BILL ANALYSIS


                                                         S.B. 670
                                                   By: Armbrister
                                                          Finance
                                                         04-04-95
                                       Committee Report (Amended)
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

As proposed, 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 SECTIONS 9, 21, and 27-32 (Sections
403.024(a), 403.0165(i), 659.110, 659.062, 661.038, 661.068,
661.094, 662.012, Government Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 659.083(c), Government Code, to define
"working day."

SECTION 2. Amends Section 2254.021 and 2254.022, Government Code,
as follows:

     Sec. 2254.021.  DEFINITIONS.  Defines "consulting service,"
     "major consulting services contract," "consultant," "state
     agency" and "state governmental entity."
     
     Sec. 2254.022.  INTERPRETATION OF SUBCHAPTER.  Deletes the
     provision that requires this subchapter to be interpreted to
     ensure private consultants are in the list of agency bids. 
     Makes conforming changes.
     
SECTION 3. Amends Sections 2254.025(a), (b), and (e), Government
Code, to make conforming changes.

SECTION 4. Amends Sections 2254.026 and 2254.027, Government Code,
as follows:

     Sec. 2254.026.  New heading: CONTRACT WITH CONSULTANT.  Makes
     conforming changes.
     
     Sec. 2254.027.  New heading: SELECTION OF CONSULTANT.  Makes
     conforming changes.
     
SECTION 5. Amends Section 2254.028(a), Government Code, to make
conforming changes.

SECTION 6. Amends Sections 2254.029 and 2254.030, Government Code,
to make conforming changes.

SECTION 7. Amends Sections 2254.036(a) and (b), Government Code,
to make conforming changes.

SECTION 8. Amends 2254.037, Government Code, to make a conforming
change.

SECTION 9. Amends Chapter 403B, Government Code, by adding Section
403.024, as follows:

     Sec. 403.024.  RULES.  (a)  Authorizes the comptroller 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.
     
     (b)  Provides that Subsection (a) does not apply to a state
       statute if the statute specifically authorizes the
       comptroller or a state agency to adopt rules to interpret,
       implement, and administer the statute.
       
SECTION 10.    Amends Section 481.0841(d)(2), Government Code, to
prohibit a state agency from using funds inside or outside the
state treasury to pay a user if the user is in default, rather than
if the agency know that the user is in default, on a loan
guaranteed under this subchapter and with respect to which the
department has been required to honor a guarantee.

SECTION 11.    Amends Section 57.48(e), Education Code, to provide
that this section does not prohibit the comptroller from issuing a
warrant to pay the compensation of an individual whose compensation
is being paid by a private person through a state agency.

SECTION 12.    Amends Section 57.48(f)(4), Education Code, to make
a conforming change.

SECTION 13.    Amends Section 403.055(c), Government Code, to make
a conforming change.

SECTION 14.    Amends Section 403.055(e)(4), Government Code, to
make a conforming change.

SECTION 15.    Amends Section 481.0841(c), Government Code, to make
a conforming change.

SECTION 16.    Amends Section 481.0841(d)(4), Government Code, to
make a conforming change.

SECTION 17.    Amends Section 403.252, Government Code, to provide
that this subchapter does not apply to the petty cash accounts of
the Texas Department of Mental Health and Mental Retardation under
Section 533.037(d)(4), or the petty cash accounts expressly
provided for by the legislature in the General Appropriations Act.

SECTION 18.    Amends Sections 662.001, 662.005, and 662.006,
Government Code, as follows:

     Sec. 662.001.  DEFINITIONS.  Defines "part-time state
     employee" "state agency" "state employee," and "workday."
     
     Sec. 662.005.  ENTITLEMENT TO PAID DAY OFF.  (a)  Provides
     that an individual who is a state employee on the last workday
     before or the first workday after a national or state holiday,
     or on both workdays, is entitled to a paid day off from
     working for a state agency on the holiday under certain
     conditions.
     
     (b)  Defines "state employee."
       
     Sec. 662.006.  OPTIONAL HOLIDAY.  (a)  Makes conforming
     changes.
     
     (b)  Provides that a state employee is entitled to a paid
       day off from working for a state agency on each day of an
       optional holiday that extends for more than day if the
       employee qualifies for the paid day off and agrees to give
       up, during the same fiscal year, an equivalent number of
       state holidays that do not fall on a Saturday or Sunday and
       that the General Appropriations Act does not prohibit state
       agencies from observing.
       
SECTION 19.    Amends Section 662.007(a), Government Code, to make
conforming changes.

SECTION 20.    Amends Section 662.010, Government Code, to make
conforming changes and define "state employee."

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)  Created from existing Subsections (b)-(e).
       
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. 659.103.  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. 659.108.  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.
       
     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 (a)-(c).
       
       (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, to make
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), Governement 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.  Provides that this authorization is subject to any
limitation adopted, by rule, by an automated clearinghouse, or by
the federal government.  Authorizes an employee's account at a
credit union to be used to deposit part of the employee's net state
salary under certain conditions.  Makes a conforming change.

SECTION 43.    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 44.    Provides that this Act is effective immediately,
except for Sections 1-8, 10, 33-41, 45, and 46, which take effect
September 1, 1995.

SECTION 45.    Makes application of Sections 33-36 of this Act,
prospective.

SECTION 46.    Makes application of Sections 38 and 39 of this Act,
prospective.

SECTION 47.    Emergency clause.
           Effective date: upon passage.