BILL ANALYSIS C.S.S.B. 671 By: Armbrister (Eiland) 5-19-95 Committee Report (Substituted) BACKGROUND The Travel Regulations Act of 1959 governs the travel of state officers and employees on state business. The state comptroller audits travel expense claims submitted by state officers and employees to ensure that the claims comply with the Act, the travel regulations of the General Appropriations Act, and the comptroller's rules. However, after numerous amendments, the Act has not kept pace with the travel needs of agencies and the practices of the travel industry. As a result, state officers and employees unintentionally violate the Act or inadvertently incur travel expenses that are not reimbursable or payable under the Act. PURPOSE C.S.S.B. 671 clarifies and updates the reimbursement method and procedures of travel expenses incurred by state officers and employees providing the needed flexibility as the travel needs of the state and the travel industry change. RULEMAKING AUTHORITY This bill grants additional rulemaking authority to the governing authority boards of institutions of higher education in SECTION 4 (Sec. 660.004(b)). It is the opinion of the committee that this bill grants additional rulemaking authority to the Comptroller of Public Accounts in SECTION 7 (Sec. 660.021), SECTION 9 (Sec. 660.025(a)) and SECTION 17 (Sec. 660.092(d)). SECTION BY SECTION ANALYSIS SECTION 1. Defines "Appropriated funds", "Board", "Cancellation charge", "Chief administrator of a state agency", "Commercial lodging establishment", "Commercial transportation company", "Disability", "Duty point", "Incidental expense". "Institutional funds", "Institution of higher education", "Key official", "Lease", "Place of employment", "Prospective state employee", "Rented or public conveyance", "State agency", "State employee", "Travel expense", and "Unit of state government." SECTION 2. This section would add Section 660.0021 to Subchapter A, Chapter 660, Government Code. Section 660.0021 would specify the meaning of "designated headquarters" as that term is used throughout the Act. SECTION 3. This section would amend Section 660.003, Government Code, to provide the general provisions for travel by state officers and employees. More specifically, the section would: limit the Act's applicability to the use of appropriated funds except for travel expenses paid or reimbursed by the Teacher Retirement System of Texas or the Employees Retirement System of Texas; require that an expense be reasonable and necessary, be incurred on official state business, be in furtherance of a state agency's legal authority, and be in compliance with the Act, the GAA, and the comptroller's rules before the expense may be paid or reimbursed; and resolve any conflict between the Act and a federal law or regulation in favor of the law or regulation. SECTION 4. This section would amend Sec. 660.004, Government Code, so that a travel expense paid or reimbursed by an institution of higher education with institutional funds is not subject to the Act. The institution would be required to adopt rules as necessary to administer and control travel expenses that are exempt from the Act under Section 660.004. SECTION 5. This section would add Sections 660.006-660.013 to Subchapter A, Chapter 660, Government Code as follows: Sec. 660.006 states that the travel expenses incurred by a prospective state employee who visits a state agency for an interview or other employment evaluation would be reimbursable or payable only if the agency provides advance authorization for the visit. Sec. 660.007 requires state agencies to conserve funds by minimizing the travel expenses paid or reimbursed by the agency and by ensuring that travel arrangements are the most cost-effective considering all relevant circumstances. Sec. 660.008 states that an agency is authorized to pay or reimburse a state employee for a travel expense incurred while using personal or compensatory leave under certain circumstances. Sec. 660.009 states that an agency would be authorized to pay or reimburse a state employee for a travel expense incurred while being unable to conduct official state business because of a natural disaster or similar natural occurrence. Sec. 660.010 establishes that a state agency would be authorized to pay or reimburse a travel expense incurred by a state employee who travels between a duty point and the place at which the employee was staying while using personal or compensatory leave if the travel to the duty point is required by the agency. A state agency would be authorized to pay or reimburse a travel expense incurred by a state employee or legislator when the employee or legislator returns, before official state business is completed, from a duty point to a designated headquarters because of an illness or personal emergency. Sec. 660.011 states that an agency may reimburse travel expenses for another another agency's employee if that employee was providing services for the reimbursing agency. Sec. 660.012 allows the agency to make payments to a credit card company or travel agency for incurred expenses. Sec. 660.013 states that a state agency would be authorized to pay or reimburse a state employee or a legislator for a cancellation charge resulting from the inability to use transportation that was paid for in advance to obtain lower rates because of an illness or personal emergency. SECTION 6. This section would renumber Sections 660.047-660.049, Government Code, as Sections 660.014-660.016, Government Code. It also transfers the sections to Subchapter A, Chapter 660, Government Code, and makes the following substantive changes: Section 660.014(b) would require a state employee or legislator to forfeit to the state wages or a travel expense reimbursement that is accepted in violation of Section 660.014(a). Section 660.014(c) would no longer prohibit the comptroller from paying the salary of anyone who violates Section 660.014. In addition, Section 660.014(c) would make it clear that Section 660.014 is in addition to any other prohibitions, penalties, and forfeitures imposed or required by other law. Section 660.015 as amended to add legislators. States that anyone that receives an overpayment in reimbursement must return the money immediately. Section 660.016 would clearly state that a state employee or legislator may not accept a travel expense reimbursement or advance from more than one source. The purpose is to prohibit a state employee or legislator from receiving a reimbursement or advance from all sources that exceeds the amount of travel expenses incurred or to be incurred. SECTION 7. This section would amend Section 660.021, Government Code, so that the comptroller is authorized to adopt rules for the effective and efficient administration of the Act and the travel provisions of the GAA. SECTION 8. This section would amend Section 660.024, Government Code, by allowing the governor to authorize international travel by a state employee prior to departure. The comptroller would be authorized to require proof of the governor's approval of that travel during the comptroller's audit of the employee's travel claim. The governor would be authorized to designate an employee of the governor's office to provide the approvals required by Section 660.024. SECTION 9. This section would amend Section 660.025, Government Code. The amendments would ensure that Section 660.025 does not conflict with Section 403.248 about travel advance accounts. Also would reinforce the principle that employees may not be advanced to a state employee or legislator for a travel expense unless the expense is payable or reimbursable under the Act, the GAA, and the rules adopted by the comptroller under the Act. SECTION 10. This section would redesignate 660.041 and 660.042, Government Code, as Sections 660.027 and 660.028, Government Code and transfers them to Subchapter B, Chapter 660, Government Code. The sections are amended as follows: Section 660.027 authorizes the comptroller to pay or reimburse a travel expense only if a voucher requesting the payment or reimbursement is submitted by a state agency. Provides for validity requirements for the voucher. The comptroller would be authorized to require use of a particular voucher form or the electronic submission of vouchers. Any voucher submitted to the comptroller would have to describe the official state business performed and be accompanied by the information needed to determine compliance with the Act, the GAA, and the comptroller's rules. The information could be in the form of a statement included in the voucher or receipts or other documentation, as required by the comptroller. Section 660.028 authorizes the comptroller of public accounts to audit a travel voucher before or after the comptroller pays the voucher. If the comptroller decides to conduct a post-payment audit of a travel voucher, the comptroller would be authorized to require the retention of information, receipts, and other documentation concerning the voucher until the audit is conducted. SECTION 11. This section would add Section 660.029 to Subchapter B, Chapter 660, Government Code. A state agency would be required to educate its state employees about the Act, the travel provisions of the GAA, and the rules adopted by the comptroller under the Act. SECTION 12. Amends the heading of Subchapter C, Chapter 660, Government Code to: TRANSPORTATION BY PERSONAL MOTOR VEHICLE. SECTION 13. Adds Sections 660.0411 and 660.0412 to Subchapter C, Chapter 660, Government Code as follows: Sec. 660.0411 entitles a state employee to reimbursement for the use of personally owned or leased vehicles. Sec. 660.0412 establishes criteria for mileage reimbursement. SECTION 14. Amends Section 660.052, Government Code, to clarify requirements and authorize the comptroller to adopt and periodically reissue a mileage guide. In addition, a state employee may deviate from the mileage listed in the guide if the employee's chief administrator certifies that the deviation is necessary to make the employee's travel more cost effective. The certification would have to be filed promptly with the Legislative Budget Board. States that if a state employee conducts business at duty points between the origin and final duty points, the lowest mileage while calculating the intermediate duty points shall apply. SECTION 15. Amends 660.055, Government Code, by clarifying existing law about the requirement for multiple employees to use a motor vehicle when traveling on the same business to a duty point instead of each employee using a motor vehicle. The exception to this requirement would apply only if multiple use for official state business is not feasible. SECTION 16. Adds Subchapter D to Chapter 660, Government Code. The new subchapter would govern the transportation of state employees and legislators by personally owned or leased aircraft. Establishes reimbursements requirements, reimbursement amounts, reimbursement rates and provisions for group travel. Also provides for when an aircraft is leased from certain persons. SECTION 17. Adds Subchapter E to Chapter 660, Government Code. The new subchapter would govern the transportation of state employees by rented or public conveyance. Establishes payment and reimbursement criteria. A state agency would be authorized to directly pay a commercial transportation company in advance of travel in the circumstances specified by the comptroller by rule. SECTION 18. Adds Subchapter F to Chapter 660, Government Code. The new subchapter would govern the meals, lodging, and incidental expenses incurred by state employees. Establishes reimbursement requirements and amounts. Establishes a list of restricted reimbursements. Allows the state agency to request that the commercial lodging establishment directly bill the agency as opposed to reimbursing the employee. Establishes that an employee must submit an acceptable lodging receipt in order to receive reimbursement. A member of a board would not be required to submit a lodging receipt to the comptroller if the member is elected to the board by vote of the people or the member serves on the board full time and is paid a salary for that service. This section establishes that an employee shall be entitled to reimbursement of taxes. This section also establishes criteria for reimbursement of apartment or house rental expenses. SECTION 19. Amends Chapter 660, Government Code, by adding Subchapter G, as follows: Sec. 660.141. TRAVEL BY MEMBERS OF THE LEGISLATURE. (a) Entitles a legislator to receive an amount equal to the maximum per diem rate in the federal travel regulations for the location at which expenses are incurred; or reimbursement of the actual amount of meals, lodging, and incidental expenses incurred at the discretion of each house of the legislature. (b) Provides that Subsection (a) applies to a meal, lodging, or incidental expense that a legislator incurs while serving on a board. (c) Provides that the rate is equal to the lowest maximum per diem rate for the state, territory, possession, or country in which the expense is incurred if a legislator incurs an expense in a location for which the federal travel regulations have not specifically established a maximum per diem rate. (d) Provides that Subchapters C, E, and F apply equally to travel by a legislator in the same way that they apply to travel by an employee except as provided in this subsection. Authorizes reimbursement to a legislator under those subchapters to be made regardless of whether the travel includes travel to and from Austin. Provides that the subchapters do not apply to travel by a legislator to the extent they are inconsistent with this section. Provides that Sections 660.055, 660.113(b)(1) and (d), and 660.115 do not apply to travel by a legislator. (e) Entitles a legislator to be reimbursed for either a transportation expense on the same basis as is provided for state employees or mileage on the same basis as is provided for state employees during a session of the legislature. Sec. 660.142. TRAVEL BY CERTAIN OFFICIALS. Entitles a judicial officer, a chief administrative officer of a state agency other than a member of a board, the executive director of the Texas Legislative Council, or the secretary of the senate to reimbursement for actual meals and lodging expenses incurred while performing the duties of the person's office or employment. States that the governor's spouse is also entitled to certain reimbursements while performing duties of the office at the direction of the governor. Sec. 660.143. BOARD MEMBERS. Provides that this chapter applies to a payment or reimbursement of a travel expense incurred by a member of a board only if Subchapter C, Chapter 659, or other applicable law authorizes the payment or reimbursement. Sec. 660.144. TRAVEL BY PERSONS WITH DISABILITIES. (a) Authorizes a state agency to reimburse an employee or a legislator with a disability for attendant care and other necessary expenses incurred when the employee or member travels inside or outside the headquarters. Authorizes an expense incurred when traveling between a residence and a place of employment to be reimbursed only as provided by law for employees without disabilities. (b) Authorizes a state agency to reimburse an employee or a legislator with a disability for the first or business class airfare of the employee or legislator and the attendant. (c) Authorizes a state agency to reimburse the attendant for those expenses or pay the expenses directly to a commercial transportation company. (d) Provides that the federal law or regulation controls to the extent of a conflict if this chapter, the travel provisions of the General Appropriations Act, or a rule adopted by the comptroller under this chapter conflicts with a requirement of the Americans with Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.), a federal regulation adopted under that Act or other applicable federal law or regulation. Sec. 660.145. DEATH OF STATE EMPLOYEES. Authorizes a state agency to pay or reimburse the expense of preparing and transporting the remains and personal property of a state employee who dies while conducting official state business outside the employee's designated headquarters. Authorizes the agency to pay or reimburse the expense of transporting the remains and personal property to the employee's headquarters by the executor or administrator of the employee's estate. Prohibits the agency's payment or reimbursement from exceeding the amount that would have been paid had they been transported to headquarters. Sec. 660.146. TRAVEL EXPENSES OF THREATENED STATE EMPLOYEES AND THEIR FAMILIES. (a) Authorizes a state agency to pay or reimburse an expense incurred by an employee who serves in a law enforcement, investigative, or similar capacity if the employee is threatened as a result of the employee's official duties. (b) Authorizes a state agency to pay or reimburse an expense incurred by the family of a state employee who serves in a law enforcement, investigative, or similar capacity if the family is threatened as a result of the employee's official duties. (c) Provides that an expense is payable or reimbursable under this section even if incurred within an employee's headquarters. Sec. 660.147. CONFLICTS WITH OTHER SUBCHAPTERS. Provides that this subchapter controls in the event of a conflict between this subchapter and another provision of this chapter. SECTION 20. Repealer: Sections 660.005 (Travel by Public Conveyance); 660.022 (Approval of Rules by Attorney General); 660.023 (Filing of Rules); 660.026 (Revolving Petty Cash Fund); 660.043 (Amount of Reimbursement or Advance); 660.044 (Rate of and Method of Computing Per Diem and Transportation Allowance); 660.045 (Prohibition Applicable to Per Diem Allowance); 660.046 (Approval and Payment of Claim); 660.050 (Local Transportation Allowance); 660.051 (Courtesy Card); 660.053 (Determination of Mileage by Personal Car); and 660.054 (Multiple Use of Single Privately Owned Conveyance by State Employees), Government Code. SECTION 21. (a) Defines "travel expense." (b) Makes application of this Act prospective. (c) Provides that changes made by this Act apply to the procedures that must be followed to pay or reimburse a travel expense, regardless of when the expense is incurred. SECTION 22. Effective date: September 1, 1995. SECTION 23. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute adds "house" to the list of different possible "Commercial lodging establishments" in SECTION 1 of the substitute. In SECTION 13 of the substitute, Sec. 660.052(d) from the original is deleted. In SECTION 18 of the substitute, the title of Sec. 660.117 is amended to include "or house." In SECTION 19 of the substitute, Sec. 660.142 is amended by extending reimbursement entitlement to the governor's spouse while performing duties of the office at request of the governor. SUMMARY OF COMMITTEE ACTION SB 671 was considered by the Committee on State Affairs in a public hearing on May 1, 1995. The chair laid out SB 671. The chair left SB 671 pending. SB 671 was considered by the Committee on State Affairs in a public hearing on May 9, 1995. The following person provided neutral testimony on the bill: Kenny McLeskley representing the Comptroller of Public Accounts. The committee considered two amendments to SB 671. Two 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 12 ayes, 1 nays, 0 PNV, and 2 absent.