By Ratliff                                              S.B. No. 31

         75R4245 GCH/JRD-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the powers and duties of agencies in the executive,

 1-3     legislative, and judicial branches of state government, including

 1-4     authorizations for and restrictions on the use of state funds and

 1-5     the compensation of employees and contractors.

 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-7           SECTION 1.  The purpose of this Act is to transfer to the

 1-8     permanent general law certain provisions of Article IX of the

 1-9     General Appropriations Act relating to the use of state funds and

1-10     other powers and duties of state agencies.

1-11           SECTION 2.  Section 324.008, Government Code, is amended by

1-12     adding Subsections (d) and (e) to read as follows:

1-13           (d)  The governing body of a state agency shall deliver to

1-14     the library immediately after transcription a certified copy of the

1-15     minutes of any meeting of the governing body.  Any changes or

1-16     corrections to the minutes shall also be delivered to the library.

1-17           (e)  For purposes of this section, "state agency" has the

1-18     meaning assigned by Sections 2151.002(2)(A) and (C).

1-19           SECTION 3.  Subchapter B, Chapter 403, Government Code, is

1-20     amended by adding Sections 403.0131 and 403.0132 to read as

1-21     follows:

1-22           Sec. 403.0131.  REPORT TO LEGISLATURE.  As soon as practical

1-23     after the comptroller certifies the appropriations made by the

1-24     legislature in a regular or special session, the comptroller shall

 2-1     prepare a summary table for the legislature that details the basis

 2-2     for the certification of all major funds.  The table must be

 2-3     similar in format and detail to the major estimates summary tables

 2-4     published in the comptroller's biennial revenue estimate and shall

 2-5     include the biennial appropriations from all major funds.

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

 2-7     COUNTY.  (a)  The comptroller shall prepare an annual report

 2-8     detailing the expenditures by state agencies in each county.

 2-9           (b)  The report must include:

2-10                 (1)  the total expenditures by each agency in each

2-11     county; and

2-12                 (2)  the type of expenditure by object or other

2-13     classification as determined by the comptroller.

2-14           (c)  The comptroller shall, if possible, report all

2-15     expenditures from funds in the state treasury to reflect the

2-16     delivery of goods and services by county.  The comptroller shall

2-17     estimate the expenditures by county in all other circumstances.

2-18           (d)  Each state agency shall provide the comptroller with the

2-19     necessary information to complete the report.

2-20           (e)  Not later than December 1 of each year, the comptroller

2-21     shall file a copy of the report with the governor, lieutenant

2-22     governor, the speaker of the house of representatives, and the

2-23     Legislative Budget Board.

2-24           SECTION 4.  Subchapter B, Chapter 656, Government Code, is

2-25     amended by adding Section 656.026 to read as follows:

2-26           Sec. 656.026.  JOB NOTICE POSTING WAIVER.  A state agency is

2-27     not required to comply with the requirements of this subchapter or

 3-1     Subchapter A when the agency transfers or reassigns an employee as

 3-2     part of a reorganization or merger mandated by the legislature if

 3-3     the executive head of the agency certifies that the transfer or

 3-4     reassignment is necessary for the proper implementation of the

 3-5     reorganization or merger.

 3-6           SECTION 5.  Section 658.005(a), Government Code, is amended

 3-7     to read as follows:

 3-8           (a)  Normal office hours of a state agency are from 8 a.m. to

 3-9     5 p.m., Monday through Friday.  These hours are the regular working

3-10     hours for a full-time state employee.  The offices of a state

3-11     agency shall remain open during the noon hour each working day with

3-12     at least one person on duty to accept calls, receive visitors, or

3-13     transact business.

3-14           SECTION 6.  Section 658.006, Government Code, is amended to

3-15     read as follows:

3-16           Sec. 658.006.  STAGGERED WORKING HOURS [; CAPITOL AREA IN

3-17     AUSTIN].  Normal working hours for employees of a state agency [in

3-18     the Capitol area in Austin] may be staggered [as authorized by the

3-19     General Appropriations Act] for traffic regulation or public

3-20     safety.

3-21           SECTION 7.  Chapter 658, Government Code, is amended by

3-22     adding Sections 658.008 and 658.009 to read as follows:

3-23           Sec. 658.008.  MEMBERS OF NATIONAL GUARD OR RESERVES.  To

3-24     facilitate participation in military duties by state employees,

3-25     each state agency, including each institution of higher education

3-26     as defined by Section 61.003, Education Code, shall adjust the work

3-27     schedule of any employee who is a member of the Texas National

 4-1     Guard or the United States Armed Forces Reserves so that two of the

 4-2     employee's days off work each month coincide with two days of

 4-3     military duty to be performed by the employee.

 4-4           Sec. 658.009.  EMPLOYEES OF HOUSE OR SENATE.  This chapter

 4-5     applies to the employees of the house of representatives or of the

 4-6     senate, including employees of a member of the legislature or the

 4-7     lieutenant governor, only to the extent determined by the presiding

 4-8     officer or administration committee of the affected house of the

 4-9     legislature.

4-10           SECTION 8.  Subchapter A, Chapter 659, Government Code, is

4-11     amended by adding Sections 659.004-659.007 to read as follows:

4-12           Sec. 659.004.  PAYROLL REPORTING.  (a)  The comptroller, in

4-13     consultation with the state auditor, shall adopt rules that

4-14     prescribe uniform procedures for payroll reporting for all state

4-15     agencies and that are designed to:

4-16                 (1)  facilitate the auditing of payrolls;

4-17                 (2)  assure conformity with this chapter and the

4-18     General Appropriations Act; and

4-19                 (3)  provide the legislative audit committee with

4-20     current information on employment and wage rate practices in state

4-21     government.

4-22           (b)  In this section, "state agency" has the meaning assigned

4-23     by Section 2151.002.

4-24           Sec. 659.005.  WITNESS FEES; JURY SERVICE.  (a)  A deduction

4-25     may not be made from the salary or wages of a state employee

4-26     because the employee is called for jury service, including a

4-27     deduction for any fee or compensation the employee receives for the

 5-1     jury service.

 5-2           (b)  A state officer or employee who appears as a witness in

 5-3     an official capacity in a judicial proceeding or legislative

 5-4     hearing may not accept or receive a witness fee for the appearance.

 5-5           (c)  A state officer or employee who appears as a witness in

 5-6     an unofficial capacity in a judicial proceeding or legislative

 5-7     hearing to testify from personal knowledge concerning matters

 5-8     related to the proceeding or hearing is entitled to receive any

 5-9     customary witness fees for the appearance.

5-10           (d)  A state officer or employee who appears as an expert

5-11     witness in a judicial proceeding or legislative hearing may accept

5-12     compensation for the appearance only if the person is not also

5-13     compensated by the state for the person's time in making the

5-14     appearance.

5-15           (e)  A state  officer or employee may receive reimbursement

5-16     for travel and a per diem or reimbursement for expenses connected

5-17     to an appearance as a witness in a judicial proceeding or

5-18     legislative hearing only from the state or the judicial body.

5-19           Sec. 659.006.  WITHHOLDINGS, DEDUCTIONS, AND MATCHING

5-20     CONTRIBUTIONS: TAX AND RETIREMENT LAWS.  (a)  The state shall

5-21     withhold money from salaries and wages paid to state officers and

5-22     employees in accordance with applicable federal law, including

5-23     federal law relating to withholding for purposes of the federal

5-24     income tax or social security. The state shall make any required

5-25     employer contributions in accordance with applicable federal law.

5-26           (b)  The state also shall withhold money from salaries and

5-27     wages paid to state officers and employees in accordance with

 6-1     applicable state retirement laws. The state shall make required

 6-2     matching contributions in accordance with those laws on payroll

 6-3     forms prescribed by the comptroller.

 6-4           (c)  The comptroller shall issue warrants in accordance with

 6-5     this section.

 6-6           Sec. 659.007.  ADJUSTMENT FOR INACCURATE PAYMENT.  The

 6-7     comptroller by rule shall prescribe procedures for state agencies

 6-8     to follow in making adjustments to payrolls for the pay period

 6-9     immediately following the period in which an inaccurate payment or

6-10     deduction is made or in which other error occurs.

6-11           SECTION 9.  Subchapter B, Chapter 659, Government Code, is

6-12     amended by adding Sections 659.015-659.017 to read as follows:

6-13           Sec. 659.015.  OVERTIME COMPENSATION FOR EMPLOYEES SUBJECT TO

6-14     FAIR LABOR STANDARDS ACT.  (a)  This section applies only to a

6-15     state employee who is subject to the overtime provisions of the

6-16     federal Fair Labor Standards Act of 1938 (29 U.S.C. Sections 201 et

6-17     seq.)  and who is not an employee of the legislature or of a

6-18     legislative agency.

6-19           (b)  The employee is entitled to compensation for overtime as

6-20     provided by this section and federal law. To the extent that this

6-21     section and federal law prescribe a different rule for the same

6-22     circumstance, federal law controls without regard to whether this

6-23     section or federal law prescribes a stricter rule.

6-24           (c)  An employee who is required to work more than 40 hours

6-25     in a workweek is entitled to compensation for the overtime hours:

6-26                 (1)  by taking compensatory time off at the rate of

6-27     1-1/2 hours off for each hour of accrued overtime, if the employing

 7-1     agency allows or requires the employee to do so; or

 7-2                 (2)  by receiving pay for the overtime hours at the

 7-3     rate of 1-1/2 times the employee's regular hourly rate of pay, if

 7-4     the employing agency determines it is impractical for the employee

 7-5     to take compensatory time off as compensation for the overtime.

 7-6           (d)  Holidays or other paid leave taken during a workweek are

 7-7     not counted as hours worked in computing the number of overtime

 7-8     hours under Subsection (c) or (e).

 7-9           (e)  An employee may not accumulate more than 240 hours of

7-10     overtime credit that may be taken as compensatory leave under

7-11     Subsection (c)(1), except that an employee engaged in a public

7-12     safety activity, an emergency response activity, or a seasonal

7-13     activity may accumulate, in accordance with 29 U.S.C. Section

7-14     207(o)(3)(A), not more than 480 hours of overtime credit that may

7-15     be taken as compensatory leave under Subsection (c)(1).  An

7-16     employee must be paid at the rate prescribed by Subsection (c)(2)

7-17     for the number of overtime hours the employee works that cause the

7-18     employee to exceed the amount of overtime credit the employee may

7-19     accumulate. In this subsection, "overtime credit" means the number

7-20     of hours that is computed by multiplying the number of overtime

7-21     hours worked by 1-1/2.

7-22           (f)  When an employee does not work more than 40 hours in a

7-23     workweek but the number of hours worked plus the number of hours of

7-24     holiday or other paid leave taken during the workweek exceeds 40

7-25     hours, the employee is entitled to compensatory time off at the

7-26     rate of one hour off for each of the excess hours. When an employee

7-27     does work 40 or more hours in a workweek and in addition takes

 8-1     holiday or other paid leave during the workweek, the employee is

 8-2     entitled to compensatory time off at the rate of one hour off for

 8-3     each of the hours of holiday or other paid leave taken during that

 8-4     workweek and is entitled to compensation for any overtime hours

 8-5     actually worked in accordance with Subsections (c)-(e). When an

 8-6     employee does not work more than 40 hours in a workweek and the

 8-7     number of hours worked plus the number of hours of holiday or other

 8-8     paid leave taken during the week does not exceed 40 hours, the

 8-9     employee may not accrue compensatory time for the week under this

8-10     section.

8-11           (g)  Compensatory time off to which an employee is entitled

8-12     under Subsection (f) because of excess hours in a workweek

8-13     attributable to having taken holiday or other paid leave must be

8-14     taken during the 12-month period following the end of the workweek

8-15     in which the compensatory time is accrued or it lapses. An employee

8-16     may not be paid for that compensatory time. However, an employee of

8-17     an institution of higher education as defined by Section 61.003,

8-18     Education Code, or an employee engaged in a public safety activity,

8-19     including highway construction and maintenance or an emergency

8-20     response activity, may be paid at any time at the employee's

8-21     regular rate of pay for that compensatory time if the employer

8-22     determines that taking the compensatory time off would disrupt

8-23     normal teaching, research, or other critical functions.

8-24           (h)  Hospital, fire protection, and law enforcement

8-25     personnel, including security personnel in correctional

8-26     institutions, are governed by the federal Fair Labor Standards Act

8-27     of 1938 (29 U.S.C. Sections 201 et seq.) provisions applicable to

 9-1     those employees, including the exceptions to the standard overtime

 9-2     computation for a workweek.

 9-3           Sec. 659.016.  OVERTIME COMPENSATION FOR EMPLOYEES NOT

 9-4     SUBJECT TO FAIR LABOR STANDARDS ACT; STATE COMPENSATORY TIME;

 9-5     REDUCTIONS IN PAY.  (a)  This section applies only to a state

 9-6     employee who is not subject to the overtime provisions of the

 9-7     federal Fair Labor Standards Act of 1938 (29 U.S.C. Sections 201 et

 9-8     seq.) and who is not an employee of the legislature or of a

 9-9     legislative agency.

9-10           (b)  When the sum of hours worked plus holiday or other paid

9-11     leave taken by an employee during a workweek exceeds 40 hours, and

9-12     not otherwise, the employee may be allowed to accrue compensatory

9-13     time for the number of hours that exceeds 40 hours.

9-14           (c)  An employee who is exempt as an executive, professional,

9-15     or administrative employee under 29 U.S.C. Section 213(a)(1) may be

9-16     allowed compensatory time off during the 12-month period following

9-17     the end of the workweek in which the overtime was accrued, at a

9-18     rate not to exceed one hour of compensatory time off for each hour

9-19     of overtime accrued.

9-20           (d)  In accordance with 29 C.F.R.  Section 541.118 and

9-21     subject to that section's exceptions as described by this section,

9-22     an employee who is exempt as an executive, professional, or

9-23     administrative employee under 29 U.S.C.  Section 213(a)(1) is

9-24     entitled to receive full salary for any week in which the employee

9-25     performs work without regard to the number of days and hours

9-26     worked. This is also subject to the general rule that an employee

9-27     need not be paid for any workweek in which the employee performs no

 10-1    work.

 10-2          (e)  A deduction may be made from the salary of an employee

 10-3    who is exempt as an executive, professional, or administrative

 10-4    employee under 29 U.S.C. Section 213(a)(1) if:

 10-5                (1)  the employee is not at work for a full day or

 10-6    longer for personal reasons other than sickness or accident or

 10-7    because of jury duty, attendance as a witness at a judicial

 10-8    proceeding, or temporary military leave;

 10-9                (2)  the employee is not at work for a full day or

10-10    longer because of sickness or disability, including sickness or

10-11    disability covered by workers' compensation benefits, and the

10-12    employee's paid sick leave or workers' compensation benefits have

10-13    been exhausted;

10-14                (3)  the deduction is a penalty imposed for a violation

10-15    of a significant safety rule relating to prevention of serious

10-16    danger in the workplace to other persons, including other

10-17    employees; or

10-18                (4)  in accordance with the special provisions

10-19    applicable to executive, professional, or administrative employees

10-20    of public agencies set forth in 29 C.F.R.  Section 541.5d, the

10-21    employee is not at work for less than one day  for personal reasons

10-22    or because of illness or injury and accrued leave is not used by

10-23    the employee because:

10-24                      (A)  permission to use accrued leave was not

10-25    sought or was denied;

10-26                      (B)  accrued leave has been exhausted; or

10-27                      (C)  the employee chooses to use leave without

 11-1    pay.

 11-2          (f)  In accordance with 29 C.F.R. Section 541.5d, a deduction

 11-3    from the pay of an executive, professional, or administrative

 11-4    employee because of an absence from work caused by a furlough

 11-5    related to the budget does not affect the employee's status as an

 11-6    employee paid on a salary basis, except for any workweek in which

 11-7    the furlough occurs and for which the employee's pay is accordingly

 11-8    reduced.

 11-9          (g)  If a deduction is made from an employee's salary in

11-10    violation of United States Department of Labor regulations, the

11-11    employee is entitled to retroactive reimbursement of the amount

11-12    that should not have been deducted.

11-13          (h)  An employee who is not subject to the Fair Labor

11-14    Standards Act under 29 U.S.C. Section 203(e)(2)(C) because the

11-15    employee is a staff member, appointee, or immediate adviser of an

11-16    elected officeholder may be allowed compensatory time off under the

11-17    terms and conditions determined by the officeholder.

11-18          (i)  An employee covered by this section may not be paid for

11-19    any unused compensatory time.

11-20          Sec. 659.017.  OVERTIME COMPENSATION FOR LEGISLATIVE

11-21    EMPLOYEES.  (a)  Sections 659.015 and 659.016 do not apply to

11-22    employees of the legislative branch of state government, including

11-23    employees of the lieutenant governor.

11-24          (b)  Consistent with the requirements of the federal Fair

11-25    Labor Standards Act of 1938 (29 U.S.C. Sections 201 et seq.),

11-26    overtime pay and compensatory time off for employees of the

11-27    legislative branch, including employees of the lieutenant governor,

 12-1    are determined as follows:

 12-2                (1)  for employees of the house of representatives or

 12-3    the senate, by the presiding officer of the appropriate house of

 12-4    the legislature;

 12-5                (2)  for employees of an elected officeholder, by the

 12-6    employing officeholder; and

 12-7                (3)  for employees of a legislative agency, by the

 12-8    administrative head of the agency.

 12-9          SECTION 10.  Section 659.081, Government Code, is amended to

12-10    read as follows:

12-11          Sec. 659.081.  Payment Once a Month.  Except as provided by

12-12    this subchapter or the General Appropriations Act, annual salaries

12-13    for state officers and employees shall be paid once a month.

12-14          SECTION 11.  Subchapter F, Chapter 659, Government Code, is

12-15    amended by adding Section 659.085 to read as follows:

12-16          Sec. 659.085.  DETERMINING AMOUNT OF MONTHLY OR HOURLY PAY;

12-17    PROPORTIONATE REQUIREMENT FOR PART-TIME PAY.  (a)  The amount of

12-18    monthly salary for an annual employee who maintains a 40-hour

12-19    workweek and is covered under Chapter 658 is computed by dividing

12-20    the annual salary for the person's position set in or in accordance

12-21    with the General Appropriations Act by 12.

12-22          (b)  For purposes of partial payment or other applicable

12-23    situations, the employee's hourly rate of pay for a given month is

12-24    computed by dividing the employee's monthly salary by the number of

12-25    working hours in the month.  When the employee is on leave without

12-26    pay, compensation for the pay period is reduced by an amount

12-27    computed by multiplying the employee's hourly rate of pay times the

 13-1    number of hours the employee was on leave without pay.

 13-2          (c)  The salary rate of a part-time employee must be

 13-3    proportional to the regular salary for the position set in or in

 13-4    accordance with the General Appropriations Act.

 13-5          (d)  An agency that may contract with its employees for

 13-6    employment for less than a 12-month period may make equal monthly

 13-7    salary payments under the contract during the contract period.

 13-8          SECTION 12.  Section 660.002, Government Code, is amended to

 13-9    read as follows:

13-10          Sec. 660.002.  DEFINITIONS.  In this chapter:

13-11                (1)  "Appropriated money" means money appropriated by

13-12    the legislature through the General Appropriations Act or other

13-13    law.

13-14                (2)  "Board" means a governing body, commission,

13-15    committee, council, or similar entity composed of at least two

13-16    members that is in the executive, legislative, or judicial branch

13-17    of state government.

13-18                (3)  "Cancellation charge" means a fee, charge, or

13-19    payment that a provider of travel services assesses or retains

13-20    because of the cancellation of a travel reservation or other travel

13-21    plan.

13-22                (4)  "Chief administrator of a state agency" means:

13-23                      (A)  an elected state official, excluding a

13-24    member of the legislature;

13-25                      (B)  an appointed state official, including an

13-26    individual [official] whose appointment as a state official has not

13-27    yet been confirmed by the [is subject to] senate [confirmation];

 14-1                      (C)  the director of a legislative interim

 14-2    committee or board;

 14-3                      (D)  the chief administrator of a state hospital

 14-4    or special school; [and]

 14-5                      (E)  the chief administrator of an [a state]

 14-6    institution of higher education;

 14-7                      (F)  a first assistant, chief deputy, chief

 14-8    clerk, or similar individual employed by a state agency who is

 14-9    specifically authorized by law to act for the individual's

14-10    superior; or

14-11                      (G)  the individual who has the daily

14-12    responsibility for managing the operations of a state agency that

14-13    is governed by a part-time board.

14-14                (5)  "Commercial lodging establishment" means:

14-15                      (A)  a motel, hotel, inn, apartment, house, or

14-16    similar establishment that provides lodging to the public for pay;

14-17    or

14-18                      (B)  a person or establishment that provides

14-19    lodging for pay and that the comptroller determines to have a

14-20    sufficient number of the characteristics of a commercial lodging

14-21    establishment for purposes of this chapter.

14-22                (6)  "Commercial transportation company" means a person

14-23    that offers to the public to transport people or goods for pay.

14-24                (7)  "Disability" means a physical or mental impairment

14-25    of an individual that substantially limits at least one of the

14-26    individual's major life activities.

14-27                (8)  "Duty point" means the destination, other than a

 15-1    place of employment, to which a state employee or a member of the

 15-2    legislature travels to conduct official state business.  If the

 15-3    destination is outside the employee's or member's designated

 15-4    headquarters, the duty point is:

 15-5                      (A)  the municipality in which the destination is

 15-6    located; or

 15-7                      (B)  the area within a five-mile radius of the

 15-8    destination if the destination is located in an unincorporated

 15-9    area.

15-10                (9)  "Incidental expense" means an expense incurred

15-11    while traveling on official state business.  The term includes a

15-12    mandatory insurance or service charge and an applicable tax except

15-13    a tax on meals.  The term does not include:

15-14                      (A)  a meal, lodging, or transportation expense;

15-15                      (B)  a personal expense;

15-16                      (C)  an expense that a person would have incurred

15-17    regardless of whether the person was traveling on official state

15-18    business; or

15-19                      (D)  a tip or gratuity.

15-20                (10)  "Institutional funds" means money described as

15-21    institutional funds by Section 51.009, Education Code.

15-22                (11)  "Institution of higher education" has the meaning

15-23    assigned by Section 61.003, Education Code.

15-24                (12)  "Key official" means a chief administrator of a

15-25    state agency or a person holding a position that has been

15-26    designated as exempt from the position classification plan in

15-27    accordance with the General Appropriations Act or by the governor

 16-1    under Chapter 654.

 16-2                (13)  "Lease" means a contract with a term of at least

 16-3    one month that gives the lessee possession and use of property or

 16-4    equipment while the lessor retains ownership of that property or

 16-5    equipment.

 16-6                (14)  "Place of employment" means the office or other

 16-7    location at which a state employee or a member of the legislature

 16-8    most frequently conducts official state business.

 16-9                (15)  "Prospective state employee" means an individual

16-10    a state agency considers for employment with the agency.  The term

16-11    includes a state employee of a state agency who is considered for

16-12    employment by another state agency.

16-13                (16)  "Rented or public conveyance" means a motor

16-14    vehicle, train, aircraft, boat, or bicycle that a state employee or

16-15    a member of the legislature rents or pays a fare to use on a

16-16    short-term basis.

16-17                (17)  "State agency" means a unit of state government

16-18    that uses appropriated money to pay or reimburse a travel expense

16-19    of a state employee or a member of the legislature.

16-20                (18)  "State employee" means a person employed by a

16-21    state agency.  The term includes a key official unless this chapter

16-22    specifically provides otherwise.

16-23                (19)  "Travel expense" means a meal, lodging,

16-24    transportation, or incidental expense.

16-25                (20)  "Unit of state government" includes an

16-26    institution of higher education.

16-27                [(2)  "Per diem allowance" means a flat daily rate that

 17-1    is paid instead of actual expenses for meals and lodging and is

 17-2    compensation for official travel purposes only.]

 17-3          SECTION 13.  Subchapter A, Chapter 660, Government Code, is

 17-4    amended by adding Section 660.0021 to read as follows:

 17-5          Sec. 660.0021.  DESIGNATED HEADQUARTERS.  (a)  The designated

 17-6    headquarters of a state employee or a member of the legislature is:

 17-7                (1)  the area within the boundaries of the municipality

 17-8    in which the employee's or member's place of employment is located;

 17-9    or

17-10                (2)  the area within a five-mile radius of the place of

17-11    employment, if the place of employment is located within an

17-12    unincorporated area.

17-13          (b)  If a municipality or an unincorporated area is

17-14    completely surrounded by the municipality in which the place of

17-15    employment of a state employee or a member of the legislature is

17-16    located, the employee's or member's designated headquarters

17-17    includes the surrounded municipality or area.

17-18          SECTION 14.  Section 660.003, Government Code, is amended to

17-19    read as follows:

17-20          Sec. 660.003.  APPLICABILITY.  (a)  This chapter, the General

17-21    Appropriations Act, and the rules adopted by the comptroller under

17-22    this chapter govern the procedures, amounts, timing, limits,

17-23    required documentation, permissible payees, distinctions between

17-24    different types of state employees, and all other details

17-25    concerning travel expense payments or reimbursements by a state

17-26    agency.

17-27          (b)  Except as provided by Subsection (c), this chapter and

 18-1    the travel provisions of the General Appropriations Act apply to a

 18-2    travel expense only to the extent that appropriated money is used

 18-3    to pay or reimburse the expense.

 18-4          (c)  A law outside this chapter that states that this

 18-5    chapter, the travel provisions of the General Appropriations Act,

 18-6    or both, apply to a travel expense prevails over anything to the

 18-7    contrary in this chapter.

 18-8          (d)  A state agency may pay or reimburse a travel expense

 18-9    only if [applies to]:

18-10                (1)  the expense is reasonable and necessary [a state

18-11    officer];

18-12                (2)  the purpose of the travel clearly involves

18-13    official state business and is consistent with the agency's legal

18-14    authority [a chief administrator of a state agency]; and

18-15                (3)  the expense and the travel during which the

18-16    expense is incurred comply with:

18-17                      (A)  this chapter;

18-18                      (B)  the rules adopted by the comptroller under

18-19    this chapter; and

18-20                      (C)  the General Appropriations Act [a state

18-21    employee; and]

18-22                [(4)  a prospective state employee who incurs expenses

18-23    when requested to visit a state agency, department, or institution

18-24    of higher education for an employment interview and evaluation].

18-25          (e)  A travel expense may be paid or reimbursed in accordance

18-26    with the requirements of an applicable federal law or regulation,

18-27    and this chapter does not apply to the extent necessary to avoid

 19-1    conflict with an applicable federal law or regulation.

 19-2          SECTION 15.  Section 660.004, Government Code, is amended to

 19-3    read as follows:

 19-4          Sec. 660.004.  TRAVEL EXPENSES PAID OR REIMBURSED [INCURRED]

 19-5    BY [OFFICIALS OR EMPLOYEES OF] INSTITUTIONS OF HIGHER EDUCATION.

 19-6    (a)  This chapter does not apply to a [reimbursement for] travel

 19-7    expense_to the extent an institution of higher education pays or

 19-8    reimburses the expense from institutional funds [expenses:]

 19-9                [(1)  incurred by an official or employee of the

19-10    athletic department of an institution of higher education;]

19-11                [(2)  to an official or employee of an institution of

19-12    higher education from a gift or bequest; or]

19-13                [(3)  of an official or employee of an institution of

19-14    higher education if the expenses are paid or reimbursed to the

19-15    institution under a contract between the institution and the

19-16    federal government or another contracting agency].

19-17          (b)  The governing board of an [each] institution of higher

19-18    education shall adopt [necessary] rules as necessary to administer

19-19    and control travel expense payments and reimbursements that are

19-20    exempt from this chapter under Subsection (a) [for the

19-21    administration and control of travel by an official or employee

19-22    exempted by this section].

19-23          SECTION 16.  Subchapter A, Chapter 660, Government Code, is

19-24    amended by adding Sections 660.006-660.013 to read as follows:

19-25          Sec. 660.006.  TRAVEL OF PROSPECTIVE STATE EMPLOYEES.  (a)  A

19-26    state agency that provides advance authorization to a prospective

19-27    state employee to visit the agency for an interview or other

 20-1    employment evaluation may:

 20-2                (1)  reimburse the prospective state employee for a

 20-3    travel expense incurred as a result of visiting the agency; or

 20-4                (2)  pay a vendor for a travel expense incurred by the

 20-5    prospective state employee as a result of visiting the agency.

 20-6          (b)  A state agency shall treat a prospective state employee

 20-7    as a state employee for the purposes of reimbursing or paying a

 20-8    travel expense of the prospective state employee.

 20-9          Sec. 660.007.  CONSERVATION OF FUNDS.  (a)  A state agency

20-10    shall minimize the amount of travel expenses paid or reimbursed by

20-11    the agency.  The agency shall ensure that each travel arrangement

20-12    is the most cost-effective considering all relevant circumstances.

20-13          (b)  A state agency may specify a travel expense payment or

20-14    reimbursement rate that is less than the maximum rate specified in

20-15    this chapter or the General Appropriations Act.  The lower rate

20-16    applies only to a travel expense incurred after the agency has

20-17    notified the affected individuals in writing about the rate.  The

20-18    agency is solely responsible for enforcing the rate.

20-19          Sec. 660.008.  TRAVEL EXPENSES INCURRED WHILE ON LEAVE.  A

20-20    state agency may pay or reimburse a state employee for a travel

20-21    expense the employee incurs while using personal or compensatory

20-22    leave if:

20-23                (1)  the leave is used while the employee is away from

20-24    the employee's designated headquarters;

20-25                (2)  the primary purpose of the employee's being away

20-26    is to conduct official state business; and

20-27                (3)  the agency determines that returning the employee

 21-1    to the employee's designated headquarters while using the leave

 21-2    would not be cost-effective or would be impracticable.

 21-3          Sec. 660.009.  INABILITY TO PERFORM OFFICIAL STATE BUSINESS.

 21-4    A state agency may pay or reimburse a state employee or a member of

 21-5    the legislature for a travel expense the employee or member incurs

 21-6    as a result of attempting to conduct official state business if:

 21-7                (1)  the employee or member is unable to conduct the

 21-8    business because of a natural disaster or other natural occurrence;

 21-9    and

21-10                (2)  the expense would be payable or reimbursable had

21-11    the official state business been conducted.

21-12          Sec. 660.010.  RETURNING TO DESIGNATED HEADQUARTERS;

21-13    TRAVELING TO DUTY POINT.  (a)  A state agency that requires a state

21-14    employee on personal or compensatory leave to return to the

21-15    employee's designated headquarters from another location may pay or

21-16    reimburse the employee for a travel expense incurred by the

21-17    employee while traveling to the headquarters.  The agency may pay

21-18    or reimburse a travel expense incurred by the employee while

21-19    traveling back to the location at which the employee was staying

21-20    while on leave or, when appropriate, to the proper location on the

21-21    employee's itinerary, if the employee resumes the leave.

21-22          (b)  A state agency that requires a state employee on

21-23    personal or compensatory leave at a location outside the employee's

21-24    designated headquarters to travel to a duty point may pay or

21-25    reimburse the employee for a travel expense incurred by the

21-26    employee while traveling to the duty point.  The agency may pay or

21-27    reimburse a travel expense incurred by the employee while traveling

 22-1    back to the location at which the employee was staying while on

 22-2    leave or, when appropriate, to the proper location on the

 22-3    employee's itinerary, if the employee resumes the leave.

 22-4          (c)  A state agency may pay or reimburse a state employee or

 22-5    a member of the legislature for a travel expense incurred when the

 22-6    employee or member returns, before official state business is

 22-7    completed, from a duty point to the employee's or member's

 22-8    designated headquarters because of an illness or a personal

 22-9    emergency.

22-10          Sec. 660.011.  TRAVEL EXPENSES INCURRED BY EMPLOYEES OF OTHER

22-11    AGENCIES.  A state agency may pay or reimburse a travel expense

22-12    incurred by another state agency's employee if the employee

22-13    incurred the expense while providing services to the paying or

22-14    reimbursing agency.

22-15          Sec. 660.012.  PAYMENTS TO CREDIT CARD ISSUERS AND TRAVEL

22-16    AGENTS.  (a)  If a state agency may directly pay a commercial

22-17    lodging establishment or a commercial transportation company under

22-18    this chapter, the agency may instead pay a credit card issuer or a

22-19    travel agency for the lodging or transportation.

22-20          (b)  The documentation required for direct payment to a

22-21    commercial lodging establishment or commercial transportation

22-22    company is also required for payment to a credit card issuer or a

22-23    travel agency.

22-24          Sec. 660.013.  CANCELLATION CHARGES.  A state agency may pay

22-25    or reimburse a state employee or a member of the legislature for a

22-26    cancellation charge if:

22-27                (1)  the charge is incurred for a reason related to

 23-1    official state business or to official state business that could

 23-2    not be conducted because of a natural disaster or other natural

 23-3    occurrence; or

 23-4                (2)  the charge is:

 23-5                      (A)  related to a transportation expense that was

 23-6    paid in advance to obtain lower rates; and

 23-7                      (B)  incurred because the employee or member who

 23-8    was to use the transportation cannot do so because of an illness or

 23-9    a personal emergency.

23-10          SECTION 17.  Sections 660.047, 660.048, and 660.049,

23-11    Government Code, are transferred to Subchapter A, Chapter 660,

23-12    Government Code, redesignated as Sections 660.014, 660.015, and

23-13    660.016, Government Code, and amended to read as follows:

23-14          Sec. 660.014 [660.047].  PROHIBITION AGAINST ACCEPTING MONEY

23-15    OR TRAVEL EXPENSE REIMBURSEMENTS [APPLICABLE TO ACCEPTANCE OF

23-16    MONEY] FROM CERTAIN PERSONS.  (a)  Unless authorized by law, a [A]

23-17    state [officer or] employee or member of the legislature [who is

23-18    traveling to perform an official duty] may not accept money for

23-19    wages or for a travel expense reimbursement [expenses] from a

23-20    person that the state intends to audit, examine, or investigate or

23-21    [who] is auditing, examining, or investigating [or who may be

23-22    audited, examined, inspected, or investigated by the state].

23-23          (b)  A state [officer or] employee or member of the

23-24    legislature who violates Subsection (a) forfeits the money or

23-25    travel expense reimbursement to the state [is traveling to perform

23-26    an official duty may receive travel expenses only from amounts

23-27    appropriated by the General Appropriations Act].

 24-1          (c)  Subsections (a) and (b) are in addition to any other

 24-2    prohibitions, penalties, and forfeitures imposed or required by

 24-3    other law.  [The comptroller may not pay the salary of a state

 24-4    employee who violates this section.]

 24-5          Sec. 660.015 [660.048].  EXCESS REIMBURSEMENTS [OVERPAYMENT].

 24-6    A state [officer or] employee or member of the legislature who

 24-7    receives a reimbursement of [an overpayment for] a travel expense

 24-8    that exceeds the amount the employee or member may receive under

 24-9    this chapter or [from money appropriated by] the General

24-10    Appropriations Act shall immediately return the amount of the

24-11    excess [reimburse the state for the overpayment].

24-12          Sec. 660.016 [660.049].  MULTIPLE ADVANCES OR REIMBURSEMENTS

24-13    FOR [PROHIBITION APPLICABLE TO] TRAVEL EXPENSE [COMPENSATION BY

24-14    OTHER PERSONS].  [(a)]  A state [officer or] employee or member of

24-15    the legislature may not accept a reimbursement or advance for a

24-16    travel expense from more than one source [receive a double travel

24-17    expense payment].

24-18          [(b)]  A state employee or member of the legislature who

24-19    anticipates receiving or actually receives a reimbursement or

24-20    advance for a [is to be compensated for] travel expense [expenses]

24-21    from a person other than a state agency may [not] seek an advance

24-22    [payment] or [receive a] reimbursement for the expense [travel]

24-23    from a state agency only to the extent that the amount of the

24-24    person's advance or reimbursement from the other source is less

24-25    than the amount of the total expense incurred [money authorized by

24-26    the General Appropriations Act].

24-27          SECTION 18.  Section 660.021, Government Code, is amended to

 25-1    read as follows:

 25-2          Sec. 660.021.  Rules.  The comptroller shall adopt rules for

 25-3    the effective and efficient administration [to administer the

 25-4    travel regulations] of this chapter and the travel provisions of

 25-5    the General Appropriations Act.

 25-6          SECTION 19.  Section 660.024, Government Code, is amended to

 25-7    read as follows:

 25-8          Sec. 660.024.  Advance Approval for Certain International

 25-9    Travel.  (a)  A state agency may not pay or reimburse a [Travel

25-10    related to official state business for which a reimbursement for]

25-11    travel expense incurred by a state employee that is related to

25-12    travel to, in, or from a foreign nation unless [expenses is claimed

25-13    or for which an advance for travel expenses to be incurred is

25-14    sought must have the advance written approval of] the governor

25-15    provides written approval of the travel before it begins.  The

25-16    governor may condition the governor's approval on the employee's

25-17    not incurring travel expenses above a specified amount.

25-18          (b)  Subsection (a) applies to a travel expense only if it is

25-19    incurred while traveling to, in, or from a destination that is not

25-20    in [does not apply to travel]:

25-21                (1)  the United States [in this state]; [or]

25-22                (2)  a possession of the United States;

25-23                (3)  [to, in, and from another state,] Mexico;[,] or

25-24                (4)  Canada.

25-25          (c)  The governor may give general approval [blanket

25-26    authority] for international travel by:

25-27                (1)  personnel of the International Trade Development

 26-1    Division of the Texas Department of Commerce; and

 26-2                (2)  law enforcement personnel of the Department of

 26-3    Public Safety.

 26-4          (d)  If the governor's approval is required by this section,

 26-5    the comptroller may require proof of that approval.

 26-6          (e)  The governor may designate an employee of the governor's

 26-7    office to provide the approvals required by this section.

 26-8          SECTION 20.  Section 660.025, Government Code, is amended to

 26-9    read as follows:

26-10          Sec. 660.025.  Advance Payment Procedure.  (a)  The

26-11    comptroller by rule shall establish a procedure by which travel

26-12    expense money may be advanced to a state [officer or] employee or a

26-13    member of the legislature [may receive an advance payment for

26-14    projected travel expenses for a particular exercise of official

26-15    duty].  The procedures must be consistent with the requirements of

26-16    Section 403.248.

26-17          (b)  Money may not be advanced to a state employee or a

26-18    member of the legislature for a travel expense unless the expense

26-19    is payable or reimbursable under this chapter, the travel

26-20    provisions of the General Appropriations Act, and the rules adopted

26-21    by the comptroller under this chapter.  [The comptroller shall

26-22    require a final accounting after actual travel expense has been

26-23    determined to provide for any necessary reimbursement or adjustment

26-24    to reconcile an advance and the actual expense incurred.]

26-25          SECTION 21.  Sections 660.041 and 660.042, Government Code,

26-26    are transferred to Subchapter B, Chapter 660, Government Code,

26-27    redesignated as Sections 660.027 and 660.028, Government Code, and

 27-1    amended to read as follows:

 27-2          Sec. 660.027 [660.041].  VOUCHERS [TRAVEL EXPENSE FORM].

 27-3    (a)  The comptroller may issue a warrant or initiate an electronic

 27-4    funds transfer to pay or reimburse a travel expense only if a state

 27-5    agency submits to the comptroller a voucher that requests the

 27-6    payment or reimbursement.

 27-7          (b)  A voucher submitted under Subsection (a) is valid only

 27-8    if:

 27-9                (1)  the state agency submitting the voucher approves

27-10    it according to Chapter 2103 and, if required by law, certifies the

27-11    voucher; and

27-12                (2)  the state employee or the member of the

27-13    legislature who incurred the travel expense or, if the employee or

27-14    member is unavailable, another individual acceptable to the

27-15    comptroller approves the voucher in writing or electronically.

27-16          (c)  A voucher must be submitted in the manner required and

27-17    on the form adopted by the comptroller.  The comptroller may

27-18    require the voucher to be submitted electronically as authorized by

27-19    Chapter 2103.

27-20          (d)  A voucher must describe the official state business

27-21    performed and be accompanied by the information the comptroller

27-22    needs to determine compliance with this chapter, the rules adopted

27-23    by the comptroller under this chapter, and the General

27-24    Appropriations Act.

27-25          (e)  The comptroller may require a state agency to provide

27-26    the information required by Subsection (d):

27-27                (1)  on the form adopted by the comptroller under

 28-1    Subsection (c);

 28-2                (2)  by submitting information, receipts, and other

 28-3    documentation; or

 28-4                (3)  by a combination of the methods provided by

 28-5    Subdivisions (1) and (2) [shall prescribe the form on which a

 28-6    travel expense is to be submitted].

 28-7          Sec. 660.028 [660.042].  AUDITS [USE OF TRAVEL EXPENSE FORM].

 28-8    (a)  The comptroller shall audit a voucher either before or after

 28-9    the comptroller issues a warrant or initiates an electronic funds

28-10    transfer in response to the voucher.  The audit must be conducted

28-11    according to Sections 403.011(12), 403.071, and 403.079.  [A state

28-12    agency shall use the standard travel expense form prescribed by the

28-13    comptroller in preparing an expense account for a traveling state

28-14    employee.]

28-15          (b)  This subsection applies only if the comptroller audits a

28-16    state agency's voucher after the comptroller issues a warrant or

28-17    initiates an electronic funds transfer in response to the voucher.

28-18    The comptroller may require the agency to maintain in its files the

28-19    information, receipts, and other documentation that relate to the

28-20    voucher until the comptroller audits the voucher.

28-21          (c)  This subsection applies only to a state agency that pays

28-22    or reimburses a travel expense without first submitting a voucher

28-23    to the comptroller.  The comptroller may audit the payment or

28-24    reimbursement for compliance with this chapter and the travel

28-25    provisions of the General Appropriations Act.  The comptroller may

28-26    report the results of the audit to the governor, the lieutenant

28-27    governor, the speaker of the house of representatives, the state

 29-1    auditor, and the Legislative Budget Board.  The agency shall

 29-2    cooperate with the comptroller and make available the information,

 29-3    receipts, and other documentation required by the comptroller at

 29-4    the time and in the manner required by the comptroller.

 29-5          (d)  The comptroller may require a state agency to maintain

 29-6    in its files for the period required by the comptroller the

 29-7    information, receipts, and other documentation about a travel

 29-8    expense payment or reimbursement.  [The travel expense form must

 29-9    state:]

29-10                [(1)  the point of origin and the point of destination

29-11    for each trip;]

29-12                [(2)  the reimbursable mileage, including intracity

29-13    mileage, that is traveled or projected between each point;]

29-14                [(3)  the time that the employee is away or plans to be

29-15    away from designated headquarters for which the employee is or will

29-16    be entitled to travel expenses; and]

29-17                [(4)  briefly and clearly the purpose of the trip and

29-18    the character of official business performed or to be performed.]

29-19          SECTION 22.  Subchapter B, Chapter 660, Government Code, is

29-20    amended by adding Section 660.029 to read as follows:

29-21          Sec. 660.029.  KNOWLEDGE OF TRAVEL PROCEDURES.  (a)  A state

29-22    agency shall instruct its state employees about the provisions of

29-23    this chapter, the travel provisions of the General Appropriations

29-24    Act, and the rules adopted by the comptroller under this chapter.

29-25          (b)  A state agency's failure or inability to instruct a

29-26    state employee as required by Subsection (a) does not excuse or

29-27    justify the employee's failure to comply with applicable laws or

 30-1    rules.

 30-2          SECTION 23.  The subchapter heading of Subchapter C, Chapter

 30-3    660, Government Code, is amended to read as follows:

 30-4          SUBCHAPTER C.  TRANSPORTATION BY PERSONAL MOTOR VEHICLE

 30-5                             [TRAVEL EXPENSES]

 30-6          SECTION 24.  Subchapter C, Chapter 660, Government Code, is

 30-7    amended by adding Sections 660.0411 and 660.0412 to read as

 30-8    follows:

 30-9          Sec. 660.0411.  REIMBURSEMENT REQUIREMENT.  (a)  A state

30-10    employee is entitled to be reimbursed as provided by this

30-11    subchapter for the employee's use of a personally owned or leased

30-12    motor vehicle in the conduct of state business.

30-13          (b)  A state employee may not be reimbursed under this

30-14    subchapter for an expense other than mileage, tolls, and parking.

30-15          Sec. 660.0412.  AMOUNT OF REIMBURSEMENT.  A mileage

30-16    reimbursement may not exceed the product of:

30-17                (1)  the applicable mileage reimbursement rate as

30-18    established by the legislature in the General Appropriations Act;

30-19    and

30-20                (2)  the miles traveled as limited by this subchapter.

30-21          SECTION 25.  Section 660.052, Government Code, is amended to

30-22    read as follows:

30-23          Sec. 660.052.  DETERMINATION OF REIMBURSABLE MILEAGE [FOR

30-24    TRAVEL BY PRIVATELY OWNED CONVEYANCE].  (a)  The miles traveled

30-25    that are eligible for reimbursement under this subchapter may not

30-26    exceed the lowest mileage between the origin and the final duty

30-27    point unless the chief administrator of the state agency or a

 31-1    designee of the chief administrator certifies on the voucher that

 31-2    there is a compelling necessity for deviation from the lowest

 31-3    mileage in order to make the travel more cost-effective.  In each

 31-4    authorized deviation, the chief administrator of the state agency

 31-5    or a designee of the chief administrator shall include in the

 31-6    certification the reason or reasons for the deviation and shall

 31-7    certify to the actual mileage approved for reimbursement.  A copy

 31-8    of each authorized deviation shall be filed promptly with the

 31-9    Legislative Budget Board.

31-10          (b)  If a state employee conducts official state business at

31-11    duty points between the origin and the final duty point, the lowest

31-12    mileage must be determined by including the business conducted at

31-13    the intermediate duty points.  Farm-to-market and ranch-to-market

31-14    roads must be considered when determining the lowest mileage

31-15    between points in this state.

31-16          (c)  The comptroller shall adopt a mileage guide that is

31-17    reissued periodically.  The guide may include a chart of distances

31-18    showing the lowest mileage between points and maps from which the

31-19    shortest distance can be determined from any point to any other

31-20    point by using both farm-to-market and ranch-to-market roads

31-21    [comptroller shall determine mileage for the purpose of a

31-22    reimbursement or advance payment for travel by a privately owned

31-23    conveyance by:]

31-24                [(1)  computing the shortest highway distance between

31-25    the point of origin and the destination using intermediate points

31-26    at which official state business is conducted; and]

31-27                [(2)  adding other necessary mileage at points at which

 32-1    official state business is conducted].

 32-2          SECTION 26.  Section 660.055, Government Code, is amended to

 32-3    read as follows:

 32-4          Sec. 660.055.  MULTIPLE USE OF SINGLE MOTOR VEHICLE

 32-5    [PRIVATELY OWNED CAR].  (a)  If two, three, or four state [officers

 32-6    or] employees who are employed by the same state agency travel on

 32-7    the same itinerary, dates, and official state business [in a

 32-8    privately owned car], only one of those employees may be reimbursed

 32-9    [reimbursement or advance payment] for [the car's] mileage [may be

32-10    claimed and allowed].

32-11          (b)  [The comptroller shall consider the travel claims of the

32-12    officers and employees as multiple claims and may pay only one

32-13    claim to the extent of mileage claimed.]

32-14          [(c)]  If more than four state employees who are employed by

32-15    the same state agency travel on the same itinerary, dates, and

32-16    official state business [in more than one car], a state agency may

32-17    reimburse for [full] mileage only on the basis of [is allowed for]

32-18    one motor vehicle [car] for each four employees and for any

32-19    fraction in excess of a multiple of four employees.

32-20          (c)  Subsections (a) and (b) do not apply to a group of state

32-21    employees if the chief administrative officer of the state agency

32-22    that employs the employees determines before travel that [(d) A

32-23    state officer or employee must obtain the advance approval of the

32-24    chief administrator of the officer's or employee's state agency if]

32-25    it is not feasible for the employees [officer or employee] to

32-26    travel together in the same motor vehicle [car].  This

32-27    determination may be made only for reasons related to official

 33-1    state business.  [Approval under this subsection authorizes

 33-2    reimbursement or advance payment for travel by the officer or

 33-3    employee using the officer's or employee's privately owned car.]

 33-4          [(e)  This section applies only to state officers or

 33-5    employees who:]

 33-6                [(1)  are employed by the same state agency;]

 33-7                [(2)  are required to travel on the same official state

 33-8    business;]

 33-9                [(3)  have the same itinerary; and]

33-10                [(4)  travel on the same dates.]

33-11          SECTION 27.  Chapter 660, Government Code, is amended by

33-12    adding Subchapter D to read as follows:

33-13            SUBCHAPTER D.  TRANSPORTATION BY PERSONAL AIRCRAFT

33-14          Sec. 660.071.  REIMBURSEMENT REQUIREMENT.  A state employee,

33-15    key official, member of a board, or member of the legislature is

33-16    entitled to be reimbursed as provided by this subchapter for use of

33-17    an aircraft owned or leased by the employee, official, or member in

33-18    the conduct of state business.

33-19          Sec. 660.072.  AMOUNT OF REIMBURSEMENT.  A reimbursement

33-20    under this subchapter may not exceed the product of:

33-21                (1)  the aircraft mileage reimbursement rate

33-22    established in the General Appropriations Act; and

33-23                (2)  the highway mileage between the designated

33-24    headquarters and duty point of the state employee, key official,

33-25    member of a board, or member of the legislature.

33-26          Sec. 660.073.  AIRCRAFT MILEAGE REIMBURSEMENT RATE.  The

33-27    General Appropriations Act may establish different aircraft mileage

 34-1    rates:

 34-2                (1)  for travel in:

 34-3                      (A)  a single-engine aircraft;

 34-4                      (B)  a twin-engine aircraft; and

 34-5                      (C)  a turbine-powered aircraft; and

 34-6                (2)  for travel by:

 34-7                      (A)  a state employee;

 34-8                      (B)  a key official;

 34-9                      (C)  a member of a board; and

34-10                      (D)  a member of the legislature.

34-11          Sec. 660.074.  GROUP TRAVEL.  (a)  This subsection applies

34-12    only to a key official, member of a board, or member of the

34-13    legislature who travels with another official or member in an

34-14    aircraft owned or leased by the other official or member.  The

34-15    official or member flying with the owner or lessee of the aircraft

34-16    is entitled to an amount equal to the amount that would have been

34-17    paid or reimbursed had the official or member paid the average

34-18    economy or coach airfare.

34-19          (b)  The comptroller shall adopt procedures under which

34-20    reimbursements to key officials, members of boards, and members of

34-21    the legislature under Section 660.071 and Subsection (a) may be

34-22    aggregated into a single payment and paid either to the individual

34-23    owning or leasing the aircraft or to a vendor providing a leased

34-24    aircraft.  The aggregate reimbursement may not exceed the actual

34-25    expense of the trip.

34-26          Sec. 660.075.  AIRCRAFT LEASED FROM CERTAIN PERSONS.  A key

34-27    official, member of a board, or member of the legislature is

 35-1    entitled to reimbursement under this subchapter for use of an

 35-2    aircraft leased from a proprietorship, partnership, or corporation

 35-3    in which the official or member has an interest.

 35-4          SECTION 28.  Chapter 660, Government Code, is amended by

 35-5    adding Subchapter E to read as follows:

 35-6                SUBCHAPTER E.  TRANSPORTATION BY RENTED OR

 35-7                             PUBLIC CONVEYANCE

 35-8          Sec. 660.091.  GENERAL PROVISION.  A state agency shall pay

 35-9    as provided by this subchapter the expense of transporting a state

35-10    employee by rented or public conveyance in the course of conducting

35-11    state business.

35-12          Sec. 660.092.  PAYMENT AND REIMBURSEMENT METHODS.  (a)  A

35-13    state agency may pay an expense under this subchapter by:

35-14                (1)  reimbursing the employee as provided by Subsection

35-15    (b);

35-16                (2)  directly paying the expense as provided by

35-17    Subsection (c); or

35-18                (3)  directly paying the expense in advance of travel

35-19    as provided by Subsection (d).

35-20          (b)  If a state agency reimburses a state employee, on

35-21    request the agency shall submit to the comptroller in the manner

35-22    required by the comptroller receipts that are acceptable to the

35-23    comptroller.  A state agency is not required to submit receipts for

35-24    mass transit, taxi, or limousine fares.

35-25          (c)  A state agency may request a commercial transportation

35-26    company to furnish transportation to the agency's state employees

35-27    and to bill the agency monthly for that transportation.  The

 36-1    company shall list on its invoices to the agency the points of

 36-2    origin and destination for each trip and the taxes charged.  The

 36-3    agency shall submit those invoices to the comptroller on request

 36-4    and in the manner required by the comptroller.

 36-5          (d)  A state agency may directly pay a commercial

 36-6    transportation company before the travel of a state employee if the

 36-7    payment would result in a lower transportation expense.  The

 36-8    comptroller may adopt rules that authorize advance payments in

 36-9    other circumstances.

36-10          (e)  If a reimbursement to a state employee for a

36-11    transportation expense would not be authorized, a direct payment to

36-12    a commercial transportation company for the expense is prohibited.

36-13          Sec. 660.093.  USING OTHER THAN COMMERCIAL TRANSPORTATION

36-14    COMPANIES.  A state agency may not pay or reimburse the expense of

36-15    transporting a state employee by rented or public conveyance if the

36-16    transportation is provided by a person who is not a commercial

36-17    transportation company.

36-18          Sec. 660.094.  COMMERCIAL AIR TRANSPORTATION.  The amount

36-19    that a state agency pays or reimburses for a state employee to

36-20    travel between points by a commercial airline may not exceed the

36-21    lowest rate available.  First class airfare may be paid or

36-22    reimbursed only if it is the only available airfare.  Business

36-23    class airfare may be paid or reimbursed only if a lower airfare is

36-24    not available.

36-25          SECTION 29.  Chapter 660, Government Code, is amended by

36-26    adding Subchapter F to read as follows:

 37-1          SUBCHAPTER F.  MEALS, LODGING, AND INCIDENTAL EXPENSES

 37-2          Sec. 660.111.  REIMBURSEMENT REQUIREMENT.  A state agency

 37-3    shall reimburse a state employee as provided by this subchapter for

 37-4    a meal, lodging, or incidental expense incurred by the employee in

 37-5    the conduct of state business.

 37-6          Sec. 660.112.  AMOUNT OF REIMBURSEMENT.  The amount a state

 37-7    agency reimburses a state employee:

 37-8                (1)  for meal expenses incurred each day may not exceed

 37-9    the limit established by the General Appropriations Act;

37-10                (2)  for lodging expenses incurred each day for each

37-11    location may not exceed the limit established by the General

37-12    Appropriations Act; and

37-13                (3)  for incidental expenses may not exceed the amount

37-14    of expenses actually incurred.

37-15          Sec. 660.113.  RESTRICTED REIMBURSEMENTS.  (a)  A state

37-16    agency may not reimburse a state employee for a lodging expense

37-17    incurred at a place that is not a commercial lodging establishment.

37-18          (b)  A state agency may not reimburse a state employee for a

37-19    meal or lodging expense the employee incurs while traveling:

37-20                (1)  outside the employee's designated headquarters for

37-21    less than six consecutive hours unless the employee is a chief

37-22    administrator of a state agency or the General Appropriations Act

37-23    authorizes the reimbursement; or

37-24                (2)  within the employee's designated headquarters

37-25    except as provided by Subsection (c).

37-26          (c)  A state agency may reimburse a state employee for a meal

37-27    expense incurred within the employee's designated headquarters if:

 38-1                (1)  the expense is mandatory; and

 38-2                (2)  the expense is connected with training, a seminar,

 38-3    or a conference.

 38-4          (d)  A state agency may reimburse a state employee for a meal

 38-5    expense incurred while traveling without an overnight stay away

 38-6    from the employee's designated headquarters only if the chief

 38-7    administrator of the agency authorizes the reimbursement.

 38-8          (e)  A state agency may not reimburse a state employee for

 38-9    the purchase of an alcoholic beverage, unless the employee is a

38-10    peace officer who purchased the beverage as a purchase of evidence

38-11    in an administrative or criminal case.

38-12          Sec. 660.114.  DIRECT PAYMENTS TO COMMERCIAL LODGING

38-13    ESTABLISHMENTS.  (a)  Instead of reimbursing a state employee for a

38-14    lodging expense, a state agency may request a commercial lodging

38-15    establishment to bill the agency directly for the expense.  A state

38-16    agency on request shall submit to the comptroller in the manner

38-17    required by the comptroller information, receipts, and other

38-18    documentation about the expense that are acceptable to the

38-19    comptroller.

38-20          (b)  If a reimbursement to a state employee for a lodging

38-21    expense would not be authorized, a direct payment to a commercial

38-22    lodging establishment for the expense is prohibited.

38-23          Sec. 660.115.  RECEIPTS.  (a)  Except as provided by

38-24    Subsections (b) and (c), a state employee who requests

38-25    reimbursement of a lodging expense must submit to the comptroller a

38-26    receipt acceptable to the comptroller.  The state employee shall

38-27    submit the receipt at the time and in the manner required by the

 39-1    comptroller.

 39-2          (b)  A chief administrator of a state agency who is not a

 39-3    member of a board is not required to submit a lodging receipt to

 39-4    the comptroller.

 39-5          (c)  A member of a board is not required to submit a lodging

 39-6    receipt to the comptroller if:

 39-7                (1)  the member is elected to the board by vote of the

 39-8    people; or

 39-9                (2)  the member serves on the board full-time and is

39-10    paid a salary for that service.

39-11          Sec. 660.116.  HOTEL OCCUPANCY AND SIMILAR TAXES.  (a)  A

39-12    state employee is entitled to be reimbursed for a state, county, or

39-13    local hotel occupancy tax or any similar tax imposed by a law of

39-14    this state, another state, or a foreign country.

39-15          (b)  A state employee is entitled to be reimbursed for a

39-16    hotel occupancy or similar tax from which the employee is legally

39-17    exempt only if the employee properly claims the exemption and the

39-18    commercial lodging establishment refuses to honor the exemption.

39-19          (c)  If a state agency directly pays a commercial lodging

39-20    establishment under Section 660.114, the agency may directly pay a

39-21    hotel occupancy or similar tax to the establishment.

39-22          Sec. 660.117.  APARTMENT OR HOUSE RENTAL EXPENSES.  An

39-23    apartment or house rental expense may be reimbursed or paid only

39-24    if:

39-25                (1)  the purpose of the rental is the conservation of

39-26    money; and

39-27                (2)  the reimbursement or payment and the rental comply

 40-1    with the comptroller's rules.

 40-2          Sec. 660.118.  INCIDENTAL EXPENSES.  A state agency may

 40-3    reimburse a state employee for an incidental expense incurred by

 40-4    the employee only according to rules adopted by the comptroller.

 40-5          SECTION 30.  Chapter 660, Government Code, is amended by

 40-6    adding Subchapter G to read as follows:

 40-7             SUBCHAPTER G.  SPECIAL TRAVEL EXPENSE PROVISIONS

 40-8          Sec. 660.141.  TRAVEL BY MEMBERS OF THE LEGISLATURE.  (a)  At

 40-9    the discretion of each house of the legislature, a member of the

40-10    legislature is entitled to receive:

40-11                (1)  an amount equal to the maximum per diem rate in

40-12    the federal travel regulations for the location at which expenses

40-13    are incurred; or

40-14                (2)  reimbursement of the actual amount of meals,

40-15    lodging, and incidental expenses incurred.

40-16          (b)  Subsection (a) applies to a meal, lodging, or incidental

40-17    expense that a member of the legislature incurs while serving on a

40-18    board.

40-19          (c)  If a member of the legislature incurs an expense in a

40-20    location for which the federal travel regulations have not

40-21    specifically established a maximum per diem rate, the rate is equal

40-22    to the lowest maximum per diem rate for the state, territory,

40-23    possession, or country in which the expense is incurred.

40-24          (d)  Except as provided by this subsection, Subchapters C, E,

40-25    and F apply to travel by a member of the legislature in the same

40-26    way that they apply to travel by a state employee.  Reimbursement

40-27    to a member of the legislature under those subchapters may be made

 41-1    regardless of whether the travel includes travel to or from Austin.

 41-2    The subchapters do not apply to travel by a member of the

 41-3    legislature to the extent they are inconsistent with this section.

 41-4    Sections 660.055, 660.113(b)(1) and (d), and 660.115 do not apply

 41-5    to travel by a member of the legislature.

 41-6          (e)  During a session of the legislature, a member of the

 41-7    legislature is entitled to be reimbursed for either a

 41-8    transportation expense on the same basis as is provided for state

 41-9    employees or mileage on the same basis as is provided for state

41-10    employees.

41-11          Sec. 660.142.  TRAVEL BY CERTAIN OFFICIALS.  A judicial

41-12    officer, a chief administrative officer of a state agency other

41-13    than a member of a board, the executive director of the Texas

41-14    Legislative Council, and the secretary of the senate are entitled

41-15    to reimbursement for actual meals and lodging expenses incurred

41-16    while performing the duties of the person's office or employment.

41-17    The governor's spouse is entitled to reimbursement for actual

41-18    expenses for meals, lodging, and transportation incurred while

41-19    performing the duties of the office at the direction of the

41-20    governor.

41-21          Sec. 660.143.  BOARD MEMBERS.  This chapter applies to a

41-22    payment or reimbursement of a travel expense incurred by a member

41-23    of a board only if Subchapter C, Chapter 659, or other applicable

41-24    law authorizes the payment or reimbursement.

41-25          Sec. 660.144.  TRAVEL BY PERSONS WITH DISABILITIES.

41-26    (a)  Notwithstanding any other provision of this chapter, a state

41-27    agency may reimburse a state employee or a member of the

 42-1    legislature with a disability for attendant care and other

 42-2    necessary expenses incurred when the employee or member travels

 42-3    inside or outside the employee's or member's designated

 42-4    headquarters.  However, an expense incurred when traveling between

 42-5    a residence and a place of employment may be reimbursed only as

 42-6    provided by law for state employees without disabilities.

 42-7          (b)  If airfare is medically necessary, a state agency may

 42-8    reimburse a state employee or a member of the legislature with a

 42-9    disability for the first or business class airfare of:

42-10                (1)  the employee or member; and

42-11                (2)  the attendant of the employee or member.

42-12          (c)  Instead of reimbursing a state employee or a member of

42-13    the legislature for attendant care and other necessary expenses, a

42-14    state agency may:

42-15                (1)  reimburse the attendant for those expenses; or

42-16                (2)  pay the expenses directly to a commercial

42-17    transportation company if the expenses are for transportation or to

42-18    a commercial lodging establishment if the expenses are for lodging.

42-19          (d)  If this chapter, the travel provisions of the General

42-20    Appropriations Act, or a rule adopted by the comptroller under this

42-21    chapter conflicts with a requirement of the Americans with

42-22    Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.), a

42-23    federal regulation adopted under that Act, or another applicable

42-24    federal law or regulation, the federal law or regulation controls

42-25    to the extent of the conflict.

42-26          Sec. 660.145.  DEATH OF STATE EMPLOYEES.  A state agency may

42-27    pay or reimburse the expense of preparing and transporting the

 43-1    remains and personal property of a state employee who dies while

 43-2    conducting official state business outside the employee's

 43-3    designated headquarters.  The agency may pay or reimburse the

 43-4    expense of transporting the remains and personal property either to

 43-5    the employee's designated headquarters or to another location

 43-6    designated by the executor or administrator of the employee's

 43-7    estate.  If the remains and personal property are transported to a

 43-8    location other than the employee's designated headquarters, the

 43-9    amount of the agency's payment or reimbursement may not exceed the

43-10    amount that would have been paid had the remains and personal

43-11    property been transported to the designated headquarters.

43-12          Sec. 660.146.  TRAVEL EXPENSES OF THREATENED STATE EMPLOYEES

43-13    AND THEIR FAMILIES.  (a)  A state agency may pay or reimburse a

43-14    travel expense incurred by a state employee who serves in a law

43-15    enforcement, investigative, or similar capacity if the employee is

43-16    threatened as a result of the employee's official duties.

43-17          (b)  A state agency may pay or reimburse a travel expense

43-18    incurred by the family of a state employee who serves in a law

43-19    enforcement, investigative, or similar capacity if the family is

43-20    threatened as a result of the employee's official duties.

43-21          (c)  A travel expense is payable or reimbursable under this

43-22    section although it is incurred within a state employee's

43-23    designated headquarters.

43-24          Sec. 660.147.  CONFLICTS WITH OTHER SUBCHAPTERS.  If a

43-25    conflict exists between this subchapter and another provision of

43-26    this chapter, this subchapter controls.

43-27          SECTION 31.  Section 661.033(c), Government Code, is amended

 44-1    to read as follows:

 44-2          (c)  Payment under this section may not be for more than:

 44-3                (1)  all of the state employee's accumulated vacation

 44-4    leave; and

 44-5                (2)  one-half of the state employee's accumulated sick

 44-6    leave or 336 hours of sick leave, whichever is less.

 44-7          SECTION 32.  Chapter 661, Government Code, is amended by

 44-8    adding Subchapters F, G, H, and Z to read as follows:

 44-9           SUBCHAPTER F.  GENERAL PROVISIONS FOR VACATION LEAVE

44-10          Sec. 661.151.  APPLICABILITY.  This subchapter applies to a

44-11    state employee employed by either house of the legislature or by a

44-12    member of the legislature or the lieutenant governor only to the

44-13    extent determined by the presiding officer of the appropriate house

44-14    of the legislature.

44-15          Sec. 661.152.  ENTITLEMENT TO ANNUAL VACATION LEAVE.  (a)  A

44-16    state employee is entitled to a vacation in each fiscal year

44-17    without a deduction in salary, except for a state employee who is:

44-18                (1)  an employee of an institution of higher education

44-19    as defined by Section 61.003, Education Code, who:

44-20                      (A)  is not employed to work at least 20 hours

44-21    per week for a period of at least four and one-half months; or

44-22                      (B)  is employed in a position for which the

44-23    employee is required to be a student as a condition of the

44-24    employment;

44-25                (2)  a faculty member employed for a period of fewer

44-26    than 12 months by an institution of higher education as defined by

44-27    Section 61.003, Education Code; or

 45-1                (3)  an instructional employee employed for a period of

 45-2    fewer than 12 months by the Texas School for the Blind and Visually

 45-3    Impaired or the Texas School for the Deaf.

 45-4          (b)  The amount of vacation accrues and may be taken in

 45-5    accordance with this subchapter.

 45-6          (c)  A part-time employee accrues vacation leave on a

 45-7    proportionate basis. The maximum amount of vacation leave  a

 45-8    part-time employee may  carry forward from one fiscal year to the

 45-9    next is also on a proportionate basis.

45-10          (d)  An employee accrues vacation leave and may carry

45-11    vacation leave forward from one fiscal year to the next in

45-12    accordance with the following schedule:

45-13                                                    Maximum Hours

45-14                                                    Carried Forward

45-15                                 Hours Accrued      From One Fiscal

45-16                                 Per Month for      Year to the Next

45-17    Employees With Total State       Full-time      for a

45-18    Employment of:                  Employment      Full-time Employee

45-19    less than 2 years                        7                 168

45-20    at least 2 but less than 5 years         8                 232

45-21    at least 5 but less than 10 years        9                 256

45-22    at least 10 but less than 15 years      10                 280

45-23    at least 15 but less than 20 years      12                 328

45-24    at least 20 years or more               14                 376

45-25          (e)  An employee accrues vacation leave at the applicable

45-26    rate beginning on the first day of state employment and ending on

45-27    the last day of state employment.  An employee accrues and is

 46-1    entitled to be credited for one month's vacation leave for each

 46-2    month or fraction of a month of employment with the state,

 46-3    beginning on the first day of employment with the state and on the

 46-4    first calendar day of each succeeding month of state employment.

 46-5          (f)  An employee may not take vacation leave with pay until

 46-6    the employee has six months of continuous employment with the

 46-7    state, although the employee accrues vacation leave during that

 46-8    period.

 46-9          (g)  If an employee's state employment anniversary date

46-10    occurs on the first calendar day of a month, the employee begins to

46-11    accrue vacation leave at a higher rate in accordance with

46-12    Subsection (d) on the first calendar day of the appropriate month.

46-13    Otherwise, the employee begins to accrue vacation leave at the

46-14    higher rate on the first calendar day of the month following the

46-15    anniversary date.  An employee who begins working on the first

46-16    workday of a month in a position that accrues vacation leave is

46-17    considered to have begun working on the first calendar day of the

46-18    month for purposes of this subsection.

46-19          (h)  An employee is entitled to carry forward from one fiscal

46-20    year to the next the net balance of unused accumulated vacation

46-21    leave that does not exceed the maximum number of hours allowed

46-22    under Subsection (d). All hours of unused accumulated vacation

46-23    leave that lapse at the end of a fiscal year under this subsection

46-24    and Subsection (d) are credited to the employee's sick leave

46-25    balance on the first day of the next fiscal year.

46-26          (i)  In computing the amount of vacation leave taken, time

46-27    during which an employee is excused from work because of a holiday

 47-1    is not  charged against the employee's vacation leave.

 47-2          (j)  An employee who is on paid leave on the first workday of

 47-3    a month may not take vacation leave accrued for that month until

 47-4    the employee has returned to duty.

 47-5          (k)  Except as provided by Section 661.033, a state employee

 47-6    who resigns, is dismissed, or otherwise separates from state

 47-7    employment may be paid  for vacation time accrued but not taken at

 47-8    the time of separation from state employment only if:

 47-9                (1)  the individual's employment with the state was

47-10    continuous for a period of at least six months; and

47-11                (2) the individual is not reemployed by the state in a

47-12    position under which the employee accrues vacation leave during the

47-13    30-day period immediately following the date of separation from

47-14    state employment.

47-15             (Sections 661.153-661.200 reserved for expansion

47-16             SUBCHAPTER G.  GENERAL PROVISIONS FOR SICK LEAVE

47-17          Sec. 661.201.  APPLICABILITY.  (a)  This subchapter applies

47-18    to a state employee employed by either house of the legislature or

47-19    by a member of the legislature or the lieutenant governor only to

47-20    the extent determined by the presiding officer of the appropriate

47-21    house of the legislature.

47-22          (b)  An employee of an institution of higher education as

47-23    defined by Section 61.003, Education Code, is eligible to accrue or

47-24    take paid sick  leave under this subchapter only if the employee:

47-25                (1)  is employed to work at least 20 hours per week for

47-26    a period of at least four and one-half months; and

47-27                (2)  is not employed in a position for which the

 48-1    employee is required to be a student as a condition of the

 48-2    employment.

 48-3          Sec. 661.202.  ENTITLEMENT TO SICK LEAVE.  (a)  A state

 48-4    employee is entitled to sick leave without a deduction in salary in

 48-5    accordance with this subchapter.

 48-6          (b)  An employee accrues sick leave beginning on the first

 48-7    day of state employment and ending on the last day of state

 48-8    employment.  An employee accrues and is entitled to be credited for

 48-9    one month's sick leave for each month or fraction of a month of

48-10    employment with the state, beginning on the first day of employment

48-11    with the state and on the first calendar day of each succeeding

48-12    month of state employment.

48-13          (c)  Sick leave entitlement for a full-time employee accrues

48-14    at the rate of eight hours for each month or fraction of a month of

48-15    employment, and accumulates with the unused amount of sick leave

48-16    carried forward each month.  A part-time employees accrues sick

48-17    leave on a proportionate basis.

48-18          (d)  Sick leave with pay may be taken when sickness, injury,

48-19    or pregnancy and confinement prevent the employee's performance of

48-20    duty or when the employee is needed to care for and assist a member

48-21    of the employee's immediate family who is sick.  For purposes of

48-22    taking regular sick leave with pay, the following persons are

48-23    considered to be members of the employee's immediate family:

48-24                (1)  an individual who resides in the same household as

48-25    the employee and is related to the employee by kinship, adoption,

48-26    or marriage;

48-27                (2)  a  foster child of the employee who resides in the

 49-1    same household as the employee and who is certified by the

 49-2    Department of Protective and Regulatory Services; and

 49-3                (3)  a minor child of the employee, regardless of

 49-4    whether the child lives in the same household.

 49-5          (e)  An employee's use of sick leave to care for and assist

 49-6    members of the employee's family who do not reside in the

 49-7    employee's household is strictly limited to the time necessary to

 49-8    provide care and assistance to a spouse, child, or parent of the

 49-9    employee who needs the care and assistance as a direct result of a

49-10    documented medical condition.

49-11          (f)  An employee who must be absent from duty because of

49-12    sickness, injury, or pregnancy and confinement shall notify the

49-13    employee's supervisor or have the supervisor notified of that fact

49-14    at the earliest practicable time.

49-15          (g)  To be eligible to take accumulated sick leave without a

49-16    deduction in salary during a continuous period of more than three

49-17    working days, an employee absent due to sickness, injury, or

49-18    pregnancy and confinement shall send to the administrative head of

49-19    the employing agency a doctor's certificate showing the cause or

49-20    nature of the condition or another written statement of the facts

49-21    concerning the condition that is acceptable to the administrative

49-22    head. The administrative head of an agency may require a doctor's

49-23    certificate or other written statement of the facts for sick leave

49-24    without a deduction in salary taken during a continuous period of

49-25    three or fewer working days.

49-26          (h)  On returning to duty after taking sick leave, the

49-27    employee shall without delay complete the prescribed application

 50-1    for sick leave and send the application in the manner prescribed by

 50-2    the agency to the appropriate authority for approving the

 50-3    application.

 50-4          (i)  The administrative head or governing body of an agency

 50-5    may authorize exceptions to the amount of sick leave an employee

 50-6    may take on an individual basis after a review of the merits of a

 50-7    particular case.  A statement of all authorized exceptions and the

 50-8    reasons for the exceptions shall be attached to the state agency's

 50-9    duplicate payroll voucher for the payroll period affected by the

50-10    authorized exceptions.

50-11          (j)  A state agency shall file a written statement with the

50-12    state auditor covering the policies and procedures for an extension

50-13    of leave under Subsection (i) and shall make the statement

50-14    available to all agency employees.

50-15          (k)  A faculty member at an institution of higher education

50-16    as defined by Section 61.003, Education Code, must submit

50-17    prescribed leave forms for all sick leave the faculty member takes

50-18    if the absence occurs during the normal workday for regular

50-19    employees, even if no classes are missed.

50-20          Sec. 661.203.  RESTORATION OF SICK LEAVE ON REEMPLOYMENT IN

50-21    CERTAIN CIRCUMSTANCES.  (a)  An employee who separates from

50-22    employment with the state under a formal reduction in force is

50-23    entitled to have the employee's sick leave balance restored if the

50-24    employee is reemployed by the state within 12 months after the end

50-25    of the month in which the employee separates from state employment.

50-26          (b)  An employee who separates from employment with the state

50-27    for a reason other than that described by Subsection (a) is

 51-1    entitled to have the employee's sick leave balance restored if:

 51-2                (1)  the employee is reemployed by the same state

 51-3    agency or institution of higher education within 12 months after

 51-4    the end of the month in which the employee separates from state

 51-5    employment, but only if there has been a break in employment with

 51-6    the state of at least 30 calendar days; or

 51-7                (2)  the employee is reemployed by a different state

 51-8    agency or institution of higher education within 12 months after

 51-9    the end of the month in which the employee separates from state

51-10    employment.

51-11             (Sections 661.204-661.250 reserved for expansion

51-12           SUBCHAPTER H.  PROVISIONS APPLICABLE TO BOTH VACATION

51-13                              AND SICK LEAVE

51-14          Sec. 661.251.  APPLICABILITY.  This subchapter applies to a

51-15    state employee employed by either house of the legislature or by a

51-16    member of the legislature or the lieutenant governor only to the

51-17    extent determined by the presiding officer of the appropriate house

51-18    of the legislature.

51-19          Sec. 661.252.  TRANSFER OF LEAVE BALANCE.  A state employee

51-20    who transfers directly from one state agency to another is entitled

51-21    to credit by the agency to which the employee transfers for the

51-22    unused balance of the employee's accumulated vacation and sick

51-23    leave, if the employee's employment with the state is

51-24    uninterrupted.

51-25             (Sections 661.253-661.900 reserved for expansion

51-26               SUBCHAPTER Z.  MISCELLANEOUS LEAVE PROVISIONS

51-27          Sec. 661.901.  APPLICABILITY.  (a)  This subchapter applies

 52-1    to a state employee employed by either house of the legislature or

 52-2    by a member of the legislature or the lieutenant governor only to

 52-3    the extent determined by the presiding officer of the appropriate

 52-4    house of the legislature.

 52-5          (b)  An employee of an institution of higher education as

 52-6    defined by Section 61.003, Education Code, is eligible to accrue or

 52-7    take paid leave under this subchapter only if the employee:

 52-8                (1)  is employed to work at least 20 hours per week for

 52-9    a period of at least four and one-half months; and

52-10                (2)  is not employed in a position for which the

52-11    employee is required to be a student as a condition of the

52-12    employment.

52-13          Sec. 661.902.  EMERGENCY LEAVE.  (a)  A state employee is

52-14    entitled to emergency leave without a deduction in salary because

52-15    of a death in the employee's family.  The death of the employee's

52-16    spouse, or of a parent, brother, sister, grandparent, grandchild,

52-17    or child of the employee or of the employee's spouse is considered

52-18    to be a death in the employee's family for purposes of this

52-19    subsection.

52-20          (b)  The administrative head of an agency may determine that

52-21    a reason other than that described by Subsection (a) is sufficient

52-22    for granting emergency leave and shall grant an emergency leave to

52-23    an employee who the administrative head determines has shown good

52-24    cause for taking emergency leave.

52-25          Sec. 661.903.  NATIONAL GUARD EMERGENCY.  A state employee

52-26    who is called to active duty as a member of the Texas National

52-27    Guard by the governor because of an emergency is entitled to a

 53-1    leave of absence without a deduction in salary in accordance with

 53-2    Section 431.0825.

 53-3          Sec. 661.904.  MILITARY LEAVE DURING NATIONAL EMERGENCY.  (a)

 53-4    An employee called to active duty during a national emergency to

 53-5    serve in a reserve component of the armed forces of the United

 53-6    States, including the Texas National Guard, is entitled to a leave

 53-7    of absence without a deduction in salary.

 53-8          (b)  The employee continues to accrue state service credit

 53-9    for purposes of longevity pay while on military duty described by

53-10    Subsection (a), but does not accrue vacation or sick leave during

53-11    that time.

53-12          (c)  The employee retains any accrued vacation or sick leave

53-13    and is entitled to be credited with those balances on return to

53-14    state employment from military duty described by Subsection (a).

53-15          Sec. 661.905.  VOLUNTEER FIREFIGHTERS.  (a) A state employee

53-16    who is a volunteer firefighter is entitled to a leave of absence

53-17    without a deduction in salary to attend fire service training

53-18    conducted by a state agency or institution of higher education.

53-19    Leave without a deduction in salary under this subsection may not

53-20    exceed five working days in a fiscal year.

53-21          (b)  A state agency or institution of higher education may

53-22    grant leave without a deduction in salary to a volunteer

53-23    firefighter for the purpose of allowing the firefighter to respond

53-24    to emergency fire situations if the agency or institution has an

53-25    established policy for granting that leave.

53-26          (c)  A leave of absence under this section may not be charged

53-27    against an employee's vacation or sick leave.

 54-1          Sec. 661.906.  FOSTER PARENTS.  A state employee who is a

 54-2    foster parent to a child under the conservatorship of the

 54-3    Department of Protective and Regulatory Services is entitled to a

 54-4    leave of absence without a deduction in salary for the purpose of

 54-5    attending:

 54-6                (1)  meetings held by the Department of Protective and

 54-7    Regulatory Services regarding the child under the foster care of

 54-8    the employee; or

 54-9                (2)  the admission, review, and dismissal meeting held

54-10    by a school district regarding the child under the foster care of

54-11    the employee.

54-12          Sec. 661.907.  RED CROSS DISASTER SERVICE VOLUNTEER.  (a)  A

54-13    state employee who is a certified disaster service volunteer of the

54-14    American Red Cross or who is in training to become such a volunteer

54-15    may be granted leave not to exceed 10 days each fiscal year to

54-16    participate in specialized disaster relief services for the

54-17    American Red Cross without a deduction in salary or loss of

54-18    vacation time, sick leave,  earned overtime credit, or state

54-19    compensatory time if the leave is taken:

54-20                (1)  with the authorization of the employee's

54-21    supervisor;

54-22                (2)  with the approval of the governor; and

54-23                (3)  on the request of the American Red Cross.

54-24          (b)  The number of certified disaster volunteers who are

54-25    eligible for leave under this section may not exceed 350 state

54-26    employees at any one time during a fiscal year.  The division of

54-27    emergency management in the governor's office shall coordinate the

 55-1    establishment and maintenance of the list of eligible employees.

 55-2          (c)  Not later than the 60th day after the date the American

 55-3    Red Cross makes a request under Subsection (a)(3), the American Red

 55-4    Cross shall prepare a report for the Legislative Budget Board

 55-5    stating the reasons for the request.

 55-6          Sec. 661.908.  LEAVE RECORDS.  The administrative head or

 55-7    governing body of each state agency shall require for each

 55-8    employee:

 55-9                (1)  time and attendance records;

55-10                (2)  a record of the accrual and taking of vacation and

55-11    sick leave;

55-12                (3)  a record of the reason an employee takes leave if

55-13    other law requires the employee to inform the agency of the reason;

55-14    and

55-15                (4)  whether any leave taken is accounted for as sick

55-16    leave, vacation leave, other paid leave, leave without pay, or

55-17    other absence.

55-18          Sec. 661.909.  STATE AUDITOR INTERPRETATIONS.  (a)  The state

55-19    auditor shall provide a uniform interpretation of this subchapter

55-20    and Subchapters F-H.

55-21          (b)  The state auditor shall report to the governor and the

55-22    legislature any state agency or institution of higher education

55-23    that practices exceptions to those laws.

55-24          Sec. 661.910.  LEAVE WITHOUT PAY; LEAVE OF ABSENCE.  (a)  A

55-25    state agency or institution of higher education may grant employees

55-26    leave without pay, including a leave of absence without pay, in

55-27    accordance with this section.

 56-1          (b)  The duration of the leave may not exceed 12 months.

 56-2          (c)  Except for disciplinary suspensions, active military

 56-3    duty, and leave covered by workers' compensation benefits, all

 56-4    accumulated paid leave entitlements must be used before the leave

 56-5    is granted.  All sick leave must first be used only if the employee

 56-6    is taking leave for a reason for which the employee is eligible to

 56-7    take sick leave under Subchapter G.

 56-8          (d)  Subject to fiscal constraints, approval of the leave

 56-9    constitutes a guarantee of employment for a specified period.

56-10          (e)  The administrative head of a state agency or institution

56-11    of higher education may grant exceptions to the limitations of this

56-12    section if the employee is taking the leave:

56-13                (1)  to work for another state governmental entity

56-14    under an interagency agreement; or

56-15                (2)  for educational purposes.

56-16          (f)  Except for an employee who returns to state employment

56-17    from military leave without pay, a full calendar month during which

56-18    an employee is on leave without pay is not counted in computing:

56-19                (1)  total state service for purposes related to

56-20    longevity pay or to accrual or payment for vacation leave; or

56-21                (2)  continuous state service for purposes related to

56-22    merit salary provisions or vacation leave.

56-23          (g)  An employee may not accrue vacation or sick leave for a

56-24    full calendar month during which the employee is on leave without

56-25    pay.

56-26          (h)  A full calendar month during which an employee is on

56-27    leave without pay does not constitute a break in continuity of

 57-1    employment.

 57-2          Sec. 661.911.  SEEING-EYE DOG TRAINING FOR BLIND EMPLOYEES.

 57-3    (a)  A state employee who is blind is entitled to a leave of

 57-4    absence without a deduction in salary for the purpose of attending

 57-5    a training program to acquaint the employee with a Seeing-Eye dog

 57-6    to be used by the employee.

 57-7          (b)  The leave of absence provided by this section may not

 57-8    exceed 10 working days in a fiscal year.

 57-9          (c)  The leave of absence provided by this section is in

57-10    addition to other leave to which an employee is entitled, and an

57-11    employee continues to accrue vacation and sick leave while on leave

57-12    as provided by this section.

57-13          (d)  For purposes of this section, "blind" has the meaning

57-14    assigned by Section 91.002, Human Resources Code.

57-15          Sec. 661.912.  ADMINISTRATIVE LEAVE WITH PAY.  (a) In

57-16    addition to employee leave authorized elsewhere in this chapter,

57-17    the administrative head of an agency may grant administrative leave

57-18    without a deduction in salary to an employee as a reward for

57-19    outstanding performance as documented by employee performance

57-20    appraisals.

57-21          (b)  The total amount of administrative leave an employee may

57-22    be granted under this section may not exceed 32 hours during a

57-23    fiscal year.

57-24          Sec. 661.913.  FAMILY AND MEDICAL LEAVE ACT.  (a)  To the

57-25    extent provided by federal law, a state employee who has been

57-26    employed for at least 12 months by the state and who has worked at

57-27    least 1,250 hours during the 12-month period preceding the

 58-1    beginning of leave under this section is entitled to leave under

 58-2    the federal Family and Medical Leave Act of 1993 (29 U.S.C. Section

 58-3    2601 et seq.) if the employee first uses all available and

 58-4    applicable paid vacation and sick leave while taking leave under

 58-5    this section.

 58-6          (b)  As an exception to the requirement that an employee

 58-7    first use all applicable paid vacation and sick leave, employees on

 58-8    Family and Medical Leave Act leave  who are receiving temporary

 58-9    disability benefits or workers' compensation benefits are not

58-10    required to first use applicable paid vacation or sick leave while

58-11    receiving those benefits.

58-12          Sec. 661.914.  PARENTAL LEAVE FOR CERTAIN EMPLOYEES.  (a)  A

58-13    state employee who has been employed for fewer than 12 months by

58-14    the state or who has worked fewer than 1,250 hours during the

58-15    12-month period preceding the beginning of leave under this section

58-16    is eligible to take a parental leave of absence in accordance with

58-17    this section if the employee first uses all available and

58-18    applicable paid vacation and sick leave while taking leave under

58-19    this section.

58-20          (b)  A leave of absence authorized by this section may not

58-21    exceed 12 weeks.

58-22          (c)  The leave authorized by this section is limited to, and

58-23    begins on the date of, the birth of a natural child of the employee

58-24    or the adoption by or foster care placement with the employee of a

58-25    child under three years of age.

58-26          SECTION 33.  Section 662.004(a), Government Code, is amended

58-27    to read as follows:

 59-1          (a)  A state agency and an institution of higher education as

 59-2    defined by Section 61.003, Education Code, shall have enough

 59-3    employees on duty during a state holiday to conduct the public

 59-4    business of the agency or institution.

 59-5          SECTION 34.  Section 662.007, Government Code, is amended by

 59-6    adding Subsection (c) to read as follows:

 59-7          (c)  An institution of higher education as defined by Section

 59-8    61.003, Education Code, may allow an employee who is required to

 59-9    work on a national or state holiday that does not fall on a

59-10    Saturday or Sunday to take compensatory time off in accordance with

59-11    this section or may instead pay the employee at the employee's

59-12    regular rate of pay for that time if the institution determines

59-13    that allowing compensatory time off would disrupt normal teaching,

59-14    research, or other critical functions.

59-15          SECTION 35.  Section 662.010, Government Code, is amended by

59-16    amending Subsection (c) and adding Subsection (d) to read as

59-17    follows:    

59-18          (c)  If a state or national holiday that does not fall on a

59-19    Saturday or Sunday occurs between the dates that a state employee

59-20    transfers from one state agency to another without a break in

59-21    service, the agency to which the employee transfers is responsible

59-22    for paying the employee for the holiday.

59-23          (d)  In this section, "workday" means a day on which a state

59-24    employee is normally scheduled to work.

59-25          SECTION 36.  Section 662.011, Government Code, is amended by

59-26    amending Subsection (a) and adding Subsection (c) to read as

59-27    follows:

 60-1          (a)  The governing body of an institution of higher

 60-2    education, as defined by Section 61.003, Education Code, other than

 60-3    a public junior college as defined by that section, may establish

 60-4    the holiday schedule for the institution, subject to any applicable

 60-5    limitation on the observance of holidays prescribed by the General

 60-6    Appropriations Act.

 60-7          (c)  An employee of the institution is eligible to take paid

 60-8    holiday leave only if the employee:

 60-9                (1)  is scheduled to work at least 20 hours per week

60-10    for a period of at least four and one-half months; and

60-11                (2)  is not employed in a position for which the

60-12    employee is required to be a student as a condition of the

60-13    employment.

60-14          SECTION 37.  Subtitle B, Title 6, Government Code, is amended

60-15    by adding Chapter 666 to read as follows:

60-16               CHAPTER 666.  MULTIPLE EMPLOYMENTS WITH STATE

60-17          Sec. 666.001.  GENERAL PROVISIONS.  (a)  This chapter applies

60-18    to a person who is or may become employed by more than one state

60-19    agency or institution of higher education.

60-20          (b)  A person who is employed by more than one state agency

60-21    or institution of higher education may not receive benefits from

60-22    the state that exceed the benefits provided for one full-time

60-23    employee.

60-24          (c)  The person must be informed of the requirements of this

60-25    chapter before the person is employed by more than one agency or

60-26    institution.

60-27          Sec. 666.002.  SEPARATE RECORDS REQUIRED.  Separate vacation

 61-1    and sick leave records must be maintained for each employment.

 61-2          Sec. 666.003.  TRANSFER OF LEAVE BALANCES PROHIBITED.  If the

 61-3    person separates from one employment, the person's leave balances

 61-4    that were accrued under that employment may not be transferred to

 61-5    the remaining employments.

 61-6          Sec. 666.004.  ACCRUAL OF STATE SERVICE CREDIT.  The person

 61-7    accrues state service credit for all purposes as if the person had

 61-8    only one employment.

 61-9          Sec. 666.005.  FEDERAL INSURANCE CONTRIBUTIONS.  (a)  The

61-10    state's contribution toward the taxes imposed on the person by the

61-11    Federal Insurance Contributions Act (26 U.S.C. Section 3101 et

61-12    seq.) may not exceed the overall limit specified in the General

61-13    Appropriations Act.

61-14          (b)  The comptroller shall prescribe uniform accounting and

61-15    reporting procedures to ensure that the state's contribution does

61-16    not exceed the limit described by Subsection (a).

61-17          Sec. 666.006.  GROUP INSURANCE CONTRIBUTION.  The total state

61-18    contribution toward the person's group insurance is limited to the

61-19    amount specified in the General Appropriations Act for a full-time

61-20    active employee.

61-21          Sec. 666.007.  OVERTIME COMPENSATION.  (a)  Overtime

61-22    compensation accrues for each employment independently of every

61-23    other employment, except as provided by Subsection (b).

61-24          (b)  If the person is subject to the overtime provisions of

61-25    the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201

61-26    et seq.) in an employment, the employing agencies and institutions

61-27    of higher education shall ensure that the person is compensated for

 62-1    all combined time actually worked that exceeds 40 hours per week in

 62-2    accordance with the overtime provisions of the federal law.  The

 62-3    agencies and institutions shall cooperate to determine which agency

 62-4    or institution is responsible for ensuring that the employee is

 62-5    properly compensated according to those provisions.

 62-6          Sec. 666.008.  INFORMING EMPLOYER ABOUT MULTIPLE EMPLOYMENT.

 62-7    The person must inform the person's employing state agencies or

 62-8    institutions of higher education before accepting an additional

 62-9    employment with another agency or institution.

62-10          Sec. 666.009.  SPECIAL PROVISIONS FOR LEGISLATIVE AGENCIES.

62-11    If a person's multiple employment involves only legislative

62-12    agencies and all employments are less than full-time, the person

62-13    may use paid leave from leave balances in all employments, and on

62-14    separating from one  employment leave balances accrued under that

62-15    employment will be transferred to the remaining employments.

62-16          Sec. 666.010.  SPECIAL PROVISIONS FOR INSTITUTIONS OF HIGHER

62-17    EDUCATION.  (a)  A university system as defined by Section 61.003,

62-18    Education Code, may establish a policy that defines a person's

62-19    employment as the total hours the person is assigned to one

62-20    component of the system or, alternatively, the total hours the

62-21    person is assigned to all components of the system.

62-22          (b)  The policy may apply to a person only if the person is

62-23    employed by more than one institution of higher education and all

62-24    the employing institutions are within the same university system.

62-25          SECTION 38.  Chapter 751, Government Code, is amended by

62-26    adding Subchapter C to read as follows:

 63-1               SUBCHAPTER C.  STATE PERSONNEL IN WASHINGTON

 63-2          Sec. 751.051.  LIAISON TO LEGISLATIVE COMMITTEES.  A state

 63-3    employee working in Washington, D.C., on behalf of one or more

 63-4    state agencies shall act in a liaison capacity and provide the most

 63-5    current information on federal funding and on legislative issues to

 63-6    the appropriate substantive committees of both the Texas House of

 63-7    Representatives and the Texas Senate.

 63-8          SECTION 39.  Subchapter A, Chapter 2052, Government Code, is

 63-9    amended  by adding Section 2052.004 to read as follows:

63-10          Sec. 2052.004.  REPORT ON CLOSING OF FIELD OFFICES.  Before

63-11    making any public announcement, a state agency shall send to any

63-12    affected member of the legislature a written notice that describes

63-13    the state agency's plan to close a field office located in the

63-14    member's legislative district.

63-15          SECTION 40.  Section 2054.092, Government Code, is amended to

63-16    read as follows:

63-17          Sec. 2054.092.  CONTENT OF STATE STRATEGIC PLAN.  The state

63-18    strategic plan must be a visionary plan for the management of the

63-19    state's information resources and:

63-20                (1)  provide a strategic direction for information

63-21    resources management in state government for the four [five] fiscal

63-22    years following adoption of the plan;

63-23                (2)  provide guidance to state agencies in the

63-24    development of the agency strategic plans;

63-25                (3)  establish goals and objectives relating to

63-26    information resources management;

63-27                (4)  provide long-range policy guidelines for

 64-1    information resources in state government, including the

 64-2    implementation of national and international standards for

 64-3    information resources technologies;

 64-4                (5)  identify major issues relating to improved

 64-5    information resources management, including the identification of

 64-6    needed procurement policy initiatives to encourage competition

 64-7    between providers of information resources technologies; [and]

 64-8                (6)  identify priorities for the implementation of

 64-9    information resources technologies according to the relative

64-10    economic and social impact on the state; and

64-11                (7)  establish the framework under which the state's

64-12    telecommunications systems can be used to efficiently and

64-13    effectively exchange information among state agencies.

64-14          SECTION 41.  Section 2054.095(d), Government Code, is amended

64-15    to read as follows:

64-16          (d)  The department by rule shall adopt instructions,

64-17    consistent with Section 2054.096, that guide state agencies in the

64-18    preparation of their agency strategic plans.  The instructions must

64-19    include the general criteria under which the department will

64-20    evaluate the plan and specify the format, content, updating, and

64-21    submission of the plan.  The department shall send the instructions

64-22    to each  state agency not later than February 1 of each

64-23    even-numbered year.

64-24          SECTION 42.  Section 2054.118, Government Code, is amended to

64-25    read as follows:

64-26          Sec. 2054.118.  Major Information Resources Project.  (a)  A

64-27    state agency may not spend appropriated funds for a major

 65-1    information resources project unless the project has been reviewed

 65-2    and approved by a quality assurance team consisting of the

 65-3    department and the state auditor's office [in the agency's biennial

 65-4    operating plan].

 65-5          (b)  The quality assurance team shall determine project

 65-6    approval based on an analysis of the project's risk.  The quality

 65-7    assurance team may:

 65-8                (1)  waive project review requirements under

 65-9    circumstances it considers appropriate;

65-10                (2)  require any information it considers necessary to

65-11    determine a project's potential risk;

65-12                (3)  require independent monitoring of an approved

65-13    project, status reports of a project being implemented, or any

65-14    additional information the team considers necessary to determine a

65-15    project's potential for success; or

65-16                (4)  require a state agency to submit a

65-17    post-implementation evaluation report to enable the team to

65-18    determine whether a project met its planned objectives.

65-19          (c)  The department shall provide technical assistance to a

65-20    state agency in the implementation of a project, participate in a

65-21    project as the quality assurance team considers necessary, and

65-22    review and analyze project information submitted by a state agency.

65-23    The state auditor's office shall audit and review a project and the

65-24    information provided by a state agency about a project.  The

65-25    quality assurance team may request the Legislative Budget Board or

65-26    the comptroller's office to assist in determining the accuracy of

65-27    project expenditures and compliance with any expenditure

 66-1    limitations contained in the General Appropriations Act.

 66-2          (d)  The quality assurance team shall file a report with the

 66-3    lieutenant governor and the speaker of the house or representatives

 66-4    on the status of projects under its review not later than December

 66-5    1 of each year.

 66-6          (e)  The department shall develop rules or guidelines for

 66-7    software development, quality assurance, and [its] review of major

 66-8    information resources projects.

 66-9          (f) [(c)]  In this section, "major information resources

66-10    project" means any information resources technology project

66-11    identified in a state agency's biennial operating plan with

66-12    development costs that exceed $1 million and that:

66-13                (1)  requires one year or longer to reach operations

66-14    status;

66-15                (2)  involves more than one state agency; or

66-16                (3)  substantially alters work methods of state agency

66-17    personnel or the delivery of services to clients.

66-18          SECTION 43.  Subchapter F, Chapter 2054, Government Code, is

66-19    amended by adding Sections 2054.120 and 2054.121 to read as

66-20    follows:

66-21          Sec. 2054.120.  COORDINATION AMONG INSTITUTIONS OF HIGHER

66-22    EDUCATION.  Institutions of higher education shall coordinate the

66-23    use of information technologies with other such institutions to

66-24    more effectively provide education, research, and community

66-25    service.

66-26          Sec. 2054.121.  COORDINATED TECHNOLOGY TRAINING.  A state

66-27    agency each calendar quarter shall coordinate agency training for

 67-1    the use of information resources technologies with training offered

 67-2    or coordinated by the department. The agency shall use training

 67-3    offered or coordinated by the department if it meets agency

 67-4    requirements and is cost-competitive.

 67-5          SECTION 44.  Subchapter B, Chapter 2101, Government Code, is

 67-6    amended by adding Sections 2101.0111 and 2101.0112 to read as

 67-7    follows:

 67-8          Sec. 2101.0111.  ANNUAL REPORTS AND INVENTORIES.  (a)  Not

 67-9    later than the 90th day after the close of the fiscal year, the

67-10    executive head of each state agency shall submit an annual

67-11    financial report regarding the agency's use of appropriated money,

67-12    as defined by Section 2113.001, during the preceding fiscal year

67-13    to:

67-14                (1)  the governor;

67-15                (2)  the comptroller;

67-16                (3)  the state auditor;

67-17                (4)  the Legislative Budget Board; and

67-18                (5)  the Legislative Reference Library.

67-19          (b)  The annual report must be prepared in accordance with

67-20    the uniform accounting and financial reporting procedures

67-21    established by the comptroller under Section 2101.012.

67-22          (c)  The annual report must include:

67-23                (1)  a detailed statement of all assets, liabilities,

67-24    and fund balances, including:

67-25                      (A)  cash on hand and on deposit in banks and

67-26    accounts in the state treasury;

67-27                      (B)  the value of consumable supplies and

 68-1    postage;

 68-2                      (C)  the value of the state agency's inventory of

 68-3    movable equipment and other fixed assets;

 68-4                      (D)  a list of investments, bonds, notes, and

 68-5    other securities owned by any special funds under the jurisdiction

 68-6    of the state agency, including the amount and value of the

 68-7    securities;

 68-8                      (E)  all money due the state agency from any

 68-9    source;

68-10                      (F)  all outstanding commitments of the agency,

68-11    including amounts due for services or goods received by the agency;

68-12                      (G)  a summary by source of all revenue collected

68-13    or accruing through the state agency, including appropriations; and

68-14                      (H)  a summary by source of all expenditures,

68-15    bona fide encumbrances, and other disbursements by the state

68-16    agency;

68-17                (2)  a list of all bonded employees, including the name

68-18    of the surety company and the name and title of the employee and

68-19    the amount of the surety bond;

68-20                (3)  an analysis of space occupied by the state agency,

68-21    including:

68-22                      (A)  the total number of square feet of rented

68-23    space in state-owned buildings;

68-24                      (B)  the total number of square feet of occupied

68-25    space in state-owned buildings;

68-26                      (C)  the name and address of each building in

68-27    which the state agency occupies space and the number of square feet

 69-1    in each building devoted to a particular use;

 69-2                      (D)  the cost per square foot of all rented

 69-3    space;

 69-4                      (E)  the annual and monthly cost of all rented

 69-5    space;

 69-6                      (F)  the lessor of all rented space; and

 69-7                      (G)  other information helpful to describe the

 69-8    state agency's utilization of space in state-owned buildings;

 69-9                (4)  an itemized statement of all fees paid by the

69-10    state agency for professional and consulting services provided

69-11    under Chapter 2254, including the name of each person receiving

69-12    fees and the reason for the provision of the services;

69-13                (5)  a summary of the state agency's use and cost of

69-14    operating aircraft that is state-owned or under long-term lease in

69-15    the format prescribed by the Legislative Budget Board and the State

69-16    Aircraft Pooling Board under Chapter 2205;

69-17                (6)  a list of any purchases made under Section

69-18    2155.067(e), including each product purchased, the purchase amount,

69-19    and the name of each vendor;

69-20                (7)  a copy of the Master File Report Verification Form

69-21    certified by the General Land Office to confirm that the state

69-22    agency is in compliance with Subchapter E, Chapter 31, Natural

69-23    Resources Code;

69-24                (8)  a list of the transfer of appropriated funds

69-25    between appropriation items, including the amount of all transfers;

69-26                (9)  a copy of the report prepared by the state agency

69-27    under Section 2161.124; and

 70-1                (10)  any other information required by the General

 70-2    Appropriations Act.

 70-3          (d)  In this section, "state agency" has the meaning assigned

 70-4    by Section 2151.002.

 70-5          Sec. 2101.0112.  BINDING ENCUMBRANCE REPORT.  (a)  Each state

 70-6    agency shall submit to the comptroller, the state auditor, and the

 70-7    Legislative Budget Board a binding encumbrance report by

 70-8    appropriation account relating to accrued payables and binding

 70-9    encumbrances for all appropriations, current and lapsed, not later

70-10    than the 30th day after the close of each fiscal quarter.

70-11          (b)  On receipt of the report required by Subsection (a), the

70-12    comptroller shall lapse any excess prior years' appropriation

70-13    authority.

70-14          (c)  To the extent permitted by Sections 403.071(b) and

70-15    404.046, the comptroller may reopen any lapsed appropriation

70-16    account to pay any valid claims submitted.

70-17          (d)  Each state agency shall reconcile all expenditures,

70-18    binding encumbrances, payables, and accrued expenditures, as

70-19    reported in the uniform statewide accounting system, with the state

70-20    agency's strategic planning and budget structure, as  reported in

70-21    the automated budget and evaluation system prescribed by the

70-22    Legislative Budget Board.

70-23          (e)  In this section, "state agency" has the meaning assigned

70-24    by Section 2151.002.

70-25          SECTION 45.  Section 2101.012(a), Government Code, is amended

70-26    to read as follows:

70-27          (a)  The comptroller shall prescribe uniform accounting and

 71-1    financial reporting procedures that a [each] state agency shall use

 71-2    in the preparation of the information requested under Section

 71-3    2101.011 or 2101.0111.

 71-4          SECTION 46.  Section 2101.038, Government Code, is amended to

 71-5    read as follows:

 71-6          Sec. 2101.038.  DUTIES OF STATE AUDITOR.  (a)  The state

 71-7    auditor, when reviewing the operation of a state agency, shall

 71-8    audit for compliance with the uniform statewide accounting system,

 71-9    the comptroller's rules, and the Legislative Budget Board's

71-10    performance and workload measures.

71-11          (b)  The state auditor shall notify the project advisory

71-12    committee, the comptroller, the governor, and the Legislative

71-13    Budget Board as soon as practicable when a state agency is not in

71-14    compliance.

71-15          (c)  If the state auditor issues any report concerning the

71-16    operation of a state agency, the state auditor shall notify the

71-17    agency's governing body and executive head.

71-18          SECTION 47.  Chapter 2102, Government Code, is amended by

71-19    adding Section 2102.0091 to read as follows:

71-20          Sec. 2102.0091.  REPORTS OF PERIODIC AUDITS.  (a)  A state

71-21    agency shall file with the budget division of the governor's office

71-22    and the Legislative Budget Board a copy of each report submitted to

71-23    the state agency's governing board or its designee by the agency's

71-24    internal auditor.

71-25          (b)  Each report shall be filed not later than the 30th day

71-26    after the date the report is submitted to the state agency's

71-27    governing board or its designee.

 72-1          (c)  In addition to the requirements of Subsection (a), a

 72-2    state agency shall file with the budget division of the governor's

 72-3    office and the Legislative Budget Board any action plan or other

 72-4    response issued by the state agency's governing board in response

 72-5    to the report of the state agency's internal auditor.

 72-6          SECTION 48.  Subtitle C, Title 10, Government Code, is

 72-7    amended by adding Chapter 2113 to read as follows:

 72-8      CHAPTER 2113.  USE OF APPROPRIATED MONEY AND OTHER STATE FUNDS

 72-9                     SUBCHAPTER A.  GENERAL PROVISIONS

72-10          Sec. 2113.001.  DEFINITIONS.  In this chapter:

72-11                (1)  "Appropriated money" means money appropriated by

72-12    the legislature through the General Appropriations Act or other

72-13    law.

72-14                (2)  "State agency" means:

72-15                      (A)  a department, commission, board, office, or

72-16    other entity in the executive branch of state government;

72-17                      (B)  the supreme court, the court of criminal

72-18    appeals, a court of appeals, or the Texas Judicial Council; or

72-19                      (C)  a university system or an institution of

72-20    higher education as defined by Section 61.003, Education Code,

72-21    except a public junior college.

72-22            (Sections 2113.002-2113.010 reserved for expansion

72-23             SUBCHAPTER B.  RESTRICTIONS ON POLITICAL ACTIVITY

72-24          Sec. 2113.011.  SUPPORT OF CANDIDATES.  (a)  A state agency

72-25    may not use state funds, including appropriated money, to finance

72-26    or otherwise support the candidacy of a person for an office in the

72-27    legislative, executive, or judicial branch of state government or

 73-1    of the government of the United States.  This prohibition extends

 73-2    to the direct or indirect employment of a person to perform an

 73-3    action described by this subsection.

 73-4          (b)  An employee of a state agency may not use a state-owned

 73-5    motor vehicle for a purpose described by Subsection (a).

 73-6          Sec. 2113.012.  ELECTIONS AND LEGISLATIVE INFLUENCE.  (a)  A

 73-7    state agency may not use appropriated money to influence the

 73-8    outcome of an election or the passage or defeat of a legislative

 73-9    measure.

73-10          (b)  This section does not prohibit an officer or employee of

73-11    a state agency from providing on request to a member of the

73-12    legislature, legislative committee, other state officer or

73-13    employee, or private citizen public information available to the

73-14    officer or employee.

73-15          Sec. 2113.013.  LOBBYING.  (a)  A state agency may not use

73-16    appropriated money to employ a full-time employee who is required

73-17    by Chapter 305 to register as a lobbyist.

73-18          (b)  A state agency may not use appropriated money to employ

73-19    a part-time employee who is required by Chapter 305 to register as

73-20    a lobbyist for an industry, profession, or association:

73-21                (1)  that the employee's agency regulates;

73-22                (2)  from which the employee's agency purchases goods

73-23    or services; or

73-24                (3)  to which the employee's agency provides goods or

73-25    services, including grants or loans.

73-26          Sec. 2113.014.  RETALIATION AND VIOLATION.  An officer or

73-27    employee of a state agency who causes an officer or employee to be

 74-1    discharged, demoted, or otherwise discriminated against for

 74-2    providing information under Section 2113.012(b) is required to be

 74-3    immediately discharged from state employment.

 74-4          Sec. 2113.015.  NOTICE OF PROHIBITIONS.  (a)  A state agency

 74-5    shall provide each officer and employee of the agency  a copy of

 74-6    Sections 2113.011-2113.014 and require a signed receipt on

 74-7    delivery.  A new copy and receipt are required if a provision of

 74-8    those sections is changed.

 74-9          (b)  A state agency shall maintain receipts collected from

74-10    current officers and employees under this section in a manner

74-11    accessible for public inspection.

74-12          Sec. 2113.016.  STUDENT ORGANIZATIONS.  (a)  This subchapter

74-13    does not prohibit the payment of reasonable dues to an organization

74-14    that represents student interests before the legislature or the

74-15    Congress of the United States from that portion of mandatory

74-16    student service fees that is allocated to the student government

74-17    organization at an institution of higher education.

74-18          (b)  A mandatory student service fee may not be used to

74-19    influence the outcome of an election.

74-20          Sec. 2113.017.  COMPENSATION PROHIBITION.  A state agency may

74-21    not use appropriated money to compensate an officer or employee who

74-22    violates this subchapter.

74-23            (Sections 2113.018-2113.100 reserved for expansion

74-24           SUBCHAPTER C.  RESTRICTIONS ON OFFICERS AND EMPLOYEES

74-25          Sec. 2113.101.  PUBLICITY.  (a)  A state agency may not use

74-26    appropriated money to publicize or direct attention to an

74-27    individual officer or employee of state government.

 75-1          (b)  A state agency may not use appropriated money to:

 75-2                (1)  maintain a publicity office or department;

 75-3                (2)  employ an individual who has the title or duties

 75-4    of a public relations or press agent; or

 75-5                (3)  pay a public relations agent or business.

 75-6          (c)  The executive head of a state agency who considers it

 75-7    necessary or in the public interest may issue through agency

 75-8    channels oral or written information relating to the activities or

 75-9    legal responsibilities of the agency.  The information must be

75-10    issued in the name of the state agency and include the name of the

75-11    individual authorized to issue the information.

75-12          (d)  An institution of higher education may operate a news

75-13    and information service for the benefit of the public if the

75-14    operation has been authorized and approved by the institution's

75-15    governing body.

75-16          Sec. 2113.102.  USE OF ALCOHOLIC BEVERAGES.  A state agency

75-17    may not use appropriated money to compensate an officer or employee

75-18    who uses alcoholic beverages on active duty.

75-19          Sec. 2113.103.  USE OF MOTOR VEHICLE.  (a)  Except as

75-20    provided by Subsection (b), an officer or employee of a state

75-21    agency may not use a state-owned motor vehicle except on official

75-22    state business.

75-23          (b)  The administrative head of a state agency may authorize

75-24    an officer or employee to use a state-owned motor vehicle to

75-25    commute to and from work when the administrative head determines

75-26    that the use may be necessary to ensure that vital agency functions

75-27    are performed.  The name and job title of each individual

 76-1    authorized under this subsection, and the reasons for the

 76-2    authorization, must be included in the annual report required by

 76-3    Section 2101.0111.

 76-4          (c)  A state agency may not use appropriated money to

 76-5    compensate an individual who violates this section.

 76-6            (Sections 2113.104-2113.200 reserved for expansion

 76-7             SUBCHAPTER D.  RESTRICTIONS ON GOODS AND SERVICES

 76-8          Sec. 2113.201.  CONSULTANT CONTRACTS.  A state agency may not

 76-9    use appropriated money to contract for consulting services with an

76-10    individual who has been an officer or employee of the agency within

76-11    the preceding 12 months.

76-12          Sec. 2113.202.  ALCOHOLIC BEVERAGES.  A state agency may not

76-13    use appropriated money to purchase an alcoholic beverage except for

76-14    authorized law enforcement purposes.  A state agency may not use

76-15    appropriated money to pay or reimburse a travel expense for an

76-16    alcoholic beverage.

76-17          Sec. 2113.203.  AUDITS.  (a)  Except as provided by

76-18    Subsections (b) and (c), a state agency may not use appropriated

76-19    money to hire an individual or entity to audit the books or

76-20    accounts of the agency.

76-21          (b)  A state agency may use appropriated money to finance a

76-22    supplemental audit of payments received from the government of the

76-23    United States if the audit is required as a condition of receipt of

76-24    the money and an amount for the audit is provided by the federal

76-25    grant, allocation, aid, or other payment.

76-26          (c)  A state agency providing grants, loans, or other money

76-27    to an entity other than a state agency may require, as a condition

 77-1    of receipt of the money, that the recipient have an annual,

 77-2    independent audit performed and submitted to the agency.  An agency

 77-3    may require its internal audit staff to make an annual inspection

 77-4    visit to the recipient of the money.  After notice of the meeting

 77-5    of the governing body of an agency at which the matter will be

 77-6    included on the agenda, the agency shall take action on any

 77-7    exceptions noted in independent audits received under this

 77-8    subsection and provide documentation of that action to the state

 77-9    auditor, the Legislative Audit Committee, the Legislative Budget

77-10    Board, and the budget division of the governor's office.

77-11          Sec. 2113.204.  PUBLICATION OF REPORTS.  (a)  A state agency

77-12    may not use appropriated money to publish a report or other printed

77-13    materials on enamel-coated, cast-coated, or dull-coated printing

77-14    stock unless the agency imposes a fee for receipt of the printed

77-15    materials.

77-16          (b)  A state agency shall make reports required by law and

77-17    minutes of meetings of the agency's governing body available to

77-18    members of the legislature and agencies in the legislative branch

77-19    of state government in an electronic format determined by the Texas

77-20    Legislative Council.

77-21          Sec. 2113.205.  PERIODICALS AND OTHER PUBLICATIONS.  (a)

77-22    Except as provided by Subsection (b), a state agency may not use

77-23    appropriated money to publish a periodical or other publication the

77-24    cost of which is not reimbursed through revenue attributable to its

77-25    publication and sale if the publication is:

77-26                (1)  intended for use by the general public;

77-27                (2)  generally informational, promotional, or

 78-1    educational; and

 78-2                (3)  not essential to the achievement of a statutory

 78-3    objective of the agency.

 78-4          (b)  Subsection (a) does not apply to:

 78-5                (1)  Texas Highways magazine;

 78-6                (2)  the Texas Parks and Wildlife magazine;

 78-7                (3)  publications of the Texas Commission on Alcohol

 78-8    and Drug Abuse;

 78-9                (4)  attorney general opinions, advisories, and

78-10    decisions;

78-11                (5)  comptroller opinions, revenue forecasts, and

78-12    fiscal analyses;

78-13                (6)  newsletters;

78-14                (7)  compilations of statutes or rules; or

78-15                (8)  annual reports and other materials that are

78-16    required by law and the content of which includes only topics

78-17    provided by law.

78-18          (c)  A state agency may not use appropriated money to publish

78-19    a publication that prominently displays the name or picture of a

78-20    person holding an office elected statewide.

78-21          (d)  Except as provided by Subsection (e), a state agency may

78-22    not use appropriated money to publish a publication on

78-23    enamel-coated, cast-coated, or dull-coated printing stock or that

78-24    contains an average of more than one picture for each two pages of

78-25    the publication unless the agency imposes a fee for the publication

78-26    in an amount that recovers the cost of publication.

78-27          (e)  Subsection (d) does not apply to a publication designed

 79-1    to promote tourism or economic development, a publication of the

 79-2    Texas School for the Deaf or the Texas School for the Blind and

 79-3    Visually Impaired, or a publication of an institution of higher

 79-4    education.

 79-5          (f)  A state agency or political subdivision that uses an

 79-6    appropriation to publish free periodicals quarterly or more

 79-7    frequently shall insert annually in three consecutive issues a

 79-8    notice that anyone wishing to continue receiving the periodical

 79-9    must so request in writing.  The agency shall provide future issues

79-10    of the periodical only to persons who have requested it.

79-11          Sec. 2113.206.  POSTAGE.  (a)  Except as provided by

79-12    Subsections (b) and (c), a state agency may use appropriated money

79-13    to purchase postage or rent a post office box only from the United

79-14    States Postal Service.

79-15          (b)  An agency other than an institution of higher education

79-16    as defined by Section 61.003, Education Code, that spends for

79-17    postage in a fiscal year an amount that exceeds the dollar amount

79-18    set by the General Appropriations Act as the maximum expenditure

79-19    for stamps shall purchase or rent a postage meter machine and

79-20    record all purchases of postage on the machine except purchases of

79-21    postage for employees in field offices and traveling employees.

79-22    The rental of a postage meter machine by a state agency, including

79-23    an institution of higher education, the legislature, or an agency

79-24    in the legislative branch of state government, must be from a

79-25    company approved by the General Services Commission.  That

79-26    commission by rule shall adopt procedures for the renting entity to

79-27    pay for postage.

 80-1          (c)  Subsection (a) does not apply to a reimbursement:

 80-2                (1)  to an authorized petty cash account;

 80-3                (2)  to a state employee for an emergency purchase of

 80-4    postage or emergency payment of post office box rent; or

 80-5                (3)  authorized by the General Appropriations Act.

 80-6          (d)  A state agency shall remit to the comptroller an amount

 80-7    received as a refund of postage for deposit to the credit of the

 80-8    appropriation from which postage for the agency is paid.

 80-9          (e)  Except as provided by Subsection (b), the comptroller

80-10    shall adopt rules to implement this section after consultation with

80-11    the General Services Commission.

80-12          Sec. 2113.207.  INDOOR PLANTS.  A state agency may not use an

80-13    appropriation to purchase, lease, or maintain a live or artificial

80-14    indoor plant to be used only for aesthetic purposes.

80-15          Sec. 2113.208.  STATE FACILITIES FOR MEETINGS AND

80-16    CONFERENCES.  A state agency shall use state-owned or

80-17    state-occupied facilities for meetings and conferences and may not

80-18    use appropriated money to lease private facilities for these

80-19    purposes unless state facilities are not available when needed or

80-20    are not adequate to accommodate the meeting or conference.

80-21            (Sections 2113.209-2113.300 reserved for expansion

80-22              SUBCHAPTER E.  SPECIFICALLY AUTHORIZED USES OF

80-23                            GOODS AND SERVICES

80-24          Sec. 2113.301.  EMPLOYEE AWARDS.  (a)  A state agency may use

80-25    appropriated money to purchase service awards, safety awards, or

80-26    other similar awards to be presented to employees for professional

80-27    achievement or outstanding service under rules adopted by the

 81-1    agency.

 81-2          (b)  The cost of awards purchased under this section may not

 81-3    exceed $50 for an individual employee.

 81-4          Sec. 2113.302.  VOLUNTEER AWARDS.  (a)  A state agency may

 81-5    use an appropriation to purchase engraved certificates, plaques,

 81-6    pins, or other similar awards to be presented to volunteers  for

 81-7    special achievement or outstanding service if the agency has

 81-8    established a volunteer program under Chapter 2109 or other law.

 81-9          (b)  The cost of awards purchased under this section may not

81-10    exceed $50 for an individual volunteer.

81-11          Sec. 2113.303.  EXAMINATION FEES.  A state agency that

81-12    conducts examinations shall collect all fees charged to the person

81-13    being examined for each examination, including the cost of a

81-14    standardized examination instrument, and use appropriated money to

81-15    pay a provider of goods or services for a cost incurred by the

81-16    agency providing the examination.

81-17          SECTION 49.  Section 2152.064, Government Code, is amended by

81-18    amending Subsection (b) and adding Subsection (d) to read as

81-19    follows:

81-20          (b)  During January and July of each year, a state agency

81-21    shall file with the presiding officer of each house of the

81-22    legislature, [and] the presiding officers of the house

81-23    appropriations committee and the senate finance committee, and the

81-24    Legislative Budget Board a report that identifies each nonresident

81-25    bidder to whom the agency awarded a contract that has a value of

81-26    $25,000 or more for the purchase of supplies, materials, services,

81-27    or equipment during the six calendar months preceding the month in

 82-1    which the report is filed, if the agency awarded such a contract

 82-2    during the reporting period.  For contracts with a value of

 82-3    $250,000 or more, the agency shall include an explanation for the

 82-4    need to use a nonresident bidder.

 82-5          (d)  In addition to the information required by Subsection

 82-6    (b), a state agency shall include in the report to the Legislative

 82-7    Budget Board a listing of the total value of all purchases from

 82-8    nonresident bidders of supplies, materials, services, and equipment

 82-9    during the six calendar months preceding the month in which the

82-10    report is filed.  If the total amount reported is greater than $1

82-11    million or greater than 25 percent of the total value of all

82-12    purchases, the state agency shall include an explanation for the

82-13    need to use nonresident bidders.

82-14          SECTION 50.  Section 2155.067(e), Government Code, is amended

82-15    to read as follows:

82-16          (e)  If the commission, after considering all factors, takes

82-17    exception to the justifications, the commission shall purchase the

82-18    goods or services as requested and report the reasons for its

82-19    exception to the:

82-20                (1)  members of the governing body and the agency head

82-21    [or the presiding officer of the agency's governing body];

82-22                (2)  state auditor;

82-23                (3)  Legislative Budget Board;  and

82-24                (4)  governor.

82-25          SECTION 51.  Subchapter B, Chapter 2155, Government Code, is

82-26    amended by adding Section 2155.074 to read as follows:

82-27          Sec. 2155.074.  PURCHASES FROM FEDERAL GOVERNMENT.  (a)  The

 83-1    commission or the governing board of an institution of higher

 83-2    education acting either directly or through the commission or

 83-3    another state agency may negotiate purchases of goods of any kind

 83-4    needed by the state agency or institution of higher education with

 83-5    the appropriate agency of the federal government.

 83-6          (b)  The price of goods that are purchased from the federal

 83-7    government may not exceed the prevailing market value of the goods

 83-8    or the real or intrinsic value if there is no market value.

 83-9          (c)  In negotiating purchases of goods under this section,

83-10    the commission or the governing board of the institution of higher

83-11    education may waive the requirement of a bidder's bond and

83-12    performance bond that otherwise would be required.

83-13          SECTION 52.  Subchapter H, Chapter 2155, Government Code, is

83-14    amended by adding Section 2155.4441 to read as follows:

83-15          Sec. 2155.4441.  SERVICE CONTRACTS.  A state agency that

83-16    contracts for services shall require the contractor to purchase

83-17    products and materials produced in this state when they are

83-18    available at a price and time comparable to products and materials

83-19    produced outside this state.

83-20          SECTION 53.  Subchapter H, Chapter 2155, Government Code, is

83-21    amended by adding Section 2155.449 to read as follows:

83-22          Sec. 2155.449.  PREFERENCE FOR PRISON-PRODUCED GOODS.  The

83-23    commission and other state agencies shall purchase goods produced

83-24    by the Texas Department of Criminal Justice when those goods are

83-25    equal to or lower in price than goods of comparable quality

83-26    available on the open market.

83-27          SECTION 54.  Subchapter D, Chapter 2166, Government Code, is

 84-1    amended by adding Section 2166.158 to read as follows:

 84-2          Sec. 2166.158.  FILING OF PROJECT ANALYSIS.  Before any money

 84-3    appropriated for a capital construction project may be spent, the

 84-4    commission must file a completed project analysis with the budget

 84-5    division of the governor's office, the Legislative Budget Board,

 84-6    and the comptroller.

 84-7          SECTION 55.  Subchapter F, Chapter 2166, Government Code, is

 84-8    amended by adding Section 2166.2551 to read as follows:

 84-9          Sec. 2166.2551.  CONTRACT NOTIFICATION.  (a)  Not later than

84-10    the 10th day after the date a state agency enters into a contract

84-11    under this chapter, the agency shall provide written notice, using

84-12    a form prescribed by the Legislative Budget Board, to:

84-13                (1)  the Legislative Budget Board;

84-14                (2)  the appropriations committee of the house of

84-15    representatives;

84-16                (3)  the finance committee of the senate; and

84-17                (4)  any committees of the house of representatives or

84-18    the senate that provide oversight for the state agency.

84-19          (b)  Subsection (a)  applies to any amendment, modification,

84-20    renewal, or extension of any contract subject to this section.

84-21          (c)  Subsections (a) and (b) do not apply to a contract,

84-22    including any amendments, modifications, renewals, or extensions,

84-23    that has a total value of less than $1,000.

84-24          SECTION 56.  Section 2170.001(a), Government Code, is amended

84-25    by adding Subdivision (3) to read as follows:

84-26                (3)  "State agency" has the meaning assigned by Section

84-27    2151.002.

 85-1          SECTION 57.  Subchapter A, Chapter 2170, Government Code, is

 85-2    amended by adding Sections 2170.009-2170.011 to read as follows:

 85-3          Sec. 2170.009.  PAY TELEPHONES AUTHORIZED.  (a)  A pay

 85-4    station telephone may be located in the Capitol area only with the

 85-5    approval of the commission.  The commission shall collect the

 85-6    revenue from the installation and operation of the pay telephones

 85-7    and deposit it to the credit of the general revenue fund.

 85-8          (b)  In a state-owned or state-leased building or on

 85-9    state-owned land to which Subsection (a) does not apply, a pay

85-10    telephone may be installed only with the approval of the governing

85-11    body of the state entity that has charge and control of the

85-12    building or land. The entity shall collect the revenue from the

85-13    installation and operation of the pay telephones and deposit it to

85-14    the credit of the general revenue fund.

85-15          (c)  The commission or other state entity shall account for

85-16    the revenue collected under this section in the entity's annual

85-17    report.

85-18          Sec. 2170.010.  COST OF NOT USING STATE TELEPHONE SYSTEM.

85-19    Each state agency shall advise agency employees that an employee

85-20    may be held liable for the difference in cost between a

85-21    telecommunications system call that does not use the state's

85-22    consolidated telecommunications system and a call that does unless:

85-23                (1)  the executive head of the agency certifies to the

85-24    comptroller that an emergency existed;

85-25                (2)  the commission determines that the call that did

85-26    not use the state's system is more cost-effective; or

85-27                (3)  the state system is not available at the

 86-1    employee's location.

 86-2          Sec. 2170.011.  UNLISTED TELEPHONE NUMBERS PROHIBITED.  A

 86-3    state agency and its officers and employees may not use

 86-4    appropriated money to buy or rent or pay toll charges for a

 86-5    telephone for which the telephone number is not listed or available

 86-6    from directory assistance to the general public unless the unlisted

 86-7    telephone number is used:

 86-8                (1)  to provide access to computers, telephone system

 86-9    control centers, long-distance networks, elevator control systems,

86-10    and other tone controlled devices for which restricted access to

86-11    the telephone number is justified for security or other purposes;

86-12                (2)  in narcotics undercover operations; or

86-13                (3)  in the detection of illegal sales of securities.

86-14          SECTION 58.  Section 2170.051, Government Code, is amended to

86-15    read as follows:

86-16          Sec. 2170.051.  MANAGEMENT AND USE OF SYSTEM.  (a)  The

86-17    commission shall manage the operation of a system of

86-18    telecommunications services for all state agencies.  Each agency

86-19    shall identify its particular requirements for telecommunications

86-20    services and the site at which the services are to be provided.

86-21          (b)  The commission shall fulfill the telecommunications

86-22    requirements of each state agency to the extent possible and to the

86-23    extent that money is appropriated or available for that purpose.

86-24          (c)  A state agency shall use the consolidated

86-25    telecommunications system to the fullest extent possible. A state

86-26    agency may not acquire telecommunications services unless the

86-27    commission and the Department of Information Resources determine

 87-1    that the agency's requirement for telecommunications services

 87-2    cannot be met by the consolidated telecommunications system.

 87-3          (d)  A state agency may not enter into or renew a contract

 87-4    with a carrier or other provider of telecommunications services

 87-5    without obtaining a waiver from the commission and the Department

 87-6    of Information Resources certifying that the requested

 87-7    telecommunications services cannot be provided at a reasonable cost

 87-8    on the consolidated telecommunications system.  The commission and

 87-9    the department shall evaluate requests for waivers based on

87-10    cost-effectiveness to the state government as a whole. A waiver may

87-11    be granted for a specific period and will automatically expire on

87-12    the stated expiration date unless an extension is approved by the

87-13    commission and the department. A contract for telecommunications

87-14    services obtained under waiver may not extend beyond the expiration

87-15    date of the waiver.

87-16          SECTION 59.  Chapter 2203, Government Code, is amended by

87-17    adding Sections 2203.004-2203.006 to read as follows:

87-18          Sec. 2203.004.  PREPARATION AND SALE OF HEARINGS TRANSCRIPTS.

87-19    (a)  Proceeds from the sale of transcripts made by a hearings

87-20    reporter who is a state employee shall be deposited in the state

87-21    treasury if the copies of the transcript are made on state time or

87-22    using state supplies or equipment.

87-23          (b)  A state agency that allows its employees to keep the

87-24    proceeds from the sale of transcripts shall develop procedures to

87-25    assure that neither state equipment nor supplies are used to

87-26    prepare copies of the transcripts.

87-27          Sec. 2203.005.  REQUIREMENT TO USE STATE PROPERTY FOR STATE

 88-1    PURPOSES.  State property may be used only for state purposes.  A

 88-2    person may not entrust state property to a state officer or

 88-3    employee or to any other person if the property is not to be used

 88-4    for state purposes.

 88-5          Sec. 2203.006.  VENDING MACHINES AUTHORIZED.  (a)  In a

 88-6    state-owned or state-leased building or on state-owned or

 88-7    state-leased property that is not served by a vendor operating

 88-8    under the supervision of the Texas Commission for the Blind, a

 88-9    vending machine may be located in the building or on the property

88-10    only with the approval of the governing body of the state agency

88-11    that has charge and control of the building or property. The

88-12    approval must be recorded in the minutes of a meeting of the

88-13    governing body.

88-14          (b)  The state agency shall file with the General Services

88-15    Commission a copy of all contracts between the state agency and the

88-16    vendor related to the vending machine and a written description of

88-17    the location of the vending machine.

88-18          (c)  All rentals, commissions, or other net revenue the state

88-19    agency receives in connection with the vending machine shall be

88-20    accounted for as state money. The agency shall account for the

88-21    revenue received under this section in the agency's annual report

88-22    prepared as required by the General Appropriations Act.

88-23          (d)  In a state-owned or state-leased building or on

88-24    state-owned or state-leased property that is served by a vendor

88-25    operating under the supervision of the Texas Commission for the

88-26    Blind, a vending machine may be located and operated in the

88-27    building or on the property only under a joint contract with the

 89-1    owners of the vending machine and the vendor operating under the

 89-2    supervision of the Texas Commission for the Blind.

 89-3          SECTION 60.  Subchapter A, Chapter 2254, Government Code, is

 89-4    amended by adding Section 2254.0031 to read as follows:

 89-5          Sec. 2254.0031.  INDEMNIFICATION.  A state agency may require

 89-6    the contractor to indemnify or hold harmless the state from claims

 89-7    and liabilities resulting from the negligent  acts or omissions of

 89-8    the contractor or persons employed by the contractor.  A state

 89-9    agency may not require a contractor to indemnify or hold harmless

89-10    the state for claims or liabilities resulting from the negligent

89-11    acts or omissions of the agency or its employees.

89-12          SECTION 61.  Subchapter A, Chapter 2254, Government Code, is

89-13    amended by adding Section 2254.006 to read as follows:

89-14          Sec. 2254.006.  CONTRACT NOTIFICATION.  (a)  Not later than

89-15    the 10th day after the date a state agency enters into a contract

89-16    under this subchapter, the agency shall provide written notice,

89-17    using a form prescribed by the Legislative Budget Board, to:

89-18                (1)  the Legislative Budget Board;

89-19                (2)  the appropriations committee of the house of

89-20    representatives;

89-21                (3)  the finance committee of the senate; and

89-22                (4)  any committees of the house of representatives or

89-23    the senate that provide oversight for the state agency.

89-24          (b)  Subsection (a)  applies to any amendment, modification,

89-25    renewal, or extension of any contract subject to this section.

89-26          (c)  Subsections (a) and (b) do not apply to a contract,

89-27    including any amendments, modifications, renewals, or extensions,

 90-1    that:

 90-2                (1)  has a total value of less than $1,000; or

 90-3                (2)  is for medical or optometric services.

 90-4          (d)  In this section, "state agency" has the meaning assigned

 90-5    by Section 2151.002.

 90-6          SECTION 62.  Subchapter B, Chapter 2254, Government Code, is

 90-7    amended by adding Section 2254.0301 to read as follows:

 90-8          Sec. 2254.0301.  CONTRACT NOTIFICATION.  (a)  Not later than

 90-9    the 10th day after the date a state agency enters into a contract

90-10    under this subchapter, the agency shall provide written notice,

90-11    using a form prescribed by the Legislative Budget Board, to:

90-12                (1)  the Legislative Budget Board;

90-13                (2)  the appropriations committee of the house of

90-14    representatives;

90-15                (3)  the finance committee of the senate; and

90-16                (4)  any committees of the house of representatives or

90-17    the senate that provide oversight for the state agency.

90-18          (b)  Subsection (a)  applies to any amendment, modification,

90-19    renewal, or extension of any contract subject to this section.

90-20          (c)  Subsections (a) and (b) do not apply to a contract,

90-21    including any amendments, modifications, renewals, or extensions,

90-22    that has a total value of less than $1,000.

90-23          (d)  In this section, "state agency" has the meaning assigned

90-24    by Section 2151.002.

90-25          SECTION 63.  Section 2256.005, Government Code, is amended by

90-26    adding Subsection (n) to read as follows:

90-27          (n)  The investment officer of an investing entity shall

 91-1    submit a quarterly investment report to the governing body of the

 91-2    investing entity.  For each individual investment as of the date of

 91-3    the report, the report must describe:

 91-4                (1)  the carrying value;

 91-5                (2)  the market value;

 91-6                (3)  the maturity date; and

 91-7                (4)  the account or fund in the investing entity's

 91-8    budget that provided the funding.

 91-9          SECTION 64.  Subchapter D, Chapter 11, Natural Resources

91-10    Code, is amended by adding Section 11.0791 to read as follows:

91-11          Sec. 11.0791.  OTHER PROVISIONS REGARDING ACCESS TO STATE

91-12    LANDS.  (a)  When a state governmental entity, including a river

91-13    authority, sells state land, the entity shall require that the

91-14    state have the right of ingress and egress to remaining state land

91-15    in the immediate area by an easement to a public thoroughfare.

91-16          (b)  A state governmental entity, including a river

91-17    authority, may not spend state money, including money passed

91-18    through the entity from another source or bond money guaranteed by

91-19    the state, for any purpose not specifically authorized by statute

91-20    with a person who denies the state access by easement to landlocked

91-21    state properties.

91-22          SECTION 65.  Subchapter D, Chapter 11, Natural Resources

91-23    Code, is amended by adding Section 11.083 to read as follows:

91-24          Sec. 11.083.  RETENTION OF MINERAL RIGHTS.  If it is

91-25    practical to do so, the state shall retain the mineral rights to

91-26    state land that is sold.

91-27          SECTION 66.  Section 34.057, Natural Resources Code, is

 92-1    amended by adding Subsections (e) and (f) to read as follows:

 92-2          (e)  A board shall include a provision in all mineral leases

 92-3    to allow the taking in kind of any royalties due to the state.

 92-4    Before buying oil, gas, coal, lignite, or other natural resources

 92-5    used in the production of energy, the Parks and Wildlife Department

 92-6    and the Texas Department of Criminal Justice shall each use, to the

 92-7    greatest extent practical, resources produced from land it owns to

 92-8    meet its energy requirements.

 92-9          (f)  A board may include a provision in leases providing for

92-10    placing state meters on all gas wells at the wellhead to monitor

92-11    the amount of gas taken.

92-12          SECTION 67.  Sections 660.005, 660.022, 660.023, 660.026,

92-13    660.043, 660.044, 660.045, 660.046, 660.050, 660.051, 660.053, and

92-14    660.054, Government Code, are repealed.

92-15          SECTION 68.  This Act takes effect September 1, 1997.

92-16          SECTION 69.  The importance of this legislation and the

92-17    crowded condition of the calendars in both houses create an

92-18    emergency and an imperative public necessity that the

92-19    constitutional rule requiring bills to be read on three several

92-20    days in each house be suspended, and this rule is hereby suspended.