By:  Ratliff, West, Wentworth                           S.B. No. 31

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the powers and duties of agencies in the executive,

 1-2     legislative, and judicial branches of state government, including

 1-3     authorizations for and restrictions on the use of state funds and

 1-4     the compensation of employees and contractors.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Chapter 321, Government Code, is amended by

 1-7     adding Section 321.0137 to read as follows:

 1-8           Sec. 321.0137.  HISTORICALLY UNDERUTILIZED BUSINESS PROGRAM

 1-9     AUDIT.  A historically underutilized business program audit is an

1-10     audit to determine, according to the established program rules,

1-11     whether an agency is making a good faith effort to comply with the

1-12     program authorized in Chapter 2161, including whether the agency

1-13     has:

1-14                 (1)  adopted and complied with rules, strategic plans,

1-15     and procedures governing the agency's historically underutilized

1-16     business contract awards in accordance with the General Services

1-17     Commission's rules;

1-18                 (2)  used the General Services Commission's

1-19     historically underutilized business list and other sources to

1-20     identify historically underutilized businesses that can, and are

1-21     available to, meet agency needs;

1-22                 (3)  made marketing and outreach efforts to

1-23     historically underutilized businesses;

 2-1                 (4)  designated an employee with appropriate experience

 2-2     and authority to serve as the agency's historically underutilized

 2-3     business coordinator;

 2-4                 (5)  established objective measures in performance

 2-5     evaluations for all employees involved in negotiating or making

 2-6     contracting decisions to measure improvements in the agency's

 2-7     historically underutilized business participation; and

 2-8                 (6)  submitted valid data for historically

 2-9     underutilized business reporting to the commission.

2-10           SECTION 2.  Subsection (c), Section 321.014, Government Code,

2-11     is amended to read as follows:

2-12           (c)  The State Auditor shall submit each report to the

2-13     committee prior to publication.  The State Auditor shall file a

2-14     copy of each report prepared under this section with:

2-15                 (1)  the governor;

2-16                 (2)  the lieutenant governor;

2-17                 (3)  the speaker of the house of representatives;

2-18                 (4)  the secretary of state;

2-19                 (5)  the Legislative Reference Library;

2-20                 (6)  the chairman of the governing body and the

2-21     administrative head of each entity that is the subject of the

2-22     report; [and]

2-23                 (7)  members of the legislature on a committee with

2-24     oversight responsibility for the entity or program that is the

2-25     subject of the report; and

 3-1                 (8)  the General Services Commission, for those audits

 3-2     conducted under Section 321.0137.

 3-3           SECTION 3.  Section 324.008, Government Code, is amended by

 3-4     adding Subsections (d) and (e) to read as follows:

 3-5           (d)  The governing body of a state agency shall deliver to

 3-6     the library immediately after transcription a certified copy of the

 3-7     minutes of any meeting of the governing body.  Any changes or

 3-8     corrections to the minutes shall also be delivered to the library.

 3-9           (e)  For purposes of this section, "state agency" has the

3-10     meaning assigned by Sections 2151.002(2)(A) and (C).

3-11           SECTION 4.  Section 325.011, Government Code, is amended to

3-12     read as follows:

3-13           Sec. 325.011.  CRITERIA FOR REVIEW.  The commission and its

3-14     staff shall consider the following criteria in determining whether

3-15     a public need exists for the continuation of a state agency or its

3-16     advisory committees or for the performance of the functions of the

3-17     agency or its advisory committees:

3-18                 (1)  the efficiency with which the agency or advisory

3-19     committee operates;

3-20                 (2)  an identification of the objectives intended for

3-21     the agency or advisory committee and the problem or need that the

3-22     agency or advisory committee was intended to address, the extent to

3-23     which the objectives have been achieved, and any activities of the

3-24     agency in addition to those granted by statute and the authority

3-25     for these activities;

 4-1                 (3)  an assessment of less restrictive or alternative

 4-2     methods of performing any regulation that the agency performs that

 4-3     could adequately protect the public;

 4-4                 (4)  the extent to which the advisory committee is

 4-5     needed and is used;

 4-6                 (5)  the extent to which the jurisdiction of the agency

 4-7     and the programs administered by the agency overlap or duplicate

 4-8     those of other agencies and the extent to which the programs

 4-9     administered by the agency can be consolidated with the programs of

4-10     other state agencies;

4-11                 (6)  whether the agency has recommended to the

4-12     legislature statutory changes calculated to be of benefit to the

4-13     public rather than to an occupation, business, or institution that

4-14     the agency regulates;

4-15                 (7)  the promptness and effectiveness with which the

4-16     agency disposes of complaints concerning persons affected by the

4-17     agency;

4-18                 (8)  the extent to which the agency has encouraged

4-19     participation by the public in making its rules and decisions as

4-20     opposed to participation solely by those it regulates and the

4-21     extent to which the public participation has resulted in rules

4-22     compatible with the objectives of the agency;

4-23                 (9)  the extent to which the agency has complied with

4-24     applicable requirements of an agency of the United States or of

4-25     this state regarding equality of employment opportunity and the

 5-1     rights and privacy of individuals;

 5-2                 (10)  the extent to which changes are necessary in the

 5-3     enabling statutes of the agency so that the agency can adequately

 5-4     comply with the criteria listed in this section;

 5-5                 (11)  the extent to which the agency issues and

 5-6     enforces rules relating to potential conflicts of interest of its

 5-7     employees;

 5-8                 (12)  the extent to which the agency complies with

 5-9     Chapter 552[,] and with Chapter 551; [and]

5-10                 (13)  the extent to which the agency has complied with

5-11     requirements of state statutes and state agency rules regarding

5-12     purchasing goals and programs for historically underutilized

5-13     businesses; and

5-14                 (14)  the effect of federal intervention or loss of

5-15     federal funds if the agency is abolished.

5-16           SECTION 5.  Subchapter B, Chapter 403, Government Code, is

5-17     amended by adding Sections 403.0131 and 403.0132 to read as

5-18     follows:

5-19           Sec. 403.0131.  REPORT TO LEGISLATURE.  As soon as practical

5-20     after the comptroller certifies the appropriations made by the

5-21     legislature in a regular or special session, the comptroller shall

5-22     prepare a summary table for the legislature that details the basis

5-23     for the certification of all major funds.  The table must be

5-24     similar in format and detail to the major estimates summary tables

5-25     published in the comptroller's biennial revenue estimate and shall

 6-1     include the biennial appropriations from all major funds.

 6-2           Sec. 403.0132.  REPORT OF EXPENDITURES BY STATE AGENCY IN

 6-3     COUNTY.  (a)  The comptroller shall prepare an annual report

 6-4     detailing the expenditures by state agencies in each county.

 6-5           (b)  The report must include:

 6-6                 (1)  the total expenditures by each agency in each

 6-7     county; and

 6-8                 (2)  the type of expenditure by object or other

 6-9     classification as determined by the comptroller.

6-10           (c)  The comptroller shall, if possible, report all

6-11     expenditures from funds in the state treasury to reflect the

6-12     delivery of goods and services by county.  The comptroller shall

6-13     estimate the expenditures by county in all other circumstances.

6-14           (d)  Each state agency shall provide the comptroller with the

6-15     necessary information to complete the report.

6-16           (e)  Not later than December 1 of each year, the comptroller

6-17     shall file a copy of the report with the governor, the lieutenant

6-18     governor, the speaker of the house of representatives, and the

6-19     Legislative Budget Board.

6-20           SECTION 6.  Section 403.021, Government Code, is amended to

6-21     read as follows:

6-22           Sec. 403.021.  ENCUMBRANCE REPORTS.  (a)  A state agency that

6-23     expends appropriated funds shall report into the uniform statewide

6-24     accounting system all payables and binding encumbrances for the

6-25     first three quarters of the current appropriation year within 30

 7-1     days after the close of each quarter.  Binding encumbrances for all

 7-2     appropriation years shall be reported annually not later than

 7-3     September 30 of each fiscal [submit a binding encumbrance report to

 7-4     the comptroller and the state auditor no later than October 30 of

 7-5     each] year.

 7-6           (b)  The report must indicate the unencumbered balance, if

 7-7     any, of each nonconstruction appropriation for the preceding fiscal

 7-8     quarter [year].  The report must be made in the format that the

 7-9     comptroller prescribes.  The comptroller may reject a report if it

7-10     does not contain sufficient information or comply with the

7-11     comptroller's prescribed format.

7-12           (c)  On October 31 of each year, the comptroller shall lapse

7-13     all unencumbered balances based on information in the binding

7-14     encumbrance reports for the preceding fiscal year.

7-15           (d)  If an agency has not submitted a report by October 31,

7-16     the comptroller shall lapse the unexpended balance of the agency's

7-17     appropriations.  If the agency subsequently submits a report, the

7-18     comptroller shall reinstate the agency's appropriations to the

7-19     extent they were encumbered but unexpended.

7-20           (e)  If a state agency submits a claim that is legally

7-21     payable against an appropriation for an earlier year and the

7-22     balance of the appropriation is insufficient to pay the claim, then

7-23     the comptroller may reopen the appropriation to pay the claim.  A

7-24     claim is legally payable from an appropriation only if the

7-25     appropriation was encumbered to pay the claim before the expiration

 8-1     of the appropriation.

 8-2           (f)  Each state agency shall reconcile all expenditures,

 8-3     binding encumbrances, payables, and accrued expenditures, as

 8-4     reported in the uniform statewide accounting system, with the state

 8-5     agency's strategic planning and budget structure, as reported in

 8-6     the automated budget and evaluation system prescribed by the

 8-7     Legislative Budget Board.

 8-8           (g)(1)  In addition to submitting the binding encumbrance

 8-9     reports required by Subsections (a)  through (e), a state agency

8-10     that expends appropriated funds shall submit a nonbinding

8-11     encumbrance report each month to the comptroller through the

8-12     uniform statewide accounting system.  A report is due not [no]

8-13     later than the 45th day after the end of the month covered by the

8-14     report.

8-15                 (2)  On receipt of a report, the comptroller shall

8-16     provide the information in the report to the Legislative Budget

8-17     Office and the state auditor.

8-18                 (3)  A state agency may use electronic media transfer

8-19     of data to satisfy the requirements of this subsection.

8-20                 [(4)  This subsection does not apply until the uniform

8-21     statewide accounting system is fully implemented.]

8-22           (h) [(g)]  The comptroller may adopt rules to administer this

8-23     section.

8-24           SECTION 7.  Subchapter C, Chapter 552, Government Code, is

8-25     amended by adding Section 552.125 to read as follows:

 9-1           Sec. 552.125.  EXCEPTION:  CERTAIN DOCUMENTS SUBMITTED FOR

 9-2     CERTIFICATION AS HISTORICALLY UNDERUTILIZED BUSINESS.  All

 9-3     financial and other types of private, confidential documentation

 9-4     and information submitted for the purpose of determining economic

 9-5     status and ownership interests of businesses under Chapter 2161 are

 9-6     excepted from the requirements of Section 552.021.

 9-7           SECTION 8.  Subchapter B, Chapter 656, Government Code, is

 9-8     amended by adding Section 656.026 to read as follows:

 9-9           Sec. 656.026.  JOB NOTICE POSTING WAIVER.  A state agency is

9-10     not required to comply with the requirements of this subchapter or

9-11     Subchapter A when the agency transfers or reassigns an employee as

9-12     part of a reorganization or merger mandated by the legislature if

9-13     the executive head of the agency certifies that the transfer or

9-14     reassignment is necessary for the proper implementation of the

9-15     reorganization or merger.

9-16           SECTION 9.  Subsection (a), Section 658.005, Government Code,

9-17     is amended to read as follows:

9-18           (a)  Normal office hours of a state agency are from 8 a.m. to

9-19     5 p.m., Monday through Friday.  These hours are the regular working

9-20     hours for a full-time state employee.  The offices of a state

9-21     agency shall remain open during the noon hour each working day with

9-22     at least one person on duty to accept calls, receive visitors, or

9-23     transact business.

9-24           SECTION 10.  Section 658.006, Government Code, is amended to

9-25     read as follows:

 10-1          Sec. 658.006.  STAGGERED WORKING HOURS[; CAPITOL AREA IN

 10-2    AUSTIN].  Normal working hours for employees of a state agency [in

 10-3    the Capitol area in Austin] may be staggered [as authorized by the

 10-4    General Appropriations Act] for traffic regulation or public

 10-5    safety.

 10-6          SECTION 11.  Chapter 658, Government Code, is amended by

 10-7    adding Section 658.008 to read as follows:

 10-8          Sec. 658.008.  MEMBERS OF NATIONAL GUARD OR RESERVES.  To

 10-9    facilitate participation in military duties by state employees,

10-10    each state agency, including each institution of higher education

10-11    as defined by Section 61.003, Education Code, shall adjust the work

10-12    schedule of any employee who is a member of the Texas National

10-13    Guard or the United States Armed Forces Reserves so that two of the

10-14    employee's days off work each month coincide with two days of

10-15    military duty to be performed by the employee.

10-16          SECTION 12.  Subchapter A, Chapter 659, Government Code, is

10-17    amended by adding Sections 659.004 through 659.007 to read as

10-18    follows:

10-19          Sec. 659.004.  PAYROLL REPORTING.  (a)  The comptroller, in

10-20    consultation with the state auditor, shall adopt rules that

10-21    prescribe uniform procedures for payroll reporting for all state

10-22    agencies and that are designed to:

10-23                (1)  facilitate the auditing of payrolls;

10-24                (2)  assure conformity with this chapter and the

10-25    General Appropriations Act; and

 11-1                (3)  provide the legislative audit committee with

 11-2    current information on employment and wage rate practices in state

 11-3    government.

 11-4          (b)  In this section, "state agency" has the meaning assigned

 11-5    by Section 2151.002.

 11-6          Sec. 659.005.  WITNESS FEES; JURY SERVICE.  (a)  A deduction

 11-7    may not be made from the salary or wages of a state employee

 11-8    because the employee is called for jury service, including a

 11-9    deduction for any fee or compensation the employee receives for the

11-10    jury service.

11-11          (b)  A state officer or employee who appears as a witness in

11-12    an official capacity in a judicial proceeding or legislative

11-13    hearing may not accept or receive a witness fee for the appearance.

11-14          (c)  A state officer or employee who appears as a witness in

11-15    an unofficial capacity in a judicial proceeding or legislative

11-16    hearing to testify from personal knowledge concerning matters

11-17    related to the proceeding or hearing is entitled to receive any

11-18    customary witness fees for the appearance.

11-19          (d)  A state officer or employee who appears as an expert

11-20    witness in a judicial proceeding or legislative hearing may accept

11-21    compensation for the appearance only if the person is not also

11-22    compensated by the state for the person's time in making the

11-23    appearance and may accept reimbursement for travel expenses only if

11-24    the expenses are not reimbursed by the state.

11-25          (e)  A state  officer or employee may receive reimbursement

 12-1    for travel and a per diem or reimbursement for expenses connected

 12-2    to an appearance in an official capacity as a witness in a judicial

 12-3    proceeding or legislative hearing only from the state or the

 12-4    judicial body.

 12-5          Sec. 659.006.  WITHHOLDINGS, DEDUCTIONS, AND MATCHING

 12-6    CONTRIBUTIONS: TAX AND RETIREMENT LAWS.  (a)  The state shall

 12-7    withhold money from salaries and wages paid to state officers and

 12-8    employees in accordance with applicable federal law, including

 12-9    federal law relating to withholding for purposes of the federal

12-10    income tax or social security.  The state shall make any required

12-11    employer contributions in accordance with applicable federal law.

12-12          (b)  The state also shall withhold money from salaries and

12-13    wages paid to state officers and employees in accordance with

12-14    applicable state retirement laws.  The state shall make required

12-15    matching contributions in accordance with those laws on payroll

12-16    forms prescribed by the comptroller.

12-17          (c)  The comptroller shall issue warrants in accordance with

12-18    this section.

12-19          Sec. 659.007.  ADJUSTMENT FOR INACCURATE PAYMENT.  The

12-20    comptroller by rule shall prescribe procedures for state agencies

12-21    to follow in making adjustments to payrolls for the pay period

12-22    immediately following the period in which an inaccurate payment or

12-23    deduction is made or in which other error occurs.

12-24          SECTION 13.  Subchapter B, Chapter 659, Government Code, is

12-25    amended by adding Sections 659.015 through 659.017 to read as

 13-1    follows:

 13-2          Sec. 659.015.  OVERTIME COMPENSATION FOR EMPLOYEES SUBJECT TO

 13-3    FAIR LABOR STANDARDS ACT.  (a)  This section applies only to a

 13-4    state employee who is subject to the overtime provisions of the

 13-5    federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et

 13-6    seq.) and who is not an employee of the legislature, including an

 13-7    employee of the lieutenant governor, or of a legislative agency.

 13-8          (b)  The employee is entitled to compensation for overtime as

 13-9    provided by this section and federal law.  To the extent that this

13-10    section and federal law prescribe a different rule for the same

13-11    circumstance, federal law controls without regard to whether this

13-12    section or federal law prescribes a stricter rule.

13-13          (c)  An employee who is required to work more than 40 hours

13-14    in a workweek is entitled to compensation for the overtime hours:

13-15                (1)  by taking compensatory time off at the rate of

13-16    1-1/2 hours off for each hour of accrued overtime, if the employing

13-17    agency allows or requires the employee to do so; or

13-18                (2)  by receiving pay for the overtime hours at the

13-19    rate of 1-1/2 times the employee's regular hourly rate of pay, if

13-20    the employing agency determines it is impractical for the employee

13-21    to take compensatory time off as compensation for the overtime.

13-22          (d)  Holidays or other paid leave taken during a workweek are

13-23    not counted as hours worked in computing the number of overtime

13-24    hours under Subsection (c) or (e).

13-25          (e)  An employee may not accumulate more than 240 hours of

 14-1    overtime credit that may be taken as compensatory leave under

 14-2    Subsection (c)(1), except that an employee engaged in a public

 14-3    safety activity, an emergency response activity, or a seasonal

 14-4    activity may accumulate, in accordance with 29 U.S.C. Section

 14-5    207(o)(3)(A), not more than 480 hours of overtime credit that may

 14-6    be taken as compensatory leave under Subsection (c)(1).  An

 14-7    employee must be paid at the rate prescribed by Subsection (c)(2)

 14-8    for the number of overtime hours the employee works that cause the

 14-9    employee to exceed the amount of overtime credit the employee may

14-10    accumulate.  In this subsection, "overtime credit" means the number

14-11    of hours that is computed by multiplying the number of overtime

14-12    hours worked by 1-1/2.

14-13          (f)  When an employee does not work more than 40 hours in a

14-14    workweek but the number of hours worked plus the number of hours of

14-15    holiday or other paid leave taken during the workweek exceeds 40

14-16    hours, the employee is entitled to compensatory time off at the

14-17    rate of one hour off for each of the excess hours.  When an

14-18    employee does work 40 or more hours in a workweek and in addition

14-19    takes holiday or other paid leave during the workweek, and the

14-20    total number of hours worked exceeds 40 after subtraction of the

14-21    hours compensable under Subsections (c)-(e), the employee is

14-22    entitled to compensatory time off at the rate of one hour off for

14-23    each of the hours in excess of 40.  When an employee does not work

14-24    more than 40 hours in a workweek and the number of hours worked

14-25    plus the number of hours of holiday or other paid leave taken

 15-1    during the week does not exceed 40 hours, the employee may not

 15-2    accrue compensatory time for the week under this section.

 15-3          (g)  Compensatory time off to which an employee is entitled

 15-4    under Subsection (f) because of excess hours in a workweek

 15-5    attributable to having taken holiday or other paid leave must be

 15-6    taken during the 12-month period following the end of the workweek

 15-7    in which the compensatory time is accrued or it lapses.  An

 15-8    employee may not be paid for that compensatory time.  However, an

 15-9    employee of an institution of higher education as defined by

15-10    Section 61.003, Education Code, or an employee engaged in a public

15-11    safety activity, including highway construction and maintenance or

15-12    an emergency response activity, may be paid at any time at the

15-13    employee's regular rate of pay for that compensatory time if the

15-14    employer determines that taking the compensatory time off would

15-15    disrupt normal teaching, research, or other critical functions.

15-16          (h)  Hospital, fire protection, and law enforcement

15-17    personnel, including security personnel in correctional

15-18    institutions, are governed by the federal Fair Labor Standards Act

15-19    of 1938 (29 U.S.C. Section 201 et seq.) provisions applicable to

15-20    those employees, including the exceptions to the standard overtime

15-21    computation for a workweek.

15-22          Sec. 659.016.  OVERTIME COMPENSATION FOR EMPLOYEES NOT

15-23    SUBJECT TO FAIR LABOR STANDARDS ACT; REDUCTIONS IN PAY.  (a)  This

15-24    section applies only to a state employee who is not subject to the

15-25    overtime provisions of the federal Fair Labor Standards Act of 1938

 16-1    (29 U.S.C. Section 201 et seq.) and who is not an employee of the

 16-2    legislature, including an employee of the lieutenant governor, or

 16-3    of a legislative agency.

 16-4          (b)  When the sum of hours worked plus holiday or other paid

 16-5    leave taken by an employee during a workweek exceeds 40 hours, and

 16-6    not otherwise, the employee may be allowed to accrue compensatory

 16-7    time for the number of hours that exceeds 40 hours.

 16-8          (c)  An employee who is exempt as an executive, professional,

 16-9    or administrative employee under 29 U.S.C. Section 213(a)(1) may be

16-10    allowed compensatory time off during the 12-month period following

16-11    the end of the workweek in which the overtime was accrued, at a

16-12    rate not to exceed one hour of compensatory time off for each hour

16-13    of overtime accrued.

16-14          (d)  In accordance with 29 C.F.R. Section 541.118 and subject

16-15    to that section's exceptions as described by this section, an

16-16    employee who is exempt as an executive, professional, or

16-17    administrative employee under 29 U.S.C. Section 213(a)(1) is

16-18    entitled to receive full salary for any week in which the employee

16-19    performs work without regard to the number of days and hours

16-20    worked.  This is also subject to the general rule that an employee

16-21    need not be paid for any workweek in which the employee performs no

16-22    work.

16-23          (e)  A deduction may be made from the salary of an employee

16-24    who is exempt as an executive, professional, or administrative

16-25    employee under 29 U.S.C. Section 213(a)(1) if:

 17-1                (1)  the employee is not at work for a full day or

 17-2    longer for personal reasons other than sickness, accident, jury

 17-3    duty, attendance as a witness at a judicial proceeding, or

 17-4    temporary military leave;

 17-5                (2)  the employee is not at work for a full day or

 17-6    longer because of sickness or disability, including sickness or

 17-7    disability covered by workers' compensation benefits, and the

 17-8    employee's paid sick leave or workers' compensation benefits have

 17-9    been exhausted;

17-10                (3)  the deduction is a penalty imposed for a violation

17-11    of a significant safety rule relating to prevention of serious

17-12    danger in the workplace to other persons, including other

17-13    employees; or

17-14                (4)  in accordance with the special provisions

17-15    applicable to executive, professional, or administrative employees

17-16    of public agencies set forth in 29 C.F.R. Section 541.5d, the

17-17    employee is not at work for less than one day for personal reasons

17-18    or because of illness or injury and accrued leave is not used by

17-19    the employee because:

17-20                      (A)  permission to use accrued leave was not

17-21    sought or was denied;

17-22                      (B)  accrued leave has been exhausted; or

17-23                      (C)  the employee chooses to use leave without

17-24    pay.

17-25          (f)  In accordance with 29 C.F.R. Section 541.5d, a deduction

 18-1    from the pay of an executive, professional, or administrative

 18-2    employee because of an absence from work caused by a furlough

 18-3    related to the budget does not affect the employee's status as an

 18-4    employee paid on a salary basis, except for any workweek in which

 18-5    the furlough occurs and for which the employee's pay is accordingly

 18-6    reduced.

 18-7          (g)  If a deduction is made from an employee's salary in

 18-8    violation of United States Department of Labor regulations, the

 18-9    employee is entitled to retroactive reimbursement of the amount

18-10    that should not have been deducted.

18-11          (h)  An employee who is not subject to the federal Fair Labor

18-12    Standards Act of 1938 under 29 U.S.C. Section 203(e)(2)(C) because

18-13    the employee is a staff member, appointee, or immediate adviser of

18-14    an elected officeholder may be allowed compensatory time off under

18-15    the terms and conditions determined by the officeholder.

18-16          (i)  An employee covered by this section may not be paid for

18-17    any unused compensatory time.

18-18          Sec. 659.017.  OVERTIME COMPENSATION FOR LEGISLATIVE

18-19    EMPLOYEES.  Consistent with the requirements of the federal Fair

18-20    Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.),

18-21    overtime pay and compensatory time off for employees of the

18-22    legislative branch, including employees of the lieutenant governor,

18-23    are determined as follows:

18-24                (1)  for employees of the house of representatives or

18-25    the senate, by the presiding officer of the appropriate house of

 19-1    the legislature;

 19-2                (2)  for employees of an elected officeholder, by the

 19-3    employing officeholder; and

 19-4                (3)  for employees of a legislative agency, by the

 19-5    administrative head of the agency.

 19-6          SECTION 14.  Section 659.081, Government Code, is amended to

 19-7    read as follows:

 19-8          Sec. 659.081.  Payment Once a Month.  Except as provided by

 19-9    this subchapter or the General Appropriations Act, annual salaries

19-10    for state officers and employees shall be paid once a month.

19-11          SECTION 15.  Subchapter F, Chapter 659, Government Code, is

19-12    amended by adding Section 659.085 to read as follows:

19-13          Sec. 659.085.  DETERMINING AMOUNT OF MONTHLY OR HOURLY PAY;

19-14    PROPORTIONATE REQUIREMENT FOR PART-TIME PAY.  (a)  The amount of

19-15    monthly salary for an annual employee who maintains a 40-hour

19-16    workweek and is covered under Chapter 658 is computed by dividing

19-17    the annual salary for the person's position set in or in accordance

19-18    with the General Appropriations Act by 12.

19-19          (b)  For purposes of partial payment or other applicable

19-20    situations, the employee's hourly rate of pay for a given month is

19-21    computed by dividing the employee's monthly salary by the number of

19-22    working hours in the month.  When the employee is on leave without

19-23    pay, compensation for the pay period is reduced by an amount

19-24    computed by multiplying the employee's hourly rate of pay times the

19-25    number of hours the employee was on leave without pay.

 20-1          (c)  The salary rate of a part-time employee must be

 20-2    proportional to the regular salary for the position set in or in

 20-3    accordance with the General Appropriations Act.

 20-4          (d)  An agency that may contract with its employees for

 20-5    employment for less than a 12-month period may make equal monthly

 20-6    salary payments under the contract during the contract period.

 20-7          SECTION 16.  Subsection (c), Section 661.033, Government

 20-8    Code, is amended to read as follows:

 20-9          (c)  Payment under this section may not be for more than:

20-10                (1)  all of the state employee's accumulated vacation

20-11    leave; and

20-12                (2)  one-half of the state employee's accumulated sick

20-13    leave or 336 hours of sick leave, whichever is less.

20-14          SECTION 17.  Section 661.062, Government Code, is amended by

20-15    amending Subsections (a) and (b) and adding Subsection (f) to read

20-16    as follows:

20-17          (a)  A state employee who, at any time during the employee's

20-18    lifetime, has accrued six months of continuous state employment and

20-19    who resigns, is dismissed, or otherwise [for any reason] separates

20-20    from state employment is entitled to be paid for the accrued

20-21    balance of the employee's vacation time as of the date of

20-22    separation, if the individual is not reemployed by the state during

20-23    the 30-day period immediately following the date of separation from

20-24    state employment in a position under which the employee accrues

20-25    vacation leave.

 21-1          (b)  A separation from state employment includes a separation

 21-2    in which the employee:

 21-3                (1)  leaves one state agency to begin working for

 21-4    another state agency[, if one or more workdays occur between the

 21-5    two employments];

 21-6                (2)  moves from a position in a state agency that

 21-7    accrues vacation time to a position in that agency that does not

 21-8    accrue vacation time, if the agency agrees to pay the employee for

 21-9    the accrued balance of the employee's vacation time;

21-10                (3)  moves from a position in a state agency that

21-11    accrues vacation time to a position in another state agency that

21-12    does not accrue vacation time, if the other state agency refuses to

21-13    credit the employee for the balance of the employee's vacation time

21-14    as of the date of the move; or

21-15                (4)  holds two or more positions, and separates from

21-16    one that accrues vacation time.

21-17          (f)  Payment for accrued vacation leave for employees of the

21-18    legislative branch, including employees of the lieutenant governor,

21-19    is determined as follows:

21-20                (1)  for employees of either house of the legislature,

21-21    a member of the legislature, or the lieutenant governor, by the

21-22    presiding officer of the appropriate house of the legislature; and

21-23                (2)  for employees of a legislative agency, by the

21-24    administrative head of the agency.

21-25          SECTION 18.  Chapter 661, Government Code, is amended by

 22-1    adding Subchapters F, G, H, and Z to read as follows:

 22-2           SUBCHAPTER F.  GENERAL PROVISIONS FOR VACATION LEAVE

 22-3          Sec. 661.151.  STATE AUDITOR INTERPRETATIONS.  (a)  The state

 22-4    auditor shall provide a uniform interpretation of this subchapter

 22-5    and Subchapters G, H, and Z.

 22-6          (b)  The state auditor shall report to the governor and the

 22-7    legislature any state agency or institution of higher education

 22-8    that practices exceptions to those laws.

 22-9          Sec. 661.152.  ENTITLEMENT TO ANNUAL VACATION LEAVE.  (a)  A

22-10    state employee is entitled to a vacation in each fiscal year

22-11    without a deduction in salary, except for a state employee who is:

22-12                (1)  an employee of an institution of higher education

22-13    as defined by Section 61.003, Education Code, who:

22-14                      (A)  is not employed to work at least 20 hours

22-15    per week for a period of at least four and one-half months; or

22-16                      (B)  is employed in a position for which the

22-17    employee is required to be a student as a condition of the

22-18    employment;

22-19                (2)  a faculty member employed for a period of fewer

22-20    than 12 months by an institution of higher education as defined by

22-21    Section 61.003, Education Code; or

22-22                (3)  an instructional employee employed for a period of

22-23    fewer than 12 months by the Texas School for the Blind and Visually

22-24    Impaired or the Texas School for the Deaf.

22-25          (b)  The amount of vacation accrues and may be taken in

 23-1    accordance with this subchapter.

 23-2          (c)  A part-time employee accrues vacation leave on a

 23-3    proportionate basis.  The maximum amount of vacation leave  a

 23-4    part-time employee may carry forward from one fiscal year to the

 23-5    next is also on a proportionate basis.

 23-6          (d)  An employee accrues vacation leave and may carry

 23-7    vacation leave forward from one fiscal year to the next in

 23-8    accordance with the following schedule:

 23-9                                                   Maximum Hours

23-10                                                   Carried Forward

23-11                                Hours Accrued      From One Fiscal

23-12                                Per Month for      Year to the Next

23-13    Employees With Total State       Full-time      for a

23-14    Employment of:                  Employment      Full-time Employee

23-15    less than 2 years                        7                 168

23-16    at least 2 but less than 5 years         8                 232

23-17    at least 5 but less than 10 years        9                 256

23-18    at least 10 but less than 15 years      10                 280

23-19    at least 15 but less than 20 years      12                 328

23-20    at least 20 years or more               14                 376

23-21          (e)  An employee accrues vacation leave at the applicable

23-22    rate beginning on the first day of state employment and ending on

23-23    the last day of state employment.  An employee accrues and is

23-24    entitled to be credited for one month's vacation leave for each

23-25    month or fraction of a month of employment with the state,

 24-1    beginning on the first day of employment with the state and on the

 24-2    first calendar day of each succeeding month of state employment.

 24-3          (f)  An employee may not take vacation leave with pay until

 24-4    the employee has six months of continuous employment with the

 24-5    state, although the employee accrues vacation leave during that

 24-6    period.

 24-7          (g)  If an employee's state employment anniversary date

 24-8    occurs on the first calendar day of a month, the employee begins to

 24-9    accrue vacation leave at a higher rate in accordance with

24-10    Subsection (d) on the first calendar day of the appropriate month.

24-11    Otherwise, the employee begins to accrue vacation leave at the

24-12    higher rate on the first calendar day of the month following the

24-13    anniversary date.  An employee who begins working on the first

24-14    workday of a month in a position that accrues vacation leave is

24-15    considered to have begun working on the first calendar day of the

24-16    month for purposes of this subsection.

24-17          (h)  An employee is entitled to carry forward from one fiscal

24-18    year to the next the net balance of unused accumulated vacation

24-19    leave that does not exceed the maximum number of hours allowed

24-20    under Subsection (d).  All hours of unused accumulated vacation

24-21    leave that lapse at the end of a fiscal year under this subsection

24-22    and Subsection (d) shall be credited to the employee's sick leave

24-23    balance on the first day of the next fiscal year.

24-24          (i)  In computing the amount of vacation leave taken, time

24-25    during which an employee is excused from work because of a holiday

 25-1    is not charged against the employee's vacation leave.

 25-2          (j)  An employee who is on paid leave on the first workday of

 25-3    a month may not take vacation leave accrued for that month until

 25-4    the employee has returned to duty.

 25-5          (k)  An individual who is reemployed by a state agency within

 25-6    30 days after the individual's date of separation from state

 25-7    employment in a position under which the employee accrues vacation

 25-8    leave is entitled to reinstatement of the balance of the employee's

 25-9    previously accrued vacation leave.

25-10          Sec. 661.153.  VACATION LEAVE FOR LEGISLATIVE EMPLOYEES.

25-11    Vacation leave for employees of the legislative branch, including

25-12    employees of the lieutenant governor, is determined as follows:

25-13                (1)  for employees of either house of the legislature,

25-14    a member of the legislature, or the lieutenant governor, by the

25-15    presiding officer of the appropriate house of the legislature; and

25-16                (2)  for employees of a legislative agency, by the

25-17    administrative head of the agency.

25-18             (Sections 661.154-661.200 reserved for expansion

25-19             SUBCHAPTER G.  GENERAL PROVISIONS FOR SICK LEAVE

25-20          Sec. 661.201.  APPLICABILITY.  (a)  Sick leave for employees

25-21    of the legislative branch, including employees of the lieutenant

25-22    governor, is determined as follows:

25-23                (1)  for employees of either house of the legislature,

25-24    a member of the legislature, or the lieutenant governor, by the

25-25    presiding officer of the appropriate house of the legislature; and

 26-1                (2)  for employees of a legislative agency, by the

 26-2    administrative head of the agency.

 26-3          (b)  An employee of an institution of higher education as

 26-4    defined by Section 61.003, Education Code, is eligible to accrue or

 26-5    take paid sick leave under this subchapter only if the employee:

 26-6                (1)  is employed to work at least 20 hours per week for

 26-7    a period of at least four and one-half months; and

 26-8                (2)  is not employed in a position for which the

 26-9    employee is required to be a student as a condition of the

26-10    employment.

26-11          Sec. 661.202.  ENTITLEMENT TO SICK LEAVE.  (a)  A state

26-12    employee is entitled to sick leave without a deduction in salary in

26-13    accordance with this subchapter.

26-14          (b)  An employee accrues sick leave beginning on the first

26-15    day of state employment and ending on the last day of state

26-16    employment.  An employee accrues and is entitled to be credited for

26-17    one month's sick leave for each month or fraction of a month of

26-18    employment with the state, beginning on the first day of employment

26-19    with the state and on the first calendar day of each succeeding

26-20    month of state employment.

26-21          (c)  Sick leave entitlement for a full-time employee accrues

26-22    at the rate of eight hours for each month or fraction of a month of

26-23    employment, and accumulates with the unused amount of sick leave

26-24    carried forward each month.  A part-time employee accrues sick

26-25    leave on a proportionate basis.

 27-1          (d)  Sick leave with pay may be taken when sickness, injury,

 27-2    or pregnancy and confinement prevent the employee's performance of

 27-3    duty or when the employee is needed to care for and assist a member

 27-4    of the employee's immediate family who is sick.  For purposes of

 27-5    taking regular sick leave with pay, the following persons are

 27-6    considered to be members of the employee's immediate family:

 27-7                (1)  an individual who resides in the same household as

 27-8    the employee and is related to the employee by kinship, adoption,

 27-9    or marriage;

27-10                (2)  a  foster child of the employee who resides in the

27-11    same household as the employee and who is certified by the

27-12    Department of Protective and Regulatory Services; and

27-13                (3)  a minor child of the employee, regardless of

27-14    whether the child lives in the same household.

27-15          (e)  An employee's use of sick leave to care for and assist

27-16    members of the employee's family who do not reside in the

27-17    employee's household is strictly limited to the time necessary to

27-18    provide care and assistance to a spouse, child, or parent of the

27-19    employee who needs the care and assistance as a direct result of a

27-20    documented medical condition.

27-21          (f)  An employee who must be absent from duty because of

27-22    sickness, injury, or pregnancy and confinement shall notify the

27-23    employee's supervisor or have the supervisor notified of that fact

27-24    at the earliest practicable time.

27-25          (g)  To be eligible to take accumulated sick leave without a

 28-1    deduction in salary during a continuous period of more than three

 28-2    working days, an employee absent due to sickness, injury, or

 28-3    pregnancy and confinement shall send to the administrative head of

 28-4    the employing agency a doctor's certificate showing the cause or

 28-5    nature of the condition or another written statement of the facts

 28-6    concerning the condition that is acceptable to the administrative

 28-7    head.  The administrative head of an agency may require a doctor's

 28-8    certificate or other written statement of the facts for sick leave

 28-9    without a deduction in salary taken during a continuous period of

28-10    three or fewer working days.

28-11          (h)  On returning to duty after taking sick leave, the

28-12    employee shall without delay complete the prescribed application

28-13    for sick leave and send the application in the manner prescribed by

28-14    the agency to the appropriate authority for approving the

28-15    application.

28-16          (i)  The administrative head or governing body of an agency

28-17    may authorize exceptions to the amount of sick leave an employee

28-18    may take on an individual basis after a review of the merits of a

28-19    particular case.  A statement of all authorized exceptions and the

28-20    reasons for the exceptions shall be attached to the state agency's

28-21    duplicate payroll voucher for the payroll period affected by the

28-22    authorized exceptions.

28-23          (j)  A state agency shall file a written statement with the

28-24    state auditor covering the policies and procedures for an extension

28-25    of leave under Subsection (i) and shall make the statement

 29-1    available to all agency employees.

 29-2          (k)  A faculty member at an institution of higher education

 29-3    as defined by Section 61.003, Education Code, must submit

 29-4    prescribed leave forms for all sick leave the faculty member takes

 29-5    if the absence occurs during the normal workday for regular

 29-6    employees, even if no classes are missed.

 29-7          Sec. 661.203.  RESTORATION OF SICK LEAVE ON REEMPLOYMENT IN

 29-8    CERTAIN CIRCUMSTANCES.  (a)  An employee who separates from

 29-9    employment with the state under a formal reduction in force is

29-10    entitled to have the employee's sick leave balance restored if the

29-11    employee is reemployed by the state within 12 months after the end

29-12    of the month in which the employee separates from state employment.

29-13          (b)  An employee who separates from employment with the state

29-14    for a reason other than that described by Subsection (a) is

29-15    entitled to have the employee's sick leave balance restored if:

29-16                (1)  the employee is reemployed by the same state

29-17    agency or institution of higher education within 12 months after

29-18    the end of the month in which the employee separates from state

29-19    employment, but only if there has been a break in employment with

29-20    the state of at least 30 calendar days; or

29-21                (2)  the employee is reemployed by a different state

29-22    agency or institution of higher education within 12 months after

29-23    the end of the month in which the employee separates from state

29-24    employment.

29-25             (Sections 661.204-661.250 reserved for expansion

 30-1           SUBCHAPTER H.  PROVISIONS APPLICABLE TO BOTH VACATION

 30-2                              AND SICK LEAVE

 30-3          Sec. 661.251.  APPLICABILITY.  This subchapter applies to a

 30-4    state employee employed by either house of the legislature or by a

 30-5    member of the legislature or the lieutenant governor only to the

 30-6    extent determined by the presiding officer of the appropriate house

 30-7    of the legislature and to an employee of a legislative agency only

 30-8    to the extent determined by the administrative head of the agency.

 30-9          Sec. 661.252.  TRANSFER OF LEAVE BALANCE.  A state employee

30-10    who transfers directly from one state agency to another is entitled

30-11    to credit by the agency to which the employee transfers for the

30-12    unused balance of the employee's accumulated vacation and sick

30-13    leave, if the employee's employment with the state is

30-14    uninterrupted.

30-15             (Sections 661.253-661.900 reserved for expansion

30-16               SUBCHAPTER Z.  MISCELLANEOUS LEAVE PROVISIONS

30-17          Sec. 661.901.  APPLICABILITY.  (a)  This subchapter applies

30-18    to a state employee employed by either house of the legislature or

30-19    by a member of the legislature or the lieutenant governor only to

30-20    the extent determined by the presiding officer of the appropriate

30-21    house of the legislature and to an employee of a legislative agency

30-22    only to the extent determined by the administrative head of the

30-23    agency.

30-24          (b)  An employee of an institution of higher education as

30-25    defined by Section 61.003, Education Code, is eligible to accrue or

 31-1    take paid leave under this subchapter only if the employee:

 31-2                (1)  is employed to work at least 20 hours per week for

 31-3    a period of at least four and one-half months; and

 31-4                (2)  is not employed in a position for which the

 31-5    employee is required to be a student as a condition of the

 31-6    employment.

 31-7          Sec. 661.902.  EMERGENCY LEAVE.  (a)  A state employee is

 31-8    entitled to emergency leave without a deduction in salary because

 31-9    of a death in the employee's family.  The death of the employee's

31-10    spouse or of a parent, brother, sister, grandparent, grandchild, or

31-11    child of the employee or of the employee's spouse is considered to

31-12    be a death in the employee's family for purposes of this

31-13    subsection.

31-14          (b)  The administrative head of an agency may determine that

31-15    a reason other than that described by Subsection (a) is sufficient

31-16    for granting emergency leave and shall grant an emergency leave to

31-17    an employee who the administrative head determines has shown good

31-18    cause for taking emergency leave.

31-19          Sec. 661.903.  NATIONAL GUARD EMERGENCY.  A state employee

31-20    who is called to active duty as a member of the Texas National

31-21    Guard by the governor because of an emergency is entitled to a

31-22    leave of absence without a deduction in salary in accordance with

31-23    Section 431.0825.

31-24          Sec. 661.904.  MILITARY LEAVE DURING NATIONAL EMERGENCY.

31-25    (a)  An employee called to active duty during a national emergency

 32-1    to serve in a reserve component of the armed forces of the United

 32-2    States is entitled to a leave of absence.

 32-3          (b)  The employee continues to accrue state service credit

 32-4    for purposes of longevity pay while on military duty described by

 32-5    Subsection (a) but does not accrue vacation or sick leave during

 32-6    that time.

 32-7          (c)  The employee retains any accrued vacation or sick leave

 32-8    and is entitled to be credited with those balances on return to

 32-9    state employment from military duty described by Subsection (a).

32-10          Sec. 661.905.  VOLUNTEER FIREFIGHTERS.  (a)  A state employee

32-11    who is a volunteer firefighter is entitled to a leave of absence

32-12    without a deduction in salary to attend fire service training

32-13    conducted by a state agency or institution of higher education.

32-14    Leave without a deduction in salary under this subsection may not

32-15    exceed five working days in a fiscal year.

32-16          (b)  A state agency or institution of higher education may

32-17    grant leave without a deduction in salary to a volunteer

32-18    firefighter for the purpose of allowing the firefighter to respond

32-19    to emergency fire situations if the agency or institution has an

32-20    established policy for granting that leave.

32-21          (c)  A leave of absence under this section may not be charged

32-22    against an employee's vacation or sick leave.

32-23          Sec. 661.906.  FOSTER PARENTS.  A state employee who is a

32-24    foster parent to a child under the conservatorship of the

32-25    Department of Protective and Regulatory Services is entitled to a

 33-1    leave of absence without a deduction in salary for the purpose of

 33-2    attending:

 33-3                (1)  meetings held by the Department of Protective and

 33-4    Regulatory Services regarding the child under the foster care of

 33-5    the employee; or

 33-6                (2)  an admission, review, and dismissal meeting held

 33-7    by a school district regarding the child under the foster care of

 33-8    the employee.

 33-9          Sec. 661.907.  RED CROSS DISASTER SERVICE VOLUNTEER.  (a)  A

33-10    state employee who is a certified disaster service volunteer of the

33-11    American Red Cross or who is in training to become such a volunteer

33-12    may be granted leave not to exceed 10 days each fiscal year to

33-13    participate in specialized disaster relief services for the

33-14    American Red Cross without a deduction in salary or loss of

33-15    vacation time, sick leave, earned overtime credit, or state

33-16    compensatory time if the leave is taken:

33-17                (1)  with the authorization of the employee's

33-18    supervisor;

33-19                (2)  with the approval of the governor; and

33-20                (3)  on the request of the American Red Cross.

33-21          (b)  The number of certified disaster volunteers who are

33-22    eligible for leave under this section may not exceed 350 state

33-23    employees at any one time during a fiscal year.  The division of

33-24    emergency management in the governor's office shall coordinate the

33-25    establishment and maintenance of the list of eligible employees.

 34-1          (c)  Not later than the 60th day after the date the American

 34-2    Red Cross makes a request under Subsection (a)(3), the American Red

 34-3    Cross shall prepare a report for the Legislative Budget Board

 34-4    stating the reasons for the request.

 34-5          Sec. 661.908.  LEAVE RECORDS.  The administrative head or

 34-6    governing body of each state agency shall require for each

 34-7    employee:

 34-8                (1)  time and attendance records;

 34-9                (2)  a record of the accrual and taking of vacation and

34-10    sick leave;

34-11                (3)  a record of the reason an employee takes leave if

34-12    other law requires the employee to inform the agency of the reason;

34-13    and

34-14                (4)  whether any leave taken is accounted for as sick

34-15    leave, vacation leave, other paid leave, leave without pay, or

34-16    other absence.

34-17          Sec. 661.909.  LEAVE WITHOUT PAY; LEAVE OF ABSENCE.  (a)  A

34-18    state agency or institution of higher education may grant employees

34-19    leave without pay, including a leave of absence without pay, in

34-20    accordance with this section.

34-21          (b)  The duration of the leave may not exceed 12 months.

34-22          (c)  Except for disciplinary suspensions, active military

34-23    duty, and leave covered by workers' compensation benefits, all

34-24    accumulated paid leave entitlements must be used before the leave

34-25    is granted.  All sick leave must first be used only if the employee

 35-1    is taking leave for a reason for which the employee is eligible to

 35-2    take sick leave under Subchapter G.

 35-3          (d)  Subject to fiscal constraints, approval of the leave

 35-4    constitutes a guarantee of reemployment at the conclusion of the

 35-5    specified leave period.

 35-6          (e)  The administrative head of a state agency or institution

 35-7    of higher education may grant exceptions to the limitations of this

 35-8    section if the employee is taking the leave:

 35-9                (1)  to work for another state governmental entity

35-10    under an interagency agreement; or

35-11                (2)  for educational purposes.

35-12          (f)  Except for an employee who returns to state employment

35-13    from military leave without pay, a full calendar month during which

35-14    an employee is on leave without pay is not counted in computing:

35-15                (1)  total state service for purposes related to

35-16    longevity pay or to accrual or payment for vacation leave; or

35-17                (2)  continuous state service for purposes related to

35-18    merit salary provisions or vacation leave.

35-19          (g)  An employee may not accrue vacation or sick leave for a

35-20    full calendar month during which the employee is on leave without

35-21    pay.

35-22          (h)  A full calendar month during which an employee is on

35-23    leave without pay does not constitute a break in continuity of

35-24    employment.

35-25          Sec. 661.910.  SEEING-EYE DOG TRAINING FOR BLIND EMPLOYEES.

 36-1    (a)  A state employee who is blind is entitled to a leave of

 36-2    absence without a deduction in salary for the purpose of attending

 36-3    a training program to acquaint the employee with a Seeing-Eye dog

 36-4    to be used by the employee.

 36-5          (b)  The leave of absence provided by this section may not

 36-6    exceed 10 working days in a fiscal year.

 36-7          (c)  The leave of absence provided by this section is in

 36-8    addition to other leave to which an employee is entitled, and an

 36-9    employee continues to accrue vacation and sick leave while on leave

36-10    as provided by this section.

36-11          (d)  For purposes of this section, "blind" has the meaning

36-12    assigned by Section 91.002, Human Resources Code.

36-13          Sec. 661.911.  ADMINISTRATIVE LEAVE WITH PAY.  (a) In

36-14    addition to employee leave authorized elsewhere in this chapter,

36-15    the administrative head of an agency may grant administrative leave

36-16    without a deduction in salary to an employee as a reward for

36-17    outstanding performance as documented by employee performance

36-18    appraisals.

36-19          (b)  The total amount of administrative leave an employee may

36-20    be granted under this section may not exceed 32 hours during a

36-21    fiscal year.

36-22          Sec. 661.912.  FAMILY AND MEDICAL LEAVE ACT.  (a)  To the

36-23    extent provided by federal law, a state employee who has a total of

36-24    at least 12 months of state service and who has worked at least

36-25    1,250 hours during the 12-month period preceding the beginning of

 37-1    leave under this section is entitled to leave under the federal

 37-2    Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et

 37-3    seq.) if the employee first uses all available and applicable paid

 37-4    vacation and sick leave while taking leave under this section.

 37-5          (b)  As an exception to the requirement that an employee

 37-6    first use all applicable paid vacation and sick leave, employees on

 37-7    Family and Medical Leave Act leave who are receiving temporary

 37-8    disability benefits or workers' compensation benefits are not

 37-9    required to first use applicable paid vacation or sick leave while

37-10    receiving those benefits.

37-11          Sec. 661.913.  PARENTAL LEAVE FOR CERTAIN EMPLOYEES.  (a)  A

37-12    state employee who has been employed for fewer than 12 months by

37-13    the state or who has worked fewer than 1,250 hours during the

37-14    12-month period preceding the beginning of leave under this section

37-15    is eligible to take a parental leave of absence in accordance with

37-16    this section if the employee first uses all available and

37-17    applicable paid vacation and sick leave while taking leave under

37-18    this section.

37-19          (b)  A leave of absence authorized by this section may not

37-20    exceed 12 weeks.

37-21          (c)  The leave authorized by this section is limited to, and

37-22    begins on the date of, the birth of a natural child of the employee

37-23    or the adoption by or foster care placement with the employee of a

37-24    child under three years of age.

37-25          Sec. 661.914.  VOTING BY STATE EMPLOYEES.  A state agency

 38-1    shall allow each agency employee sufficient time off, without a

 38-2    deduction in salary or accrued leave, to vote in each national,

 38-3    state, or local election.

 38-4          SECTION 19.  Subsection (b), Section 662.003, Government

 38-5    Code, is amended to read as follows:

 38-6          (b)  A state holiday includes only the following days:

 38-7                (1)  the 19th day of January, "Confederate Heroes Day,"

 38-8    in honor of Jefferson Davis, Robert E. Lee, and other Confederate

 38-9    heroes;

38-10                (2)  the second day of March, "Texas Independence Day";

38-11                (3)  the 21st day of April, "San Jacinto Day";

38-12                (4)  the 19th day of June, "Emancipation Day in Texas,"

38-13    in honor of the emancipation of the slaves in Texas in 1865;

38-14                (5)  the 27th day of August, "Lyndon Baines Johnson

38-15    Day," in observance of the birthday of Lyndon Baines Johnson;

38-16                (6)  [every day on which an election is held throughout

38-17    the state;]

38-18                [(7)]  the Friday after Thanksgiving Day;

38-19                (7) [(8)]  the 24th day of December; and

38-20                (8) [(9)]  the 26th day of December.

38-21          SECTION 20.  Subsection (a), Section 662.004, Government

38-22    Code, is amended to read as follows:

38-23          (a)  A state agency and an institution of higher education as

38-24    defined by Section 61.003, Education Code, shall have enough

38-25    employees on duty during a state holiday to conduct the public

 39-1    business of the agency or institution.

 39-2          SECTION 21.  Section 662.007, Government Code, is amended by

 39-3    adding Subsection (c) to read as follows:

 39-4          (c)  An institution of higher education as defined by Section

 39-5    61.003, Education Code, may allow an employee who is required to

 39-6    work on a national or state holiday that does not fall on a

 39-7    Saturday or Sunday to take compensatory time off in accordance with

 39-8    this section or may instead pay the employee at the employee's

 39-9    regular rate of pay for that time if the institution determines

39-10    that allowing compensatory time off would disrupt normal teaching,

39-11    research, or other critical functions.

39-12          SECTION 22.  Section 662.010, Government Code, is amended by

39-13    amending Subsection (c) and adding Subsection (d) to read as

39-14    follows:    

39-15          (c)  If a state or national holiday that does not fall on a

39-16    Saturday or Sunday occurs between the dates that a state employee

39-17    transfers from one state agency to another without a break in

39-18    service, the agency to which the employee transfers is responsible

39-19    for paying the employee for the holiday.

39-20          (d)  In this section, "workday" means a day on which a state

39-21    employee is normally scheduled to work.

39-22          SECTION 23.  Section 662.011, Government Code, is amended by

39-23    amending Subsection (a) and adding Subsection (c) to read as

39-24    follows:

39-25          (a)  The governing body of an institution of higher

 40-1    education, as defined by Section 61.003, Education Code, other than

 40-2    a public junior college as defined by that section, may establish

 40-3    the holiday schedule for the institution, subject to any applicable

 40-4    limitation on the observance of holidays prescribed by the General

 40-5    Appropriations Act.

 40-6          (c)  An employee of the institution is eligible to take paid

 40-7    holiday leave only if the employee:

 40-8                (1)  is scheduled to work at least 20 hours per week

 40-9    for a period of at least four and one-half months; and

40-10                (2)  is not employed in a position for which the

40-11    employee is required to be a student as a condition of the

40-12    employment.

40-13          SECTION 24.  Subtitle B, Title 6, Government Code, is amended

40-14    by adding Chapter 666 to read as follows:

40-15               CHAPTER 666.  MULTIPLE EMPLOYMENTS WITH STATE

40-16          Sec. 666.001.  GENERAL PROVISIONS.  (a)  This chapter applies

40-17    to a person who is or may become employed by more than one state

40-18    agency or institution of higher education.

40-19          (b)  A person who is employed by more than one state agency

40-20    or institution of higher education may not receive benefits from

40-21    the state that exceed the benefits provided for one full-time

40-22    employee.

40-23          (c)  The person must be informed of the requirements of this

40-24    chapter before the person is employed by more than one agency or

40-25    institution.

 41-1          Sec. 666.002.  SEPARATE RECORDS REQUIRED.  Separate vacation

 41-2    and sick leave records must be maintained for each employment.

 41-3          Sec. 666.003.  TRANSFER OF LEAVE BALANCES PROHIBITED.  If the

 41-4    person separates from one employment, the person's leave balances

 41-5    that were accrued under that employment may not be transferred to

 41-6    the remaining employments.

 41-7          Sec. 666.004.  ACCRUAL OF STATE SERVICE CREDIT.  The person

 41-8    accrues state service credit for all purposes as if the person had

 41-9    only one employment.

41-10          Sec. 666.005.  FEDERAL INSURANCE CONTRIBUTIONS.  (a)  The

41-11    state's contribution toward the taxes imposed on the person by the

41-12    Federal Insurance Contributions Act (26 U.S.C. Section 3101 et

41-13    seq.) may not exceed the overall limit specified in the General

41-14    Appropriations Act.

41-15          (b)  The comptroller shall prescribe uniform accounting and

41-16    reporting procedures to ensure that the state's contribution does

41-17    not exceed the limit described by Subsection (a).

41-18          Sec. 666.006.  GROUP INSURANCE CONTRIBUTION.  The total state

41-19    contribution toward the person's group insurance is limited to the

41-20    amount specified in the General Appropriations Act for a full-time

41-21    active employee.

41-22          Sec. 666.007.  OVERTIME COMPENSATION.  (a)  Overtime

41-23    compensation accrues for each employment independently of every

41-24    other employment, except as provided by Subsection (b).

41-25          (b)  If the person is subject to the overtime provisions of

 42-1    the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201

 42-2    et seq.) in an employment, the employing agencies and institutions

 42-3    of higher education shall ensure that the person is compensated for

 42-4    all combined time actually worked that exceeds 40 hours per week in

 42-5    accordance with the overtime provisions of the federal law.  The

 42-6    agencies and institutions shall cooperate to determine which agency

 42-7    or institution is responsible for ensuring that the employee is

 42-8    properly compensated according to those provisions.

 42-9          Sec. 666.008.  INFORMING EMPLOYER ABOUT MULTIPLE EMPLOYMENT.

42-10    The person must inform the person's employing state agencies or

42-11    institutions of higher education before accepting an additional

42-12    employment with another agency or institution.

42-13          Sec. 666.009.  SPECIAL PROVISIONS FOR LEGISLATIVE AGENCIES.

42-14    If a person's multiple employment involves only legislative

42-15    agencies and all employments are less than full-time, the person

42-16    may use paid leave from leave balances in all employments, and on

42-17    separating from one  employment leave balances accrued under that

42-18    employment will be transferred to the remaining employments.

42-19          Sec. 666.010.  SPECIAL PROVISIONS FOR INSTITUTIONS OF HIGHER

42-20    EDUCATION.  (a)  A university system as defined by Section 61.003,

42-21    Education Code, may establish a policy that defines a person's

42-22    employment as the total hours the person is assigned to one

42-23    component of the system or, alternatively, the total hours the

42-24    person is assigned to all components of the system.

42-25          (b)  The policy may apply to a person only if the person is

 43-1    employed by more than one institution of higher education and all

 43-2    the employing institutions are within the same university system.

 43-3          SECTION 25.  Chapter 751, Government Code, is amended by

 43-4    adding Subchapter C to read as follows:

 43-5               SUBCHAPTER C.  STATE PERSONNEL IN WASHINGTON

 43-6          Sec. 751.051.  LIAISON TO LEGISLATIVE COMMITTEES.  A state

 43-7    employee working in Washington, D.C., on behalf of one or more

 43-8    state agencies shall act in a liaison capacity and provide the most

 43-9    current information on federal funding and on legislative issues to

43-10    the appropriate substantive committees of both the Texas House of

43-11    Representatives and the Texas Senate.

43-12          SECTION 26.  (a)  Subchapter B, Chapter 2001, Government

43-13    Code, is amended by adding Section 2001.039 to read as follows:

43-14          Sec. 2001.039.  AGENCY REVIEW OF EXISTING RULES.  (a)  A

43-15    state agency shall review each of its rules in accordance with this

43-16    section.

43-17          (b)  A state agency shall review a rule not later than the

43-18    fourth anniversary of the date on which the rule takes effect and

43-19    every four years after that date until the rule expires or is

43-20    repealed.  The adoption of an amendment to an existing rule does

43-21    not affect the dates on which the rule must be reviewed except that

43-22    the effective date of an amendment is considered to be the

43-23    effective date of the rule if the agency formally conducts a review

43-24    of the rule in accordance with this section as part of the process

43-25    of adopting the amendment.

 44-1          (c)  The procedures of this subchapter relating to notice,

 44-2    public comment, and informal conferences and advisory committees

 44-3    apply to the review of a rule in the same manner that they apply to

 44-4    the adoption of a rule.

 44-5          (d)  A state agency's review of a rule must include an

 44-6    assessment about whether the reasons for initially adopting the

 44-7    rule continue to exist.

 44-8          (e)  A state agency, if requested to do so by an interested

 44-9    person before the 60th day after the date that the agency's notice

44-10    of a rule's review is published in the Texas Register, shall issue

44-11    a concise statement of the principal reasons for and against

44-12    allowing the rule to continue in existence in its present form.

44-13          (b)  This subsection applies only to state agency rules that

44-14    have taken effect before September 1, 1997.  A state agency shall

44-15    review each of its existing rules in accordance with Section

44-16    2001.039, Government Code, as added by this Act, and in accordance

44-17    with this subsection.  The agency shall conduct its reviews of

44-18    those rules not later than August 31, 2001.  Not later than August

44-19    31, 1998, each state agency shall develop and send to the secretary

44-20    of state for publication in the Texas Register a plan under which

44-21    the agency will review its existing rules.  The plan must state for

44-22    each of those rules the date by which the agency will begin the

44-23    review required by Section 2001.039, Government Code, as added by

44-24    this Act.  For purposes of subsequent reviews under Section

44-25    2001.039, Government Code, as added by this Act, the effective date

 45-1    of an existing rule initially reviewed under this subsection is

 45-2    considered to be the date that the notice for the initial review of

 45-3    the rule under this subsection is published in the Texas Register.

 45-4          SECTION 27.  Subchapter A, Chapter 2052, Government Code, is

 45-5    amended by adding Section 2052.004 to read as follows:

 45-6          Sec. 2052.004.  REPORT ON CLOSING OF FIELD OFFICES.  Before

 45-7    making any public announcement, a state agency shall send to any

 45-8    affected member of the legislature a written notice that describes

 45-9    the state agency's plan to close a field office located in the

45-10    member's legislative district.

45-11          SECTION 28.  Section 2054.092, Government Code, is amended to

45-12    read as follows:

45-13          Sec. 2054.092.  CONTENT OF STATE STRATEGIC PLAN.  The state

45-14    strategic plan must be a visionary plan for the management of the

45-15    state's information resources and:

45-16                (1)  provide a strategic direction for information

45-17    resources management in state government for the five fiscal years

45-18    following adoption of the plan;

45-19                (2)  provide guidance to state agencies in the

45-20    development of the agency strategic plans;

45-21                (3)  establish goals and objectives relating to

45-22    information resources management;

45-23                (4)  provide long-range policy guidelines for

45-24    information resources in state government, including the

45-25    implementation of national and international standards for

 46-1    information resources technologies;

 46-2                (5)  identify major issues relating to improved

 46-3    information resources management, including the identification of

 46-4    needed procurement policy initiatives to encourage competition

 46-5    between providers of information resources technologies; [and]

 46-6                (6)  identify priorities for the implementation of

 46-7    information resources technologies according to the relative

 46-8    economic and social impact on the state; and

 46-9                (7)  establish the framework under which the state's

46-10    telecommunications systems can be used to efficiently and

46-11    effectively exchange information among state agencies.

46-12          SECTION 29.  Subsection (d), Section 2054.095, Government

46-13    Code, is amended to read as follows:

46-14          (d)  The department by rule shall adopt instructions,

46-15    consistent with Section 2054.096, that guide state agencies in the

46-16    preparation of their agency strategic plans.  The instructions must

46-17    include the general criteria under which the department will

46-18    evaluate the plan and specify the format, content, updating, and

46-19    submission of the plan.  The department shall send the instructions

46-20    to each state agency not later than February 1 of each

46-21    even-numbered year.

46-22          SECTION 30.  Section 2054.118, Government Code, is amended to

46-23    read as follows:

46-24          Sec. 2054.118.  Major Information Resources Project.  (a)  A

46-25    state agency may not spend appropriated funds for a major

 47-1    information resources project unless the project has been reviewed

 47-2    and approved by a quality assurance team consisting of the

 47-3    department and the state auditor's office [in the agency's biennial

 47-4    operating plan].

 47-5          (b)  The quality assurance team shall determine project

 47-6    approval based on an analysis of the project's risk.  The quality

 47-7    assurance team may:

 47-8                (1)  waive project review requirements under

 47-9    circumstances it considers appropriate;

47-10                (2)  require any information it considers necessary to

47-11    determine a project's potential risk;

47-12                (3)  require independent monitoring of an approved

47-13    project, status reports of a project being implemented, or any

47-14    additional information the team considers necessary to determine a

47-15    project's potential for success; or

47-16                (4)  require a state agency to submit a

47-17    post-implementation evaluation report to enable the team to

47-18    determine whether a project met its planned objectives.

47-19          (c)  The department shall provide technical assistance to a

47-20    state agency in the implementation of a project, participate in a

47-21    project as the quality assurance team considers necessary, and

47-22    review and analyze project information submitted by a state agency.

47-23    The state auditor's office shall audit and review a project and the

47-24    information provided by a state agency about a project.  The

47-25    quality assurance team may request the Legislative Budget Board or

 48-1    the comptroller's office to assist in determining the accuracy of

 48-2    project expenditures and compliance with any expenditure

 48-3    limitations contained in the General Appropriations Act.

 48-4          (d)  The quality assurance team shall file a report with the

 48-5    lieutenant governor and the speaker of the house of representatives

 48-6    on the status of projects under its review not later than December

 48-7    1 of each year.

 48-8          (e)  The department shall develop rules or guidelines for

 48-9    software development, quality assurance, and [its] review of major

48-10    information resources projects.

48-11          (f) [(c)]  In this section, "major information resources

48-12    project" means any information resources technology project

48-13    identified in a state agency's biennial operating plan with

48-14    development costs that exceed $1 million and that:

48-15                (1)  requires one year or longer to reach operations

48-16    status;

48-17                (2)  involves more than one state agency; or

48-18                (3)  substantially alters work methods of state agency

48-19    personnel or the delivery of services to clients.

48-20          SECTION 31.  Subchapter F, Chapter 2054, Government Code, is

48-21    amended by adding Sections 2054.120 and 2054.121 to read as

48-22    follows:

48-23          Sec. 2054.120.  COORDINATION AMONG INSTITUTIONS OF HIGHER

48-24    EDUCATION.  Institutions of higher education shall coordinate the

48-25    use of information technologies with other such institutions to

 49-1    more effectively provide education, research, and community

 49-2    service.

 49-3          Sec. 2054.121.  COORDINATED TECHNOLOGY TRAINING.  A state

 49-4    agency each calendar quarter shall coordinate agency training for

 49-5    the use of information resources technologies with training offered

 49-6    or coordinated by the department.  The agency shall use training

 49-7    offered or coordinated by the department if it meets agency

 49-8    requirements and is cost-competitive.

 49-9          SECTION 32.  Subchapter B, Chapter 2101, Government Code, is

49-10    amended by adding Section 2101.0111 to read as follows:

49-11          Sec. 2101.0111.  ANNUAL REPORTS AND INVENTORIES.  (a)  Not

49-12    later than the 70th day after the close of fiscal year 1999, the

49-13    executive head of each state agency shall submit an annual

49-14    financial report regarding the agency's use of appropriated money,

49-15    as defined by Section 2113.001, during the preceding fiscal year

49-16    to:

49-17                (1)  the governor;

49-18                (2)  the comptroller;

49-19                (3)  the state auditor;

49-20                (4)  the Legislative Budget Board; and

49-21                (5)  the Legislative Reference Library.

49-22          (b)  The annual report must be prepared in accordance with

49-23    the uniform accounting and financial reporting procedures

49-24    established by the comptroller under Section 2101.012.

49-25          (c)  The annual report must include:

 50-1                (1)  a detailed statement of all assets, liabilities,

 50-2    and fund balances, including:

 50-3                      (A)  cash on hand and on deposit in banks and

 50-4    accounts in the state treasury;

 50-5                      (B)  the value of consumable supplies and

 50-6    postage;

 50-7                      (C)  the value of the state agency's inventory of

 50-8    movable equipment and other fixed assets;

 50-9                      (D)  a list of investments, bonds, notes, and

50-10    other securities owned by any special funds under the jurisdiction

50-11    of the state agency, including the amount and value of the

50-12    securities;

50-13                      (E)  all money due the state agency from any

50-14    source;

50-15                      (F)  all outstanding commitments of the agency,

50-16    including amounts due for services or goods received by the agency;

50-17                      (G)  a summary by source of all revenue collected

50-18    or accruing through the state agency, including appropriations; and

50-19                      (H)  a summary by source of all expenditures,

50-20    bona fide encumbrances, and other disbursements by the state

50-21    agency;

50-22                (2)  a list of all bonded employees, including the name

50-23    of the surety company and the name and title of the employee and

50-24    the amount of the surety bond;

50-25                (3)  an analysis of space occupied by the state agency,

 51-1    including:

 51-2                      (A)  the total number of square feet of rented

 51-3    space in state-owned buildings;

 51-4                      (B)  the total number of square feet of occupied

 51-5    space in state-owned buildings;

 51-6                      (C)  the name and address of each building in

 51-7    which the state agency occupies space and the number of square feet

 51-8    in each building devoted to a particular use;

 51-9                      (D)  the cost per square foot of all rented

51-10    space;

51-11                      (E)  the annual and monthly cost of all rented

51-12    space;

51-13                      (F)  the lessor of all rented space; and

51-14                      (G)  other information helpful to describe the

51-15    state agency's utilization of space in state-owned buildings;

51-16                (4)  an itemized statement of all fees paid by the

51-17    state agency for professional and consulting services provided

51-18    under Chapter 2254, including the name of each person receiving

51-19    fees and the reason for the provision of the services;

51-20                (5)  a summary of the state agency's use and cost of

51-21    operating aircraft that is state-owned or under long-term lease in

51-22    the format prescribed by the Legislative Budget Board and the State

51-23    Aircraft Pooling Board under Chapter 2205;

51-24                (6)  a list of any purchases made under Section

51-25    2155.067(e), including each product purchased, the purchase amount,

 52-1    and the name of each vendor;

 52-2                (7)  a copy of the Master File Report Verification Form

 52-3    certified by the General Land Office to confirm that the state

 52-4    agency is in compliance with Subchapter E, Chapter 31, Natural

 52-5    Resources Code;

 52-6                (8)  a copy of the report prepared by the state agency

 52-7    under Section 2161.124; and

 52-8                (9)  any other information required by the General

 52-9    Appropriations Act.

52-10          (d)  In this section, "state agency" has the meaning assigned

52-11    by Section 2151.002.

52-12          SECTION 33.  Subsection (a), Section 2101.012, Government

52-13    Code, is amended to read as follows:

52-14          (a)  The comptroller shall prescribe uniform accounting and

52-15    financial reporting procedures that a [each] state agency shall use

52-16    in the preparation of the information requested under Section

52-17    2101.011 or 2101.0111.

52-18          SECTION 34.  Section 2101.038, Government Code, is amended to

52-19    read as follows:

52-20          Sec. 2101.038.  DUTIES OF STATE AUDITOR.  (a)  The state

52-21    auditor, when reviewing the operation of a state agency, shall

52-22    audit for compliance with the uniform statewide accounting system,

52-23    the comptroller's rules, and the Legislative Budget Board's

52-24    performance and workload measures.

52-25          (b)  The state auditor shall notify the project advisory

 53-1    committee, the comptroller, the governor, and the Legislative

 53-2    Budget Board as soon as practicable when a state agency is not in

 53-3    compliance.

 53-4          (c)  If the state auditor issues any report concerning the

 53-5    operation of a state agency, the state auditor shall notify the

 53-6    agency's governing body and executive head.

 53-7          SECTION 35.  Chapter 2102, Government Code, is amended by

 53-8    adding Section 2102.0091 to read as follows:

 53-9          Sec. 2102.0091.  REPORTS OF PERIODIC AUDITS.  (a)  A state

53-10    agency shall file with the budget division of the governor's office

53-11    and the Legislative Budget Board a copy of each report submitted to

53-12    the state agency's governing board or its designee by the agency's

53-13    internal auditor.

53-14          (b)  Each report shall be filed not later than the 30th day

53-15    after the date the report is submitted to the state agency's

53-16    governing board or its designee.

53-17          (c)  In addition to the requirements of Subsection (a), a

53-18    state agency shall file with the budget division of the governor's

53-19    office and the Legislative Budget Board any action plan or other

53-20    response issued by the state agency's governing board in response

53-21    to the report of the state agency's internal auditor.

53-22          (d)  In this section, "state agency" includes a public junior

53-23    college, as that term is defined by Section 61.003, Education Code.

53-24          SECTION 36.  Subtitle C, Title 10, Government Code, is

53-25    amended by adding Chapter 2113 to read as follows:

 54-1      CHAPTER 2113.  USE OF APPROPRIATED MONEY AND OTHER STATE FUNDS

 54-2                     SUBCHAPTER A.  GENERAL PROVISIONS

 54-3          Sec. 2113.001.  DEFINITIONS.  In this chapter:

 54-4                (1)  "Appropriated money" means money appropriated by

 54-5    the legislature through the General Appropriations Act or other

 54-6    law.

 54-7                (2)  "State agency" means:

 54-8                      (A)  a department, commission, board, office, or

 54-9    other entity in the executive branch of state government;

54-10                      (B)  the supreme court, the court of criminal

54-11    appeals, a court of appeals, or the Texas Judicial Council; or

54-12                      (C)  a university system or an institution of

54-13    higher education as defined by Section 61.003, Education Code,

54-14    except that a public junior college is excluded from the term in

54-15    Subchapter E and all of Subchapter D except Section 2113.202.

54-16            (Sections 2113.002-2113.010 reserved for expansion

54-17             SUBCHAPTER B.  RESTRICTIONS ON POLITICAL ACTIVITY

54-18          Sec. 2113.011.  SUPPORT OF CANDIDATES.  (a)  A state agency

54-19    may not use state funds, including appropriated money, to finance

54-20    or otherwise support the candidacy of a person for an office in the

54-21    legislative, executive, or judicial branch of state government or

54-22    of the government of the United States.  This prohibition extends

54-23    to the direct or indirect employment of a person to perform an

54-24    action described by this subsection.

54-25          (b)  An employee of a state agency may not use a state-owned

 55-1    motor vehicle for a purpose described by Subsection (a).

 55-2          Sec. 2113.012.  ELECTIONS AND LEGISLATIVE INFLUENCE.  (a)  A

 55-3    state agency may not use appropriated money to influence the

 55-4    outcome of an election or the passage or defeat of a legislative

 55-5    measure.

 55-6          (b)  This section does not prohibit an officer or employee of

 55-7    a state agency from providing on request to a member of the

 55-8    legislature, legislative committee, other state officer or

 55-9    employee, or private citizen public information available to the

55-10    officer or employee.

55-11          Sec. 2113.013.  LOBBYING.  (a)  A state agency may not use

55-12    appropriated money to employ a full-time employee who is required

55-13    by Chapter 305 to register as a lobbyist.

55-14          (b)  A state agency may not use appropriated money to employ

55-15    a part-time employee who is required by Chapter 305 to register as

55-16    a lobbyist for an industry, profession, or association:

55-17                (1)  that the employee's agency regulates;

55-18                (2)  from which the employee's agency purchases goods

55-19    or services; or

55-20                (3)  to which the employee's agency provides goods or

55-21    services, including grants or loans.

55-22          Sec. 2113.014.  RETALIATION AND VIOLATION.  An officer or

55-23    employee of a state agency who causes an officer or employee to be

55-24    discharged, demoted, or otherwise discriminated against for

55-25    providing information under Section 2113.012(b) is required to be

 56-1    immediately discharged from state employment.

 56-2          Sec. 2113.015.  NOTICE OF PROHIBITIONS.  (a)  A state agency

 56-3    shall provide each officer and employee of the agency  a copy of

 56-4    Sections 2113.011-2113.014 and require a signed receipt on

 56-5    delivery.  A new copy and receipt are required if a provision of

 56-6    those sections is changed.

 56-7          (b)  A state agency shall maintain receipts collected from

 56-8    current officers and employees under this section in a manner

 56-9    accessible for public inspection.

56-10          Sec. 2113.016.  STUDENT ORGANIZATIONS.  (a)  This subchapter

56-11    does not prohibit the payment of reasonable dues to an organization

56-12    that represents student interests before the legislature or the

56-13    Congress of the United States from that portion of mandatory

56-14    student service fees that is allocated to the student government

56-15    organization at an institution of higher education.

56-16          (b)  A mandatory student service fee may not be used to

56-17    influence the outcome of an election.

56-18          Sec. 2113.017.  COMPENSATION PROHIBITION.  A state agency may

56-19    not use appropriated money to compensate an officer or employee who

56-20    violates this subchapter.

56-21            (Sections 2113.018-2113.100 reserved for expansion

56-22           SUBCHAPTER C.  RESTRICTIONS ON OFFICERS AND EMPLOYEES

56-23          Sec. 2113.101.  PUBLICITY.  (a)  A state agency may not use

56-24    appropriated money to publicize or direct attention to an

56-25    individual officer or employee of state government.

 57-1          (b)  A state agency may not use appropriated money to:

 57-2                (1)  maintain a publicity office or department;

 57-3                (2)  employ an individual who has the title or duties

 57-4    of a public relations or press agent; or

 57-5                (3)  pay a public relations agent or business.

 57-6          (c)  The executive head of a state agency who considers it

 57-7    necessary or in the public interest may issue through agency

 57-8    channels oral or written information relating to the activities or

 57-9    legal responsibilities of the agency.  The information must be

57-10    issued in the name of the state agency and include the name of the

57-11    individual authorized to issue the information.

57-12          (d)  An institution of higher education may operate a news

57-13    and information service for the benefit of the public if the

57-14    operation has been authorized and approved by the institution's

57-15    governing body.

57-16          Sec. 2113.102.  USE OF ALCOHOLIC BEVERAGES.  A state agency

57-17    may not use appropriated money to compensate an officer or employee

57-18    who uses alcoholic beverages on active duty.

57-19          Sec. 2113.103.  USE OF MOTOR VEHICLE.  (a)  Except as

57-20    provided by Subsection (b), an officer or employee of a state

57-21    agency may not use a state-owned motor vehicle except on official

57-22    state business.

57-23          (b)  The administrative head of a state agency may authorize

57-24    an officer or employee to use a state-owned motor vehicle to

57-25    commute to and from work when the administrative head determines

 58-1    that the use may be necessary to ensure that vital agency functions

 58-2    are performed.  The name and job title of each individual

 58-3    authorized under this subsection, and the reasons for the

 58-4    authorization, must be included in the annual report required by

 58-5    Section 2101.0111.

 58-6          (c)  A state agency may not use appropriated money to

 58-7    compensate an individual who violates this section.

 58-8            (Sections 2113.104-2113.200 reserved for expansion

 58-9             SUBCHAPTER D.  RESTRICTIONS ON GOODS AND SERVICES

58-10          Sec. 2113.201.  CONSULTANT CONTRACTS.  A state agency may not

58-11    use appropriated money to contract for consulting services with an

58-12    individual who has been an officer or employee of the agency within

58-13    the preceding 12 months.

58-14          Sec. 2113.202.  ALCOHOLIC BEVERAGES.  A state agency may not

58-15    use appropriated money to purchase an alcoholic beverage except for

58-16    authorized law enforcement purposes.  A state agency may not use

58-17    appropriated money to pay or reimburse a travel expense for an

58-18    alcoholic beverage.

58-19          Sec. 2113.203.  AUDITS.  (a)  Except as provided by

58-20    Subsections (b) and (c), a state agency may not use appropriated

58-21    money to hire an individual or entity to audit the books or

58-22    accounts of the agency.

58-23          (b)  A state agency may use appropriated money to finance a

58-24    supplemental audit of payments received from the government of the

58-25    United States if the audit is required as a condition of receipt of

 59-1    the money and an amount for the audit is provided by the federal

 59-2    grant, allocation, aid, or other payment.

 59-3          (c)  A state agency providing grants, loans, or other money

 59-4    to an entity other than a state agency may require, as a condition

 59-5    of receipt of the money, that the recipient have an annual,

 59-6    independent audit performed and submitted to the agency.  An agency

 59-7    may require its internal audit staff to make an annual inspection

 59-8    visit to the recipient of the money.  After notice of the meeting

 59-9    of the governing body of an agency at which the matter will be

59-10    included on the agenda, the agency shall take action on any

59-11    exceptions noted in independent audits received under this

59-12    subsection and provide documentation of that action to the state

59-13    auditor, the Legislative Audit Committee, the Legislative Budget

59-14    Board, and the budget division of the governor's office.

59-15          Sec. 2113.204.  PUBLICATION OF REPORTS.  (a)  A state agency

59-16    may not use appropriated money to publish a report or other printed

59-17    materials on enamel-coated, cast-coated, or dull-coated printing

59-18    stock unless the agency imposes a fee for receipt of the printed

59-19    materials.

59-20          (b)  A state agency shall make reports required by law and

59-21    minutes of meetings of the agency's governing body available to

59-22    members of the legislature and agencies in the legislative branch

59-23    of state government in an electronic format determined by the Texas

59-24    Legislative Council.

59-25          Sec. 2113.205.  PERIODICALS AND OTHER PUBLICATIONS.

 60-1    (a)  Except as provided by Subsection (b), a state agency may not

 60-2    use appropriated money to publish a periodical or other publication

 60-3    the cost of which is not reimbursed through revenue attributable to

 60-4    its publication and sale if the publication is:

 60-5                (1)  intended for use by the general public;

 60-6                (2)  generally informational, promotional, or

 60-7    educational; and

 60-8                (3)  not essential to the achievement of a statutory

 60-9    objective of the agency.

60-10          (b)  Subsection (a) does not apply to:

60-11                (1)  Texas Highways magazine;

60-12                (2)  the Texas Parks and Wildlife magazine;

60-13                (3)  publications of the Texas Commission on Alcohol

60-14    and Drug Abuse;

60-15                (4)  attorney general opinions, advisories, and

60-16    decisions;

60-17                (5)  comptroller opinions, revenue forecasts, and

60-18    fiscal analyses;

60-19                (6)  newsletters;

60-20                (7)  compilations of statutes or rules; or

60-21                (8)  annual reports and other materials that are

60-22    required by law and the content of which includes only topics

60-23    provided by law.

60-24          (c)  A state agency may not use appropriated money to publish

60-25    a publication that prominently displays the name or picture of a

 61-1    person holding an office elected statewide.

 61-2          (d)  Except as provided by Subsection (e), a state agency may

 61-3    not use appropriated money to publish a publication on

 61-4    enamel-coated, cast-coated, or dull-coated printing stock or that

 61-5    contains an average of more than one picture for each two pages of

 61-6    the publication unless the agency imposes a fee for the publication

 61-7    in an amount that recovers the cost of publication.

 61-8          (e)  Subsection (d) does not apply to a publication designed

 61-9    to promote tourism or economic development, a publication of the

61-10    Texas School for the Deaf or the Texas School for the Blind and

61-11    Visually Impaired, or a publication of an institution of higher

61-12    education.

61-13          (f)  A state agency or political subdivision that uses an

61-14    appropriation to publish free periodicals quarterly or more

61-15    frequently shall insert annually in three consecutive issues a

61-16    notice that anyone wishing to continue receiving the periodical

61-17    must so request in writing.  The agency shall provide future issues

61-18    of the periodical only to persons who have requested it.

61-19          Sec. 2113.206.  POSTAGE.  (a)  Except as provided by

61-20    Subsections (b) and (c), a state agency may use appropriated money

61-21    to purchase postage or rent a post office box only from the United

61-22    States Postal Service.

61-23          (b)  An agency other than an institution of higher education

61-24    as defined by Section 61.003, Education Code, that spends for

61-25    postage in a fiscal year an amount that exceeds the dollar amount

 62-1    set by the General Appropriations Act as the maximum expenditure

 62-2    for stamps shall purchase or rent a postage meter machine and

 62-3    record all purchases of postage on the machine except purchases of

 62-4    postage for employees in field offices and traveling employees.

 62-5    The rental of a postage meter machine by a state agency, including

 62-6    an institution of higher education, the legislature, or an agency

 62-7    in the legislative branch of state government, must be from a

 62-8    company approved by the General Services Commission.  The General

 62-9    Services Commission by rule shall adopt procedures for the renting

62-10    entity to pay for postage.

62-11          (c)  Subsection (a) does not apply to a reimbursement:

62-12                (1)  to an authorized petty cash account;

62-13                (2)  to a state employee for an emergency purchase of

62-14    postage or emergency payment of post office box rent; or

62-15                (3)  authorized by the General Appropriations Act.

62-16          (d)  A state agency shall remit to the comptroller an amount

62-17    received as a refund of postage for deposit to the credit of the

62-18    appropriation from which postage for the agency is paid.

62-19          (e)  Except as provided by Subsection (b), the comptroller

62-20    shall adopt rules to implement this section after consultation with

62-21    the General Services Commission.

62-22          Sec. 2113.207.  INDOOR PLANTS.  A state agency may not use an

62-23    appropriation to purchase, lease, or maintain a live or artificial

62-24    indoor plant to be used only for aesthetic purposes.

62-25          Sec. 2113.208.  STATE FACILITIES FOR MEETINGS AND

 63-1    CONFERENCES.  A state agency shall use state-owned or

 63-2    state-occupied facilities for meetings and conferences and may not

 63-3    use appropriated money to lease private facilities for these

 63-4    purposes unless state facilities are not available when needed or

 63-5    are not adequate to accommodate the meeting or conference.

 63-6            (Sections 2113.209-2113.300 reserved for expansion

 63-7              SUBCHAPTER E.  SPECIFICALLY AUTHORIZED USES OF

 63-8                            GOODS AND SERVICES

 63-9          Sec. 2113.301.  EMPLOYEE AWARDS.  (a)  A state agency may use

63-10    appropriated money to purchase service awards, safety awards, or

63-11    other similar awards to be presented to employees for professional

63-12    achievement or outstanding service under rules adopted by the

63-13    agency.

63-14          (b)  The cost of awards purchased under this section may not

63-15    exceed $50 for an individual employee.

63-16          Sec. 2113.302.  VOLUNTEER AWARDS.  (a)  A state agency may

63-17    use an appropriation to purchase engraved certificates, plaques,

63-18    pins, or other similar awards to be presented to volunteers  for

63-19    special achievement or outstanding service if the agency has

63-20    established a volunteer program under Chapter 2109 or other law.

63-21          (b)  The cost of awards purchased under this section may not

63-22    exceed $50 for an individual volunteer.

63-23          Sec. 2113.303.  EXAMINATION FEES.  A state agency that

63-24    conducts examinations shall collect all fees charged to the person

63-25    being examined for each examination, including the cost of a

 64-1    standardized examination instrument, and use appropriated money to

 64-2    pay a provider of goods or services for a cost incurred by the

 64-3    agency providing the examination.

 64-4          SECTION 37.  Section 2152.064, Government Code, is amended by

 64-5    amending Subsection (b) and adding Subsection (d) to read as

 64-6    follows:

 64-7          (b)  During January and July of each year, a state agency

 64-8    shall file with the presiding officer of each house of the

 64-9    legislature, [and] the presiding officers of the house

64-10    appropriations committee and the senate finance committee, and the

64-11    Legislative Budget Board a report that identifies each nonresident

64-12    bidder to whom the agency awarded a contract that has a value of

64-13    $25,000 or more for the purchase of supplies, materials, services,

64-14    or equipment during the six calendar months preceding the month in

64-15    which the report is filed, if the agency awarded such a contract

64-16    during the reporting period.  For contracts with a value of

64-17    $250,000 or more, the agency shall include an explanation for the

64-18    need to use a nonresident bidder.

64-19          (d)  In addition to the information required by Subsection

64-20    (b), a state agency shall include in the report to the Legislative

64-21    Budget Board a listing of the total value of all purchases from

64-22    nonresident bidders of supplies, materials, services, and equipment

64-23    during the six calendar months preceding the month in which the

64-24    report is filed.  If the total amount reported is greater than $1

64-25    million or greater than 25 percent of the total value of all

 65-1    purchases, the state agency shall include an explanation for the

 65-2    need to use nonresident bidders.

 65-3          SECTION 38.  Subsection (e), Section 2155.067, Government

 65-4    Code, is amended to read as follows:

 65-5          (e)  If the commission, after considering all factors, takes

 65-6    exception to the justifications, the commission shall purchase the

 65-7    goods or services as requested and report the reasons for its

 65-8    exception to the:

 65-9                (1)  members of the governing body and the agency head

65-10    [or the presiding officer of the agency's governing body];

65-11                (2)  state auditor;

65-12                (3)  Legislative Budget Board; and

65-13                (4)  governor.

65-14          SECTION 39.  Section 2155.073, Government Code, is amended to

65-15    read as follows:

65-16          Sec. 2155.073.  HISTORICALLY UNDERUTILIZED [PARTICIPATION BY

65-17    SMALL] BUSINESSES ASSISTANCE PROGRAM [IN STATE PURCHASING].  The

65-18    commission shall assist and foster participation of historically

65-19    underutilized [small] businesses in the purchasing activities,

65-20    other than construction or construction-related activity, of the

65-21    state.  Strategies for assisting and fostering such participation

65-22    include but are not limited to [by]:

65-23                (1)  assisting state agencies in developing strategies

65-24    and procedures to ensure the inclusion of historically

65-25    underutilized [small] businesses on state agency master bid lists;

 66-1                (2)  informing historically underutilized [small]

 66-2    businesses of state purchasing opportunities;

 66-3                (3)  assisting historically underutilized [small]

 66-4    businesses in complying with the procedures for bidding on state

 66-5    contracts and assisting those businesses in such skills as bidding

 66-6    techniques and product analysis;

 66-7                (4)  providing training [working with state and federal

 66-8    agencies and with private organizations in disseminating

 66-9    information on state purchasing procedures and the opportunities

66-10    for small businesses to participate in state contracts;]

66-11                [(5)  assisting state agencies with the development of

66-12    a comprehensive list of small businesses capable of providing goods

66-13    or services to the state;]

66-14                [(6)  making recommendations] to state agencies on how

66-15    to simplify contract specifications and terms to increase the

66-16    opportunities for historically underutilized [small] business

66-17    participation; and

66-18                (5) [(7)  working with state agencies to establish a

66-19    statewide policy for increasing the use of small businesses;]

66-20                [(8)]  assisting state agencies in seeking historically

66-21    underutilized [small] businesses capable of supplying goods and

66-22    services that the agencies require through the development of a

66-23    comprehensive list of historically underutilized businesses[;]

66-24                [(9)  assisting state agencies in identifying and

66-25    advising small businesses on the types of goods and services needed

 67-1    by the agencies; and]

 67-2                [(10)  assisting state agencies in increasing the

 67-3    volume of business placed with small businesses].

 67-4          SECTION 40.  Subchapter B, Chapter 2155, Government Code, is

 67-5    amending by adding Section 2155.074 to read as follows:

 67-6          Sec. 2155.074.  PURCHASES FROM FEDERAL GOVERNMENT.  (a)  The

 67-7    commission or the governing board of an institution of higher

 67-8    education acting either directly or through the commission or

 67-9    another state agency may negotiate purchases of goods of any kind

67-10    needed by the state agency or institution of higher education with

67-11    the appropriate agency of the federal government.

67-12          (b)  The price of goods that are purchased from the federal

67-13    government may not exceed the prevailing market value of the goods

67-14    or the real or intrinsic value if there is no market value.

67-15          (c)  In negotiating purchases of goods under this section,

67-16    the commission or the governing board of the institution of higher

67-17    education may waive the requirement of a bidder's bond and

67-18    performance bond that otherwise would be required.

67-19          SECTION 41.  Subchapter H, Chapter 2155, Government Code, is

67-20    amended by adding Section 2155.4441 to read as follows:

67-21          Sec. 2155.4441.  SERVICE CONTRACTS.  A state agency that

67-22    contracts for services shall require the contractor to purchase

67-23    products and materials produced in this state when they are

67-24    available at a price and time comparable to products and materials

67-25    produced outside this state.

 68-1          SECTION 42.  Subchapter H, Chapter 2155, Government Code, is

 68-2    amended by adding Section 2155.449 to read as follows:

 68-3          Sec. 2155.449.  PREFERENCE FOR PRISON-PRODUCED GOODS.  The

 68-4    commission and other state agencies shall purchase goods produced

 68-5    by the Texas Department of Criminal Justice when those goods are

 68-6    equal to or lower in price than goods of comparable quality

 68-7    available on the open market.

 68-8          SECTION 43.  Section 2161.001, Government Code, is amended to

 68-9    read as follows:

68-10          Sec. 2161.001.  DEFINITIONS.  In this chapter:

68-11                (1)  "Economically disadvantaged person" means a person

68-12    who is:

68-13                      (A)(i)  an owner of a business that does not

68-14    exceed, in any period of four consecutive years, the gross receipts

68-15    or total employment levels stated in the small business guidelines,

68-16    13   C.F.R. Section 121.201, promulgated by the United States Small

68-17    Business Administration for businesses within the same four-digit

68-18    Standard Industrial Classification code; and

68-19                            (ii)  if the person is married and the

68-20    person's spouse is a business owner, the spouse's business

68-21    qualifies as a small business within the respective four-digit

68-22    Standard Industrial Classification code applicable to the spouse's

68-23    business; or

68-24                      (B)  a member of a group that has suffered the

68-25    effects of discriminatory practices or other similar circumstances

 69-1    over which the person had no control, as defined in the state's

 69-2    Disparity Study, including Black Americans, Hispanic Americans,

 69-3    women, Asian Pacific Americans, and Native Americans who are also

 69-4    economically disadvantaged persons as defined by Paragraph (A).

 69-5                (2)  "Goods" means supplies, materials, or equipment.

 69-6                (3) [(2)]  "Historically underutilized business" means:

 69-7                      (A)  a corporation formed for the purpose of

 69-8    making a profit in which 51 percent or more of all classes of the

 69-9    shares of stock or other equitable securities are owned by one or

69-10    more economically [socially] disadvantaged persons who have a

69-11    proportionate interest and actively participate in the

69-12    corporation's control, operation, and management;

69-13                      (B)  a sole proprietorship created for the

69-14    purpose of making a profit that is completely owned, operated, and

69-15    controlled by an economically [a socially] disadvantaged person;

69-16                      (C)  a partnership formed for the purpose of

69-17    making a profit in which 51 percent or more of the assets and

69-18    interest in the partnership are owned by one or more economically

69-19    [socially] disadvantaged persons who have a proportionate interest

69-20    and actively participate in the partnership's control, operation,

69-21    and management;

69-22                      (D)  a joint venture in which each entity in the

69-23    venture is a historically underutilized business, as determined

69-24    under another paragraph of this subdivision; or

69-25                      (E)  a supplier contract between a historically

 70-1    underutilized business as determined under another paragraph of

 70-2    this subdivision and a prime contractor under which the

 70-3    historically underutilized business is directly involved in the

 70-4    manufacture or distribution of the goods or otherwise warehouses

 70-5    and ships the goods.

 70-6                (4)  "State agency" means:

 70-7                      (A)  a department, commission, board, office, or

 70-8    other agency in the executive branch of state government created by

 70-9    the state constitution or a state statute;

70-10                      (B)  the supreme court, the court of criminal

70-11    appeals, a court of appeals, or the Texas Judicial Council; or

70-12                      (C)  a university system or an institution of

70-13    higher education as defined by Section 61.003, Education Code,

70-14    except a public junior college.  [(3)  "Socially disadvantaged

70-15    person" means a person who is socially disadvantaged because of the

70-16    person's identification as a member of a certain group, including

70-17    Black Americans, Hispanic Americans, women, Asian Pacific

70-18    Americans, and Native Americans, and who has suffered the effects

70-19    of discriminatory practices or other similar insidious

70-20    circumstances over which the person has no control.]

70-21          SECTION 44.  Section 2161.002, Government Code, is amended by

70-22    adding Subsection (c) to read as follows:

70-23          (c)  If a conflict exists between this chapter and rules

70-24    adopted under this chapter and the requirements of federal law,

70-25    federal law prevails, and the commission is authorized to

 71-1    administer this chapter consistent with federal law.

 71-2          SECTION 45.  Subchapter A, Chapter 2161, Government Code, is

 71-3    amended by adding Section 2161.003 to read as follows:

 71-4          Sec. 2161.003.  ADOPTION OF RULES BY STATE AGENCY.  State

 71-5    agencies shall adopt for the administration of their historically

 71-6    underutilized business program the rules adopted by the commission.

 71-7    Each state agency may develop supplemental rules to the

 71-8    commission's rules if the rules are:

 71-9                (1)  consistent with commission rules; and

71-10                (2)  based on the disparity study.

71-11          SECTION 46.  Section 2161.122, Government Code, is amended to

71-12    read as follows:

71-13          Sec. 2161.122.  INFORMATION GATHERING BY STATE AGENCY.

71-14    (a)  To ensure accuracy in reporting, a state agency shall maintain

71-15    and compile monthly information relating to the use by the agency

71-16    and each of its operating divisions of historically underutilized

71-17    businesses, including information regarding subcontractors and

71-18    suppliers required by Subsection (b).

71-19          (b)  A contractor or supplier awarded a contract by a state

71-20    agency shall report to the agency the identity of each historically

71-21    underutilized business to whom the contractor or supplier awarded a

71-22    subcontract for the purchase of goods or services.

71-23          (c)  State agencies shall report to the commission the

71-24    following information on businesses classified as owned by

71-25    economically disadvantaged persons, including Black Americans,

 72-1    Hispanic Americans, Asian Pacific Americans, and by gender, with

 72-2    regard to the expenditure of both treasury and nontreasury funds:

 72-3                (1)  the total dollar amount of purchases and payments

 72-4    made under contracts awarded to historically underutilized

 72-5    businesses; and

 72-6                (2)  the number of payments received by each

 72-7    historically underutilized business under each contract.

 72-8          (d)  A state agency participating in a group purchasing

 72-9    program described under Section 2155.139(b) shall send to the

72-10    commission in the agency's report under Section 2161.121 a separate

72-11    list of purchases from historically underutilized businesses that

72-12    are made through the group purchasing program, including the dollar

72-13    amount of each purchase allocated to the reporting agency.

72-14          (e) [(d)]  A state agency's report is a record of the

72-15    agency's purchases for which the agency selected the vendor.  If

72-16    the vendor was selected by the commission as part of its state

72-17    contract program, the commission shall include the purchase in the

72-18    commission's report of its own purchases unless the commission made

72-19    a sole source purchase for the agency under Section 2155.067.  The

72-20    state agency for which the purchase was made shall report the

72-21    selection of the vendor on its report as if the agency selected the

72-22    vendor when the agency drew specifications for goods or services

72-23    that are proprietary to one vendor.

72-24          SECTION 47.  Chapter 2161, Government Code, is amended by

72-25    adding Subchapter F to read as follows:

 73-1              SUBCHAPTER F.  ACTIONS FOR AGENCY NONCOMPLIANCE

 73-2          Sec. 2161.301.  ACCOUNTABILITY OF STATE AGENCIES.  (a)  The

 73-3    state auditor shall report to the commission a state agency that is

 73-4    not complying with this chapter.

 73-5          (b)  If an agency is found by the state auditor not to be in

 73-6    compliance with this chapter, the commission may revoke any

 73-7    purchasing authority that the commission had delegated to the

 73-8    agency.  If the commission revokes an agency's delegated purchasing

 73-9    authority under this subsection, the comptroller may consider that

73-10    fact in the event the commission needs a transfer of the violating

73-11    agency's appropriated funds to cover the costs to the commission of

73-12    assuming the violating agency's purchasing functions.  The amount

73-13    of transfer from the violating agency's funds to the commission

73-14    shall be in an amount determined by the Legislative Budget Board.

73-15          SECTION 48.  Subchapter F, Chapter 2166, Government Code, is

73-16    amended by adding Section 2166.2551 to read as follows:

73-17          Sec. 2166.2551.  CONTRACT NOTIFICATION.  (a)  Not later than

73-18    the 10th day after the date a state agency enters into a contract

73-19    under this chapter, the agency shall provide written notice, using

73-20    a form prescribed by the Legislative Budget Board, to:

73-21                (1)  the Legislative Budget Board;

73-22                (2)  the appropriations committee of the house of

73-23    representatives;

73-24                (3)  the finance committee of the senate; and

73-25                (4)  any committees of the house of representatives or

 74-1    the senate that provide oversight for the state agency.

 74-2          (b)  Subsection (a)  applies to any amendment, modification,

 74-3    renewal, or extension of any contract subject to this section.

 74-4          (c)  Subsections (a) and (b) do not apply to a contract,

 74-5    including any amendments, modifications, renewals, or extensions,

 74-6    that has a total value of less than $1,000.

 74-7          SECTION 49.  Subsection (a), Section 2166.259, Government

 74-8    Code, is amended to read as follows:

 74-9          (a)  This section applies only to a contract for a public

74-10    works project for which the combined [that has an] estimated cost

74-11    of all projects exceeds an aggregate contractual value of $100

74-12    [more than $20] million.

74-13          SECTION 50.  Subchapter F, Chapter 2166, Government Code, is

74-14    amended by adding Section 2166.260 to read as follows:

74-15          Sec. 2166.260.  SMALL CONTRACTOR PARTICIPATION ASSISTANCE

74-16    PROGRAM.  (a)  This section applies only to public works projects

74-17    for which the combined estimated cost of all projects exceeds an

74-18    aggregate contractual value of $100 million that are undertaken by

74-19    or for any state agency or institution of higher education.

74-20    Notwithstanding other law, this section applies without regard to:

74-21                (1)  the source of funds for a public works project;

74-22                (2)  whether a public works project is otherwise

74-23    excepted from the application of this section by Section 2166.003

74-24    or 2166.004 or other law; or

74-25                (3)  whether the public works project is undertaken

 75-1    under the authority of this section or other law.

 75-2          (b)  In this section:

 75-3                (1)  "Program" means a small contractor participation

 75-4    assistance program created under this section.

 75-5                (2)  "Public works project" means a construction

 75-6    project, including a building, designed to serve the public

 75-7    necessity, use, or convenience that is undertaken and carried out

 75-8    by a state agency or institution of higher education as described

 75-9    by Subsection (a).  The term includes a project for the

75-10    construction, alteration, or repair of a public building or of a

75-11    road, bridge, or highway.

75-12                (3)  "Small contractor" means a person who is the owner

75-13    of a business that does not exceed, in any period of four

75-14    consecutive years, the gross receipts or total employment levels

75-15    stated in the small business guidelines, 13 C.F.R. Section 121.201,

75-16    promulgated by the United States Small Business Administration for

75-17    businesses within the same four-digit Standard Industrial

75-18    Classification code.  If the person is married and the person's

75-19    spouse is a business owner, the spouse's business must also qualify

75-20    as a small business within the respective four-digit Standard

75-21    Industrial Classification code applicable to the spouse's business.

75-22          (c)  Not later than January 1, 1998, a state agency or

75-23    institution of higher education having a public works project

75-24    described by Subsection (a) shall establish a small contractor

75-25    participation assistance program to ensure full opportunity for

 76-1    participation in public works projects by small contractors.  A

 76-2    program established under this section must include:

 76-3                (1)  a system for the centralized purchase of any

 76-4    necessary insurance coverage for the public works project that is

 76-5    required under Subsection (d);

 76-6                (2)  a public outreach plan to provide public

 76-7    information about the program and to encourage small contractors to

 76-8    participate in the program;

 76-9                (3)  a technical assistance plan to aid small

76-10    contractors in developing the skills necessary to participate in

76-11    the program in accordance with Subsection (e); and

76-12                (4)  a financing assistance plan to provide

76-13    administrative and other assistance to small contractors in

76-14    obtaining any necessary financing arrangements to make the

76-15    participation of those contractors possible.

76-16          (d)  A state agency or institution of higher education having

76-17    a public works project described by Subsection (a) shall provide

76-18    for the centralized purchasing of:

76-19                (1)  workers' compensation insurance coverage;

76-20                (2)  employer's liability insurance coverage;

76-21                (3)  commercial general and excess liability coverage;

76-22                (4)  payment and performance bonds with multisurety

76-23    capability; and

76-24                (5)  any other analogous coverage the agency or

76-25    institution of higher education considers necessary and reasonable

 77-1    for the particular public works project.

 77-2          (e)  A technical assistance plan adopted by a state agency or

 77-3    institution of higher education having a public works project

 77-4    described by Subsection (a) must include information on and

 77-5    assistance in:

 77-6                (1)  estimating bids, the bidding process, scheduling,

 77-7    and understanding bid documents;

 77-8                (2)  reading construction drawings and other analogous

 77-9    documents;

77-10                (3)  business accounting, bonds, and bond requirements;

77-11                (4)  negotiation with general contractors; and

77-12                (5)  any other technical, financial, and administrative

77-13    assistance considered appropriate and necessary given the

77-14    complexity and scope of the particular public works project.

77-15          (f)  A state agency or institution of higher education having

77-16    a public works project described by Subsection (a) may negotiate

77-17    contracts with persons or firms having expertise in the areas that

77-18    must be included in the agency's or institution's technical

77-19    assistance plan to provide the information and assistance.

77-20          (g)  A state agency or institution of higher education may

77-21    consult with the commission when implementing a small contractor

77-22    participation assistance program.

77-23          SECTION 51.  Subchapter H, Chapter 2166, Government Code, is

77-24    amended by adding Section 2166.357 to read as follows:

77-25          Sec. 2166.357.  CONSTRUCTION STANDARDS.  A state agency

 78-1    responsible for the construction of a structure or facility or the

 78-2    repair or rehabilitation of an existing structure or facility shall

 78-3    ascertain that the project complies with applicable standards for

 78-4    new construction, repair, or rehabilitation adopted under this

 78-5    subtitle and shall file a statement to that effect with the

 78-6    comptroller.

 78-7          SECTION 52.  Subsection (a), Section 2170.001, Government

 78-8    Code, is amended by adding Subdivision (3) to read as follows:

 78-9                (3)  "State agency" has the meaning assigned by Section

78-10    2151.002.

78-11          SECTION 53.  Subchapter A, Chapter 2170, Government Code, is

78-12    amended by adding Sections 2170.009 through 2170.011 to read as

78-13    follows:

78-14          Sec. 2170.009.  PAY TELEPHONES AUTHORIZED.  (a)  A pay

78-15    station telephone may be located in the Capitol area only with the

78-16    approval of the commission.  The commission shall collect the

78-17    revenue from the installation and operation of the pay telephones

78-18    and deposit it to the credit of the general revenue fund.

78-19          (b)  In a state-owned or state-leased building or on

78-20    state-owned land to which Subsection (a) does not apply, a pay

78-21    telephone may be installed only with the approval of the governing

78-22    body of the state entity that has charge and control of the

78-23    building or land.  The entity shall collect the revenue from the

78-24    installation and operation of the pay telephones and deposit it to

78-25    the credit of the general revenue fund.

 79-1          (c)  The commission or other state entity shall account for

 79-2    the revenue collected under this section in the entity's annual

 79-3    report.

 79-4          Sec. 2170.010.  COST OF NOT USING STATE TELEPHONE SYSTEM.

 79-5    Each state agency shall advise agency employees that an employee

 79-6    may be held liable for the difference in cost between a

 79-7    telecommunications system call that does not use the state's

 79-8    consolidated telecommunications system and a call that does unless:

 79-9                (1)  the executive head of the agency certifies to the

79-10    comptroller that an emergency existed;

79-11                (2)  the commission determines that the call that did

79-12    not use the state's system is more cost-effective; or

79-13                (3)  the state system is not available at the

79-14    employee's location.

79-15          Sec. 2170.011.  UNLISTED TELEPHONE NUMBERS PROHIBITED.  A

79-16    state agency and its officers and employees may not use

79-17    appropriated money to buy or rent or pay toll charges for a

79-18    telephone for which the telephone number is not listed or available

79-19    from directory assistance to the general public unless the unlisted

79-20    telephone number is used:

79-21                (1)  to provide access to computers, telephone system

79-22    control centers, long-distance networks, elevator control systems,

79-23    and other tone controlled devices for which restricted access to

79-24    the telephone number is justified for security or other purposes;

79-25                (2)  in narcotics undercover operations; or

 80-1                (3)  in the detection of illegal sales of securities.

 80-2          SECTION 54.  Section 2170.051, Government Code, is amended to

 80-3    read as follows:

 80-4          Sec. 2170.051.  MANAGEMENT AND USE OF SYSTEM.  (a)  The

 80-5    commission shall manage the operation of a system of

 80-6    telecommunications services for all state agencies.  Each agency

 80-7    shall identify its particular requirements for telecommunications

 80-8    services and the site at which the services are to be provided.

 80-9          (b)  The commission shall fulfill the telecommunications

80-10    requirements of each state agency to the extent possible and to the

80-11    extent that money is appropriated or available for that purpose.

80-12          (c)  A state agency shall use the consolidated

80-13    telecommunications system to the fullest extent possible.  A state

80-14    agency may not acquire telecommunications services unless the

80-15    commission and the Department of Information Resources determine

80-16    that the agency's requirement for telecommunications services

80-17    cannot be met by the consolidated telecommunications system.

80-18          (d)  A state agency may not enter into or renew a contract

80-19    with a carrier or other provider of telecommunications services

80-20    without obtaining a waiver from the commission and the Department

80-21    of Information Resources certifying that the requested

80-22    telecommunications services cannot be provided at a reasonable cost

80-23    on the consolidated telecommunications system.  The commission and

80-24    the department shall evaluate requests for waivers based on

80-25    cost-effectiveness to the state government as a whole.  A waiver

 81-1    may be granted for a specific period and will automatically expire

 81-2    on the stated expiration date unless an extension is approved by

 81-3    the commission and the department.  A contract for

 81-4    telecommunications services obtained under waiver may not extend

 81-5    beyond the expiration date of the waiver.

 81-6          SECTION 55.  Chapter 2203, Government Code, is amended by

 81-7    adding Sections 2203.004 through 2203.006 to read as follows:

 81-8          Sec. 2203.004.  PREPARATION AND SALE OF HEARINGS TRANSCRIPTS.

 81-9    (a)  Proceeds from the sale of transcripts made by a hearings

81-10    reporter who is a state employee shall be deposited in the state

81-11    treasury if the copies of the transcript are made on state time or

81-12    using state supplies or equipment.

81-13          (b)  A state agency that allows its employees to keep the

81-14    proceeds from the sale of transcripts shall develop procedures to

81-15    assure that neither state equipment nor supplies are used to

81-16    prepare copies of the transcripts.

81-17          Sec. 2203.005.  REQUIREMENT TO USE STATE PROPERTY FOR STATE

81-18    PURPOSES.  State property may be used only for state purposes.  A

81-19    person may not entrust state property to a state officer or

81-20    employee or to any other person if the property is not to be used

81-21    for state purposes.

81-22          Sec. 2203.006.  VENDING MACHINES AUTHORIZED.  (a)  In a

81-23    state-owned or state-leased building or on state-owned or

81-24    state-leased property that is not served by a vendor operating

81-25    under the supervision of the Texas Commission for the Blind, a

 82-1    vending machine may be located in the building or on the property

 82-2    only with the approval of the governing body of the state agency

 82-3    that has charge and control of the building or property.  The

 82-4    approval must be recorded in the minutes of a meeting of the

 82-5    governing body.

 82-6          (b)  The state agency shall file with the General Services

 82-7    Commission a copy of all contracts between the state agency and the

 82-8    vendor related to the vending machine and a written description of

 82-9    the location of the vending machine.

82-10          (c)  All rentals, commissions, or other net revenue the state

82-11    agency receives in connection with the vending machine shall be

82-12    accounted for as state money.  The agency shall account for the

82-13    revenue received under this section in the agency's annual report

82-14    prepared as required by the General Appropriations Act.

82-15          (d)  In a state-owned or state-leased building or on

82-16    state-owned or state-leased property that is served by a vendor

82-17    operating under the supervision of the Texas Commission for the

82-18    Blind, a vending machine may be located and operated in the

82-19    building or on the property only under a joint contract with the

82-20    owners of the vending machine and the vendor operating under the

82-21    supervision of the Texas Commission for the Blind.

82-22          SECTION 56.  Subchapter A, Chapter 2254, Government Code, is

82-23    amended by adding Section 2254.0031 to read as follows:

82-24          Sec. 2254.0031.  INDEMNIFICATION.  A state agency may require

82-25    the contractor to indemnify or hold harmless the state from claims

 83-1    and liabilities resulting from the negligent  acts or omissions of

 83-2    the contractor or persons employed by the contractor.  A state

 83-3    agency may not require a contractor to indemnify or hold harmless

 83-4    the state for claims or liabilities resulting from the negligent

 83-5    acts or omissions of the agency or its employees.

 83-6          SECTION 57.  Subchapter A, Chapter 2254, Government Code, is

 83-7    amended by adding Section 2254.006 to read as follows:

 83-8          Sec. 2254.006.  CONTRACT NOTIFICATION.  (a)  Not later than

 83-9    the 10th day after the date a state agency enters into a contract

83-10    under this subchapter, the agency shall provide written notice,

83-11    using a form prescribed by the Legislative Budget Board, to:

83-12                (1)  the Legislative Budget Board;

83-13                (2)  the appropriations committee of the house of

83-14    representatives;

83-15                (3)  the finance committee of the senate; and

83-16                (4)  any committees of the house of representatives or

83-17    the senate that provide oversight for the state agency.

83-18          (b)  Subsection (a)  applies to any amendment, modification,

83-19    renewal, or extension of any contract subject to this section.

83-20          (c)  Subsections (a) and (b) do not apply to a contract,

83-21    including any amendments, modifications, renewals, or extensions,

83-22    that:

83-23                (1)  has a total value of less than $1,000; or

83-24                (2)  is for medical or optometric services.

83-25          (d)  In this section, "state agency" has the meaning assigned

 84-1    by Section 2151.002.

 84-2          SECTION 58.  Subchapter B, Chapter 2254, Government Code, is

 84-3    amended by adding Section 2254.0301 to read as follows:

 84-4          Sec. 2254.0301.  CONTRACT NOTIFICATION.  (a)  Not later than

 84-5    the 10th day after the date a state agency enters into a contract

 84-6    under this subchapter, the agency shall provide written notice,

 84-7    using a form prescribed by the Legislative Budget Board, to:

 84-8                (1)  the Legislative Budget Board;

 84-9                (2)  the appropriations committee of the house of

84-10    representatives;

84-11                (3)  the finance committee of the senate; and

84-12                (4)  any committees of the house of representatives or

84-13    the senate that provide oversight for the state agency.

84-14          (b)  Subsection (a) applies to any amendment, modification,

84-15    renewal, or extension of any contract subject to this section.

84-16          (c)  Subsections (a) and (b) do not apply to a contract,

84-17    including any amendments, modifications, renewals, or extensions,

84-18    that has a total value of less than $1,000.

84-19          (d)  In this section, "state agency" has the meaning assigned

84-20    by Section 2151.002.

84-21          SECTION 59.  Section 2256.005, Government Code, is amended by

84-22    adding Subsection (n) to read as follows:

84-23          (n)  The investment officer of an investing entity shall

84-24    submit a quarterly investment report to the governing body of the

84-25    investing entity.  For each individual investment as of the date of

 85-1    the report, the report must describe:

 85-2                (1)  the carrying value;

 85-3                (2)  the market value;

 85-4                (3)  the maturity date; and

 85-5                (4)  the account or fund in the investing entity's

 85-6    budget that provided the funding.

 85-7          SECTION 60.  Subchapter D, Chapter 11, Natural Resources

 85-8    Code, is amended by adding Section 11.0791 to read as follows:

 85-9          Sec. 11.0791.  OTHER PROVISIONS REGARDING ACCESS TO STATE

85-10    LANDS.  (a)  When a state governmental entity, including a river

85-11    authority, sells state land, the entity shall require that the

85-12    state have the right of ingress and egress to remaining state land

85-13    in the immediate area by an easement to a public thoroughfare.

85-14          (b)  A state governmental entity, including a river

85-15    authority, may not spend state money, including money passed

85-16    through the entity from another source or bond money guaranteed by

85-17    the state, for any purpose not specifically authorized by statute

85-18    with a person who denies the state access by easement to landlocked

85-19    state properties.

85-20          SECTION 61.  Subchapter D, Chapter 11, Natural Resources

85-21    Code, is amended by adding Section 11.083 to read as follows:

85-22          Sec. 11.083.  RETENTION OF MINERAL RIGHTS.  If it is

85-23    practical to do so, the state shall retain the mineral rights to

85-24    state land that is sold.

85-25          SECTION 62.  Section 34.057, Natural Resources Code, is

 86-1    amended by adding Subsections (e) and (f) to read as follows:

 86-2          (e)  A board shall include a provision in all mineral leases

 86-3    to allow the taking in kind of any royalties due to the state.

 86-4    Before buying oil, gas, coal, lignite, or other natural resources

 86-5    used in the production of energy, the Parks and Wildlife Department

 86-6    and the Texas Department of Criminal Justice shall each use, to the

 86-7    greatest extent practical, resources produced from land it owns to

 86-8    meet its energy requirements.

 86-9          (f)  A board may include a provision in leases providing for

86-10    placing state meters on all gas wells at the wellhead to monitor

86-11    the amount of gas taken.

86-12          SECTION 63.  Subsection (a), Section 21.003, Labor Code, is

86-13    amended to read as follows:

86-14          (a)  The commission may:

86-15                (1)  promote the creation of local commissions on human

86-16    rights by cooperating or contracting with individuals or state,

86-17    local, or other agencies, public or private, including agencies of

86-18    the federal government and of other states;

86-19                (2)  receive, investigate, seek to conciliate, and pass

86-20    on complaints alleging violations of this chapter;

86-21                (3)  file civil actions to effectuate the purposes of

86-22    this chapter;

86-23                (4)  request and, if necessary, compel by subpoena:

86-24                      (A)  the attendance of necessary witnesses for

86-25    examination under oath; and

 87-1                      (B)  the production, for inspection and copying,

 87-2    of records, documents, and other evidence relevant to the

 87-3    investigation of alleged violations of this chapter;

 87-4                (5)  furnish technical assistance requested by a person

 87-5    subject to this chapter to further compliance with this chapter or

 87-6    with a rule or order issued under this chapter;

 87-7                (6)  recommend in its annual report legislation or

 87-8    other action to carry out the purposes and policies of this

 87-9    chapter;

87-10                (7)  adopt procedural rules to carry out the purposes

87-11    and policies of this chapter;

87-12                (8)  provide educational and outreach activities to

87-13    individuals who have historically been victims of employment

87-14    discrimination; [and]

87-15                (9)  require state agencies and public institutions of

87-16    higher education to develop and implement personnel policies that

87-17    comply with this chapter, including personnel selection procedures

87-18    that incorporate a work force diversity program;

87-19                (10)  require state agencies and public institutions or

87-20    systems of higher education to develop and implement narrowly

87-21    tailored hiring policies and procedures as determined by the

87-22    commission that shall be incorporated into a work force diversity

87-23    program until the current effects of past discrimination or

87-24    exclusion in certain classifications of otherwise qualified persons

87-25    have been fully remedied as certified by the commission, provided

 88-1    that the commission shall continue to monitor the hiring policies

 88-2    and procedures of state agencies or public institutions or systems

 88-3    of higher education through annual work force utilization analyses

 88-4    as required by Section 21.502 and shall require the implementation

 88-5    of narrowly tailored hiring policies and procedures after a finding

 88-6    by the commission that discrimination or exclusion in certain

 88-7    classifications exists; and

 88-8                (11)  adopt rules and guidelines defining the policies,

 88-9    procedures, actions, and reporting requirements for the

88-10    implementation of Subdivision (10) and Section 21.502.

88-11          SECTION 64.  Chapter 21, Labor Code, is amended by adding

88-12    Subchapter I to read as follows:

88-13              SUBCHAPTER I.  WORK FORCE UTILIZATION ANALYSES

88-14          Sec. 21.501.  LEGISLATIVE FINDING.  On the basis of the

88-15    annual work force utilization analyses as reported to the

88-16    legislature by the commission pursuant to the General

88-17    Appropriations Act, the legislature finds that due to the current

88-18    effects of past discrimination or exclusion certain classifications

88-19    of otherwise qualified persons have been denied equal employment

88-20    opportunities by certain state agencies and public institutions or

88-21    systems of higher education.

88-22          Sec. 21.502.  REPORTING.  The commission shall conduct annual

88-23    work force utilization analyses for state agencies and public

88-24    institutions or systems of higher education and shall report its

88-25    findings to the legislature at the beginning of each biennium.  Any

 89-1    state agency or public institution or system of higher education

 89-2    that fails to comply with the annual reporting requirements

 89-3    established by the commission shall pay to the commission a penalty

 89-4    not to exceed $2,000 from funds appropriated by the legislature for

 89-5    each reporting period that the state agency or public institution

 89-6    or system of higher education fails to comply.

 89-7          SECTION 65.  This Act takes effect September 1, 1997.

 89-8          SECTION 66.  The importance of this legislation and the

 89-9    crowded condition of the calendars in both houses create an

89-10    emergency and an imperative public necessity that the

89-11    constitutional rule requiring bills to be read on three several

89-12    days in each house be suspended, and this rule is hereby suspended.