1-1     By:  Ratliff                                            S.B. No. 31

 1-2           (In the Senate - Filed March 24, 1997; March 24, 1997, read

 1-3     first time and referred to Committee on Finance; April 1, 1997,

 1-4     reported adversely, with favorable Committee Substitute by the

 1-5     following vote:  Yeas 13, Nays 0; April 1, 1997, sent to printer.)

 1-6     COMMITTEE SUBSTITUTE FOR S.B. No. 31                   By:  Ratliff

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to the powers and duties of agencies in the executive,

1-10     legislative, and judicial branches of state government, including

1-11     authorizations for and restrictions on the use of state funds and

1-12     the compensation of employees and contractors.

1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-14           SECTION 1.  Chapter 321, Government Code, is amended by

1-15     adding Section 321.0137 to read as follows:

1-16           Sec. 321.0137.  HISTORICALLY UNDERUTILIZED BUSINESS PROGRAM

1-17     AUDIT.  A historically underutilized business program audit is an

1-18     audit to determine, according to the established program rules,

1-19     whether an agency is making a good faith effort to comply with the

1-20     program authorized in Chapter 2161, including whether the agency

1-21     has:

1-22                 (1)  adopted and complied with rules, strategic plans,

1-23     and procedures governing the agency's historically underutilized

1-24     business contract awards in accordance with the General Services

1-25     Commission's rules;

1-26                 (2)  used the General Services Commission's

1-27     historically underutilized business list and other sources to

1-28     identify historically underutilized businesses that can, and are

1-29     available to, meet agency needs;

1-30                 (3)  made marketing and outreach efforts to

1-31     historically underutilized businesses;

1-32                 (4)  designated an employee with appropriate experience

1-33     and authority to serve as the agency's historically underutilized

1-34     business coordinator;

1-35                 (5)  established objective measures in performance

1-36     evaluations for all employees involved in negotiating or making

1-37     contracting decisions to measure improvements in the agency's

1-38     historically underutilized business participation; and

1-39                 (6)  submitted valid data for historically

1-40     underutilized business reporting to the commission.

1-41           SECTION 2.  Subsection (c), Section 321.014, Government Code,

1-42     is amended to read as follows:

1-43           (c)  The State Auditor shall submit each report to the

1-44     committee prior to publication.  The State Auditor shall file a

1-45     copy of each report prepared under this section with:

1-46                 (1)  the governor;

1-47                 (2)  the lieutenant governor;

1-48                 (3)  the speaker of the house of representatives;

1-49                 (4)  the secretary of state;

1-50                 (5)  the Legislative Reference Library;

1-51                 (6)  the chairman of the governing body and the

1-52     administrative head of each entity that is the subject of the

1-53     report; [and]

1-54                 (7)  members of the legislature on a committee with

1-55     oversight responsibility for the entity or program that is the

1-56     subject of the report; and

1-57                 (8)  the General Services Commission, for those audits

1-58     conducted under Section 321.0137.

1-59           SECTION 3.  Section 324.008, Government Code, is amended by

1-60     adding Subsections (d) and (e) to read as follows:

1-61           (d)  The governing body of a state agency shall deliver to

1-62     the library immediately after transcription a certified copy of the

1-63     minutes of any meeting of the governing body.  Any changes or

1-64     corrections to the minutes shall also be delivered to the library.

 2-1           (e)  For purposes of this section, "state agency" has the

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

 2-3           SECTION 4.  Section 325.011, Government Code, is amended to

 2-4     read as follows:

 2-5           Sec. 325.011.  CRITERIA FOR REVIEW.  The commission and its

 2-6     staff shall consider the following criteria in determining whether

 2-7     a public need exists for the continuation of a state agency or its

 2-8     advisory committees or for the performance of the functions of the

 2-9     agency or its advisory committees:

2-10                 (1)  the efficiency with which the agency or advisory

2-11     committee operates;

2-12                 (2)  an identification of the objectives intended for

2-13     the agency or advisory committee and the problem or need that the

2-14     agency or advisory committee was intended to address, the extent to

2-15     which the objectives have been achieved, and any activities of the

2-16     agency in addition to those granted by statute and the authority

2-17     for these activities;

2-18                 (3)  an assessment of less restrictive or alternative

2-19     methods of performing any regulation that the agency performs that

2-20     could adequately protect the public;

2-21                 (4)  the extent to which the advisory committee is

2-22     needed and is used;

2-23                 (5)  the extent to which the jurisdiction of the agency

2-24     and the programs administered by the agency overlap or duplicate

2-25     those of other agencies and the extent to which the programs

2-26     administered by the agency can be consolidated with the programs of

2-27     other state agencies;

2-28                 (6)  whether the agency has recommended to the

2-29     legislature statutory changes calculated to be of benefit to the

2-30     public rather than to an occupation, business, or institution that

2-31     the agency regulates;

2-32                 (7)  the promptness and effectiveness with which the

2-33     agency disposes of complaints concerning persons affected by the

2-34     agency;

2-35                 (8)  the extent to which the agency has encouraged

2-36     participation by the public in making its rules and decisions as

2-37     opposed to participation solely by those it regulates and the

2-38     extent to which the public participation has resulted in rules

2-39     compatible with the objectives of the agency;

2-40                 (9)  the extent to which the agency has complied with

2-41     applicable requirements of an agency of the United States or of

2-42     this state regarding equality of employment opportunity and the

2-43     rights and privacy of individuals;

2-44                 (10)  the extent to which changes are necessary in the

2-45     enabling statutes of the agency so that the agency can adequately

2-46     comply with the criteria listed in this section;

2-47                 (11)  the extent to which the agency issues and

2-48     enforces rules relating to potential conflicts of interest of its

2-49     employees;

2-50                 (12)  the extent to which the agency complies with

2-51     Chapter 552[,] and with Chapter 551; [and]

2-52                 (13)  the extent to which the agency has complied with

2-53     requirements of state statutes and state agency rules regarding

2-54     purchasing goals and programs for historically underutilized

2-55     businesses; and

2-56                 (14)  the effect of federal intervention or loss of

2-57     federal funds if the agency is abolished.

2-58           SECTION 5.  Subchapter B, Chapter 403, Government Code, is

2-59     amended by adding Sections 403.0131 and 403.0132 to read as

2-60     follows:

2-61           Sec. 403.0131.  REPORT TO LEGISLATURE.  As soon as practical

2-62     after the comptroller certifies the appropriations made by the

2-63     legislature in a regular or special session, the comptroller shall

2-64     prepare a summary table for the legislature that details the basis

2-65     for the certification of all major funds.  The table must be

2-66     similar in format and detail to the major estimates summary tables

2-67     published in the comptroller's biennial revenue estimate and shall

2-68     include the biennial appropriations from all major funds.

2-69           Sec. 403.0132.  REPORT OF EXPENDITURES BY STATE AGENCY IN

 3-1     COUNTY.  (a)  The comptroller shall prepare an annual report

 3-2     detailing the expenditures by state agencies in each county.

 3-3           (b)  The report must include:

 3-4                 (1)  the total expenditures by each agency in each

 3-5     county; and

 3-6                 (2)  the type of expenditure by object or other

 3-7     classification as determined by the comptroller.

 3-8           (c)  The comptroller shall, if possible, report all

 3-9     expenditures from funds in the state treasury to reflect the

3-10     delivery of goods and services by county.  The comptroller shall

3-11     estimate the expenditures by county in all other circumstances.

3-12           (d)  Each state agency shall provide the comptroller with the

3-13     necessary information to complete the report.

3-14           (e)  Not later than December 1 of each year, the comptroller

3-15     shall file a copy of the report with the governor, the lieutenant

3-16     governor, the speaker of the house of representatives, and the

3-17     Legislative Budget Board.

3-18           SECTION 6.  Section 403.021, Government Code, is amended to

3-19     read as follows:

3-20           Sec. 403.021.  ENCUMBRANCE REPORTS.  (a)  A state agency that

3-21     expends appropriated funds shall report into the uniform statewide

3-22     accounting system all payables and binding encumbrances for the

3-23     first three quarters of the current appropriation year within 30

3-24     days after the close of each quarter.  Binding encumbrances for all

3-25     appropriation years shall be reported annually not later than

3-26     September 30 of each fiscal [submit a binding encumbrance report to

3-27     the comptroller and the state auditor no later than October 30 of

3-28     each] year.

3-29           (b)  The report must indicate the unencumbered balance, if

3-30     any, of each nonconstruction appropriation for the preceding fiscal

3-31     quarter [year].  The report must be made in the format that the

3-32     comptroller prescribes.  The comptroller may reject a report if it

3-33     does not contain sufficient information or comply with the

3-34     comptroller's prescribed format.

3-35           (c)  On October 31 of each year, the comptroller shall lapse

3-36     all unencumbered balances based on information in the binding

3-37     encumbrance reports for the preceding fiscal year.

3-38           (d)  If an agency has not submitted a report by October 31,

3-39     the comptroller shall lapse the unexpended balance of the agency's

3-40     appropriations.  If the agency subsequently submits a report, the

3-41     comptroller shall reinstate the agency's appropriations to the

3-42     extent they were encumbered but unexpended.

3-43           (e)  If a state agency submits a claim that is legally

3-44     payable against an appropriation for an earlier year and the

3-45     balance of the appropriation is insufficient to pay the claim, then

3-46     the comptroller may reopen the appropriation to pay the claim.  A

3-47     claim is legally payable from an appropriation only if the

3-48     appropriation was encumbered to pay the claim before the expiration

3-49     of the appropriation.

3-50           (f)  Each state agency shall reconcile all expenditures,

3-51     binding encumbrances, payables, and accrued expenditures, as

3-52     reported in the uniform statewide accounting system, with the state

3-53     agency's strategic planning and budget structure, as reported in

3-54     the automated budget and evaluation system prescribed by the

3-55     Legislative Budget Board.

3-56           (g)(1)  In addition to submitting the binding encumbrance

3-57     reports required by Subsections (a)  through (e), a state agency

3-58     that expends appropriated funds shall submit a nonbinding

3-59     encumbrance report each month to the comptroller through the

3-60     uniform statewide accounting system.  A report is due not [no]

3-61     later than the 45th day after the end of the month covered by the

3-62     report.

3-63                 (2)  On receipt of a report, the comptroller shall

3-64     provide the information in the report to the Legislative Budget

3-65     Office and the state auditor.

3-66                 (3)  A state agency may use electronic media transfer

3-67     of data to satisfy the requirements of this subsection.

3-68                 [(4)  This subsection does not apply until the uniform

3-69     statewide accounting system is fully implemented.]

 4-1           (h) [(g)]  The comptroller may adopt rules to administer this

 4-2     section.

 4-3           SECTION 7.  Subchapter C, Chapter 552, Government Code, is

 4-4     amended by adding Section 552.125 to read as follows:

 4-5           Sec. 552.125.  EXCEPTION:  CERTAIN DOCUMENTS SUBMITTED FOR

 4-6     CERTIFICATION AS HISTORICALLY UNDERUTILIZED BUSINESS.  All

 4-7     financial and other types of private, confidential documentation

 4-8     and information submitted for the purpose of determining economic

 4-9     status and ownership interests of businesses under Chapter 2161 are

4-10     excepted from the requirements of Section 552.021.

4-11           SECTION 8.  Subchapter B, Chapter 656, Government Code, is

4-12     amended by adding Section 656.026 to read as follows:

4-13           Sec. 656.026.  JOB NOTICE POSTING WAIVER.  A state agency is

4-14     not required to comply with the requirements of this subchapter or

4-15     Subchapter A when the agency transfers or reassigns an employee as

4-16     part of a reorganization or merger mandated by the legislature if

4-17     the executive head of the agency certifies that the transfer or

4-18     reassignment is necessary for the proper implementation of the

4-19     reorganization or merger.

4-20           SECTION 9.  Subsection (a), Section 658.005, Government Code,

4-21     is amended to read as follows:

4-22           (a)  Normal office hours of a state agency are from 8 a.m. to

4-23     5 p.m., Monday through Friday.  These hours are the regular working

4-24     hours for a full-time state employee.  The offices of a state

4-25     agency shall remain open during the noon hour each working day with

4-26     at least one person on duty to accept calls, receive visitors, or

4-27     transact business.

4-28           SECTION 10.  Section 658.006, Government Code, is amended to

4-29     read as follows:

4-30           Sec. 658.006.  STAGGERED WORKING HOURS[; CAPITOL AREA IN

4-31     AUSTIN].  Normal working hours for employees of a state agency [in

4-32     the Capitol area in Austin] may be staggered [as authorized by the

4-33     General Appropriations Act] for traffic regulation or public

4-34     safety.

4-35           SECTION 11.  Chapter 658, Government Code, is amended by

4-36     adding Section 658.008 to read as follows:

4-37           Sec. 658.008.  MEMBERS OF NATIONAL GUARD OR RESERVES.  To

4-38     facilitate participation in military duties by state employees,

4-39     each state agency, including each institution of higher education

4-40     as defined by Section 61.003, Education Code, shall adjust the work

4-41     schedule of any employee who is a member of the Texas National

4-42     Guard or the United States Armed Forces Reserves so that two of the

4-43     employee's days off work each month coincide with two days of

4-44     military duty to be performed by the employee.

4-45           SECTION 12.  Subchapter A, Chapter 659, Government Code, is

4-46     amended by adding Sections 659.004 through 659.007 to read as

4-47     follows:

4-48           Sec. 659.004.  PAYROLL REPORTING.  (a)  The comptroller, in

4-49     consultation with the state auditor, shall adopt rules that

4-50     prescribe uniform procedures for payroll reporting for all state

4-51     agencies and that are designed to:

4-52                 (1)  facilitate the auditing of payrolls;

4-53                 (2)  assure conformity with this chapter and the

4-54     General Appropriations Act; and

4-55                 (3)  provide the legislative audit committee with

4-56     current information on employment and wage rate practices in state

4-57     government.

4-58           (b)  In this section, "state agency" has the meaning assigned

4-59     by Section 2151.002.

4-60           Sec. 659.005.  WITNESS FEES; JURY SERVICE.  (a)  A deduction

4-61     may not be made from the salary or wages of a state employee

4-62     because the employee is called for jury service, including a

4-63     deduction for any fee or compensation the employee receives for the

4-64     jury service.

4-65           (b)  A state officer or employee who appears as a witness in

4-66     an official capacity in a judicial proceeding or legislative

4-67     hearing may not accept or receive a witness fee for the appearance.

4-68           (c)  A state officer or employee who appears as a witness in

4-69     an unofficial capacity in a judicial proceeding or legislative

 5-1     hearing to testify from personal knowledge concerning matters

 5-2     related to the proceeding or hearing is entitled to receive any

 5-3     customary witness fees for the appearance.

 5-4           (d)  A state officer or employee who appears as an expert

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

 5-6     compensation for the appearance only if the person is not also

 5-7     compensated by the state for the person's time in making the

 5-8     appearance and may accept reimbursement for travel expenses only if

 5-9     the expenses are not reimbursed by the state.

5-10           (e)  A state  officer or employee may receive reimbursement

5-11     for travel and a per diem or reimbursement for expenses connected

5-12     to an appearance in an official capacity as a witness in a judicial

5-13     proceeding or legislative hearing only from the state or the

5-14     judicial body.

5-15           Sec. 659.006.  WITHHOLDINGS, DEDUCTIONS, AND MATCHING

5-16     CONTRIBUTIONS: TAX AND RETIREMENT LAWS.  (a)  The state shall

5-17     withhold money from salaries and wages paid to state officers and

5-18     employees in accordance with applicable federal law, including

5-19     federal law relating to withholding for purposes of the federal

5-20     income tax or social security.  The state shall make any required

5-21     employer contributions in accordance with applicable federal law.

5-22           (b)  The state also shall withhold money from salaries and

5-23     wages paid to state officers and employees in accordance with

5-24     applicable state retirement laws.  The state shall make required

5-25     matching contributions in accordance with those laws on payroll

5-26     forms prescribed by the comptroller.

5-27           (c)  The comptroller shall issue warrants in accordance with

5-28     this section.

5-29           Sec. 659.007.  ADJUSTMENT FOR INACCURATE PAYMENT.  The

5-30     comptroller by rule shall prescribe procedures for state agencies

5-31     to follow in making adjustments to payrolls for the pay period

5-32     immediately following the period in which an inaccurate payment or

5-33     deduction is made or in which other error occurs.

5-34           SECTION 13.  Subchapter B, Chapter 659, Government Code, is

5-35     amended by adding Sections 659.015 through 659.017 to read as

5-36     follows:

5-37           Sec. 659.015.  OVERTIME COMPENSATION FOR EMPLOYEES SUBJECT TO

5-38     FAIR LABOR STANDARDS ACT.  (a)  This section applies only to a

5-39     state employee who is subject to the overtime provisions of the

5-40     federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et

5-41     seq.) and who is not an employee of the legislature, including an

5-42     employee of the lieutenant governor, or of a legislative agency.

5-43           (b)  The employee is entitled to compensation for overtime as

5-44     provided by this section and federal law.  To the extent that this

5-45     section and federal law prescribe a different rule for the same

5-46     circumstance, federal law controls without regard to whether this

5-47     section or federal law prescribes a stricter rule.

5-48           (c)  An employee who is required to work more than 40 hours

5-49     in a workweek is entitled to compensation for the overtime hours:

5-50                 (1)  by taking compensatory time off at the rate of

5-51     1-1/2 hours off for each hour of accrued overtime, if the employing

5-52     agency allows or requires the employee to do so; or

5-53                 (2)  by receiving pay for the overtime hours at the

5-54     rate of 1-1/2 times the employee's regular hourly rate of pay, if

5-55     the employing agency determines it is impractical for the employee

5-56     to take compensatory time off as compensation for the overtime.

5-57           (d)  Holidays or other paid leave taken during a workweek are

5-58     not counted as hours worked in computing the number of overtime

5-59     hours under Subsection (c) or (e).

5-60           (e)  An employee may not accumulate more than 240 hours of

5-61     overtime credit that may be taken as compensatory leave under

5-62     Subsection (c)(1), except that an employee engaged in a public

5-63     safety activity, an emergency response activity, or a seasonal

5-64     activity may accumulate, in accordance with 29 U.S.C. Section

5-65     207(o)(3)(A), not more than 480 hours of overtime credit that may

5-66     be taken as compensatory leave under Subsection (c)(1).  An

5-67     employee must be paid at the rate prescribed by Subsection (c)(2)

5-68     for the number of overtime hours the employee works that cause the

5-69     employee to exceed the amount of overtime credit the employee may

 6-1     accumulate.  In this subsection, "overtime credit" means the number

 6-2     of hours that is computed by multiplying the number of overtime

 6-3     hours worked by 1-1/2.

 6-4           (f)  When an employee does not work more than 40 hours in a

 6-5     workweek but the number of hours worked plus the number of hours of

 6-6     holiday or other paid leave taken during the workweek exceeds 40

 6-7     hours, the employee is entitled to compensatory time off at the

 6-8     rate of one hour off for each of the excess hours.  When an

 6-9     employee does work 40 or more hours in a workweek and in addition

6-10     takes holiday or other paid leave during the workweek, and the

6-11     total number of hours worked exceeds 40 after subtraction of the

6-12     hours compensable under Subsections (c)-(e), the employee is

6-13     entitled to compensatory time off at the rate of one hour off for

6-14     each of the hours in excess of 40.  When an employee does not work

6-15     more than 40 hours in a workweek and the number of hours worked

6-16     plus the number of hours of holiday or other paid leave taken

6-17     during the week does not exceed 40 hours, the employee may not

6-18     accrue compensatory time for the week under this section.

6-19           (g)  Compensatory time off to which an employee is entitled

6-20     under Subsection (f) because of excess hours in a workweek

6-21     attributable to having taken holiday or other paid leave must be

6-22     taken during the 12-month period following the end of the workweek

6-23     in which the compensatory time is accrued or it lapses.  An

6-24     employee may not be paid for that compensatory time.  However, an

6-25     employee of an institution of higher education as defined by

6-26     Section 61.003, Education Code, or an employee engaged in a public

6-27     safety activity, including highway construction and maintenance or

6-28     an emergency response activity, may be paid at any time at the

6-29     employee's regular rate of pay for that compensatory time if the

6-30     employer determines that taking the compensatory time off would

6-31     disrupt normal teaching, research, or other critical functions.

6-32           (h)  Hospital, fire protection, and law enforcement

6-33     personnel, including security personnel in correctional

6-34     institutions, are governed by the federal Fair Labor Standards Act

6-35     of 1938 (29 U.S.C. Section 201 et seq.) provisions applicable to

6-36     those employees, including the exceptions to the standard overtime

6-37     computation for a workweek.

6-38           Sec. 659.016.  OVERTIME COMPENSATION FOR EMPLOYEES NOT

6-39     SUBJECT TO FAIR LABOR STANDARDS ACT; REDUCTIONS IN PAY.  (a)  This

6-40     section applies only to a state employee who is not subject to the

6-41     overtime provisions of the federal Fair Labor Standards Act of 1938

6-42     (29 U.S.C. Section 201 et seq.) and who is not an employee of the

6-43     legislature, including an employee of the lieutenant governor, or

6-44     of a legislative agency.

6-45           (b)  When the sum of hours worked plus holiday or other paid

6-46     leave taken by an employee during a workweek exceeds 40 hours, and

6-47     not otherwise, the employee may be allowed to accrue compensatory

6-48     time for the number of hours that exceeds 40 hours.

6-49           (c)  An employee who is exempt as an executive, professional,

6-50     or administrative employee under 29 U.S.C. Section 213(a)(1) may be

6-51     allowed compensatory time off during the 12-month period following

6-52     the end of the workweek in which the overtime was accrued, at a

6-53     rate not to exceed one hour of compensatory time off for each hour

6-54     of overtime accrued.

6-55           (d)  In accordance with 29 C.F.R. Section 541.118 and subject

6-56     to that section's exceptions as described by this section, an

6-57     employee who is exempt as an executive, professional, or

6-58     administrative employee under 29 U.S.C. Section 213(a)(1) is

6-59     entitled to receive full salary for any week in which the employee

6-60     performs work without regard to the number of days and hours

6-61     worked.  This is also subject to the general rule that an employee

6-62     need not be paid for any workweek in which the employee performs no

6-63     work.

6-64           (e)  A deduction may be made from the salary of an employee

6-65     who is exempt as an executive, professional, or administrative

6-66     employee under 29 U.S.C. Section 213(a)(1) if:

6-67                 (1)  the employee is not at work for a full day or

6-68     longer for personal reasons other than sickness, accident, jury

6-69     duty, attendance as a witness at a judicial proceeding, or

 7-1     temporary military leave;

 7-2                 (2)  the employee is not at work for a full day or

 7-3     longer because of sickness or disability, including sickness or

 7-4     disability covered by workers' compensation benefits, and the

 7-5     employee's paid sick leave or workers' compensation benefits have

 7-6     been exhausted;

 7-7                 (3)  the deduction is a penalty imposed for a violation

 7-8     of a significant safety rule relating to prevention of serious

 7-9     danger in the workplace to other persons, including other

7-10     employees; or

7-11                 (4)  in accordance with the special provisions

7-12     applicable to executive, professional, or administrative employees

7-13     of public agencies set forth in 29 C.F.R. Section 541.5d, the

7-14     employee is not at work for less than one day for personal reasons

7-15     or because of illness or injury and accrued leave is not used by

7-16     the employee because:

7-17                       (A)  permission to use accrued leave was not

7-18     sought or was denied;

7-19                       (B)  accrued leave has been exhausted; or

7-20                       (C)  the employee chooses to use leave without

7-21     pay.

7-22           (f)  In accordance with 29 C.F.R. Section 541.5d, a deduction

7-23     from the pay of an executive, professional, or administrative

7-24     employee because of an absence from work caused by a furlough

7-25     related to the budget does not affect the employee's status as an

7-26     employee paid on a salary basis, except for any workweek in which

7-27     the furlough occurs and for which the employee's pay is accordingly

7-28     reduced.

7-29           (g)  If a deduction is made from an employee's salary in

7-30     violation of United States Department of Labor regulations, the

7-31     employee is entitled to retroactive reimbursement of the amount

7-32     that should not have been deducted.

7-33           (h)  An employee who is not subject to the federal Fair Labor

7-34     Standards Act of 1938 under 29 U.S.C. Section 203(e)(2)(C) because

7-35     the employee is a staff member, appointee, or immediate adviser of

7-36     an elected officeholder may be allowed compensatory time off under

7-37     the terms and conditions determined by the officeholder.

7-38           (i)  An employee covered by this section may not be paid for

7-39     any unused compensatory time.

7-40           Sec. 659.017.  OVERTIME COMPENSATION FOR LEGISLATIVE

7-41     EMPLOYEES.  Consistent with the requirements of the federal Fair

7-42     Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.),

7-43     overtime pay and compensatory time off for employees of the

7-44     legislative branch, including employees of the lieutenant governor,

7-45     are determined as follows:

7-46                 (1)  for employees of the house of representatives or

7-47     the senate, by the presiding officer of the appropriate house of

7-48     the legislature;

7-49                 (2)  for employees of an elected officeholder, by the

7-50     employing officeholder; and

7-51                 (3)  for employees of a legislative agency, by the

7-52     administrative head of the agency.

7-53           SECTION 14.  Section 659.081, Government Code, is amended to

7-54     read as follows:

7-55           Sec. 659.081.  Payment Once a Month.  Except as provided by

7-56     this subchapter or the General Appropriations Act, annual salaries

7-57     for state officers and employees shall be paid once a month.

7-58           SECTION 15.  Subchapter F, Chapter 659, Government Code, is

7-59     amended by adding Section 659.085 to read as follows:

7-60           Sec. 659.085.  DETERMINING AMOUNT OF MONTHLY OR HOURLY PAY;

7-61     PROPORTIONATE REQUIREMENT FOR PART-TIME PAY.  (a)  The amount of

7-62     monthly salary for an annual employee who maintains a 40-hour

7-63     workweek and is covered under Chapter 658 is computed by dividing

7-64     the annual salary for the person's position set in or in accordance

7-65     with the General Appropriations Act by 12.

7-66           (b)  For purposes of partial payment or other applicable

7-67     situations, the employee's hourly rate of pay for a given month is

7-68     computed by dividing the employee's monthly salary by the number of

7-69     working hours in the month.  When the employee is on leave without

 8-1     pay, compensation for the pay period is reduced by an amount

 8-2     computed by multiplying the employee's hourly rate of pay times the

 8-3     number of hours the employee was on leave without pay.

 8-4           (c)  The salary rate of a part-time employee must be

 8-5     proportional to the regular salary for the position set in or in

 8-6     accordance with the General Appropriations Act.

 8-7           (d)  An agency that may contract with its employees for

 8-8     employment for less than a 12-month period may make equal monthly

 8-9     salary payments under the contract during the contract period.

8-10           SECTION 16.  Subsection (c), Section 661.033, Government

8-11     Code, is amended to read as follows:

8-12           (c)  Payment under this section may not be for more than:

8-13                 (1)  all of the state employee's accumulated vacation

8-14     leave; and

8-15                 (2)  one-half of the state employee's accumulated sick

8-16     leave or 336 hours of sick leave, whichever is less.

8-17           SECTION 17.  Section 661.062, Government Code, is amended by

8-18     amending Subsections (a) and (b) and adding Subsection (f) to read

8-19     as follows:

8-20           (a)  A state employee who, at any time during the employee's

8-21     lifetime, has accrued six months of continuous state employment and

8-22     who resigns, is dismissed, or otherwise [for any reason] separates

8-23     from state employment is entitled to be paid for the accrued

8-24     balance of the employee's vacation time as of the date of

8-25     separation, if the individual is not reemployed by the state during

8-26     the 30-day period immediately following the date of separation from

8-27     state employment in a position under which the employee accrues

8-28     vacation leave.

8-29           (b)  A separation from state employment includes a separation

8-30     in which the employee:

8-31                 (1)  leaves one state agency to begin working for

8-32     another state agency[, if one or more workdays occur between the

8-33     two employments];

8-34                 (2)  moves from a position in a state agency that

8-35     accrues vacation time to a position in that agency that does not

8-36     accrue vacation time, if the agency agrees to pay the employee for

8-37     the accrued balance of the employee's vacation time;

8-38                 (3)  moves from a position in a state agency that

8-39     accrues vacation time to a position in another state agency that

8-40     does not accrue vacation time, if the other state agency refuses to

8-41     credit the employee for the balance of the employee's vacation time

8-42     as of the date of the move; or

8-43                 (4)  holds two or more positions, and separates from

8-44     one that accrues vacation time.

8-45           (f)  Payment for accrued vacation leave for employees of the

8-46     legislative branch, including employees of the lieutenant governor,

8-47     is determined as follows:

8-48                 (1)  for employees of either house of the legislature,

8-49     a member of the legislature, or the lieutenant governor, by the

8-50     presiding officer of the appropriate house of the legislature; and

8-51                 (2)  for employees of a legislative agency, by the

8-52     administrative head of the agency.

8-53           SECTION 18.  Chapter 661, Government Code, is amended by

8-54     adding Subchapters F, G, H, and Z to read as follows:

8-55            SUBCHAPTER F.  GENERAL PROVISIONS FOR VACATION LEAVE

8-56           Sec. 661.151.  STATE AUDITOR INTERPRETATIONS.  (a)  The state

8-57     auditor shall provide a uniform interpretation of this subchapter

8-58     and Subchapters G, H, and Z.

8-59           (b)  The state auditor shall report to the governor and the

8-60     legislature any state agency or institution of higher education

8-61     that practices exceptions to those laws.

8-62           Sec. 661.152.  ENTITLEMENT TO ANNUAL VACATION LEAVE.  (a)  A

8-63     state employee is entitled to a vacation in each fiscal year

8-64     without a deduction in salary, except for a state employee who is:

8-65                 (1)  an employee of an institution of higher education

8-66     as defined by Section 61.003, Education Code, who:

8-67                       (A)  is not employed to work at least 20 hours

8-68     per week for a period of at least four and one-half months; or

8-69                       (B)  is employed in a position for which the

 9-1     employee is required to be a student as a condition of the

 9-2     employment;

 9-3                 (2)  a faculty member employed for a period of fewer

 9-4     than 12 months by an institution of higher education as defined by

 9-5     Section 61.003, Education Code; or

 9-6                 (3)  an instructional employee employed for a period of

 9-7     fewer than 12 months by the Texas School for the Blind and Visually

 9-8     Impaired or the Texas School for the Deaf.

 9-9           (b)  The amount of vacation accrues and may be taken in

9-10     accordance with this subchapter.

9-11           (c)  A part-time employee accrues vacation leave on a

9-12     proportionate basis.  The maximum amount of vacation leave  a

9-13     part-time employee may carry forward from one fiscal year to the

9-14     next is also on a proportionate basis.

9-15           (d)  An employee accrues vacation leave and may carry

9-16     vacation leave forward from one fiscal year to the next in

9-17     accordance with the following schedule:

9-18                                                     Maximum Hours

9-19                                                     Carried Forward

9-20                                  Hours Accrued      From One Fiscal

9-21                                  Per Month for      Year to the Next

9-22     Employees With Total State       Full-time      for a

9-23     Employment of:                  Employment      Full-time Employee

9-24     less than 2 years                        7                 168

9-25     at least 2 but less than 5 years         8                 232

9-26     at least 5 but less than 10 years        9                 256

9-27     at least 10 but less than 15 years      10                 280

9-28     at least 15 but less than 20 years      12                 328

9-29     at least 20 years or more               14                 376

9-30           (e)  An employee accrues vacation leave at the applicable

9-31     rate beginning on the first day of state employment and ending on

9-32     the last day of state employment.  An employee accrues and is

9-33     entitled to be credited for one month's vacation leave for each

9-34     month or fraction of a month of employment with the state,

9-35     beginning on the first day of employment with the state and on the

9-36     first calendar day of each succeeding month of state employment.

9-37           (f)  An employee may not take vacation leave with pay until

9-38     the employee has six months of continuous employment with the

9-39     state, although the employee accrues vacation leave during that

9-40     period.

9-41           (g)  If an employee's state employment anniversary date

9-42     occurs on the first calendar day of a month, the employee begins to

9-43     accrue vacation leave at a higher rate in accordance with

9-44     Subsection (d) on the first calendar day of the appropriate month.

9-45     Otherwise, the employee begins to accrue vacation leave at the

9-46     higher rate on the first calendar day of the month following the

9-47     anniversary date.  An employee who begins working on the first

9-48     workday of a month in a position that accrues vacation leave is

9-49     considered to have begun working on the first calendar day of the

9-50     month for purposes of this subsection.

9-51           (h)  An employee is entitled to carry forward from one fiscal

9-52     year to the next the net balance of unused accumulated vacation

9-53     leave that does not exceed the maximum number of hours allowed

9-54     under Subsection (d).  All hours of unused accumulated vacation

9-55     leave that lapse at the end of a fiscal year under this subsection

9-56     and Subsection (d) shall be credited to the employee's sick leave

9-57     balance on the first day of the next fiscal year.

9-58           (i)  In computing the amount of vacation leave taken, time

9-59     during which an employee is excused from work because of a holiday

9-60     is not charged against the employee's vacation leave.

9-61           (j)  An employee who is on paid leave on the first workday of

9-62     a month may not take vacation leave accrued for that month until

9-63     the employee has returned to duty.

9-64           (k)  An individual who is reemployed by a state agency within

9-65     30 days after the individual's date of separation from state

9-66     employment in a position under which the employee accrues vacation

9-67     leave is entitled to reinstatement of the balance of the employee's

9-68     previously accrued vacation leave.

9-69           Sec. 661.153.  VACATION LEAVE FOR LEGISLATIVE EMPLOYEES.

 10-1    Vacation leave for employees of the legislative branch, including

 10-2    employees of the lieutenant governor, is determined as follows:

 10-3                (1)  for employees of either house of the legislature,

 10-4    a member of the legislature, or the lieutenant governor, by the

 10-5    presiding officer of the appropriate house of the legislature; and

 10-6                (2)  for employees of a legislative agency, by the

 10-7    administrative head of the agency.

 10-8             (Sections 661.154-661.200 reserved for expansion

 10-9             SUBCHAPTER G.  GENERAL PROVISIONS FOR SICK LEAVE

10-10          Sec. 661.201.  APPLICABILITY.  (a)  Sick leave for employees

10-11    of the legislative branch, including employees of the lieutenant

10-12    governor, is determined as follows:

10-13                (1)  for employees of either house of the legislature,

10-14    a member of the legislature, or the lieutenant governor, by the

10-15    presiding officer of the appropriate house of the legislature; and

10-16                (2)  for employees of a legislative agency, by the

10-17    administrative head of the agency.

10-18          (b)  An employee of an institution of higher education as

10-19    defined by Section 61.003, Education Code, is eligible to accrue or

10-20    take paid sick leave under this subchapter only if the employee:

10-21                (1)  is employed to work at least 20 hours per week for

10-22    a period of at least four and one-half months; and

10-23                (2)  is not employed in a position for which the

10-24    employee is required to be a student as a condition of the

10-25    employment.

10-26          Sec. 661.202.  ENTITLEMENT TO SICK LEAVE.  (a)  A state

10-27    employee is entitled to sick leave without a deduction in salary in

10-28    accordance with this subchapter.

10-29          (b)  An employee accrues sick leave beginning on the first

10-30    day of state employment and ending on the last day of state

10-31    employment.  An employee accrues and is entitled to be credited for

10-32    one month's sick leave for each month or fraction of a month of

10-33    employment with the state, beginning on the first day of employment

10-34    with the state and on the first calendar day of each succeeding

10-35    month of state employment.

10-36          (c)  Sick leave entitlement for a full-time employee accrues

10-37    at the rate of eight hours for each month or fraction of a month of

10-38    employment, and accumulates with the unused amount of sick leave

10-39    carried forward each month.  A part-time employee accrues sick

10-40    leave on a proportionate basis.

10-41          (d)  Sick leave with pay may be taken when sickness, injury,

10-42    or pregnancy and confinement prevent the employee's performance of

10-43    duty or when the employee is needed to care for and assist a member

10-44    of the employee's immediate family who is sick.  For purposes of

10-45    taking regular sick leave with pay, the following persons are

10-46    considered to be members of the employee's immediate family:

10-47                (1)  an individual who resides in the same household as

10-48    the employee and is related to the employee by kinship, adoption,

10-49    or marriage;

10-50                (2)  a  foster child of the employee who resides in the

10-51    same household as the employee and who is certified by the

10-52    Department of Protective and Regulatory Services; and

10-53                (3)  a minor child of the employee, regardless of

10-54    whether the child lives in the same household.

10-55          (e)  An employee's use of sick leave to care for and assist

10-56    members of the employee's family who do not reside in the

10-57    employee's household is strictly limited to the time necessary to

10-58    provide care and assistance to a spouse, child, or parent of the

10-59    employee who needs the care and assistance as a direct result of a

10-60    documented medical condition.

10-61          (f)  An employee who must be absent from duty because of

10-62    sickness, injury, or pregnancy and confinement shall notify the

10-63    employee's supervisor or have the supervisor notified of that fact

10-64    at the earliest practicable time.

10-65          (g)  To be eligible to take accumulated sick leave without a

10-66    deduction in salary during a continuous period of more than three

10-67    working days, an employee absent due to sickness, injury, or

10-68    pregnancy and confinement shall send to the administrative head of

10-69    the employing agency a doctor's certificate showing the cause or

 11-1    nature of the condition or another written statement of the facts

 11-2    concerning the condition that is acceptable to the administrative

 11-3    head.  The administrative head of an agency may require a doctor's

 11-4    certificate or other written statement of the facts for sick leave

 11-5    without a deduction in salary taken during a continuous period of

 11-6    three or fewer working days.

 11-7          (h)  On returning to duty after taking sick leave, the

 11-8    employee shall without delay complete the prescribed application

 11-9    for sick leave and send the application in the manner prescribed by

11-10    the agency to the appropriate authority for approving the

11-11    application.

11-12          (i)  The administrative head or governing body of an agency

11-13    may authorize exceptions to the amount of sick leave an employee

11-14    may take on an individual basis after a review of the merits of a

11-15    particular case.  A statement of all authorized exceptions and the

11-16    reasons for the exceptions shall be attached to the state agency's

11-17    duplicate payroll voucher for the payroll period affected by the

11-18    authorized exceptions.

11-19          (j)  A state agency shall file a written statement with the

11-20    state auditor covering the policies and procedures for an extension

11-21    of leave under Subsection (i) and shall make the statement

11-22    available to all agency employees.

11-23          (k)  A faculty member at an institution of higher education

11-24    as defined by Section 61.003, Education Code, must submit

11-25    prescribed leave forms for all sick leave the faculty member takes

11-26    if the absence occurs during the normal workday for regular

11-27    employees, even if no classes are missed.

11-28          Sec. 661.203.  RESTORATION OF SICK LEAVE ON REEMPLOYMENT IN

11-29    CERTAIN CIRCUMSTANCES.  (a)  An employee who separates from

11-30    employment with the state under a formal reduction in force is

11-31    entitled to have the employee's sick leave balance restored if the

11-32    employee is reemployed by the state within 12 months after the end

11-33    of the month in which the employee separates from state employment.

11-34          (b)  An employee who separates from employment with the state

11-35    for a reason other than that described by Subsection (a) is

11-36    entitled to have the employee's sick leave balance restored if:

11-37                (1)  the employee is reemployed by the same state

11-38    agency or institution of higher education within 12 months after

11-39    the end of the month in which the employee separates from state

11-40    employment, but only if there has been a break in employment with

11-41    the state of at least 30 calendar days; or

11-42                (2)  the employee is reemployed by a different state

11-43    agency or institution of higher education within 12 months after

11-44    the end of the month in which the employee separates from state

11-45    employment.

11-46             (Sections 661.204-661.250 reserved for expansion

11-47           SUBCHAPTER H.  PROVISIONS APPLICABLE TO BOTH VACATION

11-48                              AND SICK LEAVE

11-49          Sec. 661.251.  APPLICABILITY.  This subchapter applies to a

11-50    state employee employed by either house of the legislature or by a

11-51    member of the legislature or the lieutenant governor only to the

11-52    extent determined by the presiding officer of the appropriate house

11-53    of the legislature and to an employee of a legislative agency only

11-54    to the extent determined by the administrative head of the agency.

11-55          Sec. 661.252.  TRANSFER OF LEAVE BALANCE.  A state employee

11-56    who transfers directly from one state agency to another is entitled

11-57    to credit by the agency to which the employee transfers for the

11-58    unused balance of the employee's accumulated vacation and sick

11-59    leave, if the employee's employment with the state is

11-60    uninterrupted.

11-61             (Sections 661.253-661.900 reserved for expansion

11-62               SUBCHAPTER Z.  MISCELLANEOUS LEAVE PROVISIONS

11-63          Sec. 661.901.  APPLICABILITY.  (a)  This subchapter applies

11-64    to a state employee employed by either house of the legislature or

11-65    by a member of the legislature or the lieutenant governor only to

11-66    the extent determined by the presiding officer of the appropriate

11-67    house of the legislature and to an employee of a legislative agency

11-68    only to the extent determined by the administrative head of the

11-69    agency.

 12-1          (b)  An employee of an institution of higher education as

 12-2    defined by Section 61.003, Education Code, is eligible to accrue or

 12-3    take paid leave under this subchapter only if the employee:

 12-4                (1)  is employed to work at least 20 hours per week for

 12-5    a period of at least four and one-half months; and

 12-6                (2)  is not employed in a position for which the

 12-7    employee is required to be a student as a condition of the

 12-8    employment.

 12-9          Sec. 661.902.  EMERGENCY LEAVE.  (a)  A state employee is

12-10    entitled to emergency leave without a deduction in salary because

12-11    of a death in the employee's family.  The death of the employee's

12-12    spouse or of a parent, brother, sister, grandparent, grandchild, or

12-13    child of the employee or of the employee's spouse is considered to

12-14    be a death in the employee's family for purposes of this

12-15    subsection.

12-16          (b)  The administrative head of an agency may determine that

12-17    a reason other than that described by Subsection (a) is sufficient

12-18    for granting emergency leave and shall grant an emergency leave to

12-19    an employee who the administrative head determines has shown good

12-20    cause for taking emergency leave.

12-21          Sec. 661.903.  NATIONAL GUARD EMERGENCY.  A state employee

12-22    who is called to active duty as a member of the Texas National

12-23    Guard by the governor because of an emergency is entitled to a

12-24    leave of absence without a deduction in salary in accordance with

12-25    Section 431.0825.

12-26          Sec. 661.904.  MILITARY LEAVE DURING NATIONAL EMERGENCY.

12-27    (a)  An employee called to active duty during a national emergency

12-28    to serve in a reserve component of the armed forces of the United

12-29    States is entitled to a leave of absence.

12-30          (b)  The employee continues to accrue state service credit

12-31    for purposes of longevity pay while on military duty described by

12-32    Subsection (a) but does not accrue vacation or sick leave during

12-33    that time.

12-34          (c)  The employee retains any accrued vacation or sick leave

12-35    and is entitled to be credited with those balances on return to

12-36    state employment from military duty described by Subsection (a).

12-37          Sec. 661.905.  VOLUNTEER FIREFIGHTERS.  (a)  A state employee

12-38    who is a volunteer firefighter is entitled to a leave of absence

12-39    without a deduction in salary to attend fire service training

12-40    conducted by a state agency or institution of higher education.

12-41    Leave without a deduction in salary under this subsection may not

12-42    exceed five working days in a fiscal year.

12-43          (b)  A state agency or institution of higher education may

12-44    grant leave without a deduction in salary to a volunteer

12-45    firefighter for the purpose of allowing the firefighter to respond

12-46    to emergency fire situations if the agency or institution has an

12-47    established policy for granting that leave.

12-48          (c)  A leave of absence under this section may not be charged

12-49    against an employee's vacation or sick leave.

12-50          Sec. 661.906.  FOSTER PARENTS.  A state employee who is a

12-51    foster parent to a child under the conservatorship of the

12-52    Department of Protective and Regulatory Services is entitled to a

12-53    leave of absence without a deduction in salary for the purpose of

12-54    attending:

12-55                (1)  meetings held by the Department of Protective and

12-56    Regulatory Services regarding the child under the foster care of

12-57    the employee; or

12-58                (2)  an admission, review, and dismissal meeting held

12-59    by a school district regarding the child under the foster care of

12-60    the employee.

12-61          Sec. 661.907.  RED CROSS DISASTER SERVICE VOLUNTEER.  (a)  A

12-62    state employee who is a certified disaster service volunteer of the

12-63    American Red Cross or who is in training to become such a volunteer

12-64    may be granted leave not to exceed 10 days each fiscal year to

12-65    participate in specialized disaster relief services for the

12-66    American Red Cross without a deduction in salary or loss of

12-67    vacation time, sick leave, earned overtime credit, or state

12-68    compensatory time if the leave is taken:

12-69                (1)  with the authorization of the employee's

 13-1    supervisor;

 13-2                (2)  with the approval of the governor; and

 13-3                (3)  on the request of the American Red Cross.

 13-4          (b)  The number of certified disaster volunteers who are

 13-5    eligible for leave under this section may not exceed 350 state

 13-6    employees at any one time during a fiscal year.  The division of

 13-7    emergency management in the governor's office shall coordinate the

 13-8    establishment and maintenance of the list of eligible employees.

 13-9          (c)  Not later than the 60th day after the date the American

13-10    Red Cross makes a request under Subsection (a)(3), the American Red

13-11    Cross shall prepare a report for the Legislative Budget Board

13-12    stating the reasons for the request.

13-13          Sec. 661.908.  LEAVE RECORDS.  The administrative head or

13-14    governing body of each state agency shall require for each

13-15    employee:

13-16                (1)  time and attendance records;

13-17                (2)  a record of the accrual and taking of vacation and

13-18    sick leave;

13-19                (3)  a record of the reason an employee takes leave if

13-20    other law requires the employee to inform the agency of the reason;

13-21    and

13-22                (4)  whether any leave taken is accounted for as sick

13-23    leave, vacation leave, other paid leave, leave without pay, or

13-24    other absence.

13-25          Sec. 661.909.  LEAVE WITHOUT PAY; LEAVE OF ABSENCE.  (a)  A

13-26    state agency or institution of higher education may grant employees

13-27    leave without pay, including a leave of absence without pay, in

13-28    accordance with this section.

13-29          (b)  The duration of the leave may not exceed 12 months.

13-30          (c)  Except for disciplinary suspensions, active military

13-31    duty, and leave covered by workers' compensation benefits, all

13-32    accumulated paid leave entitlements must be used before the leave

13-33    is granted.  All sick leave must first be used only if the employee

13-34    is taking leave for a reason for which the employee is eligible to

13-35    take sick leave under Subchapter G.

13-36          (d)  Subject to fiscal constraints, approval of the leave

13-37    constitutes a guarantee of reemployment at the conclusion of the

13-38    specified leave period.

13-39          (e)  The administrative head of a state agency or institution

13-40    of higher education may grant exceptions to the limitations of this

13-41    section if the employee is taking the leave:

13-42                (1)  to work for another state governmental entity

13-43    under an interagency agreement; or

13-44                (2)  for educational purposes.

13-45          (f)  Except for an employee who returns to state employment

13-46    from military leave without pay, a full calendar month during which

13-47    an employee is on leave without pay is not counted in computing:

13-48                (1)  total state service for purposes related to

13-49    longevity pay or to accrual or payment for vacation leave; or

13-50                (2)  continuous state service for purposes related to

13-51    merit salary provisions or vacation leave.

13-52          (g)  An employee may not accrue vacation or sick leave for a

13-53    full calendar month during which the employee is on leave without

13-54    pay.

13-55          (h)  A full calendar month during which an employee is on

13-56    leave without pay does not constitute a break in continuity of

13-57    employment.

13-58          Sec. 661.910.  SEEING-EYE DOG TRAINING FOR BLIND EMPLOYEES.

13-59    (a)  A state employee who is blind is entitled to a leave of

13-60    absence without a deduction in salary for the purpose of attending

13-61    a training program to acquaint the employee with a Seeing-Eye dog

13-62    to be used by the employee.

13-63          (b)  The leave of absence provided by this section may not

13-64    exceed 10 working days in a fiscal year.

13-65          (c)  The leave of absence provided by this section is in

13-66    addition to other leave to which an employee is entitled, and an

13-67    employee continues to accrue vacation and sick leave while on leave

13-68    as provided by this section.

13-69          (d)  For purposes of this section, "blind" has the meaning

 14-1    assigned by Section 91.002, Human Resources Code.

 14-2          Sec. 661.911.  ADMINISTRATIVE LEAVE WITH PAY.  (a) In

 14-3    addition to employee leave authorized elsewhere in this chapter,

 14-4    the administrative head of an agency may grant administrative leave

 14-5    without a deduction in salary to an employee as a reward for

 14-6    outstanding performance as documented by employee performance

 14-7    appraisals.

 14-8          (b)  The total amount of administrative leave an employee may

 14-9    be granted under this section may not exceed 32 hours during a

14-10    fiscal year.

14-11          Sec. 661.912.  FAMILY AND MEDICAL LEAVE ACT.  (a)  To the

14-12    extent provided by federal law, a state employee who has a total of

14-13    at least 12 months of state service and who has worked at least

14-14    1,250 hours during the 12-month period preceding the beginning of

14-15    leave under this section is entitled to leave under the federal

14-16    Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et

14-17    seq.) if the employee first uses all available and applicable paid

14-18    vacation and sick leave while taking leave under this section.

14-19          (b)  As an exception to the requirement that an employee

14-20    first use all applicable paid vacation and sick leave, employees on

14-21    Family and Medical Leave Act leave who are receiving temporary

14-22    disability benefits or workers' compensation benefits are not

14-23    required to first use applicable paid vacation or sick leave while

14-24    receiving those benefits.

14-25          Sec. 661.913.  PARENTAL LEAVE FOR CERTAIN EMPLOYEES.  (a)  A

14-26    state employee who has been employed for fewer than 12 months by

14-27    the state or who has worked fewer than 1,250 hours during the

14-28    12-month period preceding the beginning of leave under this section

14-29    is eligible to take a parental leave of absence in accordance with

14-30    this section if the employee first uses all available and

14-31    applicable paid vacation and sick leave while taking leave under

14-32    this section.

14-33          (b)  A leave of absence authorized by this section may not

14-34    exceed 12 weeks.

14-35          (c)  The leave authorized by this section is limited to, and

14-36    begins on the date of, the birth of a natural child of the employee

14-37    or the adoption by or foster care placement with the employee of a

14-38    child under three years of age.

14-39          Sec. 661.914.  VOTING BY STATE EMPLOYEES.  A state agency

14-40    shall allow each agency employee sufficient time off, without a

14-41    deduction in salary or accrued leave, to vote in each national,

14-42    state, or local election.

14-43          SECTION 19.  Subsection (b), Section 662.003, Government

14-44    Code, is amended to read as follows:

14-45          (b)  A state holiday includes only the following days:

14-46                (1)  the 19th day of January, "Confederate Heroes Day,"

14-47    in honor of Jefferson Davis, Robert E. Lee, and other Confederate

14-48    heroes;

14-49                (2)  the second day of March, "Texas Independence Day";

14-50                (3)  the 21st day of April, "San Jacinto Day";

14-51                (4)  the 19th day of June, "Emancipation Day in Texas,"

14-52    in honor of the emancipation of the slaves in Texas in 1865;

14-53                (5)  the 27th day of August, "Lyndon Baines Johnson

14-54    Day," in observance of the birthday of Lyndon Baines Johnson;

14-55                (6)  [every day on which an election is held throughout

14-56    the state;]

14-57                [(7)]  the Friday after Thanksgiving Day;

14-58                (7) [(8)]  the 24th day of December; and

14-59                (8) [(9)]  the 26th day of December.

14-60          SECTION 20.  Subsection (a), Section 662.004, Government

14-61    Code, is amended to read as follows:

14-62          (a)  A state agency and an institution of higher education as

14-63    defined by Section 61.003, Education Code, shall have enough

14-64    employees on duty during a state holiday to conduct the public

14-65    business of the agency or institution.

14-66          SECTION 21.  Section 662.007, Government Code, is amended by

14-67    adding Subsection (c) to read as follows:

14-68          (c)  An institution of higher education as defined by Section

14-69    61.003, Education Code, may allow an employee who is required to

 15-1    work on a national or state holiday that does not fall on a

 15-2    Saturday or Sunday to take compensatory time off in accordance with

 15-3    this section or may instead pay the employee at the employee's

 15-4    regular rate of pay for that time if the institution determines

 15-5    that allowing compensatory time off would disrupt normal teaching,

 15-6    research, or other critical functions.

 15-7          SECTION 22.  Section 662.010, Government Code, is amended by

 15-8    amending Subsection (c) and adding Subsection (d) to read as

 15-9    follows:    

15-10          (c)  If a state or national holiday that does not fall on a

15-11    Saturday or Sunday occurs between the dates that a state employee

15-12    transfers from one state agency to another without a break in

15-13    service, the agency to which the employee transfers is responsible

15-14    for paying the employee for the holiday.

15-15          (d)  In this section, "workday" means a day on which a state

15-16    employee is normally scheduled to work.

15-17          SECTION 23.  Section 662.011, Government Code, is amended by

15-18    amending Subsection (a) and adding Subsection (c) to read as

15-19    follows:

15-20          (a)  The governing body of an institution of higher

15-21    education, as defined by Section 61.003, Education Code, other than

15-22    a public junior college as defined by that section, may establish

15-23    the holiday schedule for the institution, subject to any applicable

15-24    limitation on the observance of holidays prescribed by the General

15-25    Appropriations Act.

15-26          (c)  An employee of the institution is eligible to take paid

15-27    holiday leave only if the employee:

15-28                (1)  is scheduled to work at least 20 hours per week

15-29    for a period of at least four and one-half months; and

15-30                (2)  is not employed in a position for which the

15-31    employee is required to be a student as a condition of the

15-32    employment.

15-33          SECTION 24.  Subtitle B, Title 6, Government Code, is amended

15-34    by adding Chapter 666 to read as follows:

15-35               CHAPTER 666.  MULTIPLE EMPLOYMENTS WITH STATE

15-36          Sec. 666.001.  GENERAL PROVISIONS.  (a)  This chapter applies

15-37    to a person who is or may become employed by more than one state

15-38    agency or institution of higher education.

15-39          (b)  A person who is employed by more than one state agency

15-40    or institution of higher education may not receive benefits from

15-41    the state that exceed the benefits provided for one full-time

15-42    employee.

15-43          (c)  The person must be informed of the requirements of this

15-44    chapter before the person is employed by more than one agency or

15-45    institution.

15-46          Sec. 666.002.  SEPARATE RECORDS REQUIRED.  Separate vacation

15-47    and sick leave records must be maintained for each employment.

15-48          Sec. 666.003.  TRANSFER OF LEAVE BALANCES PROHIBITED.  If the

15-49    person separates from one employment, the person's leave balances

15-50    that were accrued under that employment may not be transferred to

15-51    the remaining employments.

15-52          Sec. 666.004.  ACCRUAL OF STATE SERVICE CREDIT.  The person

15-53    accrues state service credit for all purposes as if the person had

15-54    only one employment.

15-55          Sec. 666.005.  FEDERAL INSURANCE CONTRIBUTIONS.  (a)  The

15-56    state's contribution toward the taxes imposed on the person by the

15-57    Federal Insurance Contributions Act (26 U.S.C. Section 3101 et

15-58    seq.) may not exceed the overall limit specified in the General

15-59    Appropriations Act.

15-60          (b)  The comptroller shall prescribe uniform accounting and

15-61    reporting procedures to ensure that the state's contribution does

15-62    not exceed the limit described by Subsection (a).

15-63          Sec. 666.006.  GROUP INSURANCE CONTRIBUTION.  The total state

15-64    contribution toward the person's group insurance is limited to the

15-65    amount specified in the General Appropriations Act for a full-time

15-66    active employee.

15-67          Sec. 666.007.  OVERTIME COMPENSATION.  (a)  Overtime

15-68    compensation accrues for each employment independently of every

15-69    other employment, except as provided by Subsection (b).

 16-1          (b)  If the person is subject to the overtime provisions of

 16-2    the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201

 16-3    et seq.) in an employment, the employing agencies and institutions

 16-4    of higher education shall ensure that the person is compensated for

 16-5    all combined time actually worked that exceeds 40 hours per week in

 16-6    accordance with the overtime provisions of the federal law.  The

 16-7    agencies and institutions shall cooperate to determine which agency

 16-8    or institution is responsible for ensuring that the employee is

 16-9    properly compensated according to those provisions.

16-10          Sec. 666.008.  INFORMING EMPLOYER ABOUT MULTIPLE EMPLOYMENT.

16-11    The person must inform the person's employing state agencies or

16-12    institutions of higher education before accepting an additional

16-13    employment with another agency or institution.

16-14          Sec. 666.009.  SPECIAL PROVISIONS FOR LEGISLATIVE AGENCIES.

16-15    If a person's multiple employment involves only legislative

16-16    agencies and all employments are less than full-time, the person

16-17    may use paid leave from leave balances in all employments, and on

16-18    separating from one  employment leave balances accrued under that

16-19    employment will be transferred to the remaining employments.

16-20          Sec. 666.010.  SPECIAL PROVISIONS FOR INSTITUTIONS OF HIGHER

16-21    EDUCATION.  (a)  A university system as defined by Section 61.003,

16-22    Education Code, may establish a policy that defines a person's

16-23    employment as the total hours the person is assigned to one

16-24    component of the system or, alternatively, the total hours the

16-25    person is assigned to all components of the system.

16-26          (b)  The policy may apply to a person only if the person is

16-27    employed by more than one institution of higher education and all

16-28    the employing institutions are within the same university system.

16-29          SECTION 25.  Chapter 751, Government Code, is amended by

16-30    adding Subchapter C to read as follows:

16-31               SUBCHAPTER C.  STATE PERSONNEL IN WASHINGTON

16-32          Sec. 751.051.  LIAISON TO LEGISLATIVE COMMITTEES.  A state

16-33    employee working in Washington, D.C., on behalf of one or more

16-34    state agencies shall act in a liaison capacity and provide the most

16-35    current information on federal funding and on legislative issues to

16-36    the appropriate substantive committees of both the Texas House of

16-37    Representatives and the Texas Senate.

16-38          SECTION 26.  (a)  Subchapter B, Chapter 2001, Government

16-39    Code, is amended by adding Section 2001.039 to read as follows:

16-40          Sec. 2001.039.  AGENCY REVIEW OF EXISTING RULES.  (a)  A

16-41    state agency shall review each of its rules in accordance with this

16-42    section.

16-43          (b)  A state agency shall review a rule not later than the

16-44    fourth anniversary of the date on which the rule takes effect and

16-45    every four years after that date until the rule expires or is

16-46    repealed.  The adoption of an amendment to an existing rule does

16-47    not affect the dates on which the rule must be reviewed except that

16-48    the effective date of an amendment is considered to be the

16-49    effective date of the rule if the agency formally conducts a review

16-50    of the rule in accordance with this section as part of the process

16-51    of adopting the amendment.

16-52          (c)  The procedures of this subchapter relating to notice,

16-53    public comment, and informal conferences and advisory committees

16-54    apply to the review of a rule in the same manner that they apply to

16-55    the adoption of a rule.

16-56          (d)  A state agency's review of a rule must include an

16-57    assessment about whether the reasons for initially adopting the

16-58    rule continue to exist.

16-59          (e)  A state agency, if requested to do so by an interested

16-60    person before the 60th day after the date that the agency's notice

16-61    of a rule's review is published in the Texas Register, shall issue

16-62    a concise statement of the principal reasons for and against

16-63    allowing the rule to continue in existence in its present form.

16-64          (b)  This subsection applies only to state agency rules that

16-65    have taken effect before September 1, 1997.  A state agency shall

16-66    review each of its existing rules in accordance with Section

16-67    2001.039, Government Code, as added by this Act, and in accordance

16-68    with this subsection.  The agency shall conduct its reviews of

16-69    those rules not later than August 31, 2001.  Not later than August

 17-1    31, 1998, each state agency shall develop and send to the secretary

 17-2    of state for publication in the Texas Register a plan under which

 17-3    the agency will review its existing rules.  The plan must state for

 17-4    each of those rules the date by which the agency will begin the

 17-5    review required by Section 2001.039, Government Code, as added by

 17-6    this Act.  For purposes of subsequent reviews under Section

 17-7    2001.039, Government Code, as added by this Act, the effective date

 17-8    of an existing rule initially reviewed under this subsection is

 17-9    considered to be the date that the notice for the initial review of

17-10    the rule under this subsection is published in the Texas Register.

17-11          SECTION 27.  Subchapter A, Chapter 2052, Government Code, is

17-12    amended by adding Section 2052.004 to read as follows:

17-13          Sec. 2052.004.  REPORT ON CLOSING OF FIELD OFFICES.  Before

17-14    making any public announcement, a state agency shall send to any

17-15    affected member of the legislature a written notice that describes

17-16    the state agency's plan to close a field office located in the

17-17    member's legislative district.

17-18          SECTION 28.  Section 2054.092, Government Code, is amended to

17-19    read as follows:

17-20          Sec. 2054.092.  CONTENT OF STATE STRATEGIC PLAN.  The state

17-21    strategic plan must be a visionary plan for the management of the

17-22    state's information resources and:

17-23                (1)  provide a strategic direction for information

17-24    resources management in state government for the five fiscal years

17-25    following adoption of the plan;

17-26                (2)  provide guidance to state agencies in the

17-27    development of the agency strategic plans;

17-28                (3)  establish goals and objectives relating to

17-29    information resources management;

17-30                (4)  provide long-range policy guidelines for

17-31    information resources in state government, including the

17-32    implementation of national and international standards for

17-33    information resources technologies;

17-34                (5)  identify major issues relating to improved

17-35    information resources management, including the identification of

17-36    needed procurement policy initiatives to encourage competition

17-37    between providers of information resources technologies; [and]

17-38                (6)  identify priorities for the implementation of

17-39    information resources technologies according to the relative

17-40    economic and social impact on the state; and

17-41                (7)  establish the framework under which the state's

17-42    telecommunications systems can be used to efficiently and

17-43    effectively exchange information among state agencies.

17-44          SECTION 29.  Subsection (d), Section 2054.095, Government

17-45    Code, is amended to read as follows:

17-46          (d)  The department by rule shall adopt instructions,

17-47    consistent with Section 2054.096, that guide state agencies in the

17-48    preparation of their agency strategic plans.  The instructions must

17-49    include the general criteria under which the department will

17-50    evaluate the plan and specify the format, content, updating, and

17-51    submission of the plan.  The department shall send the instructions

17-52    to each state agency not later than February 1 of each

17-53    even-numbered year.

17-54          SECTION 30.  Section 2054.118, Government Code, is amended to

17-55    read as follows:

17-56          Sec. 2054.118.  Major Information Resources Project.  (a)  A

17-57    state agency may not spend appropriated funds for a major

17-58    information resources project unless the project has been reviewed

17-59    and approved by a quality assurance team consisting of the

17-60    department and the state auditor's office [in the agency's biennial

17-61    operating plan].

17-62          (b)  The quality assurance team shall determine project

17-63    approval based on an analysis of the project's risk.  The quality

17-64    assurance team may:

17-65                (1)  waive project review requirements under

17-66    circumstances it considers appropriate;

17-67                (2)  require any information it considers necessary to

17-68    determine a project's potential risk;

17-69                (3)  require independent monitoring of an approved

 18-1    project, status reports of a project being implemented, or any

 18-2    additional information the team considers necessary to determine a

 18-3    project's potential for success; or

 18-4                (4)  require a state agency to submit a

 18-5    post-implementation evaluation report to enable the team to

 18-6    determine whether a project met its planned objectives.

 18-7          (c)  The department shall provide technical assistance to a

 18-8    state agency in the implementation of a project, participate in a

 18-9    project as the quality assurance team considers necessary, and

18-10    review and analyze project information submitted by a state agency.

18-11    The state auditor's office shall audit and review a project and the

18-12    information provided by a state agency about a project.  The

18-13    quality assurance team may request the Legislative Budget Board or

18-14    the comptroller's office to assist in determining the accuracy of

18-15    project expenditures and compliance with any expenditure

18-16    limitations contained in the General Appropriations Act.

18-17          (d)  The quality assurance team shall file a report with the

18-18    lieutenant governor and the speaker of the house of representatives

18-19    on the status of projects under its review not later than December

18-20    1 of each year.

18-21          (e)  The department shall develop rules or guidelines for

18-22    software development, quality assurance, and [its] review of major

18-23    information resources projects.

18-24          (f) [(c)]  In this section, "major information resources

18-25    project" means any information resources technology project

18-26    identified in a state agency's biennial operating plan with

18-27    development costs that exceed $1 million and that:

18-28                (1)  requires one year or longer to reach operations

18-29    status;

18-30                (2)  involves more than one state agency; or

18-31                (3)  substantially alters work methods of state agency

18-32    personnel or the delivery of services to clients.

18-33          SECTION 31.  Subchapter F, Chapter 2054, Government Code, is

18-34    amended by adding Sections 2054.120 and 2054.121 to read as

18-35    follows:

18-36          Sec. 2054.120.  COORDINATION AMONG INSTITUTIONS OF HIGHER

18-37    EDUCATION.  Institutions of higher education shall coordinate the

18-38    use of information technologies with other such institutions to

18-39    more effectively provide education, research, and community

18-40    service.

18-41          Sec. 2054.121.  COORDINATED TECHNOLOGY TRAINING.  A state

18-42    agency each calendar quarter shall coordinate agency training for

18-43    the use of information resources technologies with training offered

18-44    or coordinated by the department.  The agency shall use training

18-45    offered or coordinated by the department if it meets agency

18-46    requirements and is cost-competitive.

18-47          SECTION 32.  Subchapter B, Chapter 2101, Government Code, is

18-48    amended by adding Section 2101.0111 to read as follows:

18-49          Sec. 2101.0111.  ANNUAL REPORTS AND INVENTORIES.  (a)  Not

18-50    later than the 70th day after the close of fiscal year 1999, the

18-51    executive head of each state agency shall submit an annual

18-52    financial report regarding the agency's use of appropriated money,

18-53    as defined by Section 2113.001, during the preceding fiscal year

18-54    to:

18-55                (1)  the governor;

18-56                (2)  the comptroller;

18-57                (3)  the state auditor;

18-58                (4)  the Legislative Budget Board; and

18-59                (5)  the Legislative Reference Library.

18-60          (b)  The annual report must be prepared in accordance with

18-61    the uniform accounting and financial reporting procedures

18-62    established by the comptroller under Section 2101.012.

18-63          (c)  The annual report must include:

18-64                (1)  a detailed statement of all assets, liabilities,

18-65    and fund balances, including:

18-66                      (A)  cash on hand and on deposit in banks and

18-67    accounts in the state treasury;

18-68                      (B)  the value of consumable supplies and

18-69    postage;

 19-1                      (C)  the value of the state agency's inventory of

 19-2    movable equipment and other fixed assets;

 19-3                      (D)  a list of investments, bonds, notes, and

 19-4    other securities owned by any special funds under the jurisdiction

 19-5    of the state agency, including the amount and value of the

 19-6    securities;

 19-7                      (E)  all money due the state agency from any

 19-8    source;

 19-9                      (F)  all outstanding commitments of the agency,

19-10    including amounts due for services or goods received by the agency;

19-11                      (G)  a summary by source of all revenue collected

19-12    or accruing through the state agency, including appropriations; and

19-13                      (H)  a summary by source of all expenditures,

19-14    bona fide encumbrances, and other disbursements by the state

19-15    agency;

19-16                (2)  a list of all bonded employees, including the name

19-17    of the surety company and the name and title of the employee and

19-18    the amount of the surety bond;

19-19                (3)  an analysis of space occupied by the state agency,

19-20    including:

19-21                      (A)  the total number of square feet of rented

19-22    space in state-owned buildings;

19-23                      (B)  the total number of square feet of occupied

19-24    space in state-owned buildings;

19-25                      (C)  the name and address of each building in

19-26    which the state agency occupies space and the number of square feet

19-27    in each building devoted to a particular use;

19-28                      (D)  the cost per square foot of all rented

19-29    space;

19-30                      (E)  the annual and monthly cost of all rented

19-31    space;

19-32                      (F)  the lessor of all rented space; and

19-33                      (G)  other information helpful to describe the

19-34    state agency's utilization of space in state-owned buildings;

19-35                (4)  an itemized statement of all fees paid by the

19-36    state agency for professional and consulting services provided

19-37    under Chapter 2254, including the name of each person receiving

19-38    fees and the reason for the provision of the services;

19-39                (5)  a summary of the state agency's use and cost of

19-40    operating aircraft that is state-owned or under long-term lease in

19-41    the format prescribed by the Legislative Budget Board and the State

19-42    Aircraft Pooling Board under Chapter 2205;

19-43                (6)  a list of any purchases made under Section

19-44    2155.067(e), including each product purchased, the purchase amount,

19-45    and the name of each vendor;

19-46                (7)  a copy of the Master File Report Verification Form

19-47    certified by the General Land Office to confirm that the state

19-48    agency is in compliance with Subchapter E, Chapter 31, Natural

19-49    Resources Code;

19-50                (8)  a copy of the report prepared by the state agency

19-51    under Section 2161.124; and

19-52                (9)  any other information required by the General

19-53    Appropriations Act.

19-54          (d)  In this section, "state agency" has the meaning assigned

19-55    by Section 2151.002.

19-56          SECTION 33.  Subsection (a), Section 2101.012, Government

19-57    Code, is amended to read as follows:

19-58          (a)  The comptroller shall prescribe uniform accounting and

19-59    financial reporting procedures that a [each] state agency shall use

19-60    in the preparation of the information requested under Section

19-61    2101.011 or 2101.0111.

19-62          SECTION 34.  Section 2101.038, Government Code, is amended to

19-63    read as follows:

19-64          Sec. 2101.038.  DUTIES OF STATE AUDITOR.  (a)  The state

19-65    auditor, when reviewing the operation of a state agency, shall

19-66    audit for compliance with the uniform statewide accounting system,

19-67    the comptroller's rules, and the Legislative Budget Board's

19-68    performance and workload measures.

19-69          (b)  The state auditor shall notify the project advisory

 20-1    committee, the comptroller, the governor, and the Legislative

 20-2    Budget Board as soon as practicable when a state agency is not in

 20-3    compliance.

 20-4          (c)  If the state auditor issues any report concerning the

 20-5    operation of a state agency, the state auditor shall notify the

 20-6    agency's governing body and executive head.

 20-7          SECTION 35.  Chapter 2102, Government Code, is amended by

 20-8    adding Section 2102.0091 to read as follows:

 20-9          Sec. 2102.0091.  REPORTS OF PERIODIC AUDITS.  (a)  A state

20-10    agency shall file with the budget division of the governor's office

20-11    and the Legislative Budget Board a copy of each report submitted to

20-12    the state agency's governing board or its designee by the agency's

20-13    internal auditor.

20-14          (b)  Each report shall be filed not later than the 30th day

20-15    after the date the report is submitted to the state agency's

20-16    governing board or its designee.

20-17          (c)  In addition to the requirements of Subsection (a), a

20-18    state agency shall file with the budget division of the governor's

20-19    office and the Legislative Budget Board any action plan or other

20-20    response issued by the state agency's governing board in response

20-21    to the report of the state agency's internal auditor.

20-22          (d)  In this section, "state agency" includes a public junior

20-23    college, as that term is defined by Section 61.003, Education Code.

20-24          SECTION 36.  Subtitle C, Title 10, Government Code, is

20-25    amended by adding Chapter 2113 to read as follows:

20-26      CHAPTER 2113.  USE OF APPROPRIATED MONEY AND OTHER STATE FUNDS

20-27                     SUBCHAPTER A.  GENERAL PROVISIONS

20-28          Sec. 2113.001.  DEFINITIONS.  In this chapter:

20-29                (1)  "Appropriated money" means money appropriated by

20-30    the legislature through the General Appropriations Act or other

20-31    law.

20-32                (2)  "State agency" means:

20-33                      (A)  a department, commission, board, office, or

20-34    other entity in the executive branch of state government;

20-35                      (B)  the supreme court, the court of criminal

20-36    appeals, a court of appeals, or the Texas Judicial Council; or

20-37                      (C)  a university system or an institution of

20-38    higher education as defined by Section 61.003, Education Code,

20-39    except that a public junior college is excluded from the term in

20-40    Subchapter E and all of Subchapter D except Section 2113.202.

20-41            (Sections 2113.002-2113.010 reserved for expansion

20-42             SUBCHAPTER B.  RESTRICTIONS ON POLITICAL ACTIVITY

20-43          Sec. 2113.011.  SUPPORT OF CANDIDATES.  (a)  A state agency

20-44    may not use state funds, including appropriated money, to finance

20-45    or otherwise support the candidacy of a person for an office in the

20-46    legislative, executive, or judicial branch of state government or

20-47    of the government of the United States.  This prohibition extends

20-48    to the direct or indirect employment of a person to perform an

20-49    action described by this subsection.

20-50          (b)  An employee of a state agency may not use a state-owned

20-51    motor vehicle for a purpose described by Subsection (a).

20-52          Sec. 2113.012.  ELECTIONS AND LEGISLATIVE INFLUENCE.  (a)  A

20-53    state agency may not use appropriated money to influence the

20-54    outcome of an election or the passage or defeat of a legislative

20-55    measure.

20-56          (b)  This section does not prohibit an officer or employee of

20-57    a state agency from providing on request to a member of the

20-58    legislature, legislative committee, other state officer or

20-59    employee, or private citizen public information available to the

20-60    officer or employee.

20-61          Sec. 2113.013.  LOBBYING.  (a)  A state agency may not use

20-62    appropriated money to employ a full-time employee who is required

20-63    by Chapter 305 to register as a lobbyist.

20-64          (b)  A state agency may not use appropriated money to employ

20-65    a part-time employee who is required by Chapter 305 to register as

20-66    a lobbyist for an industry, profession, or association:

20-67                (1)  that the employee's agency regulates;

20-68                (2)  from which the employee's agency purchases goods

20-69    or services; or

 21-1                (3)  to which the employee's agency provides goods or

 21-2    services, including grants or loans.

 21-3          Sec. 2113.014.  RETALIATION AND VIOLATION.  An officer or

 21-4    employee of a state agency who causes an officer or employee to be

 21-5    discharged, demoted, or otherwise discriminated against for

 21-6    providing information under Section 2113.012(b) is required to be

 21-7    immediately discharged from state employment.

 21-8          Sec. 2113.015.  NOTICE OF PROHIBITIONS.  (a)  A state agency

 21-9    shall provide each officer and employee of the agency  a copy of

21-10    Sections 2113.011-2113.014 and require a signed receipt on

21-11    delivery.  A new copy and receipt are required if a provision of

21-12    those sections is changed.

21-13          (b)  A state agency shall maintain receipts collected from

21-14    current officers and employees under this section in a manner

21-15    accessible for public inspection.

21-16          Sec. 2113.016.  STUDENT ORGANIZATIONS.  (a)  This subchapter

21-17    does not prohibit the payment of reasonable dues to an organization

21-18    that represents student interests before the legislature or the

21-19    Congress of the United States from that portion of mandatory

21-20    student service fees that is allocated to the student government

21-21    organization at an institution of higher education.

21-22          (b)  A mandatory student service fee may not be used to

21-23    influence the outcome of an election.

21-24          Sec. 2113.017.  COMPENSATION PROHIBITION.  A state agency may

21-25    not use appropriated money to compensate an officer or employee who

21-26    violates this subchapter.

21-27            (Sections 2113.018-2113.100 reserved for expansion

21-28           SUBCHAPTER C.  RESTRICTIONS ON OFFICERS AND EMPLOYEES

21-29          Sec. 2113.101.  PUBLICITY.  (a)  A state agency may not use

21-30    appropriated money to publicize or direct attention to an

21-31    individual officer or employee of state government.

21-32          (b)  A state agency may not use appropriated money to:

21-33                (1)  maintain a publicity office or department;

21-34                (2)  employ an individual who has the title or duties

21-35    of a public relations or press agent; or

21-36                (3)  pay a public relations agent or business.

21-37          (c)  The executive head of a state agency who considers it

21-38    necessary or in the public interest may issue through agency

21-39    channels oral or written information relating to the activities or

21-40    legal responsibilities of the agency.  The information must be

21-41    issued in the name of the state agency and include the name of the

21-42    individual authorized to issue the information.

21-43          (d)  An institution of higher education may operate a news

21-44    and information service for the benefit of the public if the

21-45    operation has been authorized and approved by the institution's

21-46    governing body.

21-47          Sec. 2113.102.  USE OF ALCOHOLIC BEVERAGES.  A state agency

21-48    may not use appropriated money to compensate an officer or employee

21-49    who uses alcoholic beverages on active duty.

21-50          Sec. 2113.103.  USE OF MOTOR VEHICLE.  (a)  Except as

21-51    provided by Subsection (b), an officer or employee of a state

21-52    agency may not use a state-owned motor vehicle except on official

21-53    state business.

21-54          (b)  The administrative head of a state agency may authorize

21-55    an officer or employee to use a state-owned motor vehicle to

21-56    commute to and from work when the administrative head determines

21-57    that the use may be necessary to ensure that vital agency functions

21-58    are performed.  The name and job title of each individual

21-59    authorized under this subsection, and the reasons for the

21-60    authorization, must be included in the annual report required by

21-61    Section 2101.0111.

21-62          (c)  A state agency may not use appropriated money to

21-63    compensate an individual who violates this section.

21-64            (Sections 2113.104-2113.200 reserved for expansion

21-65             SUBCHAPTER D.  RESTRICTIONS ON GOODS AND SERVICES

21-66          Sec. 2113.201.  CONSULTANT CONTRACTS.  A state agency may not

21-67    use appropriated money to contract for consulting services with an

21-68    individual who has been an officer or employee of the agency within

21-69    the preceding 12 months.

 22-1          Sec. 2113.202.  ALCOHOLIC BEVERAGES.  A state agency may not

 22-2    use appropriated money to purchase an alcoholic beverage except for

 22-3    authorized law enforcement purposes.  A state agency may not use

 22-4    appropriated money to pay or reimburse a travel expense for an

 22-5    alcoholic beverage.

 22-6          Sec. 2113.203.  AUDITS.  (a)  Except as provided by

 22-7    Subsections (b) and (c), a state agency may not use appropriated

 22-8    money to hire an individual or entity to audit the books or

 22-9    accounts of the agency.

22-10          (b)  A state agency may use appropriated money to finance a

22-11    supplemental audit of payments received from the government of the

22-12    United States if the audit is required as a condition of receipt of

22-13    the money and an amount for the audit is provided by the federal

22-14    grant, allocation, aid, or other payment.

22-15          (c)  A state agency providing grants, loans, or other money

22-16    to an entity other than a state agency may require, as a condition

22-17    of receipt of the money, that the recipient have an annual,

22-18    independent audit performed and submitted to the agency.  An agency

22-19    may require its internal audit staff to make an annual inspection

22-20    visit to the recipient of the money.  After notice of the meeting

22-21    of the governing body of an agency at which the matter will be

22-22    included on the agenda, the agency shall take action on any

22-23    exceptions noted in independent audits received under this

22-24    subsection and provide documentation of that action to the state

22-25    auditor, the Legislative Audit Committee, the Legislative Budget

22-26    Board, and the budget division of the governor's office.

22-27          Sec. 2113.204.  PUBLICATION OF REPORTS.  (a)  A state agency

22-28    may not use appropriated money to publish a report or other printed

22-29    materials on enamel-coated, cast-coated, or dull-coated printing

22-30    stock unless the agency imposes a fee for receipt of the printed

22-31    materials.

22-32          (b)  A state agency shall make reports required by law and

22-33    minutes of meetings of the agency's governing body available to

22-34    members of the legislature and agencies in the legislative branch

22-35    of state government in an electronic format determined by the Texas

22-36    Legislative Council.

22-37          Sec. 2113.205.  PERIODICALS AND OTHER PUBLICATIONS.

22-38    (a)  Except as provided by Subsection (b), a state agency may not

22-39    use appropriated money to publish a periodical or other publication

22-40    the cost of which is not reimbursed through revenue attributable to

22-41    its publication and sale if the publication is:

22-42                (1)  intended for use by the general public;

22-43                (2)  generally informational, promotional, or

22-44    educational; and

22-45                (3)  not essential to the achievement of a statutory

22-46    objective of the agency.

22-47          (b)  Subsection (a) does not apply to:

22-48                (1)  Texas Highways magazine;

22-49                (2)  the Texas Parks and Wildlife magazine;

22-50                (3)  publications of the Texas Commission on Alcohol

22-51    and Drug Abuse;

22-52                (4)  attorney general opinions, advisories, and

22-53    decisions;

22-54                (5)  comptroller opinions, revenue forecasts, and

22-55    fiscal analyses;

22-56                (6)  newsletters;

22-57                (7)  compilations of statutes or rules; or

22-58                (8)  annual reports and other materials that are

22-59    required by law and the content of which includes only topics

22-60    provided by law.

22-61          (c)  A state agency may not use appropriated money to publish

22-62    a publication that prominently displays the name or picture of a

22-63    person holding an office elected statewide.

22-64          (d)  Except as provided by Subsection (e), a state agency may

22-65    not use appropriated money to publish a publication on

22-66    enamel-coated, cast-coated, or dull-coated printing stock or that

22-67    contains an average of more than one picture for each two pages of

22-68    the publication unless the agency imposes a fee for the publication

22-69    in an amount that recovers the cost of publication.

 23-1          (e)  Subsection (d) does not apply to a publication designed

 23-2    to promote tourism or economic development, a publication of the

 23-3    Texas School for the Deaf or the Texas School for the Blind and

 23-4    Visually Impaired, or a publication of an institution of higher

 23-5    education.

 23-6          (f)  A state agency or political subdivision that uses an

 23-7    appropriation to publish free periodicals quarterly or more

 23-8    frequently shall insert annually in three consecutive issues a

 23-9    notice that anyone wishing to continue receiving the periodical

23-10    must so request in writing.  The agency shall provide future issues

23-11    of the periodical only to persons who have requested it.

23-12          Sec. 2113.206.  POSTAGE.  (a)  Except as provided by

23-13    Subsections (b) and (c), a state agency may use appropriated money

23-14    to purchase postage or rent a post office box only from the United

23-15    States Postal Service.

23-16          (b)  An agency other than an institution of higher education

23-17    as defined by Section 61.003, Education Code, that spends for

23-18    postage in a fiscal year an amount that exceeds the dollar amount

23-19    set by the General Appropriations Act as the maximum expenditure

23-20    for stamps shall purchase or rent a postage meter machine and

23-21    record all purchases of postage on the machine except purchases of

23-22    postage for employees in field offices and traveling employees.

23-23    The rental of a postage meter machine by a state agency, including

23-24    an institution of higher education, the legislature, or an agency

23-25    in the legislative branch of state government, must be from a

23-26    company approved by the General Services Commission.  The General

23-27    Services Commission by rule shall adopt procedures for the renting

23-28    entity to pay for postage.

23-29          (c)  Subsection (a) does not apply to a reimbursement:

23-30                (1)  to an authorized petty cash account;

23-31                (2)  to a state employee for an emergency purchase of

23-32    postage or emergency payment of post office box rent; or

23-33                (3)  authorized by the General Appropriations Act.

23-34          (d)  A state agency shall remit to the comptroller an amount

23-35    received as a refund of postage for deposit to the credit of the

23-36    appropriation from which postage for the agency is paid.

23-37          (e)  Except as provided by Subsection (b), the comptroller

23-38    shall adopt rules to implement this section after consultation with

23-39    the General Services Commission.

23-40          Sec. 2113.207.  INDOOR PLANTS.  A state agency may not use an

23-41    appropriation to purchase, lease, or maintain a live or artificial

23-42    indoor plant to be used only for aesthetic purposes.

23-43          Sec. 2113.208.  STATE FACILITIES FOR MEETINGS AND

23-44    CONFERENCES.  A state agency shall use state-owned or

23-45    state-occupied facilities for meetings and conferences and may not

23-46    use appropriated money to lease private facilities for these

23-47    purposes unless state facilities are not available when needed or

23-48    are not adequate to accommodate the meeting or conference.

23-49            (Sections 2113.209-2113.300 reserved for expansion

23-50              SUBCHAPTER E.  SPECIFICALLY AUTHORIZED USES OF

23-51                            GOODS AND SERVICES

23-52          Sec. 2113.301.  EMPLOYEE AWARDS.  (a)  A state agency may use

23-53    appropriated money to purchase service awards, safety awards, or

23-54    other similar awards to be presented to employees for professional

23-55    achievement or outstanding service under rules adopted by the

23-56    agency.

23-57          (b)  The cost of awards purchased under this section may not

23-58    exceed $50 for an individual employee.

23-59          Sec. 2113.302.  VOLUNTEER AWARDS.  (a)  A state agency may

23-60    use an appropriation to purchase engraved certificates, plaques,

23-61    pins, or other similar awards to be presented to volunteers  for

23-62    special achievement or outstanding service if the agency has

23-63    established a volunteer program under Chapter 2109 or other law.

23-64          (b)  The cost of awards purchased under this section may not

23-65    exceed $50 for an individual volunteer.

23-66          Sec. 2113.303.  EXAMINATION FEES.  A state agency that

23-67    conducts examinations shall collect all fees charged to the person

23-68    being examined for each examination, including the cost of a

23-69    standardized examination instrument, and use appropriated money to

 24-1    pay a provider of goods or services for a cost incurred by the

 24-2    agency providing the examination.

 24-3          SECTION 37.  Section 2152.064, Government Code, is amended by

 24-4    amending Subsection (b) and adding Subsection (d) to read as

 24-5    follows:

 24-6          (b)  During January and July of each year, a state agency

 24-7    shall file with the presiding officer of each house of the

 24-8    legislature, [and] the presiding officers of the house

 24-9    appropriations committee and the senate finance committee, and the

24-10    Legislative Budget Board a report that identifies each nonresident

24-11    bidder to whom the agency awarded a contract that has a value of

24-12    $25,000 or more for the purchase of supplies, materials, services,

24-13    or equipment during the six calendar months preceding the month in

24-14    which the report is filed, if the agency awarded such a contract

24-15    during the reporting period.  For contracts with a value of

24-16    $250,000 or more, the agency shall include an explanation for the

24-17    need to use a nonresident bidder.

24-18          (d)  In addition to the information required by Subsection

24-19    (b), a state agency shall include in the report to the Legislative

24-20    Budget Board a listing of the total value of all purchases from

24-21    nonresident bidders of supplies, materials, services, and equipment

24-22    during the six calendar months preceding the month in which the

24-23    report is filed.  If the total amount reported is greater than $1

24-24    million or greater than 25 percent of the total value of all

24-25    purchases, the state agency shall include an explanation for the

24-26    need to use nonresident bidders.

24-27          SECTION 38.  Subsection (e), Section 2155.067, Government

24-28    Code, is amended to read as follows:

24-29          (e)  If the commission, after considering all factors, takes

24-30    exception to the justifications, the commission shall purchase the

24-31    goods or services as requested and report the reasons for its

24-32    exception to the:

24-33                (1)  members of the governing body and the agency head

24-34    [or the presiding officer of the agency's governing body];

24-35                (2)  state auditor;

24-36                (3)  Legislative Budget Board; and

24-37                (4)  governor.

24-38          SECTION 39.  Section 2155.073, Government Code, is amended to

24-39    read as follows:

24-40          Sec. 2155.073.  HISTORICALLY UNDERUTILIZED [PARTICIPATION BY

24-41    SMALL] BUSINESSES ASSISTANCE PROGRAM [IN STATE PURCHASING].  The

24-42    commission shall assist and foster participation of historically

24-43    underutilized [small] businesses in the purchasing activities,

24-44    other than construction or construction-related activity, of the

24-45    state.  Strategies for assisting and fostering such participation

24-46    include but are not limited to [by]:

24-47                (1)  assisting state agencies in developing strategies

24-48    and procedures to ensure the inclusion of historically

24-49    underutilized [small] businesses on state agency master bid lists;

24-50                (2)  informing historically underutilized [small]

24-51    businesses of state purchasing opportunities;

24-52                (3)  assisting historically underutilized [small]

24-53    businesses in complying with the procedures for bidding on state

24-54    contracts and assisting those businesses in such skills as bidding

24-55    techniques and product analysis;

24-56                (4)  providing training [working with state and federal

24-57    agencies and with private organizations in disseminating

24-58    information on state purchasing procedures and the opportunities

24-59    for small businesses to participate in state contracts;]

24-60                [(5)  assisting state agencies with the development of

24-61    a comprehensive list of small businesses capable of providing goods

24-62    or services to the state;]

24-63                [(6)  making recommendations] to state agencies on how

24-64    to simplify contract specifications and terms to increase the

24-65    opportunities for historically underutilized [small] business

24-66    participation; and

24-67                (5) [(7)  working with state agencies to establish a

24-68    statewide policy for increasing the use of small businesses;]

24-69                [(8)]  assisting state agencies in seeking historically

 25-1    underutilized [small] businesses capable of supplying goods and

 25-2    services that the agencies require through the development of a

 25-3    comprehensive list of historically underutilized businesses[;]

 25-4                [(9)  assisting state agencies in identifying and

 25-5    advising small businesses on the types of goods and services needed

 25-6    by the agencies; and]

 25-7                [(10)  assisting state agencies in increasing the

 25-8    volume of business placed with small businesses].

 25-9          SECTION 40.  Subchapter B, Chapter 2155, Government Code, is

25-10    amending by adding Section 2155.074 to read as follows:

25-11          Sec. 2155.074.  PURCHASES FROM FEDERAL GOVERNMENT.  (a)  The

25-12    commission or the governing board of an institution of higher

25-13    education acting either directly or through the commission or

25-14    another state agency may negotiate purchases of goods of any kind

25-15    needed by the state agency or institution of higher education with

25-16    the appropriate agency of the federal government.

25-17          (b)  The price of goods that are purchased from the federal

25-18    government may not exceed the prevailing market value of the goods

25-19    or the real or intrinsic value if there is no market value.

25-20          (c)  In negotiating purchases of goods under this section,

25-21    the commission or the governing board of the institution of higher

25-22    education may waive the requirement of a bidder's bond and

25-23    performance bond that otherwise would be required.

25-24          SECTION 41.  Subchapter H, Chapter 2155, Government Code, is

25-25    amended by adding Section 2155.4441 to read as follows:

25-26          Sec. 2155.4441.  SERVICE CONTRACTS.  A state agency that

25-27    contracts for services shall require the contractor to purchase

25-28    products and materials produced in this state when they are

25-29    available at a price and time comparable to products and materials

25-30    produced outside this state.

25-31          SECTION 42.  Subchapter H, Chapter 2155, Government Code, is

25-32    amended by adding Section 2155.449 to read as follows:

25-33          Sec. 2155.449.  PREFERENCE FOR PRISON-PRODUCED GOODS.  The

25-34    commission and other state agencies shall purchase goods produced

25-35    by the Texas Department of Criminal Justice when those goods are

25-36    equal to or lower in price than goods of comparable quality

25-37    available on the open market.

25-38          SECTION 43.  Section 2161.001, Government Code, is amended to

25-39    read as follows:

25-40          Sec. 2161.001.  DEFINITIONS.  In this chapter:

25-41                (1)  "Economically disadvantaged person" means a person

25-42    who is:

25-43                      (A)(i)  an owner of a business that does not

25-44    exceed, in any period of four consecutive years, the gross receipts

25-45    or total employment levels stated in the small business guidelines,

25-46    13   C.F.R. Section 121.201, promulgated by the United States Small

25-47    Business Administration for businesses within the same four-digit

25-48    Standard Industrial Classification code; and

25-49                            (ii)  if the person is married and the

25-50    person's spouse is a business owner, the spouse's business

25-51    qualifies as a small business within the respective four-digit

25-52    Standard Industrial Classification code applicable to the spouse's

25-53    business; or

25-54                      (B)  a member of a group that has suffered the

25-55    effects of discriminatory practices or other similar circumstances

25-56    over which the person had no control, as defined in the state's

25-57    Disparity Study, including Black Americans, Hispanic Americans,

25-58    women, Asian Pacific Americans, and Native Americans who are also

25-59    economically disadvantaged persons as defined by Paragraph (A).

25-60                (2)  "Goods" means supplies, materials, or equipment.

25-61                (3) [(2)]  "Historically underutilized business" means:

25-62                      (A)  a corporation formed for the purpose of

25-63    making a profit in which 51 percent or more of all classes of the

25-64    shares of stock or other equitable securities are owned by one or

25-65    more economically [socially] disadvantaged persons who have a

25-66    proportionate interest and actively participate in the

25-67    corporation's control, operation, and management;

25-68                      (B)  a sole proprietorship created for the

25-69    purpose of making a profit that is completely owned, operated, and

 26-1    controlled by an economically [a socially] disadvantaged person;

 26-2                      (C)  a partnership formed for the purpose of

 26-3    making a profit in which 51 percent or more of the assets and

 26-4    interest in the partnership are owned by one or more economically

 26-5    [socially] disadvantaged persons who have a proportionate interest

 26-6    and actively participate in the partnership's control, operation,

 26-7    and management;

 26-8                      (D)  a joint venture in which each entity in the

 26-9    venture is a historically underutilized business, as determined

26-10    under another paragraph of this subdivision; or

26-11                      (E)  a supplier contract between a historically

26-12    underutilized business as determined under another paragraph of

26-13    this subdivision and a prime contractor under which the

26-14    historically underutilized business is directly involved in the

26-15    manufacture or distribution of the goods or otherwise warehouses

26-16    and ships the goods.

26-17                (4)  "State agency" means:

26-18                      (A)  a department, commission, board, office, or

26-19    other agency in the executive branch of state government created by

26-20    the state constitution or a state statute;

26-21                      (B)  the supreme court, the court of criminal

26-22    appeals, a court of appeals, or the Texas Judicial Council; or

26-23                      (C)  a university system or an institution of

26-24    higher education as defined by Section 61.003, Education Code,

26-25    except a public junior college.  [(3)  "Socially disadvantaged

26-26    person" means a person who is socially disadvantaged because of the

26-27    person's identification as a member of a certain group, including

26-28    Black Americans, Hispanic Americans, women, Asian Pacific

26-29    Americans, and Native Americans, and who has suffered the effects

26-30    of discriminatory practices or other similar insidious

26-31    circumstances over which the person has no control.]

26-32          SECTION 44.  Section 2161.002, Government Code, is amended by

26-33    adding Subsection (c) to read as follows:

26-34          (c)  If a conflict exists between this chapter and rules

26-35    adopted under this chapter and the requirements of federal law,

26-36    federal law prevails, and the commission is authorized to

26-37    administer this chapter consistent with federal law.

26-38          SECTION 45.  Subchapter A, Chapter 2161, Government Code, is

26-39    amended by adding Section 2161.003 to read as follows:

26-40          Sec. 2161.003.  ADOPTION OF RULES BY STATE AGENCY.  State

26-41    agencies shall adopt for the administration of their historically

26-42    underutilized business program the rules adopted by the commission.

26-43    Each state agency may develop supplemental rules to the

26-44    commission's rules if the rules are:

26-45                (1)  consistent with commission rules; and

26-46                (2)  based on the disparity study.

26-47          SECTION 46.  Section 2161.122, Government Code, is amended to

26-48    read as follows:

26-49          Sec. 2161.122.  INFORMATION GATHERING BY STATE AGENCY.

26-50    (a)  To ensure accuracy in reporting, a state agency shall maintain

26-51    and compile monthly information relating to the use by the agency

26-52    and each of its operating divisions of historically underutilized

26-53    businesses, including information regarding subcontractors and

26-54    suppliers required by Subsection (b).

26-55          (b)  A contractor or supplier awarded a contract by a state

26-56    agency shall report to the agency the identity of each historically

26-57    underutilized business to whom the contractor or supplier awarded a

26-58    subcontract for the purchase of goods or services.

26-59          (c)  State agencies shall report to the commission the

26-60    following information on businesses classified as owned by

26-61    economically disadvantaged persons, including Black Americans,

26-62    Hispanic Americans, Asian Pacific Americans, and by gender, with

26-63    regard to the expenditure of both treasury and nontreasury funds:

26-64                (1)  the total dollar amount of purchases and payments

26-65    made under contracts awarded to historically underutilized

26-66    businesses; and

26-67                (2)  the number of payments received by each

26-68    historically underutilized business under each contract.

26-69          (d)  A state agency participating in a group purchasing

 27-1    program described under Section 2155.139(b) shall send to the

 27-2    commission in the agency's report under Section 2161.121 a separate

 27-3    list of purchases from historically underutilized businesses that

 27-4    are made through the group purchasing program, including the dollar

 27-5    amount of each purchase allocated to the reporting agency.

 27-6          (e) [(d)]  A state agency's report is a record of the

 27-7    agency's purchases for which the agency selected the vendor.  If

 27-8    the vendor was selected by the commission as part of its state

 27-9    contract program, the commission shall include the purchase in the

27-10    commission's report of its own purchases unless the commission made

27-11    a sole source purchase for the agency under Section 2155.067.  The

27-12    state agency for which the purchase was made shall report the

27-13    selection of the vendor on its report as if the agency selected the

27-14    vendor when the agency drew specifications for goods or services

27-15    that are proprietary to one vendor.

27-16          SECTION 47.  Chapter 2161, Government Code, is amended by

27-17    adding Subchapter F to read as follows:

27-18              SUBCHAPTER F.  ACTIONS FOR AGENCY NONCOMPLIANCE

27-19          Sec. 2161.301.  ACCOUNTABILITY OF STATE AGENCIES.  (a)  The

27-20    state auditor shall report to the commission a state agency that is

27-21    not complying with this chapter.

27-22          (b)  If an agency is found by the state auditor not to be in

27-23    compliance with this chapter, the commission may revoke any

27-24    purchasing authority that the commission had delegated to the

27-25    agency.  If the commission revokes an agency's delegated purchasing

27-26    authority under this subsection, the comptroller may consider that

27-27    fact in the event the commission needs a transfer of the violating

27-28    agency's appropriated funds to cover the costs to the commission of

27-29    assuming the violating agency's purchasing functions.  The amount

27-30    of transfer from the violating agency's funds to the commission

27-31    shall be in an amount determined by the Legislative Budget Board.

27-32          SECTION 48.  Subchapter F, Chapter 2166, Government Code, is

27-33    amended by adding Section 2166.2551 to read as follows:

27-34          Sec. 2166.2551.  CONTRACT NOTIFICATION.  (a)  Not later than

27-35    the 10th day after the date a state agency enters into a contract

27-36    under this chapter, the agency shall provide written notice, using

27-37    a form prescribed by the Legislative Budget Board, to:

27-38                (1)  the Legislative Budget Board;

27-39                (2)  the appropriations committee of the house of

27-40    representatives;

27-41                (3)  the finance committee of the senate; and

27-42                (4)  any committees of the house of representatives or

27-43    the senate that provide oversight for the state agency.

27-44          (b)  Subsection (a)  applies to any amendment, modification,

27-45    renewal, or extension of any contract subject to this section.

27-46          (c)  Subsections (a) and (b) do not apply to a contract,

27-47    including any amendments, modifications, renewals, or extensions,

27-48    that has a total value of less than $1,000.

27-49          SECTION 49.  Subsection (a), Section 2166.259, Government

27-50    Code, is amended to read as follows:

27-51          (a)  This section applies only to a contract for a public

27-52    works project for which the combined [that has an] estimated cost

27-53    of all projects exceeds an aggregate contractual value of $100

27-54    [more than $20] million.

27-55          SECTION 50.  Subchapter F, Chapter 2166, Government Code, is

27-56    amended by adding Section 2166.260 to read as follows:

27-57          Sec. 2166.260.  SMALL CONTRACTOR PARTICIPATION ASSISTANCE

27-58    PROGRAM.  (a)  This section applies only to public works projects

27-59    for which the combined estimated cost of all projects exceeds an

27-60    aggregate contractual value of $100 million that are undertaken by

27-61    or for any state agency or institution of higher education.

27-62    Notwithstanding other law, this section applies without regard to:

27-63                (1)  the source of funds for a public works project;

27-64                (2)  whether a public works project is otherwise

27-65    excepted from the application of this section by Section 2166.003

27-66    or 2166.004 or other law; or

27-67                (3)  whether the public works project is undertaken

27-68    under the authority of this section or other law.

27-69          (b)  In this section:

 28-1                (1)  "Program" means a small contractor participation

 28-2    assistance program created under this section.

 28-3                (2)  "Public works project" means a construction

 28-4    project, including a building, designed to serve the public

 28-5    necessity, use, or convenience that is undertaken and carried out

 28-6    by a state agency or institution of higher education as described

 28-7    by Subsection (a).  The term includes a project for the

 28-8    construction, alteration, or repair of a public building or of a

 28-9    road, bridge, or highway.

28-10                (3)  "Small contractor" means a person who is the owner

28-11    of a business that does not exceed, in any period of four

28-12    consecutive years, the gross receipts or total employment levels

28-13    stated in the small business guidelines, 13 C.F.R. Section 121.201,

28-14    promulgated by the United States Small Business Administration for

28-15    businesses within the same four-digit Standard Industrial

28-16    Classification code.  If the person is married and the person's

28-17    spouse is a business owner, the spouse's business must also qualify

28-18    as a small business within the respective four-digit Standard

28-19    Industrial Classification code applicable to the spouse's business.

28-20          (c)  Not later than January 1, 1998, a state agency or

28-21    institution of higher education having a public works project

28-22    described by Subsection (a) shall establish a small contractor

28-23    participation assistance program to ensure full opportunity for

28-24    participation in public works projects by small contractors.  A

28-25    program established under this section must include:

28-26                (1)  a system for the centralized purchase of any

28-27    necessary insurance coverage for the public works project that is

28-28    required under Subsection (d);

28-29                (2)  a public outreach plan to provide public

28-30    information about the program and to encourage small contractors to

28-31    participate in the program;

28-32                (3)  a technical assistance plan to aid small

28-33    contractors in developing the skills necessary to participate in

28-34    the program in accordance with Subsection (e); and

28-35                (4)  a financing assistance plan to provide

28-36    administrative and other assistance to small contractors in

28-37    obtaining any necessary financing arrangements to make the

28-38    participation of those contractors possible.

28-39          (d)  A state agency or institution of higher education having

28-40    a public works project described by Subsection (a) shall provide

28-41    for the centralized purchasing of:

28-42                (1)  workers' compensation insurance coverage;

28-43                (2)  employer's liability insurance coverage;

28-44                (3)  commercial general and excess liability coverage;

28-45                (4)  payment and performance bonds with multisurety

28-46    capability; and

28-47                (5)  any other analogous coverage the agency or

28-48    institution of higher education considers necessary and reasonable

28-49    for the particular public works project.

28-50          (e)  A technical assistance plan adopted by a state agency or

28-51    institution of higher education having a public works project

28-52    described by Subsection (a) must include information on and

28-53    assistance in:

28-54                (1)  estimating bids, the bidding process, scheduling,

28-55    and understanding bid documents;

28-56                (2)  reading construction drawings and other analogous

28-57    documents;

28-58                (3)  business accounting, bonds, and bond requirements;

28-59                (4)  negotiation with general contractors; and

28-60                (5)  any other technical, financial, and administrative

28-61    assistance considered appropriate and necessary given the

28-62    complexity and scope of the particular public works project.

28-63          (f)  A state agency or institution of higher education having

28-64    a public works project described by Subsection (a) may negotiate

28-65    contracts with persons or firms having expertise in the areas that

28-66    must be included in the agency's or institution's technical

28-67    assistance plan to provide the information and assistance.

28-68          (g)  A state agency or institution of higher education may

28-69    consult with the commission when implementing a small contractor

 29-1    participation assistance program.

 29-2          SECTION 51.  Subchapter H, Chapter 2166, Government Code, is

 29-3    amended by adding Section 2166.357 to read as follows:

 29-4          Sec. 2166.357.  CONSTRUCTION STANDARDS.  A state agency

 29-5    responsible for the construction of a structure or facility or the

 29-6    repair or rehabilitation of an existing structure or facility shall

 29-7    ascertain that the project complies with applicable standards for

 29-8    new construction, repair, or rehabilitation adopted under this

 29-9    subtitle and shall file a statement to that effect with the

29-10    comptroller.

29-11          SECTION 52.  Subsection (a), Section 2170.001, Government

29-12    Code, is amended by adding Subdivision (3) to read as follows:

29-13                (3)  "State agency" has the meaning assigned by Section

29-14    2151.002.

29-15          SECTION 53.  Subchapter A, Chapter 2170, Government Code, is

29-16    amended by adding Sections 2170.009 through 2170.011 to read as

29-17    follows:

29-18          Sec. 2170.009.  PAY TELEPHONES AUTHORIZED.  (a)  A pay

29-19    station telephone may be located in the Capitol area only with the

29-20    approval of the commission.  The commission shall collect the

29-21    revenue from the installation and operation of the pay telephones

29-22    and deposit it to the credit of the general revenue fund.

29-23          (b)  In a state-owned or state-leased building or on

29-24    state-owned land to which Subsection (a) does not apply, a pay

29-25    telephone may be installed only with the approval of the governing

29-26    body of the state entity that has charge and control of the

29-27    building or land.  The entity shall collect the revenue from the

29-28    installation and operation of the pay telephones and deposit it to

29-29    the credit of the general revenue fund.

29-30          (c)  The commission or other state entity shall account for

29-31    the revenue collected under this section in the entity's annual

29-32    report.

29-33          Sec. 2170.010.  COST OF NOT USING STATE TELEPHONE SYSTEM.

29-34    Each state agency shall advise agency employees that an employee

29-35    may be held liable for the difference in cost between a

29-36    telecommunications system call that does not use the state's

29-37    consolidated telecommunications system and a call that does unless:

29-38                (1)  the executive head of the agency certifies to the

29-39    comptroller that an emergency existed;

29-40                (2)  the commission determines that the call that did

29-41    not use the state's system is more cost-effective; or

29-42                (3)  the state system is not available at the

29-43    employee's location.

29-44          Sec. 2170.011.  UNLISTED TELEPHONE NUMBERS PROHIBITED.  A

29-45    state agency and its officers and employees may not use

29-46    appropriated money to buy or rent or pay toll charges for a

29-47    telephone for which the telephone number is not listed or available

29-48    from directory assistance to the general public unless the unlisted

29-49    telephone number is used:

29-50                (1)  to provide access to computers, telephone system

29-51    control centers, long-distance networks, elevator control systems,

29-52    and other tone controlled devices for which restricted access to

29-53    the telephone number is justified for security or other purposes;

29-54                (2)  in narcotics undercover operations; or

29-55                (3)  in the detection of illegal sales of securities.

29-56          SECTION 54.  Section 2170.051, Government Code, is amended to

29-57    read as follows:

29-58          Sec. 2170.051.  MANAGEMENT AND USE OF SYSTEM.  (a)  The

29-59    commission shall manage the operation of a system of

29-60    telecommunications services for all state agencies.  Each agency

29-61    shall identify its particular requirements for telecommunications

29-62    services and the site at which the services are to be provided.

29-63          (b)  The commission shall fulfill the telecommunications

29-64    requirements of each state agency to the extent possible and to the

29-65    extent that money is appropriated or available for that purpose.

29-66          (c)  A state agency shall use the consolidated

29-67    telecommunications system to the fullest extent possible.  A state

29-68    agency may not acquire telecommunications services unless the

29-69    commission and the Department of Information Resources determine

 30-1    that the agency's requirement for telecommunications services

 30-2    cannot be met by the consolidated telecommunications system.

 30-3          (d)  A state agency may not enter into or renew a contract

 30-4    with a carrier or other provider of telecommunications services

 30-5    without obtaining a waiver from the commission and the Department

 30-6    of Information Resources certifying that the requested

 30-7    telecommunications services cannot be provided at a reasonable cost

 30-8    on the consolidated telecommunications system.  The commission and

 30-9    the department shall evaluate requests for waivers based on

30-10    cost-effectiveness to the state government as a whole.  A waiver

30-11    may be granted for a specific period and will automatically expire

30-12    on the stated expiration date unless an extension is approved by

30-13    the commission and the department.  A contract for

30-14    telecommunications services obtained under waiver may not extend

30-15    beyond the expiration date of the waiver.

30-16          SECTION 55.  Chapter 2203, Government Code, is amended by

30-17    adding Sections 2203.004 through 2203.006 to read as follows:

30-18          Sec. 2203.004.  PREPARATION AND SALE OF HEARINGS TRANSCRIPTS.

30-19    (a)  Proceeds from the sale of transcripts made by a hearings

30-20    reporter who is a state employee shall be deposited in the state

30-21    treasury if the copies of the transcript are made on state time or

30-22    using state supplies or equipment.

30-23          (b)  A state agency that allows its employees to keep the

30-24    proceeds from the sale of transcripts shall develop procedures to

30-25    assure that neither state equipment nor supplies are used to

30-26    prepare copies of the transcripts.

30-27          Sec. 2203.005.  REQUIREMENT TO USE STATE PROPERTY FOR STATE

30-28    PURPOSES.  State property may be used only for state purposes.  A

30-29    person may not entrust state property to a state officer or

30-30    employee or to any other person if the property is not to be used

30-31    for state purposes.

30-32          Sec. 2203.006.  VENDING MACHINES AUTHORIZED.  (a)  In a

30-33    state-owned or state-leased building or on state-owned or

30-34    state-leased property that is not served by a vendor operating

30-35    under the supervision of the Texas Commission for the Blind, a

30-36    vending machine may be located in the building or on the property

30-37    only with the approval of the governing body of the state agency

30-38    that has charge and control of the building or property.  The

30-39    approval must be recorded in the minutes of a meeting of the

30-40    governing body.

30-41          (b)  The state agency shall file with the General Services

30-42    Commission a copy of all contracts between the state agency and the

30-43    vendor related to the vending machine and a written description of

30-44    the location of the vending machine.

30-45          (c)  All rentals, commissions, or other net revenue the state

30-46    agency receives in connection with the vending machine shall be

30-47    accounted for as state money.  The agency shall account for the

30-48    revenue received under this section in the agency's annual report

30-49    prepared as required by the General Appropriations Act.

30-50          (d)  In a state-owned or state-leased building or on

30-51    state-owned or state-leased property that is served by a vendor

30-52    operating under the supervision of the Texas Commission for the

30-53    Blind, a vending machine may be located and operated in the

30-54    building or on the property only under a joint contract with the

30-55    owners of the vending machine and the vendor operating under the

30-56    supervision of the Texas Commission for the Blind.

30-57          SECTION 56.  Subchapter A, Chapter 2254, Government Code, is

30-58    amended by adding Section 2254.0031 to read as follows:

30-59          Sec. 2254.0031.  INDEMNIFICATION.  A state agency may require

30-60    the contractor to indemnify or hold harmless the state from claims

30-61    and liabilities resulting from the negligent  acts or omissions of

30-62    the contractor or persons employed by the contractor.  A state

30-63    agency may not require a contractor to indemnify or hold harmless

30-64    the state for claims or liabilities resulting from the negligent

30-65    acts or omissions of the agency or its employees.

30-66          SECTION 57.  Subchapter A, Chapter 2254, Government Code, is

30-67    amended by adding Section 2254.006 to read as follows:

30-68          Sec. 2254.006.  CONTRACT NOTIFICATION.  (a)  Not later than

30-69    the 10th day after the date a state agency enters into a contract

 31-1    under this subchapter, the agency shall provide written notice,

 31-2    using a form prescribed by the Legislative Budget Board, to:

 31-3                (1)  the Legislative Budget Board;

 31-4                (2)  the appropriations committee of the house of

 31-5    representatives;

 31-6                (3)  the finance committee of the senate; and

 31-7                (4)  any committees of the house of representatives or

 31-8    the senate that provide oversight for the state agency.

 31-9          (b)  Subsection (a)  applies to any amendment, modification,

31-10    renewal, or extension of any contract subject to this section.

31-11          (c)  Subsections (a) and (b) do not apply to a contract,

31-12    including any amendments, modifications, renewals, or extensions,

31-13    that:

31-14                (1)  has a total value of less than $1,000; or

31-15                (2)  is for medical or optometric services.

31-16          (d)  In this section, "state agency" has the meaning assigned

31-17    by Section 2151.002.

31-18          SECTION 58.  Subchapter B, Chapter 2254, Government Code, is

31-19    amended by adding Section 2254.0301 to read as follows:

31-20          Sec. 2254.0301.  CONTRACT NOTIFICATION.  (a)  Not later than

31-21    the 10th day after the date a state agency enters into a contract

31-22    under this subchapter, the agency shall provide written notice,

31-23    using a form prescribed by the Legislative Budget Board, to:

31-24                (1)  the Legislative Budget Board;

31-25                (2)  the appropriations committee of the house of

31-26    representatives;

31-27                (3)  the finance committee of the senate; and

31-28                (4)  any committees of the house of representatives or

31-29    the senate that provide oversight for the state agency.

31-30          (b)  Subsection (a) applies to any amendment, modification,

31-31    renewal, or extension of any contract subject to this section.

31-32          (c)  Subsections (a) and (b) do not apply to a contract,

31-33    including any amendments, modifications, renewals, or extensions,

31-34    that has a total value of less than $1,000.

31-35          (d)  In this section, "state agency" has the meaning assigned

31-36    by Section 2151.002.

31-37          SECTION 59.  Section 2256.005, Government Code, is amended by

31-38    adding Subsection (n) to read as follows:

31-39          (n)  The investment officer of an investing entity shall

31-40    submit a quarterly investment report to the governing body of the

31-41    investing entity.  For each individual investment as of the date of

31-42    the report, the report must describe:

31-43                (1)  the carrying value;

31-44                (2)  the market value;

31-45                (3)  the maturity date; and

31-46                (4)  the account or fund in the investing entity's

31-47    budget that provided the funding.

31-48          SECTION 60.  Subchapter D, Chapter 11, Natural Resources

31-49    Code, is amended by adding Section 11.0791 to read as follows:

31-50          Sec. 11.0791.  OTHER PROVISIONS REGARDING ACCESS TO STATE

31-51    LANDS.  (a)  When a state governmental entity, including a river

31-52    authority, sells state land, the entity shall require that the

31-53    state have the right of ingress and egress to remaining state land

31-54    in the immediate area by an easement to a public thoroughfare.

31-55          (b)  A state governmental entity, including a river

31-56    authority, may not spend state money, including money passed

31-57    through the entity from another source or bond money guaranteed by

31-58    the state, for any purpose not specifically authorized by statute

31-59    with a person who denies the state access by easement to landlocked

31-60    state properties.

31-61          SECTION 61.  Subchapter D, Chapter 11, Natural Resources

31-62    Code, is amended by adding Section 11.083 to read as follows:

31-63          Sec. 11.083.  RETENTION OF MINERAL RIGHTS.  If it is

31-64    practical to do so, the state shall retain the mineral rights to

31-65    state land that is sold.

31-66          SECTION 62.  Section 34.057, Natural Resources Code, is

31-67    amended by adding Subsections (e) and (f) to read as follows:

31-68          (e)  A board shall include a provision in all mineral leases

31-69    to allow the taking in kind of any royalties due to the state.

 32-1    Before buying oil, gas, coal, lignite, or other natural resources

 32-2    used in the production of energy, the Parks and Wildlife Department

 32-3    and the Texas Department of Criminal Justice shall each use, to the

 32-4    greatest extent practical, resources produced from land it owns to

 32-5    meet its energy requirements.

 32-6          (f)  A board may include a provision in leases providing for

 32-7    placing state meters on all gas wells at the wellhead to monitor

 32-8    the amount of gas taken.

 32-9          SECTION 63.  Subsection (a), Section 21.003, Labor Code, is

32-10    amended to read as follows:

32-11          (a)  The commission may:

32-12                (1)  promote the creation of local commissions on human

32-13    rights by cooperating or contracting with individuals or state,

32-14    local, or other agencies, public or private, including agencies of

32-15    the federal government and of other states;

32-16                (2)  receive, investigate, seek to conciliate, and pass

32-17    on complaints alleging violations of this chapter;

32-18                (3)  file civil actions to effectuate the purposes of

32-19    this chapter;

32-20                (4)  request and, if necessary, compel by subpoena:

32-21                      (A)  the attendance of necessary witnesses for

32-22    examination under oath; and

32-23                      (B)  the production, for inspection and copying,

32-24    of records, documents, and other evidence relevant to the

32-25    investigation of alleged violations of this chapter;

32-26                (5)  furnish technical assistance requested by a person

32-27    subject to this chapter to further compliance with this chapter or

32-28    with a rule or order issued under this chapter;

32-29                (6)  recommend in its annual report legislation or

32-30    other action to carry out the purposes and policies of this

32-31    chapter;

32-32                (7)  adopt procedural rules to carry out the purposes

32-33    and policies of this chapter;

32-34                (8)  provide educational and outreach activities to

32-35    individuals who have historically been victims of employment

32-36    discrimination; [and]

32-37                (9)  require state agencies and public institutions of

32-38    higher education to develop and implement personnel policies that

32-39    comply with this chapter, including personnel selection procedures

32-40    that incorporate a work force diversity program;

32-41                (10)  require state agencies and public institutions or

32-42    systems of higher education to develop and implement narrowly

32-43    tailored hiring policies and procedures as determined by the

32-44    commission that shall be incorporated into a work force diversity

32-45    program until the current effects of past discrimination or

32-46    exclusion in certain classifications of otherwise qualified persons

32-47    have been fully remedied as certified by the commission, provided

32-48    that the commission shall continue to monitor the hiring policies

32-49    and procedures of state agencies or public institutions or systems

32-50    of higher education through annual work force utilization analyses

32-51    as required by Section 21.502 and shall require the implementation

32-52    of narrowly tailored hiring policies and procedures after a finding

32-53    by the commission that discrimination or exclusion in certain

32-54    classifications exists; and

32-55                (11)  adopt rules and guidelines defining the policies,

32-56    procedures, actions, and reporting requirements for the

32-57    implementation of Subdivision (10) and Section 21.502.

32-58          SECTION 64.  Chapter 21, Labor Code, is amended by adding

32-59    Subchapter I to read as follows:

32-60              SUBCHAPTER I.  WORK FORCE UTILIZATION ANALYSES

32-61          Sec. 21.501.  LEGISLATIVE FINDING.  On the basis of the

32-62    annual work force utilization analyses as reported to the

32-63    legislature by the commission pursuant to the General

32-64    Appropriations Act, the legislature finds that due to the current

32-65    effects of past discrimination or exclusion certain classifications

32-66    of otherwise qualified persons have been denied equal employment

32-67    opportunities by certain state agencies and public institutions or

32-68    systems of higher education.

32-69          Sec. 21.502.  REPORTING.  The commission shall conduct annual

 33-1    work force utilization analyses for state agencies and public

 33-2    institutions or systems of higher education and shall report its

 33-3    findings to the legislature at the beginning of each biennium.  Any

 33-4    state agency or public institution or system of higher education

 33-5    that fails to comply with the annual reporting requirements

 33-6    established by the commission shall pay to the commission a penalty

 33-7    not to exceed $2,000 from funds appropriated by the legislature for

 33-8    each reporting period that the state agency or public institution

 33-9    or system of higher education fails to comply.

33-10          SECTION 65.  This Act takes effect September 1, 1997.

33-11          SECTION 66.  The importance of this legislation and the

33-12    crowded condition of the calendars in both houses create an

33-13    emergency and an imperative public necessity that the

33-14    constitutional rule requiring bills to be read on three several

33-15    days in each house be suspended, and this rule is hereby suspended.

33-16                                 * * * * *