By Krusee                                       H.B. No. 3228

      75R8148 MLS-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the use of activity-based cost accounting measures by

 1-3     state agencies.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Chapter 2101, Government Code, is amended by

 1-6     adding Subchapter D to read as follows:

 1-7                SUBCHAPTER D.  ACTIVITY-BASED COST ACCOUNTING

 1-8           Sec. 2101.051.  DEFINITION.  In this subchapter,

 1-9     "attributable fully allocated cost" means the operating and capital

1-10     cost of providing a service, including direct, indirect, and

1-11     allocated costs, minus the cost of any function that will not be

1-12     competitively contracted.

1-13           Sec. 2101.052.  USE OF ACTIVITY-BASED COST ACCOUNTING BY

1-14     STATE AGENCIES.  (a)  A state agency shall implement a model system

1-15     of activity-based cost accounting by:

1-16                 (1)  defining project objectives, services performed,

1-17     and the results of the state agency's services;

1-18                 (2)  collecting relevant information on the

1-19     attributable fully allocated cost of certain services performed or

1-20     provided by the agency; and

1-21                 (3)  collecting and analyzing information on the

1-22     direct, indirect, and allocated costs of personnel, direct

1-23     materials, vehicles and equipment, fixed assets and facility costs,

1-24     and administrative overhead of the agency.

 2-1           (b)  A state agency shall provide its employees with training

 2-2     regarding the use of an activity-based cost accounting system.

 2-3           SECTION 2.  This Act takes effect September 1, 1997.

 2-4           SECTION 3.  The importance of this legislation and the

 2-5     crowded condition of the calendars in both houses create an

 2-6     emergency and an imperative public necessity that the

 2-7     constitutional rule requiring bills to be read on three several

 2-8     days in each house be suspended, and this rule is hereby suspended.