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.