By Romo H.B. No. 2770
74R6811 JRD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the involvement of the comptroller of public accounts
1-3 in the payment and auditing functions for the purchase of goods and
1-4 services, including authorizing the comptroller to issue all
1-5 payments for goods and services.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Section 3.15, State Purchasing and General
1-8 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
1-9 amended to read as follows:
1-10 Sec. 3.15. INVOICE; CHECK OF GOODS OR SERVICES. (a) In
1-11 this section:
1-12 (1) "Financial data" means the information that the
1-13 comptroller determines is necessary to audit a claim in accordance
1-14 with Chapter 403, Government Code.
1-15 (2) "Purchase data" means the information that the
1-16 comptroller <commission> determines is necessary to audit a
1-17 purchase in accordance with this section.
1-18 (b) As soon as supplies, materials, equipment, or services
1-19 are received, the receiving state agency shall inspect and evaluate
1-20 them to determine whether they correspond in every particular with
1-21 the contract under which they were purchased. If they correspond
1-22 and if the invoice for them is correct, then the agency shall
1-23 certify the existence of those facts. The agency shall then
1-24 transmit to the comptroller the certification, financial data, and
2-1 purchase data contained on the invoice and purchase voucher. The
2-2 transmission of the certification, financial data, and purchase
2-3 data shall be accomplished on the forms or in the method and format
2-4 prescribed <agreed upon> by the comptroller <and the commission>.
2-5 The agency shall make the transmission promptly after the later of
2-6 the receipt of the supplies, materials, equipment, or services and
2-7 the receipt of the invoice. <The commission by rule may require
2-8 that purchase data be transmitted directly to the commission when
2-9 the commission deems it necessary.>
2-10 (c) After receiving a certification, financial data, and
2-11 purchase data from a state agency, the comptroller shall audit the
2-12 financial data in accordance with Chapter 403, Government Code. If
2-13 the comptroller approves the financial data, the comptroller shall
2-14 determine whether the comptroller's <commission's> rules require
2-15 the comptroller <commission> to audit the purchase data. When such
2-16 an audit is required, the comptroller shall audit <promptly
2-17 transmit> the certification and purchase data <to the commission>
2-18 using <the method and format agreed upon by the comptroller and
2-19 the> commission personnel as consultants. At a minimum, the
2-20 purchase data transmitted by the agency to the comptroller shall
2-21 consist of the agency number, agency requisition number, agency
2-22 voucher number, voucher amount, fiscal year, object code, and
2-23 vendor identification number. The comptroller <commission> may use
2-24 the comptroller's <its> discretion in adopting rules for
2-25 determining the types of purchases that must be audited by the
2-26 comptroller <commission> in accordance with this section.
2-27 (d) If a prepayment audit is required, <After receiving the
3-1 certification and purchase data from> the comptroller<, the
3-2 commission> shall, within eight days after receiving the
3-3 certification and purchase data, audit the data for compliance with
3-4 applicable purchasing statutes and rules of the commission. The
3-5 comptroller <commission> may determine the auditing method,
3-6 including the use of stratified or statistical sampling techniques.
3-7 The comptroller <commission> shall notify the commission
3-8 <comptroller> concerning the results of the comptroller's
3-9 <commission's> audit, using the method and format agreed upon by
3-10 the commission and the comptroller.
3-11 (e) The comptroller <commission> may audit purchase data
3-12 after a warrant has been issued when such an audit would expedite
3-13 the payment process. Concerning such audits, the comptroller
3-14 <commission> by rule shall:
3-15 (1) determine the types of purchases that will be
3-16 audited after a warrant is issued; and
3-17 (2) specify the purchase data, if any, that a state
3-18 agency must transmit to the comptroller <or the commission> before
3-19 a warrant is issued.
3-20 (f) The comptroller shall monitor state agency compliance
3-21 with the provisions of this Act that relate to historically
3-22 underutilized businesses. The comptroller may require information
3-23 from state agencies and adopt rules to administer the comptroller's
3-24 monitoring functions under this subsection. <After the issuance of
3-25 a warrant in accordance with Subsection (e) of this section, the
3-26 comptroller shall transmit the certification and purchase data to
3-27 the commission in accordance with the commission's rules.>
4-1 (g) So that the commission can periodically update its
4-2 computer records and close its purchase order files, the
4-3 comptroller shall, upon request, furnish the commission with
4-4 information detailing all vouchers paid under this section and
4-5 Section 3.08 of this Act.
4-6 (h) This section does not apply to interagency purchases or
4-7 transactions. Interagency purchases and transactions must be
4-8 accomplished on special vouchers or electronically as prescribed by
4-9 the comptroller.
4-10 SECTION 2. Section 3.16, State Purchasing and General
4-11 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
4-12 amended by amending Subsection (a) and adding Subsections (c)-(e)
4-13 to read as follows:
4-14 (a) After the comptroller has <and the commission have>
4-15 approved financial data and purchase data, when such advance
4-16 approval is required by the rules of the comptroller <commission>,
4-17 the comptroller shall draw a warrant upon the state treasury for
4-18 the amount due on the invoice or for so much thereof as has been
4-19 allowed. The comptroller may issue the warrant directly to the
4-20 vendor. The comptroller, when appropriate, may combine into a
4-21 single warrant payments that the state owes to a vendor under more
4-22 than one invoice, including payments to the vendor made on behalf
4-23 of more than one state agency.
4-24 (c) The comptroller may allow a state agency to schedule
4-25 payments that the comptroller will make to a vendor. The
4-26 comptroller shall prescribe the circumstances under which advance
4-27 scheduling of payments is appropriate.
5-1 (d) The comptroller may require vendors to provide payment
5-2 addresses, vendor identification numbers, and other account
5-3 information directly to the comptroller.
5-4 (e) The comptroller shall design and administer the process
5-5 by which the state makes payments to vendors in a manner that
5-6 allows the state to take maximum advantage of early payment
5-7 discounts.
5-8 SECTION 3. Section 321.013, Government Code, is amended by
5-9 adding Subsection (k) to read as follows:
5-10 (k) The State Auditor shall periodically conduct a
5-11 compliance audit and other appropriate audits of the purchasing
5-12 practices of each state agency, including each institution of
5-13 higher education. The audits must include an audit of the state
5-14 agency's compliance with applicable provisions of the state's
5-15 program to assist historically underutilized businesses to
5-16 participate in state contracting opportunities. In planning an
5-17 audit under this subsection, the State Auditor shall consider
5-18 issues raised by the General Services Commission or the comptroller
5-19 relating to the state agency's purchasing practices together with
5-20 the agency's response to the commission or the comptroller.
5-21 SECTION 4. Chapter 2102, Government Code, is amended by
5-22 adding Section 2102.013 to read as follows:
5-23 Sec. 2102.013. AUDITING OF AGENCY PURCHASING PRACTICES. (a)
5-24 The internal auditor shall frequently audit the purchasing
5-25 practices of the state agency. The audits must include an audit of
5-26 the state agency's compliance with applicable provisions of the
5-27 state's program to assist historically underutilized businesses to
6-1 participate in state contracting opportunities.
6-2 (b) The internal auditor shall investigate any exceptions or
6-3 issues raised by the General Services Commission or the comptroller
6-4 relating to the state agency's purchasing practices and, if
6-5 possible, report the findings of the investigation to the
6-6 administrator before the administrator responds to the commission
6-7 or the comptroller.
6-8 (c) The administrator shall report the results of the audits
6-9 and investigations performed by the internal auditor under this
6-10 section, together with the administrator's response to any
6-11 exceptions or issues raised by the General Services Commission or
6-12 the comptroller relating to the state agency's purchasing
6-13 practices, to the state auditor, the comptroller, and the General
6-14 Services Commission.
6-15 SECTION 5. (a) Section 2251.026, Government Code, is amended
6-16 to read as follows:
6-17 Sec. 2251.026. PAYMENT OF INTEREST BY STATE AGENCY. (a) If
6-18 the warrant for a payment the originating state agency owes is not
6-19 mailed or electronically transmitted before the payment is overdue,
6-20 the agency is liable for an interest payment that accrues under
6-21 this chapter.
6-22 (b) The comptroller shall compute interest imposed on the
6-23 state agency under this chapter.
6-24 (c) The comptroller shall pay the interest at the time
6-25 payment is made on the principal.
6-26 (d) The comptroller shall submit the interest payment with
6-27 the net amount due for goods and services.
7-1 (e) The comptroller and the state agency may not require a
7-2 vendor to petition, bill, or wait an additional day to receive the
7-3 interest due.
7-4 (f) The comptroller may require necessary and timely
7-5 information and adopt rules to administer this section.
7-6 (b) This section takes effect September 1, 1997. The change
7-7 in law made by this section applies only to interest on a payment
7-8 by a state agency that becomes overdue under Chapter 2251,
7-9 Government Code, on or after that date. Interest on a payment by a
7-10 state agency that becomes overdue under Chapter 2251, Government
7-11 Code, before that date is governed by Section 2251.026, Government
7-12 Code, as it exists on the date the payment becomes overdue, and the
7-13 prior law is continued in effect for this purpose.
7-14 SECTION 6. Section 3.08(b), State Purchasing and General
7-15 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
7-16 repealed.
7-17 SECTION 7. (a) Section 2251.041, Government Code, is
7-18 repealed.
7-19 (b) This section takes effect September 1, 1997. The change
7-20 in law made by this section applies only to interest on a payment
7-21 by a state agency that becomes overdue under Chapter 2251,
7-22 Government Code, on or after that date. Interest on a payment by a
7-23 state agency that becomes overdue under Chapter 2251, Government
7-24 Code, before that date is governed by Section 2251.041, Government
7-25 Code, as it exists on the date the payment becomes overdue, and the
7-26 prior law is continued in effect for this purpose.
7-27 SECTION 8. The comptroller shall begin to implement the
8-1 changes in law made by this Act to Section 3.16(a), State
8-2 Purchasing and General Services Act (Article 601b, Vernon's Texas
8-3 Civil Statutes), as a series of pilot projects at selected state
8-4 agencies.
8-5 SECTION 9. Rules of the General Services Commission
8-6 governing auditing of purchases under Section 3.15, State
8-7 Purchasing and General Services Act (Article 601b, Vernon's Texas
8-8 Civil Statutes), are continued in effect as rules of the
8-9 comptroller until repealed or amended by the comptroller.
8-10 SECTION 10. Except as otherwise provided by this Act, this
8-11 Act takes effect September 1, 1995.
8-12 SECTION 11. The importance of this legislation and the
8-13 crowded condition of the calendars in both houses create an
8-14 emergency and an imperative public necessity that the
8-15 constitutional rule requiring bills to be read on three several
8-16 days in each house be suspended, and this rule is hereby suspended.