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.