SRC-MAX S.B. 645 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 645
By: Armbrister
Finance
6-30-97
As Filed


DIGEST 

Currently, areas of existing statute contain certain inconsistencies that
have been identified by the comptroller.  The comptroller has provided
several recommendations with respect to these statutes which attempt to
provide guidance about certain state fiscal issues,  ensure that similarly
situated state employees are treated similarly by state agencies, and
improve the fiscal management of the state.   

This bill provides additional detail for several employee benefit laws so
that they will be interpreted and administered uniformly by state
agencies.  The comptroller is also provided with interpretive and
rulemaking authority over several benefit programs that are not
administered by any state agency under current law. 

PURPOSE

As proposed, S.B. 645 sets forth provisions related to state fiscal
matters, including holidays, employee compensation and deductions,
reports, consultants, and the comptroller's powers. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the comptroller in SECTIONS 13-20, 32,
36, 37, and 67 (Sections 403.026(a), 403.071(h), 659.062(e), 659.110,
661.038, 661.068, 661.094, 662.012, 403.0165(h) and (i), 659.136(c),
659.137(a), and 403.031(c), Government Code) of this bill. 

SECTION BY SECTION ANALYSIS

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

SECTION 2. Amends Section 465.008(b), Government Code, to provide that
Chapter 2254B, Government Code, does not apply to use by the commission of
a consultant, rather than private consultant, to provide certain services,
except that in selecting the consultant the Texas National Research
Laboratory Commission is required to give preference required by Section
2254.027(2), rather than Section 3(b)(2) of that chapter. 

SECTION 3. Amends Section 2254.021, Government Code, to define "political
subdivision" and "state governmental entity," and to redefine "consultant"
and "state agency."  

SECTION 4. Amends Section 2254.022, Government Code, to make conforming
changes. 

SECTION 5. Amends Sections 2254.025(a), (b), and (e), Government Code, to
make conforming changes.  

SECTION 6. Amends Section 2254.026, Government Code, to authorize a state
agency to contract with a consultant only if the agency cannot adequately
perform the services with its own personnel or obtain the consulting
services through a contract with a state governmental agency, rather than
another agency, among other exceptions.  Makes conforming changes. 

SECTION 7. Amends Section 2254.027, Government Code, to make conforming
changes. 

 SECTION 8. Amends Section 2254.028(a), Government Code, to make a
conforming change. 

SECTION 9. Amends Section 2254.029, Government Code, to make conforming
changes. 

SECTION 10. Amends Section 2254.030, Government Code, to make conforming
changes. 

SECTION 11. Amends Sections 2254.036(a) and (b), Government Code, to make
conforming changes. 

SECTION 12. Amends Section 2254.037, Government Code, to make a conforming
change. 

SECTION 13. Amends Chapter 403B, Government Code, by adding Section
403.026, as follows: 

Sec.  403.026. RULES.  Authorizes the comptroller to adopt rules to
interpret, implement, and administer a state statute under certain
conditions.  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 14. Amends Section 403.071(h), Government Code, to require the
comptroller to audit claims after payment in the same way that the
comptroller audits claims before payment under Subsection (a).  Authorizes
the comptroller to establish requirements and adopt rules concerning the
time that a state agency must retain documentation in its files to enable
a postpayment audit. 

SECTION 15. Amends Section 659.062, Government Code, by adding Subsection
(e) to  authorize the comptroller to establish procedures and adopt rules
to administer this section. 

SECTION 16. Amends Chapter 659G, Government Code, by adding Section
659.110, as follows: 

Sec.  659.110.  RULES.  Authorizes the comptroller to establish procedures
and adopt rules to administer the credit union deduction program
authorized by this subchapter. 

SECTION 17. 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 18. Amends Chapter 661C, Government Code, by adding Section
661.038, as follows: 

Sec.  661.038.  RULES.  Makes a conforming change.

SECTION 19. Amends Chapter 661D, Government Code, by adding Section
661.094, as follows: 

Sec.  661.094.  RULES.  Makes a conforming change.

SECTION 20. 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 Sections 662.001-662.010, Government Code. 

SECTION 21. 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 22. Amends Section 57.48(f)(4), Education Code, to provide that
this section does not prohibit a state agency from paying the compensation
of an individual whose compensation is being paid by a private person
through the agency. 

SECTION 23. Amends Section 403.055(c), Government Code, to make a
conforming change. 

 SECTION 24.  Amends Section 403.055(e)(4), Government Code, to make a
conforming change. 

SECTION 25. Amends Section 481.0841(c), Government Code, to provide that
this section does not prohibit the comptroller from issuing a warrant or
initiating an electronic funds transfer to pay the compensation of an
individual whose compensation is being paid by a private person through a
state agency.  

SECTION 26. Amends Sections 481.0841(d)(2) and (4), Government Code,  to
make conforming and nonsubstantive changes. 

SECTION 27. Amends Section 662.001, Government Code, to define "workday"
and to redefine "part-time state employee" and "state employee." 

SECTION 28. Amends Section 662.005, Government Code, to provide 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, except as
provided by Section 662.010, Government Code, is entitled to a paid day
off from working for a state agency on the holiday under certain
conditions.  Redefines "state employee."   

SECTION 29. Amends Sections 662.006(a) and (b), Government Code, to
provide that an individual who is a state employee on the last workday
before or the first workday after an optional holiday, or both workdays,
is entitled, except as provided by Section 662.010, Government Code, to a
paid day off from working for the state agency on the holiday under
certain conditions. 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 one day under certain conditions.   

SECTION 30. Amends Section 662.007(a), Government Code, to provide that a
state employee who is required to work on a national or state holiday is
entitled to compensatory time off during the 12 months after the holiday
if the state employee is entitled to a paid day off from working for a
state agency on the holiday under Section 662.005, Government Code.  

SECTION 31. Amends Section 662.010, Government Code, to prohibit an
individual who is not a state employee on the last workday before a state
or national holiday but who is a state employee on the first workday after
the holiday from being paid for the holiday under certain conditions.
Prohibits an individual who is a state employee on the last workday before
a state or national holiday but who is not a state employee on the first
workday after the holiday from being paid for the holiday under certain
conditions.  Redefines "state employee."  Deletes a definition of
"workday." 

SECTION 32. Amends Sections 403.0165(f), (h), and (i), Government Code, to
authorize an organization not previously certified to submit an
application for certification as an eligible state employee organization
to the comptroller at any time except during the period after June 2 and
before September 1, rather than within 90 days prior to the beginning of
the fiscal year.  Authorizes, rather than requires, the comptroller to
charge an administrative fee to cover the costs incurred as a result of
administering this section.  Requires the administrative fees charged by
the comptroller to be paid by each qualifying state employee organization
in a certain manner. Authorizes the comptroller to adopt rules for the
administration of this section.  Makes conforming changes. 

SECTION 33. Amends Section 659.041, Government Code, to define
"appointment" and redefine "full-time state employee."   

SECTION 34. Amends Chapter 659D, by adding Section 659.0411, as follows:

Sec.  659.0411.  APPOINTMENTS AT STATE INSTITUTIONS OF HIGHER EDUCATION.
Requires a state institution of higher learning 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.
Requires a board of regents to determine whether a state employee who has
an appointment with at least two state institutions of higher education
under the board's jurisdiction holds only one position or holds one
position for each appointment.  Provides that a state employee who has an
appointment with 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 35. Amends Section 659.132, Government Code, to authorize a state
employee to authorize a deduction only during a state employee charitable
campaign, except as provided by Subsections (c), (d), and (e).  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. Authorizes a state employee who works for a state agency
that does not allow deduction authorizations under Subsection (i) 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 procedures are followed.  Authorizes a state employee who works
for a state agency that does not allow deduction authorizations under
Subsection (i) to authorize a deduction after transferring from that
agency to certain other state agencies.  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. 

SECTION 36. Amends Sections 659.136 (a) and (c), Government Code, to
prohibit 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 37. Amends Section 659.137, Government Code, to provide that a
deduction under this subchapter begins on the date designated by the
comptroller, by rule, and is effective for a maximum of one campaign year
and, unless revoked or changed under Section 659.139, Government Code,
ends on the date designated by the comptroller, by rule.   

SECTION 38. Amends Section 659.148(d), Government Code, 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. 

SECTION 39. Amends Section 659.109, Government Code, to delete a provision
authorizing an administrative fee withheld under this subchapter to be
used, without further appropriation, by the comptroller and the state
agencies incurring costs in administering this subchapter. 

SECTION 40. Amends Section 659.146(a), Government Code, to provide that a
charitable organization, to be eligible to participate in a state employee
charitable campaign, must be governed by a voluntary board of citizens to
set policy and manage the organization's affairs, if the organization
meets certain budgetary requirements. 

SECTION 41. Amends Sections 661.061(1) and (3), Government Code, to
redefine "national holiday" and "state holiday."  

SECTION 42. Amends Section 661.062(b), Government Code, to provide that a
separation from state employment includes a separation in which the
employee moves from a position in a 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, among other exceptions.  Makes conforming changes. 

SECTION 43. Amends Section 661.063, Government Code, to require payment
under this subchapter to a state employee who separates from state
employment while holding a position that does not accrue vacation time to
be computed according to this subsection. Requires the employee's final
rate of compensation in the last position held that accrues vacation time
to be multiplied by the employee's total number of hours of vacation time
determined under Section 661.064, Government Code.  Makes conforming
changes. 

SECTION 44. Amends Section 661.064, Government Code, to provide that no
hours may be  added to a state employee's accrued vacation time for a
state or national holiday that is scheduled to fall within the period
after the date of separation and during which the employee could have used
the time, for an employee who is paid under this subchapter because the
separation from state employment involves a move to an agency that does
not accrue vacation hours.  
 
SECTION 45. Amends Chapter 662A, Government Code, by adding Section
662.0071, as follows: 

Sec.  662.0071.  TRANSFERS OF COMPENSATORY TIME BALANCES.  Requires a
state agency to accept the balance of compensatory time accrued under
Section 662.007, Government Code, by a state employee who transfers to
that agency from another state agency if the employee transfers as a
direct result of certain factors.  Provides that Subsection (a) does not
apply if the transferring state employee is required to apply for the new
position. Defines "bid." 

SECTION 46. Amends Sections 403.016(e) and (f), Government Code, to
authorize the comptroller to use the electronic funds transfer system to
transfer directly a portion of an employee's net state salary to the
employee's account at a credit union under certain conditions.  Authorizes
the comptroller to use the electronic funds transfer system to deposit
payments only to one or more accounts of a payee at one or more financial
institutions, except as provided by Subsection (e) and subject to any
limitation in rules adopted by the comptroller, an automated
clearinghouse, or the federal government. 

SECTION 47. Amends Section 403.248(c), Government Code, to define "final
accounting." 

SECTION 48. Amends Section 5, Article 3.50-2, V.T.C.S. (Texas Employees
Uniform Group Insurance Benefits Act), by adding Subsection (k), to
authorize the trustee to use an employee's annual salary in the
calculation of the amount of the employee's premium or coverage, or both,
under the plan, under certain conditions.  Provides that an employee's
annual salary includes the benefit replacement pay the employee would be
earning annually under Chapter 659H, Government Code (as added by Section
3, Chapter 417, Acts of the 75th Legislature, Regular Session, 1995), if
Section 659.121(1), Government Code, defined "compensation" to include
base salary or wages, longevity pay, hazardous duty pay, and night
differential pay. 

SECTION 49. Amends Section 11, Article 3.50-2, V.T.C.S., by adding
Subsection (d), to provide that for the purpose of determining the amount
of an employee's optional term life insurance coverage, an employee's
annual salary includes the benefit replacement pay the employee would be
earning annually under Chapter 659H, Government Code (as added by Section
3, Chapter 417, Acts of the 74th Legislature, Regular Session, 1995), if
Section 569.121(1), Government Code, defined "compensation" to include
base salary or wages, longevity pay, hazardous duty pay, and night
differential pay.    

SECTION 50. Amends Section 811.001(7), Government Code, to redefine
"compensation." 

SECTION 51. Amends Sections 822.201(b) and (c), to redefine "salary and
wages" and to provide that the benefit replacement pay a person earns as a
result of a payment made under Chapter 661B, C, or D, Government Code, is
excluded from this definition.   

SECTION 52. Amends Section 47.09(a), Penal Code, to provide that it is a
defense to prosecution under this chapter that the conduct was a necessary
incident to the operation of the state lottery and was directly or
indirectly authorized by the lottery division of the Texas Lottery
Commission, rather than the comptroller's office, or the Lottery
Commission, rather than the comptroller, among other conditions.  Makes a
conforming change. 

SECTION 53. Amends Section 2054.007(a), Government Code, to provide that
the lottery division of the Texas Lottery Commission is not subject to the
planning and procurement requirements of this chapter. 

SECTION 54. Amends Section 2103.003, Government Code, to authorize a state
agency to spend appropriated funds only by a warrant drawn by the
comptroller, a state agency to which the comptroller has delegated
authority to print warrants under Section 403.060, Government Code, or an
electronic funds transfer initiated by the comptroller.   

SECTION 55. Amends Chapter 2103A, Government Code, by adding Section
2103.0035, as follows: 
 
Sec.  2103.0035.  STATE AGENCY SPENDING OF UNAPPROPRIATED FUNDS.
Authorizes a state agency to spend unappropriated funds only by a warrant
drawn by certain entities, or an electronic funds transfer initiated by
the comptroller..  Provides that Subsection (a) applies only to funds that
Section 404.046 or 404.069, Government Code, or other law requires to be
spent on warrants drawn or electronic funds transfers initiated by the
comptroller.  

SECTION 56. Amends Section 2103.004, Government Code, as follows:

Sec.  2103.004.  New heading:  WARRANTS AND ELECTRONIC FUNDS TRANSFERS.
Prohibits a warrant from being drawn or an electronic funds transfer
initiated until the state agency from whose appropriated or unappropriated
funds the warrant or electronic funds transfer is payable has submitted a
voucher to the comptroller, among other conditions. 

SECTION 57.  Amends Section 2151.002, Government Code, to redefine "state
agency."  

SECTION 58. Amends Section 2155.001, Government Code, to make a
nonsubstantive change. 

SECTION 59. Amends Section 2155.321, Government Code, to define "service"
and "state agency." 

SECTION 60. Amends Section 2155.322(b), Government Code, to require a
state agency to send to the comptroller the certification, together with
the financial information and purchase information provided by the invoice
and purchase voucher, on a form or in the manner agreed to by the
comptroller and the General Services Commission (commission) if state law
requires that a payment for the goods or services be made on a warrant
drawn or an electronic funds transfer initiated by the comptroller or a
state agency with delegated authority under Section 403.060, Government
Code. 

SECTION 61. Amends Section 2155.325(c), Government Code, to require the
comptroller to send the certification and purchase information received by
the comptroller under Section 2155.322(b), Government Code,  to the
commission under commission rules. 

SECTION 62. Amends Section 2101.011, Government Code, as follows: 

Sec.  2101.011.  New heading:  FINANCIAL INFORMATION REQUIRED OF STATE
AGENCIES.  Requires a state agency to submit the financial information
requested by the comptroller and such other information requested by the
legislature in the General Appropriations Act, including information and
state funds held outside the state treasury to certain governmental
entities, including the Legislative Reference Library, rather than the
state treasurer.  Requires a state agency to submit the information to the
listed officials by the date or dates provided in the General
Appropriations Act.   Authorizes the comptroller to require the reporting
of the financial information for any entity that the comptroller
determines is a component unit of a statewide reporting entity in
accordance with generally accepted accounting principles as prescribed or
modified by the Governmental Accounting Standards Board or its successors. 

SECTION 63. Amends Section 466.017(a), Government Code, to require the
certified public accountant to present an audit report to the comptroller
and certain other governmental entities not later than the 30th day after
the submission date for the annual financial report by the General
Appropriations Act. 

SECTION 64. Amends Section 2306.074(a), Government Code, to require the
state auditor or a certified public accountant to audit the department's
books and accounts each fiscal year and file a copy of the audit with the
governor, the comptroller, and the legislature not later than the 30th day
after the submission date for the annual financial report as required by
the General Appropriations Act.  Makes a conforming change. 

SECTION 65. Amends Section 17(a), Article 5.76-3, Insurance Code, to
require the board of directors of the fund (board) to publish an
independently audited report analyzing certain information about the fund.
Requires the board to file the audited report with the Texas Department of
Insurance  for inclusion in its annual financial report.  Requires the
annual financial report to be submitted by the Texas Department of
Insurance by the date provided for in the General Appropriations Act. 

SECTION 66. Amends Sections 403.021(a), (b), (c), and (d), Government
Code, to require a state agency that expends appropriated funds to report
into the uniform statewide accounting system (USAS) all payables and
binding encumbrances for the first three quarters of the current
appropriation year within 30 days after the close of each quarter.
Requires binding encumbrances for all appropriation years to be reported
annually not later than September 30 of each fiscal year. Requires payable
and binding encumbrances to be reported for all appropriations in the
format that the comptroller prescribes.  Requires the comptroller to lapse
all unencumbered nonconstruction appropriation balances for all prior
appropriated years based on the payables and binding encumbrances
reported, on October 1, rather than 31, of each fiscal year.  Authorizes
the comptroller to reinstate the agency's appropriations to the extent of
the claim if an agency submits a valid claim against a prior year
appropriation 30 days or more after the reporting due date. 

SECTION 67. Amends Section 403.031, Government Code, by adding Subsection
(c), as follows: 
 
(c)  Authorizes the comptroller in consultation with the state auditor to
develop standards and criteria to account for or to reclassify receivables
determined to be uncollectible.  Requires the standards and criteria
developed by the comptroller to comply with generally accepted principles
prescribed or modified by the Governmental Accounting Standards Board or
its successors and must provide proper accounting controls to protect
state finances.  Requires the state auditor to review and approve the
standards and criteria for classifications of receivables. Authorizes
receivables to be reclassified as collectible or uncollectible according
to the process approved by the state auditor or on a case-by-case basis as
determined or approved by  that office.  Provides that the classification
of receivables as uncollectible under this subsection does not constitute
forgiveness of the debt, and any indebted person to the state remains
subject to Section 403.055, Government Code. 

SECTION 68. Amends Section 183.023, Tax Code, to require the comptroller
to deposit the revenue in the general revenue fund, rather than the mixed
beverage tax clearance fund. 

SECTION 69. Amends Section 183.051(b), Tax Code, to authorize the
legislature to appropriate for payment to each county or incorporated
municipality an amount equal to a percentage of revenues received from
permittees within each county or incorporated municipality based on
percentages or specific amounts provided for in the General Appropriations
Act. 

SECTION 70. Amends Section 74.006(d), Human Resource Code, to  provide
that in the trust fund may be invested and require the money be accounted
for separately from other funds in the treasury. Authorizes the council to
direct the investment of funds consistent with the comptroller's authority
to invest finds under Section 404.024, Government Code.  Requires net
income and interest earned on money in the trust fund to be deposited to
the credit of the trust fund after the deduction of investment related
expenses. 

SECTION 71.  (a) Repealers:  Section 403.005, 403.016(e), 403.0165(j), and
2103.032(c), Government Code (Approval of Accounts, Electronic Funds
Transfer, Payroll Deduction for State Employee Organization, Approval and
Submission of Vouchers). 

(b)  Repealer:  Section 403.021(f), Government Code (Encumbrance Reports).

SECTION 72. Effective date:  upon passage.
  Effective date for  SECTIONS 1,  26, 41-45, 62-70, and 71(b): September
1,   1997. 

SECTION 73. Makes application of this Act prospective.

SECTION 74. Emergency clause.