, or prepaid legal services. Sec. 659.1021. PERMANENT LIFE INSURANCE PROGRAM establishes the development of the Permanent Life Insurance Program. Establishes criteria for providers. Establishes portfolio requirements for providers. Sec. 659.103. DEDUCTION TO CREDIT UNION. (a) Authorizes an employee of a state agency to authorize in writing a deduction each pay period from the employee's salary or wage payment for payment to a credit union to be credited to a share or deposit account of the employee. (b) Provides that a designation by the Employees Retirement System of Texas is not necessary for a deduction. Sec. 659.104. AUTHORIZATION. (a) Requires an authorization for a deduction under this subchapter to direct the comptroller or the appropriate financial officer of an institution of higher education to transfer the withheld funds to the program or credit union designated by the employee. (b) Requires the comptroller or financial officer to comply with the direction. Sec. 659.105. FORM AND MANNER. Requires a deduction to be made in a form and manner prescribed by the comptroller or the appropriate financial officer of an institution of higher education. Sec. 659.106. DURATION. (a) Authorizes an employee authorizing a deduction under this subsection or a person designated by the employee to change or revoke the authorization by delivering written notice of the change or revocation to the comptroller or the appropriate financial officer of an institution of higher education. (b) Provides that an authorization is effective until the comptroller or financial officer receives the notice. (c) Requires the notice to be given in the form and manner prescribed by the comptroller or financial officer. Sec. 659.107. AUTHORIZATION VOLUNTARY states that making an authorization for a deduction shall be voluntary. Sec. 659.108. WITHHOLDING OF ADMINISTRATIVE FEE. (a) Authorizes the state to withhold from the employee's salary or wage payment an administrative fee for making a deduction. (b) Authorizes an institution of higher education that is authorized to operate a payroll system reimbursable from the state treasury to withhold from the employee's salary or wage payment an administrative fee for making the deduction under this subchapter. (c) Prohibits an administrative fee from exceeding the lower of the actual administrative cost of making the deduction or the highest fee charged by the state or institution, as appropriate, for making another similar deduction. (d) States that the administrative fee may not exceed withheld may not exceed 25 cents for each payment made to each credit union account of the employee. Sec. 659.109. ALLOCATION AND APPROPRIATION OF ADMINISTRATIVE FEES. (a) Requires the state to allocate and pay to each state agency that incurs costs in administering this subchapter the agency's proportional amount of the administrative fees collected by the state under this subchapter. (b) Authorizes an administrative fee withheld under this subchapter to be used by the comptroller and the state agencies incurring costs in administering this subchapter. Sec. 659.110. RULES. Authorizes the comptroller to adopt rules to administer the credit union deduction program authorized by this subchapter. SECTION 28. Amends Section 659.062, Government Code, by adding Subsection (e), to authorize the comptroller procedures and adopt rules to administer this section. SECTION 29. Amends Chapter 661B, Government Code, by adding Section 661.038, as follows: Sec. 661.038. RULES. Authorizes the comptroller to establish procedures and adopt rules to administer this subchapter. SECTION 30. Amends Chapter 661C, Government Code, by adding Section 661.068, to make conforming changes. SECTION 31. Amends Chapter 661D, Government Code, by adding Section 661.094, to make conforming changes. SECTION 32. Amends Chapter 662A, Government Code, by adding Section 662.012, as follows: Sec. 662.012. RULES. Authorizes the comptroller to establish procedures and adopt rules to administer Section 662.001-662.010. SECTION 33. Amends Section 24.006, Government Code, as follows: Sec. 24.006. SALARY OF SPECIAL JUDGE. (a) Defines "holiday" and "workday." (b)-(d) Redesignated from existing Subsections. (e) Provides that if a special judge serves as a judge or is traveling to or from the court for only part of a day, the judge is considered for the purposes of this section to have served or traveled for the entire day. (f) Provides that a special judge who serves before or after a holiday but who does not work the holiday is entitled to receive a salary for the holiday, if the judge would be entitled to be paid for the holiday if the judge were a state employee. (g) Sets forth the method of determining the compensation for a judge under this section. (h) Provides that before the comptroller may pay the salary of a special judge commissioned by the governor, the special judge must present the judge's sworn account to the comptroller showing the number of travel days that were necessary. Makes a nonsubstantive change. (i) Makes conforming changes. SECTION 34. Amends Section 32.302, Government Code as follows: (a) Defines "Holiday" and "Workday." (b)-(c) Conforming changes (d) Provides that if a special judge serves as a judge or is traveling to or from the court for only part of a day, the judge is considered for the purposes of this section to have served or traveled for the entire day. (e) Provides that a special judge who serves before or after a holiday but who does not work the holiday is entitled to receive a salary for the holiday, if the judge would be entitled to be paid for the holiday if the judge were a state employee. (f) Sets forth the method of determining the compensation for a judge under this section. (g)-(h) Conforming changes. SECTION 35. Amends Section 74.061, Government Code, as follows: Sec. 74.061. COMPENSATION WHILE ASSIGNED. (a)-(i) Make conforming changes. (j) Provides that the state's share of a former judge or justice's salary is the same as the state's share of the regular judge's salary. Makes conforming and nonsubstantive changes. (k) Provides that if a former judge or justice sits on assignment for only part of a day, the judge or justice is considered for the purposes of this section to have sat on assignment for the entire day. (l)-(p) Make conforming changes. SECTION 36. Amends Chapter 659B, Government Code, by adding Section 659.0121, to make conforming changes. SECTION 37. Amends Sections 661.061(1) and (3), Government Code, to define "national holiday" and "state holiday." SECTION 38. Amends Section 661.062(b), Government Code, to provide that a separation from state employment includes a separation in which, among others, the employee moves from a position in a state agency that does not accrue vacation time to a position in another state agency that does not accrue vacation time, if the other state agency is not authorized or refuses to credit the employee for the balance of the employee's vacation time as of the date of the move. SECTION 39. Amends Section 661.063, Government Code, to set forth the method of calculating an employee's compensation under this section. SECTION 40. Amends Section 661.064, Government Code, to make conforming changes. SECTION 41. Amends Chapter 662A, Government Code, by adding Section 662.0071, as follows: Sec. 662.0071. TRANSFERS OF COMPENSATORY TIME BALANCES. (a) Requires a state agency to accept the balance of compensatory time accrued by a state employee who transfers to that agency from state agency if the employee transfers as a direct result of certain circumstances. SECTION 42. Amends Section 403.016(f), Government Code, to authorize the comptroller to use the electronic funds transfer system to pay a person only if the payment is deposited to one or more of the person's accounts at one or more financial institutions. Financial institutions includes a credit union. Provides that this authorization is subject to any limitation adopted, by rule, by an automated clearinghouse, or by the federal government. Allows for the electronic transfer of funds to a credit union. Makes a conforming change. SECTION 43. Amends Subtitle C, Title 8, Government Code, by adding Chapter 826 RETIREMENT INCENTIVES OF MEDICAL AND DENTAL UNITS as follows: Sec. 826.001 RETIREMENT INCENTIVES allows medical and dental units to offer retirement incentives. Establishes the criteria and procedures for retirement incentives. Defines "institutional funds" and "Medical and dental unit." States that any incentive offered under this section may not be considered part of any plan or program administered by the retirement system. SECTION 44. Amends Section 830.201, Government Code as follows: (d) Applies compensation limitation of Section 401(a)(17), Internal Revenue Code of 1986. (e) Exempts those who participated in the optional retirement program prior to September 1, 1996. For these people, the amount of compensation allowed to be taken into consideration shall be the amount taken into consideration as of July 1, 1993. SECTION 45. Repealer: (1) Section 403.0165(j), Government Code (Payroll Deduction for State Employee Organization). (2) Repealer: Section 1, Chapter 922, Acts of the 73rd Legislature, Regular Session. (3) Repealer: Sections 403.005 and 403.016(e), Government Code (Approval of Accounts-Electronic Funds Transfer). SECTION 46. Provides that this Act is effective immediately, except for Sections 1-8, 10, 33-41, 47, and 48 which take effect September 1, 1995. Sections 18, 19, and 20 which take effect September 1, 1995, if the Act does not receive the votes required by Section 39, Article III, Texas Constitution, for immediate effect. SECTION 47. Makes application of Sections 33-36 of this Act, prospective. SECTION 48. Makes application of Sections 38 and 39 of this Act, prospective. SECTION 49. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 42 is substituted. The new section includes credit unions in the definition of "financial institutions." The new section also concerns utilization of an electronic funds transfer system. SECTION 27 is substituted. Language is changed in Sec. 659.102(c) to insure that the supplemental optional benefits program will include a program to provide permanent life insurance. The program may contain other programs as well. 659.108(d) is added which places a 25 cent cap for each administrative fee withheld; not withstanding subsection (c). Sec. 659.1021 PERMANENT LIFE INSURANCE PROGRAM is added. SECTION 43 Chapter 826, Section 826.001(g), Government Code, stating that this section shall not be considered a part of any retirement plan or program administered by the retirement system is added in the substitute SUMMARY OF COMMITTEE ACTION The House Committee on State Affairs met in a public hearing on May 1, 1995. to consider SB 670. The chair laid out SB 670. The chair left SB 670 as pending business. The House Committee on State Affairs met in public hearing on May 9, 1995 to consider SB 670. The following person provided neutral testimony on the bill: Kenny McLeskley representing the Comptroller of Public Accounts. The committee considered four amendments to SB 670. Four of those were adopted without objection. The chairman directed the staff to incorporate the amendments into a complete committee substitute. The substitute was adopted without objection. The bill was reported favorably as substituted with the recommendation that it do pass and be printed by a record vote of 13 ayes, 0 nays, 0 PNV, and 2 absent. SB 670 was considered by the State Affairs Committee in a formal meeting on May 18, 1995. The committee reconsidered the vote by which SB 670 was reported favorably from committee, without objection. The Chair laid out SB 670. The committee reconsidered the vote by which the complete substitute was adopted. The complete substitute was withdrawn. The committee considered a complete substitute for the bill. The substitute was adopted without objection. The bill was reported favorably as substituted with the recommendation that it do pass and be printed by a record vote of 14 ayes, 0 nays, 0 PNV, and 1 absent.