By:  Armbrister                                        S.B. No. 645

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to state fiscal matters, including holidays, employee

 1-2     compensation and deductions, reports, consultants, and the

 1-3     comptroller's powers.

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

 1-5           SECTION 1.  Subsection (c), Section 659.083, Government Code,

 1-6     is amended to read as follows:

 1-7           (c)  In this section, "working day" means a day other than

 1-8     Saturday, Sunday, or a national holiday[, or a state holiday] as

 1-9     listed in the General Appropriations Act or Chapter 662.  A day

1-10     does not cease to be a national holiday because a state agency

1-11     maintains or is required to maintain a minimum working staff on the

1-12     holiday.

1-13           SECTION 2.  Subsection (b), Section 465.008, Government Code,

1-14     is amended to read as follows:

1-15           (b)  The commission may enter into a contract with another

1-16     state agency, a political subdivision of the state, including a

1-17     special utility district as defined by Section 65.001, Water Code,

1-18     the United States, or a private agency, college, university,

1-19     corporation, partnership, association, or other person for an

1-20     appropriate purpose in connection with the performance of its

1-21     duties, including a contract, study, investigation, or proposal

1-22     necessary to conduct its duties.  Subchapter B, Chapter 2254,  does

1-23     not apply to use by the commission of a [private] consultant to

 2-1     provide services in connection with formulation or submission of

 2-2     two or more siting proposals under this chapter, except that in

 2-3     selecting the consultant the commission shall give the preference

 2-4     required by Section 2254.027(2) [3(b)(2) of that chapter].

 2-5           SECTION 3.  Section 2254.021, Government Code, is amended to

 2-6     read as follows:

 2-7           Sec. 2254.021.  DEFINITIONS.  In this subchapter:

 2-8                 (1)  "Consulting service" means the service of studying

 2-9     or advising a state agency under a contract that does not involve

2-10     the traditional relationship of employer and employee.

2-11                 (2)  "Major consulting services contract" means a

2-12     consulting services contract for which it is reasonably foreseeable

2-13     that the value of the contract will exceed $10,000.

2-14                 (3)  "Consultant" ["Private consultant"] means a person

2-15     that provides or proposes to provide a consulting service.  The

2-16     term includes a political subdivision but does not include the

2-17     federal government, a state agency, or a state governmental entity.

2-18                 (4)  "Political subdivision" means:

2-19                       (A)  a county;

2-20                       (B)  an incorporated or unincorporated

2-21     municipality;

2-22                       (C)  a public junior college;

2-23                       (D)  a public school district or other

2-24     educational or rehabilitative district;

2-25                       (E)  a metropolitan or regional transit

 3-1     authority;

 3-2                       (F)  an airport authority;

 3-3                       (G)  a river authority or compact;

 3-4                       (H)  a regional planning commission, a council of

 3-5     governments, or a similar regional planning agency created under

 3-6     Chapter 391, Local Government Code;

 3-7                       (I)  the Edwards Aquifer Authority or a district

 3-8     governed by Title 4, Water Code;

 3-9                       (J)  a soil and water conservation district;

3-10                       (K)  a county or municipal improvement district;

3-11                       (L)  a county road or road utility district;

3-12                       (M)  a county housing authority;

3-13                       (N)  an emergency services or communications

3-14     district;

3-15                       (O)  a fire prevention district;

3-16                       (P)  a public health or hospital authority or

3-17     district;

3-18                       (Q)  a mosquito control district;

3-19                       (R)  a special waste district;

3-20                       (S)  a rural rail transportation district; or

3-21                       (T)  any other local government or special

3-22     district of this state.

3-23                 (5)  "State agency" has the meaning assigned by Section

3-24     2151.002 [1.02, State Purchasing and General Services Act (Article

3-25     601b, Vernon's Texas Civil Statutes)].

 4-1                 (6)  "State governmental entity" means a state

 4-2     department, commission, board, office, institution, facility, or

 4-3     other agency the jurisdiction of which is not limited to a

 4-4     geographical portion of the state.  The term includes a university

 4-5     system and an institution of higher education, other than a public

 4-6     junior college, as defined by Section 61.003, Education Code. The

 4-7     term does not include a political subdivision.

 4-8           SECTION 4.  Section 2254.022, Government Code, is amended to

 4-9     read as follows:

4-10           Sec. 2254.022.  INTERPRETATION OF SUBCHAPTER.  (a)  This

4-11     subchapter shall be interpreted to ensure:

4-12                 (1)  the greatest and fairest competition in the

4-13     selection by state agencies of [private] consultants; and

4-14                 (2)  the giving of notice to all potential [private]

4-15     consultants of the need for and opportunity to provide consulting

4-16     services.

4-17           (b)  This subchapter does not:

4-18                 (1)  discourage state agencies from using [private]

4-19     consultants if the agencies reasonably foresee that the use of

4-20     [private] consultants will produce a more efficient and less costly

4-21     operation or project;

4-22                 (2)  prohibit the making of a sole-source contract for

4-23     consulting services if a proposal is not received from a competent,

4-24     knowledgeable, and qualified [private] consultant at a reasonable

4-25     fee, after compliance with this subchapter; or

 5-1                 (3)  require or prohibit the use of competitive bidding

 5-2     procedures to purchase consulting services.

 5-3           SECTION 5.  Subsections (a), (b), and (e), Section 2254.025,

 5-4     Government Code, are amended to read as follows:

 5-5           (a)  The governor, after receipt of a request complying with

 5-6     this section, may grant a limited waiver of the provisions of this

 5-7     subchapter for a state agency that requires [private] consulting

 5-8     services before compliance with this subchapter can be completed

 5-9     because of an unforeseen emergency.

5-10           (b)  A state agency's request for a waiver must include

5-11     information required by the governor, including:

5-12                 (1)  information about the nature of the emergency;

5-13                 (2)  the reason that the state agency did not foresee

5-14     the emergency;

5-15                 (3)  the name of the [private] consultant with whom the

5-16     agency intends to contract; and

5-17                 (4)  the amount of the intended contract.

5-18           (e)  In this section, "unforeseen emergency" means a

5-19     situation that suddenly and unexpectedly causes a state agency to

5-20     need the services of a [private] consultant.  The term includes the

5-21     issuance of a court order, an actual or imminent natural disaster,

5-22     and new state or federal legislation.  An emergency is not

5-23     unforeseen if a state agency was negligent in foreseeing the

5-24     occurrence of the emergency.

5-25           SECTION 6.  Section 2254.026, Government Code, is amended to

 6-1     read as follows:

 6-2           Sec. 2254.026.  CONTRACT WITH [PRIVATE] CONSULTANT.  A state

 6-3     agency may contract with a [private] consultant only if:

 6-4                 (1)  there is a substantial need for the consulting

 6-5     services; and

 6-6                 (2)  the agency cannot adequately perform the services

 6-7     with its own personnel or obtain the consulting services through a

 6-8     contract with a [another] state governmental entity [agency].

 6-9           SECTION 7.  Section 2254.027, Government Code, is amended to

6-10     read as follows:

6-11           Sec. 2254.027.  SELECTION OF [PRIVATE] CONSULTANT.  In

6-12     selecting a [private] consultant, a state agency shall:

6-13                 (1)  base its choice on demonstrated competence,

6-14     knowledge, and qualifications and on the reasonableness of the

6-15     proposed fee for the services; and

6-16                 (2)  if other considerations are equal, give preference

6-17     to a [private] consultant whose principal place of business is in

6-18     the state or who will manage the consulting contract wholly from an

6-19     office in the state.

6-20           SECTION 8.  Subsection (a), Section 2254.028, Government

6-21     Code, is amended to read as follows:

6-22           (a)  Before entering into a major consulting services

6-23     contract, a state agency shall:

6-24                 (1)  notify the Legislative Budget Board and the

6-25     governor's Budget and Planning Office that the agency intends to

 7-1     contract with a [private] consultant;

 7-2                 (2)  give information to the Legislative Budget Board

 7-3     and the governor's Budget and Planning Office to demonstrate that

 7-4     the agency has complied or will comply with Sections 2254.026 and

 7-5     2254.027; and

 7-6                 (3)  obtain a finding of fact from the governor's

 7-7     Budget and Planning Office that the consulting services are

 7-8     necessary.

 7-9           SECTION 9.  Section 2254.029, Government Code, is amended to

7-10     read as follows:

7-11           Sec. 2254.029.  PUBLICATION IN TEXAS REGISTER BEFORE ENTERING

7-12     INTO MAJOR CONSULTING SERVICES CONTRACT.  (a)  Not later than the

7-13     30th day before the date it enters into a major consulting services

7-14     contract, a state agency shall file with the secretary of state for

7-15     publication in the Texas Register:

7-16                 (1)  an invitation for [private] consultants to provide

7-17     offers of consulting services;

7-18                 (2)  the name of the individual who should be contacted

7-19     by a [private] consultant that intends to make an offer;

7-20                 (3)  the closing date for the receipt of offers; and

7-21                 (4)  the procedure by which the state agency will award

7-22     the contract.

7-23           (b)  If the consulting services sought by a state agency

7-24     relate to services previously provided by a [private] consultant,

7-25     the agency shall disclose that fact in the invitation required by

 8-1     Subsection (a).  If the state agency intends to award the contract

 8-2     for the consulting services to a [private] consultant that

 8-3     previously provided the services, unless a better offer is

 8-4     received, the agency shall disclose its intention in the invitation

 8-5     required by Subsection (a).

 8-6           SECTION 10.  Section 2254.030, Government Code, is amended to

 8-7     read as follows:

 8-8           Sec. 2254.030.  PUBLICATION IN TEXAS REGISTER AFTER  ENTERING

 8-9     INTO MAJOR CONSULTING SERVICES CONTRACT.  Not later than the 10th

8-10     day after the date of entering into a major consulting services

8-11     contract, the state agency shall file with the secretary of state

8-12     for publication in the Texas Register:

8-13                 (1)  a description of the activities that the [private]

8-14     consultant will conduct;

8-15                 (2)  the name and business address of the [private]

8-16     consultant;

8-17                 (3)  the total value and the beginning and ending dates

8-18     of the contract; and

8-19                 (4)  the dates on which documents, films, recordings,

8-20     or reports that the [private] consultant is required to present to

8-21     the agency are due.

8-22           SECTION 11.  Subsections (a) and (b), Section 2254.036,

8-23     Government Code, are amended to read as follows:

8-24           (a)  On request, a state agency shall, after the agency's

8-25     contract with a [private] consultant has ended,  supply the

 9-1     Legislative Budget Board and the governor's Budget and Planning

 9-2     Office with copies of all documents, films, recordings, or reports

 9-3     compiled by the consultant under the contract.

 9-4           (b)  Copies of all documents, films, recordings, or reports

 9-5     compiled by the [private] consultant shall be filed with the Texas

 9-6     State Library and shall be retained by the library for at least

 9-7     five years.

 9-8           SECTION 12.  Section 2254.037, Government Code, is amended to

 9-9     read as follows:

9-10           Sec. 2254.037.  REPORTS.  As part of the biennial budgetary

9-11     hearing process conducted by the Legislative Budget Board and the

9-12     governor's Budget and Planning Office, a state agency shall report

9-13     to the Legislative Budget Board and the governor's Budget and

9-14     Planning Office on any actions taken in response to the

9-15     recommendations of any [private] consultant with whom the state

9-16     agency contracts during the previous biennium.

9-17           SECTION 13.  Subchapter B, Chapter 403, Government Code, is

9-18     amended by adding Section 403.026 to read as follows:

9-19           Sec. 403.026.  RULES.  (a)  The comptroller may adopt rules

9-20     to interpret, implement, and administer a state statute if:

9-21                 (1)  the statute specifically authorizes or requires

9-22     the comptroller to interpret, implement, or administer the statute;

9-23     or

9-24                 (2)  the comptroller determines that the rules are

9-25     necessary for fulfillment of the comptroller's constitutional or

 10-1    statutory duties.

 10-2          (b)  Subsection (a) does not apply to a state statute if the

 10-3    statute specifically authorizes the comptroller or a state agency

 10-4    to adopt rules to interpret, implement, and administer the statute.

 10-5          SECTION 14.  Subsection (h), Section 403.071, Government

 10-6    Code, is amended to read as follows:

 10-7          (h)  This subsection applies if the comptroller and a state

 10-8    agency have contracted in accordance with Subsection (g).  The

 10-9    comptroller shall audit claims after payment in the same way that

10-10    the comptroller audits claims before payment under Subsection (a).

10-11    The comptroller may establish requirements and adopt rules

10-12    concerning the time that a state agency must retain documentation

10-13    in its files to enable a postpayment audit.  If a postpayment audit

10-14    by the comptroller shows that a claim presented by a state agency

10-15    was invalid, the comptroller may:

10-16                (1)  implement procedures to ensure that similar

10-17    invalid claims from the state agency are not paid in the future;

10-18                (2)  report to the governor, the lieutenant governor,

10-19    the speaker of the house of representatives, the state auditor, and

10-20    the Legislative Budget Board the results of the audit;

10-21                (3)  require the state agency to obtain a refund of the

10-22    monies from the payee;

10-23                (4)  cancel the contract with the state agency; and

10-24                (5)  reduce the state agency's remaining appropriations

10-25    by the amount of the claim.

 11-1          SECTION 15.  Section 659.062, Government Code, is amended by

 11-2    adding Subsection (e) to read as follows:

 11-3          (e)  The comptroller may establish procedures and adopt rules

 11-4    to administer this section.

 11-5          SECTION 16.  Subchapter G, Chapter 659, Government Code, is

 11-6    amended by adding Section 659.110 to read as follows:

 11-7          Sec. 659.110.  RULES.  The comptroller may establish

 11-8    procedures and adopt rules to administer the credit union deduction

 11-9    program authorized by this subchapter.

11-10          SECTION 17.  Subchapter B, Chapter 661, Government Code, is

11-11    amended by adding Section 661.038 to read as follows:

11-12          Sec. 661.038.  RULES.  The comptroller may establish

11-13    procedures and adopt rules to administer this subchapter.

11-14          SECTION 18.  Subchapter C, Chapter 661, Government Code, is

11-15    amended by adding Section 661.068 to read as follows:

11-16          Sec. 661.068.  RULES.  The comptroller may establish

11-17    procedures and adopt rules to administer this subchapter.

11-18          SECTION 19.  Subchapter D, Chapter 661, Government Code, is

11-19    amended by adding Section 661.094 to read as follows:

11-20          Sec. 661.094.  RULES.  The comptroller may establish

11-21    procedures and adopt rules to administer this subchapter.

11-22          SECTION 20.  Subchapter A, Chapter 662, Government Code, is

11-23    amended by adding Section 662.012 to read as follows:

11-24          Sec. 662.012.  RULES.  The comptroller may establish

11-25    procedures and adopt rules to administer Sections 662.001-662.010.

 12-1          SECTION 21.  Subsection (e), Section 57.48, Education Code,

 12-2    is amended to read as follows:

 12-3          (e)  This section does not prohibit the comptroller from

 12-4    issuing a warrant to pay the compensation of:

 12-5                (1)  a state officer or employee; or

 12-6                (2)  an individual whose compensation is being paid by

 12-7    a private person through a state agency.

 12-8          SECTION 22.  Subdivision (4), Subsection (f), Section 57.48,

 12-9    Education Code, is amended to read as follows:

12-10                (4)  This subsection does not prohibit a state agency

12-11    from paying the compensation of:

12-12                      (A)  a state officer or employee; or

12-13                      (B)  an individual whose compensation is being

12-14    paid by a private person through the agency.

12-15          SECTION 23.  Subsection (c), Section 403.055, Government

12-16    Code, is amended to read as follows:

12-17          (c)  This section does not prohibit the comptroller from

12-18    issuing a warrant to pay the compensation of:

12-19                (1)  a state officer or employee; or

12-20                (2)  an individual whose compensation is being paid by

12-21    a private person through a state agency.

12-22          SECTION 24.  Subdivision (4), Subsection (e), Section

12-23    403.055, Government Code, is amended to read as follows:

12-24                (4)  This subsection does not prohibit a state agency

12-25    from paying the compensation of:

 13-1                      (A)  a state officer or employee; or

 13-2                      (B)  an individual whose compensation is being

 13-3    paid by a private person through the agency.

 13-4          SECTION 25.  Subsection (c), Section 481.0841, Government

 13-5    Code, is amended to read as follows:

 13-6          (c)  This section does not prohibit the comptroller from

 13-7    issuing a warrant or initiating an electronic funds transfer to pay

 13-8    the compensation of:

 13-9                (1)  a state officer or employee; or

13-10                (2)  an individual whose compensation is being paid by

13-11    a private person through a state agency.

13-12          SECTION 26.  Subdivisions (2) and (4), Subsection (d),

13-13    Section 481.0841, Government Code, are amended to read as follows:

13-14                (2)  A state agency may not use funds inside or outside

13-15    the state treasury to pay a user if the [agency knows that the]

13-16    user is in default on a loan guaranteed under this subchapter and

13-17    with respect to which the department has been required to honor a

13-18    guarantee.

13-19                (4)  This subsection does not prohibit a state agency

13-20    from paying the compensation of:

13-21                      (A)  a state officer or employee; or

13-22                      (B)  an individual whose compensation is being

13-23    paid by a private person through the agency.

13-24          SECTION 27.  Section 662.001, Government Code, is amended by

13-25    amending Subdivisions (1) and (3) and adding Subdivision (4) to

 14-1    read as follows:

 14-2                (1)  "Part-time state employee" means a state employee

 14-3    who normally works fewer [less] than 40 hours each week.

 14-4                (3)  "State employee" means an employee of a state

 14-5    agency or an appointed officer of a state agency whose office is

 14-6    not created by the state constitution.  The term includes a

 14-7    part-time, hourly, or temporary state employee.

 14-8                (4)  "Workday" means a day on which a state employee is

 14-9    normally scheduled to work.  The term does not include a national

14-10    or state holiday.

14-11          SECTION 28.  Section 662.005, Government Code, is amended to

14-12    read as follows:

14-13          Sec. 662.005.  ENTITLEMENT TO PAID DAY OFF.  (a)  An

14-14    individual who is a [A] state employee on the last workday before

14-15    or the first workday after a national or state holiday, or on both

14-16    workdays, is entitled, except as provided by Section 662.010, to a

14-17    paid day off from working for a state agency [work] on the [each

14-18    national or state] holiday if:

14-19                (1)  the holiday [that] does not fall on a Saturday  or

14-20    Sunday; and

14-21                (2)  the General Appropriations Act does not prohibit

14-22    state agencies from observing the holiday.

14-23          (b)  In this [This] section, "state employee":

14-24                (1)  includes an individual who uses paid leave from a

14-25    state agency; and

 15-1                (2)  does not include an individual who uses unpaid

 15-2    leave from a state agency [does not apply to a holiday that the

 15-3    General Appropriations Act prohibits state agencies from

 15-4    observing].

 15-5          SECTION 29.  Subsections (a) and (b), Section 662.006,

 15-6    Government Code, are amended to read as follows:

 15-7          (a)  An individual who is a [A] state employee on the last

 15-8    workday before or the first workday after an optional holiday, or

 15-9    on both workdays, is entitled, except as provided by Section

15-10    662.010,  to a paid day off from working for a state agency on the

15-11    [each day of an optional] holiday if:

15-12                (1)  the holiday [that] does not fall on a Saturday or

15-13    Sunday;

15-14                (2)  [if] the employee agrees to give up, during the

15-15    same fiscal year, a state holiday that:

15-16                      (A)  does not fall on a Saturday or Sunday; and

15-17                      (B)  the General Appropriations Act does not

15-18    prohibit state agencies from observing; and

15-19                (3)  the General Appropriations Act does not prohibit

15-20    state agencies from observing the optional holiday.

15-21          (b)  A state employee is entitled to a paid day off from

15-22    working for a state agency on each day of an optional holiday that

15-23    extends for more than one day if the employee:

15-24                (1)  qualifies for the paid day off under Subsection

15-25    (a); and

 16-1                (2)  agrees to give up during the same fiscal year an

 16-2    equivalent number of state holidays that:

 16-3                      (A)  do not fall on a Saturday or Sunday; and

 16-4                      (B)  the General Appropriations Act does not

 16-5    prohibit state agencies from observing.

 16-6          SECTION 30.  Subsection (a), Section 662.007, Government

 16-7    Code, is amended to read as follows:

 16-8          (a)  A state employee who is required to work on a national

 16-9    or state holiday [that does not fall on a Saturday or Sunday] is

16-10    entitled to compensatory time off during the 12 months after the

16-11    holiday if the state employee is entitled to a paid day off from

16-12    working for a state agency on the holiday under Section 662.005.

16-13          SECTION 31.  Section 662.010, Government Code, is amended to

16-14    read as follows:

16-15          Sec. 662.010.  HOLIDAY BEFORE WORK BEGINS OR AFTER WORK ENDS.

16-16    (a)  An individual who is not a [A] state employee [who begins

16-17    working for a state agency] on the last workday before a state or

16-18    national holiday but who is a state employee on the first workday

16-19    after the holiday may not [of a month is entitled to] be paid for

16-20    the [a state or national] holiday [that occurs before the first

16-21    workday] if it [the holiday:]

16-22                [(1)]  occurs during the same month as the last workday

16-23    before the holiday[; and]

16-24                [(2)  does not fall on a Saturday or Sunday].

16-25          (b)  An individual who is a [A] state employee [who stops

 17-1    working for a state agency] on the last workday before a state or

 17-2    national holiday but who is not a state employee on the first

 17-3    workday after the holiday may not [of a month is entitled to] be

 17-4    paid for the [a state or national] holiday [that occurs after the

 17-5    last workday] if it [the holiday:]

 17-6                [(1)]  occurs before the first workday of a month and

 17-7    during that [the] month[; and]

 17-8                [(2)  does not fall on a Saturday or Sunday].

 17-9          (c)  In this section, "state employee":

17-10                (1)  includes an individual who uses paid leave from a

17-11    state agency; and

17-12                (2)  does not include an individual who uses unpaid

17-13    leave from a state agency ["workday" means a day on which a state

17-14    employee is normally scheduled to work].

17-15          SECTION 32.  Subsections (f), (h), and (i), Section 403.0165,

17-16    Government Code, are amended to read as follows:

17-17          (f)  An organization not previously certified may submit an

17-18    application for certification as an eligible state employee

17-19    organization to the comptroller at any time except during the

17-20    period after June 2 and before September 1 [within 90 days prior to

17-21    the beginning of the fiscal year].

17-22          (h)  The comptroller may [shall] charge an administrative fee

17-23    to cover the costs incurred as a result of administering this

17-24    section.  The administrative [Administrative] fees charged by the

17-25    comptroller shall be paid by each qualifying state employee

 18-1    organization on a pro rata basis to be determined by the

 18-2    comptroller.  The comptroller by rule shall determine the most

 18-3    efficient and effective method of collecting the [such

 18-4    administrative] fees.  [The comptroller shall adopt rules for the

 18-5    administration of this section.]

 18-6          (i)  The comptroller may adopt rules for the administration

 18-7    of this section  [shall allocate the administrative fees on a

 18-8    proportional basis to each employing state agency that incurs costs

 18-9    in administering this subsection].

18-10          SECTION 33.  Section 659.041, Government Code, is amended to

18-11    read as follows:

18-12          Sec. 659.041.  DEFINITIONS.  In this subchapter:

18-13                (1)  "Appointment" means a job title.

18-14                (2)  "Full-time state employee" means:

18-15                      (A)  a state employee who works in the executive

18-16    or judicial branch of state government, other than a state

18-17    institution of higher education, and who is normally scheduled to

18-18    work a total of at least 40 hours a week for a single state agency

18-19    [in one position]; [or]

18-20                      (B)  a state employee who works for a state

18-21    institution of higher education and who is normally scheduled to

18-22    work a total of at least 40 hours a week in one position, as

18-23    determined under Section 659.0411; or

18-24                      (C)  a state employee who works in the

18-25    legislative branch of state government and who is normally

 19-1    scheduled to work a total of 40 or more hours a week in all

 19-2    positions held in the legislative branch.

 19-3                (3) [(2)]  "Part-time state employee" means a state

 19-4    employee who is not a full-time state employee.

 19-5                (4) [(3)]  "State employee" means an individual who:

 19-6                      (A)  is covered by Chapter 654;

 19-7                      (B)  holds a line item or exempt position;

 19-8                      (C)  works in a nonacademic position at a state

 19-9    institution of higher education at least 20 hours a week for at

19-10    least 4.5 consecutive months; or

19-11                      (D)  is an hourly employee of the state.

19-12          SECTION 34.  Subchapter D, Chapter 659, Government Code, is

19-13    amended by adding Section 659.0411 to read as follows:

19-14          Sec. 659.0411.  APPOINTMENTS AT STATE INSTITUTIONS OF HIGHER

19-15    EDUCATION.  (a)  A state institution of higher education shall

19-16    determine whether a state employee who has more than one

19-17    appointment with the institution holds only one position or holds

19-18    one position for each appointment.

19-19          (b)  A board of regents shall determine whether a state

19-20    employee who has an appointment with at least two state

19-21    institutions of higher education under the board's jurisdiction

19-22    holds only one position or holds one position for each appointment.

19-23          (c)  A state employee who has an appointment with at least

19-24    two state institutions of higher education holds more than one

19-25    position if those institutions are not governed by the same board

 20-1    of regents.

 20-2          SECTION 35.  Section 659.132, Government Code, is amended to

 20-3    read as follows:

 20-4          Sec. 659.132.  DEDUCTION AUTHORIZED.  (a)  A state employee

 20-5    may authorize a deduction each pay period from the employee's

 20-6    salary or wage payment for a charitable contribution as provided by

 20-7    this subchapter.

 20-8          (b)  Except as provided by Subsections (c), (d), and (e), a

 20-9    state employee may authorize a deduction only during a state

20-10    employee charitable campaign.

20-11          (c)  A state employee who begins working for the state when a

20-12    campaign is not being conducted may authorize a deduction according

20-13    to the comptroller's requirements.

20-14          (d)  A state employee who works for a state agency that does

20-15    not allow deduction authorizations under Subsection (i) may

20-16    authorize a deduction that is effective with the first full payroll

20-17    period after the agency is converted to a system in which uniform

20-18    statewide payroll procedures are followed.

20-19          (e)  A state employee who works for a state agency that does

20-20    not allow deduction authorizations under Subsection (i) may

20-21    authorize a deduction after transferring from that agency to:

20-22                (1)  a state agency that allows deduction

20-23    authorizations even though it may prohibit them under Subsection

20-24    (i); or

20-25                (2)  a state agency not covered by Subsection (i).

 21-1          (f)  A state employee who authorized a deduction while

 21-2    working for a state agency may continue the deduction after

 21-3    transferring to another state agency if the comptroller's rules for

 21-4    continuing the deduction are followed.

 21-5          (g)  An authorization must direct the comptroller to

 21-6    distribute the deducted funds to a participating federation or fund

 21-7    and a local campaign manager as prescribed by rule.

 21-8          (h) [(c)]  A deduction under this subchapter must be in the

 21-9    form prescribed by the comptroller.

21-10          (i) [(d)]  A state agency other than an institution of higher

21-11    education is not required to permit an employee to authorize a

21-12    deduction under this subchapter until the first full payroll period

21-13    after the agency converts to a system in which uniform statewide

21-14    payroll procedures are followed.

21-15          (j) [(e)]  The comptroller by rule may establish a reasonable

21-16    minimum deduction for each pay period.

21-17          SECTION 36.  Subsections (a) and (c), Section 659.136,

21-18    Government Code, are amended to read as follows:

21-19          (a)  A state employee may revoke or change an authorization

21-20    by giving notice to the employing state agency.  A state employee

21-21    may not change the eligible charitable organization designated to

21-22    receive the employee's deductions.

21-23          (c)  A revocation or change takes effect on the date

21-24    designated [when it is approved] by the comptroller by rule.

21-25          SECTION 37.  Section 659.137, Government Code, is amended to

 22-1    read as follows:

 22-2          Sec. 659.137.  DURATION OF DEDUCTION.  (a)  A deduction under

 22-3    this subchapter begins on the date designated by the comptroller by

 22-4    rule.

 22-5          (b)  A deduction [by a state employee] under this subchapter

 22-6    is effective for a maximum of one campaign year and, unless revoked

 22-7    or changed under Section 659.136, ends on[:]

 22-8                [(1)  the first anniversary of] the date designated by

 22-9    the comptroller by rule [it begins; or]

22-10                [(2)  the effective date of a revocation of or change

22-11    in the authorization by the employee].

22-12          SECTION 38.  Subsection (d), Section 659.148, Government

22-13    Code, is amended to read as follows:

22-14          (d)  Except as provided by this subsection, the [The]

22-15    comptroller shall charge an administrative fee to cover costs

22-16    incurred by the comptroller and employing state agencies in the

22-17    implementation of this subchapter to the charitable organizations

22-18    participating in the first state employee charitable campaign

22-19    conducted under this subchapter in the same proportion that the

22-20    contributions to that charitable organization bear to the total of

22-21    contributions in that campaign.  Except as provided by this

22-22    subsection, the [The] comptroller shall charge an administrative

22-23    fee to cover costs incurred by the comptroller and employing state

22-24    agencies in the administration of this subchapter to the charitable

22-25    organizations in each subsequent state employee charitable campaign

 23-1    in the same proportion that the contributions to that charitable

 23-2    organization bear to the total of contributions in that campaign.

 23-3    The comptroller may decline to charge an administrative fee if the

 23-4    comptroller determines the costs that would be covered by the fee

 23-5    are insignificant.  The comptroller shall determine the most

 23-6    efficient and effective method of collecting the administrative fee

 23-7    and shall adopt rules for the implementation of this section.

 23-8          SECTION 39.  Section 659.109, Government Code, is amended to

 23-9    read as follows:

23-10          Sec. 659.109.  ALLOCATION [AND APPROPRIATION] OF

23-11    ADMINISTRATIVE FEES. [(a)]  The state shall allocate and pay to

23-12    each state agency that incurs costs in administering this

23-13    subchapter the agency's proportional amount of the administrative

23-14    fees collected by the state under this subchapter.

23-15          [(b)  An administrative fee withheld under this subchapter

23-16    may be used, without further appropriation, by the comptroller and

23-17    the state agencies incurring costs in administering this

23-18    subchapter.]

23-19          SECTION 40.  Subsection (a), Section 659.146, Government

23-20    Code, is amended to read as follows:

23-21          (a)  To be eligible to participate in a state employee

23-22    charitable campaign, a charitable organization must:

23-23                (1)  be governed by a voluntary board of citizens that

23-24    meets at least twice each year to set policy and manage the affairs

23-25    of the organization;

 24-1                (2)  if the organization's annual budget:

 24-2                      (A)  does not exceed [is less than] $100,000,

 24-3    provide a completed Internal Revenue Service Form 990 and an

 24-4    accountant's review that offers full and open disclosure of the

 24-5    organization's internal operations; or

 24-6                      (B)  exceeds [is equal to or more than] $100,000,

 24-7    be audited annually in accordance with generally accepted auditing

 24-8    standards of the American Institute of Certified Public

 24-9    Accountants; and

24-10                (3)  not spend more than 25 percent of its annual

24-11    revenue for administrative and fund-raising expenses.

24-12          SECTION 41.  Subdivisions (1) and (3), Section 661.061,

24-13    Government Code, are amended to read as follows:

24-14                (1)  "National holiday" includes only those days listed

24-15    under Section 662.003(a).  The term does not include a national

24-16    holiday on which a state employee is not entitled to a paid day off

24-17    from work under Section 662.005.

24-18                (3)  "State holiday" includes only those days listed

24-19    under Section 662.003(b).  The term does not include a state

24-20    holiday on which a state employee is not entitled to a paid day off

24-21    from work under Section 662.005.

24-22          SECTION 42.  Subsection (b), Section 661.062, Government

24-23    Code, is amended to read as follows:

24-24          (b)  A separation from state employment includes a separation

24-25    in which the employee:

 25-1                (1)  leaves one state agency to begin working for

 25-2    another state agency, if one or more workdays occur between the two

 25-3    employments;

 25-4                (2)  moves from a position in a state agency that

 25-5    accrues vacation time to a position in that agency that does not

 25-6    accrue vacation time, if the agency agrees to pay the employee for

 25-7    the accrued balance of the employee's vacation time;

 25-8                (3)  moves from a position in a state agency that

 25-9    accrues vacation time to a position in another state agency that

25-10    does not accrue vacation time, if the other state agency refuses to

25-11    credit the employee for the balance of the employee's vacation time

25-12    as of the date of the move; [or]

25-13                (4)  moves from a position in a state agency that does

25-14    not accrue vacation time to a position in another state agency that

25-15    does not accrue vacation time, if the other state agency is not

25-16    authorized or refuses to credit the employee for the balance of the

25-17    employee's vacation time as of the date of the move; or

25-18                (5)  holds two or more positions, and separates from

25-19    one that accrues vacation time.

25-20          SECTION 43.  Section 661.063, Government Code, is amended to

25-21    read as follows:

25-22          Sec. 661.063.  COMPUTATION OF PAYMENT.  (a)  Except as

25-23    provided by Subsection (b), the [The] payment to a state employee

25-24    under this subchapter shall be computed by multiplying the

25-25    employee's rate of compensation on the date of separation from

 26-1    state employment by the total number of hours of vacation time

 26-2    determined under Section 661.064.

 26-3          (b)  The payment under this subchapter to a state employee

 26-4    who separates from state employment while holding a position that

 26-5    does not accrue vacation time shall be computed according to this

 26-6    subsection.  The employee's final rate of compensation in the last

 26-7    position held that accrues vacation time shall be multiplied by the

 26-8    employee's total number of hours of vacation time determined under

 26-9    Section 661.064.

26-10          (c)  Under this section, rate of compensation:

26-11                (1)  includes an emolument in lieu of base pay for

26-12    which the state employee was eligible [on the last day of

26-13    employment]; and

26-14                (2)  does not include longevity or hazardous duty pay.

26-15          SECTION 44.  Section 661.064, Government Code, is amended by

26-16    amending Subsection (a) and adding Subsection (c) to read as

26-17    follows:

26-18          (a)  This subsection applies except as provided by Subsection

26-19    (c).  For a state employee who on the date of separation is

26-20    normally scheduled to work at least 40 hours a week, eight hours

26-21    are to be added to the employee's accrued vacation time for each

26-22    state or national holiday that is scheduled to fall within the

26-23    period after the date of separation and during which the employee

26-24    could have used the time.  To determine the period during which

26-25    vacation time could have been used and the number of state or

 27-1    national holidays, the employee's vacation time is allocated over

 27-2    the workdays after the employee's separation and eight hours are

 27-3    added as a state or national holiday occurs during the period.

 27-4          (c)  For a state employee who is paid under this subchapter

 27-5    because the separation from state employment involves a move to a

 27-6    position in a state agency that does not accrue vacation time, no

 27-7    hours may be added to the employee's accrued vacation time for a

 27-8    state or national holiday which is scheduled to fall within the

 27-9    period after the date of separation and during which the employee

27-10    could have used the time.

27-11          SECTION 45.  Subchapter A, Chapter 662, Government Code, is

27-12    amended by adding Section 662.0071 to read as follows:

27-13          Sec. 662.0071.  TRANSFERS OF COMPENSATORY TIME BALANCES.

27-14    (a)  A state agency shall accept the balance of compensatory time

27-15    accrued under Section 662.007 by a state employee who transfers to

27-16    that agency from another state agency if the employee transfers as

27-17    a direct result of:

27-18                (1)  the legislature's transfer of legal authority or

27-19    duties from the agency that formerly employed the employee to the

27-20    agency that currently employs the employee; or

27-21                (2)  a requirement of the State Council on Competitive

27-22    Government for the agency that formerly employed the employee to

27-23    bid a commercially available service that the agency previously

27-24    performed.

27-25          (b)  Subsection (a) does not apply if the transferring state

 28-1    employee is required to apply for the new position.

 28-2          (c)  In this section, "bid" means any process developed by

 28-3    the State Council on Competitive Government to provide a

 28-4    commercially available service in competition with private

 28-5    commercial sources or state agency providers.

 28-6          SECTION 46.  Subsection (f), Section 403.016, Government

 28-7    Code, is amended to read as follows:

 28-8          (f)(1)  Except as provided by Subdivision (2) and subject to

 28-9    any limitation in rules adopted by the comptroller, an automated

28-10    clearinghouse, or the federal government [Subsection (e)], the

28-11    comptroller may use the electronic funds transfer system to deposit

28-12    payments only to one or more accounts of a payee [payee's account]

28-13    at one or more [a] financial institutions [institution].

28-14                (2)  The comptroller may use the electronic funds

28-15    transfer system to deposit a portion of an employee's net state

28-16    salary to the employee's account at a credit union if:

28-17                      (A)  the amount of the salary deposited to that

28-18    account exceeds the amount of salary deposited in any other account

28-19    of the employee at another type of financial institution; or

28-20                      (B)  the requirements concerning deductions for

28-21    payments to credit unions prescribed by Subchapter G, Chapter 659,

28-22    and by the rules adopted by the comptroller under that subchapter

28-23    are satisfied.

28-24                (3)  A single electronic funds transfer may contain

28-25    payments to multiple payees.  Individual transfers or warrants are

 29-1    not required for each payee.

 29-2          SECTION 47.  Subsection (c), Section 403.248, Government

 29-3    Code, is amended to read as follows:

 29-4          (c)  In this section, "final accounting" means a

 29-5    reimbursement from or additional payment to a state officer or

 29-6    employee so that the net amount received by the officer or employee

 29-7    [advanced from a petty cash account] equals the actual travel

 29-8    expenses incurred by the officer or employee.

 29-9          SECTION 48.  Section 5, Texas Employees Uniform Group

29-10    Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance

29-11    Code), is amended by adding Subsection (k) to read as follows:

29-12          (k)  If the trustee establishes a group coverage plan that

29-13    protects against the long-term or short-term loss of salary, the

29-14    trustee may use an employee's annual salary in the calculation of

29-15    the amount of the employee's premium or coverage, or both, under

29-16    the plan.  For purposes of this subsection, an employee's annual

29-17    salary includes the benefit replacement pay the employee would be

29-18    earning annually under Subchapter H, Chapter 659, Government Code,

29-19    as added by Chapter 417, Acts of the 74th Legislature, 1995, if

29-20    Section 659.121(1), Government Code, defined "compensation" to

29-21    include only base salary or wages, longevity pay, hazardous duty

29-22    pay, and night differential pay.

29-23          SECTION 49.  Section 11, Texas Employees Uniform Group

29-24    Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance

29-25    Code), is amended by amending Subsection (c) and adding Subsection

 30-1    (d) to read as follows:

 30-2          (c)  Except as provided by Subsection (d), the [The] trustee

 30-3    shall prescribe regulations providing for the conversion of other

 30-4    than annual rates of pay, and specify the types of pay included in

 30-5    annual pay and all other matters necessary to implement this

 30-6    section.

 30-7          (d)  For the purpose of determining the amount of an

 30-8    employee's optional term life insurance coverage, an employee's

 30-9    annual salary includes the benefit replacement pay the employee

30-10    would be earning annually under Subchapter H, Chapter 659,

30-11    Government Code, as added by Chapter 417, Acts of the 74th

30-12    Legislature, 1995, if Section 659.121(1), Government Code, defined

30-13    "compensation" to include only base salary or wages, longevity pay,

30-14    hazardous duty pay, and night differential pay.

30-15          SECTION 50.  Subdivision (7), Section 811.001, Government

30-16    Code, is amended to read as follows:

30-17                (7)  "Compensation" means the base salary of a person;

30-18    [, including] amounts that would otherwise qualify as compensation

30-19    but are not received directly by a [the] person pursuant to a good

30-20    faith, voluntary, written salary reduction agreement in order to

30-21    finance payments to a deferred compensation or tax sheltered

30-22    annuity program specifically authorized by state law or to finance

30-23    benefit options under a cafeteria plan qualifying under Section 125

30-24    of the Internal Revenue Code of 1986 (26 U.S.C. Section 125);[,

30-25    plus] longevity and hazardous duty pay; [and includes] nonmonetary

 31-1    compensation, the value of which is determined by the retirement

 31-2    system; [, and] amounts by which a [the] person's salary is reduced

 31-3    under a salary reduction agreement authorized by Chapter 610; and

 31-4    the benefit replacement pay a person earns under Subchapter H,

 31-5    Chapter 659, as added by Chapter 417, Acts of the 74th Legislature,

 31-6    1995, except for the benefit replacement pay a person earns as a

 31-7    result of a payment made under Subchapter B, C, or D, Chapter 661.

 31-8    The term[, but] excludes overtime pay.

 31-9          SECTION 51.  Subsections (b) and (c), Section 822.201,

31-10    Government Code, are amended to read as follows:

31-11          (b)  "Salary and wages" as used in Subsection (a) means:

31-12                (1)  normal periodic payments of money for service the

31-13    right to which accrues on a regular basis in proportion to the

31-14    service performed;

31-15                (2)  amounts by which the member's salary is reduced

31-16    under a salary reduction agreement authorized by Chapter 610; [and]

31-17                (3)  amounts that would otherwise qualify as salary and

31-18    wages under Subdivision (1) but are not received directly by the

31-19    member pursuant to a good faith, voluntary written salary reduction

31-20    agreement in order to finance payments to a deferred compensation

31-21    or tax sheltered annuity program specifically authorized by state

31-22    law or to finance benefit options under a cafeteria plan qualifying

31-23    under Section 125 of the Internal Revenue Code of 1986 (26 U.S.C.

31-24    Section 125), if:

31-25                      (A)  the program or benefit options are made

 32-1    available to all employees of the employer; and

 32-2                      (B)  the benefit options in the cafeteria plan

 32-3    are limited to one or more options that provide deferred

 32-4    compensation, group health and disability insurance, group term

 32-5    life insurance, dependent care assistance programs, or group legal

 32-6    services plans; and

 32-7                (4)  the benefit replacement pay a person earns under

 32-8    Subchapter H, Chapter 659, as added by Chapter 417, Acts of the

 32-9    74th Legislature, 1995, except as provided by Subsection (c).

32-10          (c)  Excluded from salary and wages are expense payments,

32-11    allowances, payments for unused vacation or sick leave, maintenance

32-12    or other nonmonetary compensation, fringe benefits, deferred

32-13    compensation other than as provided by Subsection (b)(3),

32-14    compensation that is not made pursuant to a valid employment

32-15    agreement, payments received in the 1995-1996 or a subsequent

32-16    school year for teaching a driver education and traffic safety

32-17    course, the benefit replacement pay a person earns as a result of a

32-18    payment made under Subchapter B or C, Chapter 661, and any

32-19    compensation not described in Subsection (b).

32-20          SECTION 52.  Subsection (a), Section 47.09, Penal Code, is

32-21    amended to read as follows:

32-22          (a)  It is a defense to prosecution under this chapter that

32-23    the conduct:

32-24                (1)  was authorized under:

32-25                      (A)  the Bingo Enabling Act (Article 179d,

 33-1    Vernon's Texas Civil Statutes);

 33-2                      (B)  the Texas Racing Act (Article 179e, Vernon's

 33-3    Texas Civil Statutes); or

 33-4                      (C)  the Charitable Raffle Enabling Act (Article

 33-5    179f, Revised Statutes);

 33-6                (2)  consisted entirely of participation in the state

 33-7    lottery authorized by Chapter 466, Government Code; or

 33-8                (3)  was a necessary incident to the operation of the

 33-9    state lottery and was directly or indirectly authorized by:

33-10                      (A)  Chapter 466, Government Code;

33-11                      (B)  the lottery division of the Texas Lottery

33-12    Commission [comptroller's office];

33-13                      (C)  the Texas Lottery Commission [comptroller];

33-14    or

33-15                      (D)  the director of the lottery division of the

33-16    Texas Lottery Commission.

33-17          SECTION 53.  Subsection (a), Section 2054.007, Government

33-18    Code, is amended to read as follows:

33-19          (a)  The lottery division of the Texas Lottery Commission [in

33-20    the office of the comptroller is not included in the agency

33-21    strategic plan or biennial operating plan of the comptroller.  The

33-22    lottery division] is not subject to the planning and procurement

33-23    requirements of this chapter.

33-24          SECTION 54.  Section 2103.003, Government Code, is amended to

33-25    read as follows:

 34-1          Sec. 2103.003.  STATE AGENCY SPENDING OF APPROPRIATED FUNDS.

 34-2    A state agency may spend appropriated funds only by:

 34-3                (1)  a warrant drawn by:

 34-4                      (A)  the comptroller; or

 34-5                      (B)  a state agency to which the comptroller has

 34-6    delegated authority to print warrants under Section 403.060; or

 34-7                (2)  an electronic funds transfer initiated by [from]

 34-8    the comptroller.

 34-9          SECTION 55.  Subchapter A, Chapter 2103, Government Code, is

34-10    amended by adding Section 2103.0035 to read as follows:

34-11          Sec. 2103.0035.  STATE AGENCY SPENDING OF UNAPPROPRIATED

34-12    FUNDS.  (a)  A state agency may spend unappropriated funds only by:

34-13                (1)  a warrant drawn by:

34-14                      (A)  the comptroller; or

34-15                      (B)  a state agency to which the comptroller has

34-16    delegated authority to print warrants under Section 403.060; or

34-17                (2)  an electronic funds transfer initiated by the

34-18    comptroller.

34-19          (b)  Subsection (a) applies only to funds that Section

34-20    404.046 or 404.069 or other law requires to be spent on warrants

34-21    drawn or electronic funds transfers initiated by the comptroller.

34-22          SECTION 56.  Section 2103.004, Government Code, is amended to

34-23    read as follows:

34-24          Sec. 2103.004.  WARRANTS AND ELECTRONIC FUNDS TRANSFERS

34-25    [WARRANT DRAWN BY COMPTROLLER].  A [The comptroller may not draw a]

 35-1    warrant may not be drawn or an electronic funds transfer initiated

 35-2    until:

 35-3                (1)  the state agency from whose appropriated or

 35-4    unappropriated funds [appropriation] the warrant or electronic

 35-5    funds transfer is payable has submitted a voucher to the

 35-6    comptroller;

 35-7                (2)  the state agency has approved the voucher in

 35-8    accordance with this chapter; and

 35-9                (3)  the comptroller has audited and approved the

35-10    voucher as required by law.

35-11          SECTION 57.  Section 2151.002, Government Code, is amended to

35-12    read as follows:

35-13          Sec. 2151.002.  DEFINITIONS.  Except as otherwise provided by

35-14    [In] this subtitle:

35-15                (1)  "Commission" means the General Services

35-16    Commission.

35-17                (2)  "State agency" means:

35-18                      (A)  a department, commission, board, office, or

35-19    other agency in the executive branch of state government created by

35-20    the state constitution or a state statute[, except the Texas

35-21    High-Speed Rail Authority];

35-22                      (B)  the supreme court, the court of criminal

35-23    appeals, a court of appeals, or the Texas Judicial Council; or

35-24                      (C)  a university system or an institution of

35-25    higher education as defined by Section 61.003, Education Code,

 36-1    except a public junior college.

 36-2          SECTION 58.  Section 2155.001, Government Code, is amended to

 36-3    read as follows:

 36-4          Sec. 2155.001.  DEFINITIONS.  Except as otherwise provided by

 36-5    [In] this chapter and Chapters 2156, 2157, and 2158:

 36-6                (1)  "Goods" means supplies, materials, or equipment.

 36-7                (2)  "Service" means the furnishing of skilled or

 36-8    unskilled labor or professional work, but does not include a:

 36-9                      (A)  professional service subject to Subchapter

36-10    A, Chapter 2254;

36-11                      (B)  service of a state agency employee;

36-12                      (C)  consulting service or service of a [private]

36-13    consultant as defined by Subchapter B, Chapter 2254; or

36-14                      (D)  service of a public utility.

36-15          SECTION 59.  Section 2155.321, Government Code, is amended by

36-16    adding Subdivisions (3) and (4) to read as follows:

36-17                (3)  "Service" means the furnishing of skilled or

36-18    unskilled labor or professional work but does not include the

36-19    service of a state agency employee.

36-20                (4)  "State agency" has the meaning assigned by Section

36-21    2103.001.

36-22          SECTION 60.  Subsection (b), Section 2155.322, Government

36-23    Code, is amended to read as follows:

36-24          (b)  If state law requires that a payment for the goods or

36-25    services be made on a warrant drawn or an electronic funds transfer

 37-1    initiated by the comptroller or a state agency with delegated

 37-2    authority under Section 403.060, promptly [Promptly] after the

 37-3    later of the receipt of the invoice or the receipt of the goods or

 37-4    services, the agency shall send to the comptroller the

 37-5    certification, together with the financial information and purchase

 37-6    information provided by the invoice and purchase voucher, on a form

 37-7    or in the manner agreed to by the comptroller and the commission.

 37-8          SECTION 61.  Subsection (c), Section 2155.325, Government

 37-9    Code, is amended to read as follows:

37-10          (c)  For purchases audited after a warrant is issued, the

37-11    comptroller shall send the certification and purchase information

37-12    received by the comptroller under Section 2155.322(b) to the

37-13    commission under commission rules.

37-14          SECTION 62.  Section 2101.011, Government Code, is amended to

37-15    read as follows:

37-16          Sec. 2101.011.  FINANCIAL INFORMATION REQUIRED OF STATE

37-17    AGENCIES [("100-DAY REPORTS")].  (a)  A state agency as defined by

37-18    Section 403.013 shall submit the financial information requested by

37-19    the comptroller and such other information requested by the

37-20    legislature in the General Appropriations Act, including

37-21    information about state funds held outside the state treasury, to:

37-22                (1)  the governor;

37-23                (2)  the comptroller;

37-24                (3)  the Legislative Reference Library [state

37-25    treasurer];

 38-1                (4)  the state auditor; and

 38-2                (5)  the Legislative Budget Board.

 38-3          (b)  A state agency [other than a university system or

 38-4    institution of higher education, as defined by Section 61.003,

 38-5    Education Code,] shall submit the information to the listed

 38-6    officials by the date or dates provided in the General

 38-7    Appropriations Act [not later than December 9 of each year.  A

 38-8    university system or institution of higher education shall submit

 38-9    the information to the listed officials not later than the

38-10    following January 1].

38-11          (c)  The comptroller may require the reporting of the

38-12    financial information for any entity that the comptroller

38-13    determines is a component unit of a statewide reporting entity in

38-14    accordance with generally accepted accounting principles as

38-15    prescribed or modified by the Governmental Accounting Standards

38-16    Board or its successors. [A state agency is not required to submit

38-17    the information if the comptroller determines the agency is not a

38-18    component unit of state government for purposes of this

38-19    subchapter.]

38-20          SECTION 63.  Subsection (a), Section 466.017, Government

38-21    Code, is amended to read as follows:

38-22          (a)  The executive director shall provide for a certified

38-23    public accountant to conduct an independent audit for each fiscal

38-24    year of all accounts and transactions of the lottery.  The

38-25    certified public accountant may not have, as determined by the

 39-1    executive director, a significant financial interest in a sales

 39-2    agent, lottery vendor, or lottery operator.  The certified public

 39-3    accountant shall present an audit report to the executive director,

 39-4    the commission, the governor, the comptroller, and the legislature

 39-5    not later than the 30th day after the submission date for the

 39-6    annual financial report required by the General Appropriations Act

 39-7    [April 1 of the year following the fiscal year for which the audit

 39-8    was performed].  The report must contain recommendations to enhance

 39-9    the earnings capability of the lottery and improve the efficiency

39-10    of lottery operations.  The state auditor may review the results of

39-11    and working papers related to the audit.

39-12          SECTION 64.  Subsection (a), Section 2306.074, Government

39-13    Code, is amended to read as follows:

39-14          (a)  The state auditor or a certified public accountant shall

39-15    audit the department's books and accounts each fiscal year and file

39-16    a copy of the audit with the governor, the comptroller, and the

39-17    legislature not later than the 30th day after the submission date

39-18    for the annual financial report as required by the General

39-19    Appropriations Act [on or before March 1 of each year].  If the

39-20    state auditor is conducting the audit and it is not available by

39-21    the 30th day after the submission date as required by the General

39-22    Appropriations Act for annual financial reporting [March 1], it

39-23    must be filed as soon as it is available.

39-24          SECTION 65.  Subsection (a), Section 17, Article 5.76-3,

39-25    Insurance Code, is amended to read as follows:

 40-1          (a)  The [Not later than March 1 of each subsequent year,

 40-2    the] board shall publish an independently audited [a] report

 40-3    analyzing the fund's activities and fiscal condition during the

 40-4    preceding fiscal year and shall file the report with the Texas

 40-5    Department of Insurance.  The board shall file the audited report

 40-6    with the Texas Department of Insurance for inclusion in its [have

 40-7    an independent audit made of the] annual financial report.  The

 40-8    annual financial report shall be submitted by the Texas Department

 40-9    of Insurance by the date provided for in the General Appropriations

40-10    Act.

40-11          SECTION 66.  Subsections (a) through (d), Section 403.021,

40-12    Government Code, are amended to read as follows:

40-13          (a)  A state agency that expends appropriated funds shall

40-14    report into the uniform statewide accounting system all payables

40-15    and [submit a] binding encumbrances for the first three quarters of

40-16    the current appropriation year within 30 days after the close of

40-17    each quarter [encumbrance report to the comptroller and the state

40-18    auditor no later than October 30 of each year].  Binding

40-19    encumbrances for all appropriation years shall be reported annually

40-20    not later than September 30 of each fiscal year.

40-21          (b)  Payables and binding encumbrances must be reported for

40-22    all appropriations [The report must indicate the unencumbered

40-23    balance, if any, of each nonconstruction appropriation for the

40-24    preceding fiscal year.  The report must be made] in the format that

40-25    the comptroller prescribes.  [The comptroller may reject a report

 41-1    if it does not contain sufficient information or comply with the

 41-2    comptroller's prescribed format.]

 41-3          (c)  On October 1 [31] of each fiscal year, the comptroller

 41-4    shall lapse all unencumbered nonconstruction appropriation balances

 41-5    for all prior appropriation years based on the payables and binding

 41-6    encumbrances reported [information in the binding encumbrance

 41-7    reports].

 41-8          (d)  If an agency submits a valid claim against a prior

 41-9    year's appropriation 30 days or more after the reporting due date

41-10    [has not submitted a report by October 31, the comptroller shall

41-11    lapse the unexpended balance of the agency's appropriations.  If

41-12    the agency subsequently submits a report], the comptroller may

41-13    [shall] reinstate the agency's appropriations to the extent of the

41-14    claim [they were encumbered but unexpended].

41-15          SECTION 67.  Section 403.031, Government Code, is amended by

41-16    adding Subsection (c) to read as follows:

41-17          (c)  The comptroller, in consultation with the state auditor

41-18    and the attorney general, may develop standards and criteria to

41-19    account for or to reclassify receivables determined to be

41-20    uncollectible.  The standards and criteria developed by the

41-21    comptroller must comply with generally accepted accounting

41-22    principles as prescribed or modified by the Governmental Accounting

41-23    Standards Board or its successors and must provide proper

41-24    accounting controls to protect state finances.  The state auditor

41-25    and the attorney general shall review and approve the standards and

 42-1    criteria for classification of receivables.  Receivables may be

 42-2    reclassified as collectible or uncollectible according to the

 42-3    process approved by the state auditor or on a case-by-case basis as

 42-4    determined or approved by that office.  The classification of

 42-5    receivables as uncollectible under this subsection does not

 42-6    constitute forgiveness of the debt, and any person indebted to the

 42-7    state remains subject to Section 403.055.

 42-8          SECTION 68.  Section 183.023, Tax Code, is amended to read as

 42-9    follows:

42-10          Sec. 183.023.  PAYMENT.  The tax due for the preceding month

42-11    shall accompany the return and shall be payable to the state.  The

42-12    comptroller shall deposit the revenue in the general revenue [mixed

42-13    beverage tax clearance] fund.

42-14          SECTION 69.  Subsection (d), Section 74.006, Human Resources

42-15    Code, is amended to read as follows:

42-16          (d)  Money in the trust fund may be invested and shall be

42-17    accounted for separately from other funds in the treasury.  The

42-18    council may direct the investment of funds consistent with the

42-19    comptroller's authority to invest funds under Section 404.024,

42-20    Government Code.  After the deduction of investment related

42-21    expenses, net income and interest [Interest] earned on money in the

42-22    trust fund shall be deposited to the credit of the trust fund.

42-23          SECTION 70.  Subsection (b), Section 403.003, Government

42-24    Code, is amended to read as follows:

42-25          (b)  The chief clerk shall take the official oath and give

 43-1    bond in the amount of $70,000 [$10,000], payable in the same manner

 43-2    as the comptroller's bond, and conditioned on the faithful

 43-3    performance of the duties of the office.

 43-4          SECTION 71.  Section 14, Texas State College and University

 43-5    Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's

 43-6    Texas Insurance Code), is amended to read as follows:

 43-7          Sec. 14.  ADMINISTRATIVE COSTS.  No employee covered under

 43-8    the provisions of this Act shall be required to pay out of the

 43-9    amount of employer contributions due him or out of the amount of

43-10    his additional premiums due for selected coverages the expenses of

43-11    the committees established in this Act; however, expenses for the

43-12    administration of the self-insured plan as provided in Section 4(d)

43-13    of this Act may come from the contributions of employees and the

43-14    state after payments for any coverages provided for under this Act

43-15    have been made[, any administrative costs, fees, or tax whatsoever

43-16    to pay expenses of a state institution or committees as herein

43-17    established for administering this Act].  The duties of each member

43-18    of the advisory committees shall be considered additional duties to

43-19    those required of his other state office or employment, and all

43-20    expenses incurred by any such member in performing his duties as a

43-21    member of the committee shall be paid out of funds made available

43-22    for those purposes to the institution of which the member is an

43-23    employee or officer.

43-24          SECTION 72.  Subchapter A, Chapter 403, Government Code, is

43-25    amended by adding Section 403.008 to read as follows:

 44-1          Sec. 403.008.  BONDS AND EMPLOYEES.  (a)  In addition to

 44-2    other bonds required by this chapter, the comptroller shall give

 44-3    any special bond required by an Act of Congress or a federal

 44-4    department or official to protect federal funds deposited with the

 44-5    comptroller.  The state shall pay the expenses necessary and

 44-6    incidental to the execution of the bond.

 44-7          (b)  The comptroller shall appoint other employees that are

 44-8    authorized by law.  Employees who as part of their duties handle

 44-9    money, drafts, checks, bills of exchange, warrants, securities, or

44-10    other evidences of debt that are or may be convertible into money,

44-11    or other valuable property shall execute a bond that is issued by a

44-12    good and solvent surety company authorized to do business in this

44-13    state, payable to the comptroller in the sum that the comptroller

44-14    requires, and conditioned on the faithful performance of the duties

44-15    of the employee's position.  The comptroller also may require an

44-16    employee to be insured in the manner and sum required by the

44-17    comptroller.

44-18          (c)  The state shall pay any expense incident to the

44-19    execution of the bonds and any insurance of the chief clerk and

44-20    other employees.

44-21          SECTION 73.  Subchapter B, Chapter 403, Government Code, is

44-22    amended by adding Sections 403.027 and 403.028 to read as follows:

44-23          Sec. 403.027.  ELECTRONIC STORAGE AND MAINTENANCE OF RECORDS.

44-24    (a)  The comptroller may store and maintain a state record or an

44-25    essential record in an electronic storage format if:

 45-1                (1)  the method used to store and maintain the record

 45-2    allows accurate reproduction of the record;

 45-3                (2)  the method used to store and maintain the record

 45-4    conforms to any standards prescribed by the records preservation

 45-5    officer to conform to any applicable rules of the National

 45-6    Institute of Standards and Technology, unless those standards

 45-7    conflict with the provisions of this section; and

 45-8                (3)  the place and manner of safekeeping the medium or

 45-9    equipment on which the record is stored and maintained conforms

45-10    with the records preservation officer's requirements under Section

45-11    441.059(a), except that the records preservation officer may not

45-12    prohibit the comptroller from retaining possession of that medium

45-13    or equipment.

45-14          (b)  An accurate reproduction of a state record that is

45-15    stored and maintained according to this section is a preservation

45-16    duplicate of the record for the purposes of Sections 441.058 and

45-17    441.059, regardless of whether the records preservation officer:

45-18                (1)  made the reproduction; or

45-19                (2)  designated the reproduction as a preservation

45-20    duplicate.

45-21          (c)  An accurate reproduction of an essential record that is

45-22    stored and maintained according to this section is a photographic

45-23    reproduction of the record for purposes of Section 441.038(f).

45-24          (d)  An accurate reproduction of a state record or an

45-25    essential record may be stored in tangible or intangible form,

 46-1    including an electronic or optical image of the record.

 46-2          (e)  In this section:

 46-3                (1)  "Essential record" means written or graphic

 46-4    material that is made or received by the comptroller in the conduct

 46-5    of official state business and that is filed or intended to be

 46-6    preserved permanently or for a definite period as a record of that

 46-7    business.

 46-8                (2)  "Records preservation officer" means the director

 46-9    of the records management division of the Texas State Library.

46-10                (3)  "State record"  means a document, book, paper,

46-11    photograph, sound recording, or other material, regardless of

46-12    physical form or characteristic, that is made or received by the

46-13    comptroller according to law or in connection with the transaction

46-14    of official state business.

46-15          Sec. 403.028.  DIGITAL SIGNATURES.  (a)  The comptroller may

46-16    establish a procedure for a person to provide a digital signature

46-17    for any document or data submitted to the comptroller if the

46-18    comptroller determines the procedure will provide a degree of

46-19    security and authenticity at least equal to that provided by a

46-20    manual signature.

46-21          (b)  A digital signature provided according to a procedure

46-22    established under this section has the same legal force and effect

46-23    for all purposes as a manual signature.

46-24          (c)  This section does not apply to the electronic submission

46-25    and approval of vouchers under Chapter 2103.

 47-1          SECTION 74.  Section 411.109, Government Code, is amended to

 47-2    read as follows:

 47-3          Sec. 411.109.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:

 47-4    COMPTROLLER [STATE TREASURER].  (a)  The comptroller [treasurer] is

 47-5    entitled to obtain from the department criminal history record

 47-6    information maintained by the department that the comptroller

 47-7    [treasurer] believes is necessary for the enforcement or

 47-8    administration of Chapter 154 or Chapter 155, Tax Code, including

 47-9    criminal history record information that relates to a person who

47-10    is:

47-11                (1)  an applicant for a permit under Chapter 154 or

47-12    Chapter 155, Tax Code;

47-13                (2)  a permit holder under either of those chapters;

47-14                (3)  an officer, director, stockholder owning 10

47-15    percent or more of the outstanding stock, partner, owner, or

47-16    managing employee of an applicant or permit holder under either of

47-17    those chapters that is a corporation, association, joint venture,

47-18    syndicate, partnership, or proprietorship;

47-19                (4)  believed to have violated Chapter 154 or Chapter

47-20    155, Tax Code; or

47-21                (5)  being considered by the comptroller [treasurer]

47-22    for employment as a peace officer.

47-23          (b)  The comptroller is entitled to obtain from the

47-24    department criminal history record information maintained by the

47-25    department that relates to a person who is an employee of or an

 48-1    applicant for employment with the comptroller's office in a

 48-2    position that involves:

 48-3                (1)  handling currency, checks, or other funds;

 48-4                (2)  having access to taxpayer account information;

 48-5                (3)  working in a location designated by the

 48-6    comptroller as a security-sensitive area; or

 48-7                (4)  performing financial management duties designated

 48-8    by the comptroller as security sensitive.

 48-9          (c)  Criminal history record information obtained by the

48-10    comptroller [treasurer] under Subsections [Subsection] (a)  and (b)

48-11    may not be released or disclosed to any person except on court

48-12    order or as provided by Subsection (d) [(c)].

48-13          (d) [(c)]  The comptroller [treasurer] is not prohibited from

48-14    disclosing to a person who is the subject of criminal history

48-15    record information the dates and places of arrests, the offenses,

48-16    and the dispositions in the criminal history record information.

48-17          SECTION 75.  Chapter 612, Government Code, is amended by

48-18    adding Section 612.004 to read as follows:

48-19          Sec. 612.004.  LIABILITY INSURANCE FOR CERTAIN BOARD MEMBERS,

48-20    OFFICIALS, AND EXECUTIVE MANAGEMENT STAFF.  (a)  A state agency

48-21    governed by a board may purchase or acquire liability insurance to

48-22    protect members of the board and the agency's executive management

48-23    staff.

48-24          (b)  A state agency governed by an appointed or elected

48-25    official may purchase or acquire liability insurance to protect the

 49-1    official and the agency's executive management staff.

 49-2          (c)  Insurance purchased or acquired by a state agency under

 49-3    this section may:

 49-4                (1)  protect against any type of liability to third

 49-5    persons that may be incurred while conducting agency business; and

 49-6                (2)  provide for all costs of defending against that

 49-7    liability, including court costs and attorney's fees.

 49-8          (d)  This section does not authorize the purchase or

 49-9    acquisition of insurance to protect against liability other than

49-10    liability described by Subsection (c).

49-11          (e)  A state agency may use any available funds to purchase

49-12    or acquire insurance under this section.  A specific statement by

49-13    the legislature that a particular appropriation of funds may be

49-14    used to purchase or acquire insurance is not a prerequisite to

49-15    using funds to purchase or acquire insurance under this section.

49-16          (f)  In this section:

49-17                (1)  "Board" includes a board, commission, council,

49-18    committee, or other group of individuals.

49-19                (2)  "State agency" means a department, board,

49-20    commission, committee, council, agency, office, or other entity in

49-21    the executive, legislative, or judicial branch of state government,

49-22    the jurisdiction of which is not limited to a geographical portion

49-23    of the state.  The term includes an institution of higher education

49-24    as defined by Section 61.003, Education Code.

49-25          SECTION 76.  Subsection (b), Section 2101.031, Government

 50-1    Code, is amended to read as follows:

 50-2          (b)  The project includes each component of the uniform

 50-3    statewide accounting system as designed in accordance with Chapter

 50-4    852, Acts of the 70th Legislature, Regular Session, 1987, as

 50-5    defined by Section 1, Chapter 781, Acts of the 71st Legislature,

 50-6    Regular Session, 1989, and as developed or revised by the

 50-7    comptroller [project advisory committee], including:

 50-8                (1)  the uniform statewide accounting system (USAS) and

 50-9    related subsystems;

50-10                (2)  the uniform statewide payroll system (USPS); and

50-11                (3)  the human resource information system (HRIS)[;]

50-12                [(4)  the budget execution and monitoring system

50-13    (BEAMS); and]

50-14                [(5)  the statewide telecommunication network system].

50-15          SECTION 77.  Section 2101.035, Government Code, is amended by

50-16    amending Subsection (d) and adding Subsections (e), (f), and (g) to

50-17    read as follows:

50-18          (d)  The comptroller shall ensure that the uniform statewide

50-19    accounting system encompasses each state agency.  [The comptroller

50-20    may, after consulting with the project advisory committee, exclude

50-21    any state agency from the centralized computation function of the

50-22    statewide payroll component of the system.]

50-23          (e)  The comptroller shall ensure that the uniform statewide

50-24    payroll system includes a standardized payroll calculation

50-25    function.  A state agency shall use that function to calculate its

 51-1    payrolls unless the comptroller temporarily exempts the agency from

 51-2    this requirement.

 51-3          (f)  The comptroller may designate a centralized or

 51-4    decentralized computer system, or a combination of those systems,

 51-5    to operate the uniform statewide accounting system or a component

 51-6    of that system, including the uniform statewide payroll system and

 51-7    the human resources information system.  A designated computer

 51-8    system may be operated by the comptroller, another governmental

 51-9    entity, or a private contractor.

51-10          (g)  If the comptroller designates a decentralized computer

51-11    system under Subsection (f), the comptroller may require each state

51-12    agency using that system to report data and other information from

51-13    the system to the comptroller at the time and in the manner

51-14    required by the comptroller.

51-15          SECTION 78.  Section 2101.037, Government Code, is amended by

51-16    amending Subsection (b) and adding Subsection (c) to read as

51-17    follows:

51-18          (b)  To ensure continuous reporting of comprehensive

51-19    financial management information, [including information on

51-20    encumbrances and performance and workload measures,] the

51-21    comptroller shall require each state agency to report the necessary

51-22    information to the project director on time.  The reports of each

51-23    agency must comply with the comptroller's rules and procedures

51-24    about content and frequency.

51-25          (c)  In this section, "financial management information"

 52-1    means:

 52-2                (1)  information about:

 52-3                      (A)  encumbrances;

 52-4                      (B)  performance and workload measures; or

 52-5                      (C)  salaries, compensation, and benefits of

 52-6    state officers and employees;

 52-7                (2)  directory information about state officers and

 52-8    employees; and

 52-9                (3)  any other information the comptroller finds

52-10    necessary or appropriate for the administration, maintenance, and

52-11    modification of the uniform statewide accounting system.

52-12          SECTION 79.  Subchapter C, Chapter 2101, Government Code, is

52-13    amended by adding Sections 2101.0375 and 2101.0376 to read as

52-14    follows:

52-15          Sec. 2101.0375.  WITHHOLDING OF TRAVEL EXPENSE REIMBURSEMENTS

52-16    FOR LATE OR IMPROPER REPORTING.  (a)  The comptroller may withhold

52-17    all reimbursements for the travel expenses incurred by the chief

52-18    administrative officer of a state agency whose report under this

52-19    subchapter is not properly received by the comptroller on or before

52-20    the comptroller's deadline.

52-21          (b)  The comptroller may withhold all reimbursements for the

52-22    travel expenses incurred by the officers and employees of a state

52-23    agency whose report under this subchapter is not properly received

52-24    by the comptroller on or before the 30th day after the

52-25    comptroller's deadline.

 53-1          (c)  The comptroller may prohibit a state agency from using

 53-2    local funds to reimburse the travel expenses incurred by:

 53-3                (1)  the agency's chief administrative officer if the

 53-4    agency's report under this subchapter is not properly received by

 53-5    the comptroller on or before the comptroller's deadline; or

 53-6                (2)  the agency's officers or employees if the agency's

 53-7    report under this subchapter is not properly received by the

 53-8    comptroller on or before the 30th day after the comptroller's

 53-9    deadline.

53-10          (d)  Immediately after the comptroller determines that a

53-11    state agency's report has been properly received, the comptroller

53-12    shall:

53-13                (1)  release each travel expense reimbursement that the

53-14    comptroller withheld under Subsection (a) or (b); and

53-15                (2)  rescind any prohibition that the comptroller

53-16    issued under Subsection (c).

53-17          (e)  A travel expense reimbursement is subject to withholding

53-18    under Subsection (a), (b), or (c) regardless of when the expense is

53-19    incurred.  A travel expense reimbursement is subject to withholding

53-20    under Subsection (a) or (b) regardless of whether the reimbursement

53-21    is payable to an individual or a state agency.

53-22          (f)  A report is properly received under this section if the

53-23    report complies with the format, submission method, content, and

53-24    other requirements of the comptroller and this subchapter.

53-25          (g)  In this section:

 54-1                (1)  "Chief administrative officer" means:

 54-2                      (A)  the appointed or elected individual who is

 54-3    authorized by law to administer a state agency that is not headed

 54-4    by a governing body; or

 54-5                      (B)  the executive director or other individual

 54-6    with an equivalent title who administers a state agency headed by a

 54-7    governing body.

 54-8                (2)  "Local funds" means funds that are not expended on

 54-9    warrants drawn or electronic funds transfers initiated by the

54-10    comptroller.

54-11          Sec. 2101.0376.  ADMINISTRATIVE PENALTIES FOR LATE OR

54-12    IMPROPER REPORTING.  (a)  The comptroller may impose an

54-13    administrative penalty against a state agency if the comptroller:

54-14                (1)  is late in submitting a statewide report or

54-15    submits an incomplete statewide report; and

54-16                (2)  determines that the statewide report is late or

54-17    incomplete because a report from the agency under this subchapter

54-18    was not properly received by the comptroller on or before the

54-19    comptroller's deadline.

54-20          (b)  A penalty imposed under Subsection (a) may be in an

54-21    amount not to exceed $2,000 for each report that is not properly

54-22    received by the comptroller on or before the comptroller's

54-23    deadline.

54-24          (c)  A state agency shall ensure that the comptroller

54-25    receives payment of a penalty imposed under Subsection (a) not

 55-1    later than the 30th day after the date the agency receives notice

 55-2    of the penalty.  The comptroller shall deposit the payment to the

 55-3    credit of the general revenue fund.

 55-4          (d)  A report is properly received under this section if the

 55-5    report complies with the format, submission method, content, and

 55-6    other requirements of the comptroller and this subchapter.

 55-7          (e)  The comptroller may adopt rules to administer this

 55-8    section.

 55-9          (f)  In this section, "statewide report" means a report

55-10    periodically submitted by the comptroller to the legislature, the

55-11    state auditor, or another state officer or agency that provides

55-12    statistical or financial information about the state agencies or

55-13    their officers and employees.

55-14          SECTION 80.  Section 2101.038, Government Code, is amended to

55-15    read as follows:

55-16          Sec. 2101.038.  DUTIES OF STATE AUDITOR.  The state auditor,

55-17    when reviewing the operation of a state agency, shall audit for

55-18    compliance with the uniform statewide accounting system, the

55-19    comptroller's rules, and the Legislative Budget Board's performance

55-20    and workload measures.  The state auditor shall notify [the project

55-21    advisory committee,] the comptroller, the governor, and the

55-22    Legislative Budget Board as soon as practicable when a state agency

55-23    is not in compliance.

55-24          SECTION 81.  Section 2101.039, Government Code, is amended to

55-25    read as follows:

 56-1          Sec. 2101.039.  CONTRACTS; EXEMPTION.  [(a)]  Contracts made

 56-2    under this subchapter are not subject to:

 56-3                (1)  Subtitle D, Title 10 [the State Purchasing and

 56-4    General Services Act (Article 601b, Vernon's Texas Civil

 56-5    Statutes)];

 56-6                (2)  Chapter 2254; or

 56-7                (3)  Chapter 2054.

 56-8          [(b)  The project director must submit all proposed contracts

 56-9    for professional or consulting services and all proposed purchases

56-10    of computer equipment or software to the project advisory committee

56-11    for review and recommendation before procurement.]

56-12          SECTION 82.  (a)  Sections 403.005, 403.016(e), 403.0165(j),

56-13    2101.032, 2101.035(b), and 2103.032(c), Government Code, are

56-14    repealed.

56-15          (b)  Sections 403.021(f) and 404.042, Government Code, are

56-16    repealed.

56-17          SECTION 83.  This Act takes effect immediately, except that

56-18    Sections 1, 41 through 45, 47 through 51, 62 through 72, 78, 79,

56-19    and 82(b) of this Act take effect September 1, 1997.

56-20          SECTION 84.  (a)  The changes in law made by Sections 42 and

56-21    43 of this Act apply only to a separation from state employment

56-22    that occurs on or after the effective date of those sections.  A

56-23    separation that occurs before that date is governed by the law in

56-24    effect at the time of the separation, and the former law is

56-25    continued in effect for that purpose.

 57-1          (b)  The changes in law made by Sections 48 and 49 of this

 57-2    Act apply only to coverages for periods on or after the effective

 57-3    date of those sections.  The coverages for periods before that date

 57-4    are governed by the law as it existed immediately before the

 57-5    effective date of those sections, and the former law is continued

 57-6    in effect for that purpose.

 57-7          (c)  The changes in law made by Section 79 of this Act apply

 57-8    to a state agency report that the comptroller has not properly

 57-9    received according to the applicable deadline, regardless of

57-10    whether the deadline was before, on, or after the effective date of

57-11    Section 79 of this Act.  The changes in law do not apply to a state

57-12    agency report that the comptroller properly received before the

57-13    effective date of Section 79 of this Act.

57-14          SECTION 85.  The importance of this legislation and the

57-15    crowded condition of the calendars in both houses create an

57-16    emergency and an imperative public necessity that the

57-17    constitutional rule requiring bills to be read on three several

57-18    days in each house be suspended, and this rule is hereby suspended,

57-19    and that this Act take effect and be in force according to its

57-20    terms, and it is so enacted.