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 $15,000 [$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 (b) and (d), Section 2254.031,

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

8-24           (b)  A state agency that intends to renew a contract that is

8-25     not a major consulting services contract shall comply with Sections

 9-1     2254.028 and 2254.029 if the original contract and the renewal

 9-2     contract have a reasonably foreseeable value totaling more than

 9-3     $15,000 [$10,000].

 9-4           (d)  A state agency that intends to amend or extend a

 9-5     contract that is not a major consulting services contract shall

 9-6     comply with Sections 2254.028 and 2254.029 if the original contract

 9-7     and the amendment or extension have a reasonably foreseeable value

 9-8     totaling more than $15,000 [$10,000].

 9-9           SECTION 12.  Subsections (a) and (b), Section 2254.036,

9-10     Government Code, are amended to read as follows:

9-11           (a)  On request, a state agency shall, after the agency's

9-12     contract with a [private] consultant has ended,  supply the

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

9-14     Office with copies of all documents, films, recordings, or reports

9-15     compiled by the consultant under the contract.

9-16           (b)  Copies of all documents, films, recordings, or reports

9-17     compiled by the [private] consultant shall be filed with the Texas

9-18     State Library and shall be retained by the library for at least

9-19     five years.

9-20           SECTION 13.  Section 2254.037, Government Code, is amended to

9-21     read as follows:

9-22           Sec. 2254.037.  REPORTS.  As part of the biennial budgetary

9-23     hearing process conducted by the Legislative Budget Board and the

9-24     governor's Budget and Planning Office, a state agency shall report

9-25     to the Legislative Budget Board and the governor's Budget and

 10-1    Planning Office on any actions taken in response to the

 10-2    recommendations of any [private] consultant with whom the state

 10-3    agency contracts during the previous biennium.

 10-4          SECTION 14.  Subsection (h), Section 403.071, Government

 10-5    Code, is amended to read as follows:

 10-6          (h)  This subsection applies if the comptroller and a state

 10-7    agency have contracted in accordance with Subsection (g).  The

 10-8    comptroller shall audit claims after payment in the same way that

 10-9    the comptroller audits claims before payment under Subsection (a).

10-10    The comptroller may establish requirements and adopt rules

10-11    concerning the time that a state agency must retain documentation

10-12    in its files to enable a postpayment audit.  If a postpayment audit

10-13    by the comptroller shows that a claim presented by a state agency

10-14    was invalid, the comptroller may:

10-15                (1)  implement procedures to ensure that similar

10-16    invalid claims from the state agency are not paid in the future;

10-17                (2)  report to the governor, the lieutenant governor,

10-18    the speaker of the house of representatives, the state auditor, and

10-19    the Legislative Budget Board the results of the audit;

10-20                (3)  require the state agency to obtain a refund of the

10-21    monies from the payee;

10-22                (4)  cancel the contract with the state agency; and

10-23                (5)  reduce the state agency's remaining appropriations

10-24    by the amount of the claim.

10-25          SECTION 15.  Section 659.062, Government Code, is amended by

 11-1    adding Subsection (e) to read as follows:

 11-2          (e)  The comptroller may establish procedures and adopt rules

 11-3    to administer this section.

 11-4          SECTION 16.  Subchapter G, Chapter 659, Government Code, is

 11-5    amended by adding Section 659.110 to read as follows:

 11-6          Sec. 659.110.  RULES.  The comptroller may establish

 11-7    procedures and adopt rules to administer the credit union deduction

 11-8    program authorized by this subchapter.

 11-9          SECTION 17.  Subchapter B, Chapter 661, Government Code, is

11-10    amended by adding Section 661.038 to read as follows:

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

11-12    procedures and adopt rules to administer this subchapter.

11-13          SECTION 18.  Subchapter C, Chapter 661, Government Code, is

11-14    amended by adding Section 661.068 to read as follows:

11-15          Sec. 661.068.  RULES.  The comptroller may establish

11-16    procedures and adopt rules to administer this subchapter.

11-17          SECTION 19.  Subchapter D, Chapter 661, Government Code, is

11-18    amended by adding Section 661.094 to read as follows:

11-19          Sec. 661.094.  RULES.  The comptroller may establish

11-20    procedures and adopt rules to administer this subchapter.

11-21          SECTION 20.  Subchapter A, Chapter 662, Government Code, is

11-22    amended by adding Section 662.012 to read as follows:

11-23          Sec. 662.012.  RULES.  The comptroller may establish

11-24    procedures and adopt rules to administer Sections 662.001-662.010.

11-25          SECTION 21.  Subsection (e), Section 57.48, Education Code,

 12-1    is amended to read as follows:

 12-2          (e)  This section does not prohibit the comptroller from

 12-3    issuing a warrant to pay the compensation of:

 12-4                (1)  a state officer or employee; or

 12-5                (2)  an individual whose compensation is being paid by

 12-6    a private person through a state agency.

 12-7          SECTION 22.  Subdivision (4), Subsection (f), Section 57.48,

 12-8    Education Code, is amended to read as follows:

 12-9                (4)  This subsection does not prohibit a state agency

12-10    from paying the compensation of:

12-11                      (A)  a state officer or employee; or

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

12-13    paid by a private person through the agency.

12-14          SECTION 23.  Subsection (c), Section 403.055, Government

12-15    Code, is amended to read as follows:

12-16          (c)  This section does not prohibit the comptroller from

12-17    issuing a warrant to pay the compensation of:

12-18                (1)  a state officer or employee; or

12-19                (2)  an individual whose compensation is being paid by

12-20    a private person through a state agency.

12-21          SECTION 24.  Subdivision (4), Subsection (e), Section

12-22    403.055, Government Code, is amended to read as follows:

12-23                (4)  This subsection does not prohibit a state agency

12-24    from paying the compensation of:

12-25                      (A)  a state officer or employee; or

 13-1                      (B)  an individual whose compensation is being

 13-2    paid by a private person through the agency.

 13-3          SECTION 25.  Subsection (c), Section 481.0841, Government

 13-4    Code, is amended to read as follows:

 13-5          (c)  This section does not prohibit the comptroller from

 13-6    issuing a warrant or initiating an electronic funds transfer to pay

 13-7    the compensation of:

 13-8                (1)  a state officer or employee; or

 13-9                (2)  an individual whose compensation is being paid by

13-10    a private person through a state agency.

13-11          SECTION 26.  Subdivisions (2) and (4), Subsection (d),

13-12    Section 481.0841, Government Code, are amended to read as follows:

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

13-14    the state treasury to pay a user if the [agency knows that the]

13-15    user is in default on a loan guaranteed under this subchapter and

13-16    with respect to which the department has been required to honor a

13-17    guarantee.

13-18                (4)  This subsection does not prohibit a state agency

13-19    from paying the compensation of:

13-20                      (A)  a state officer or employee; or

13-21                      (B)  an individual whose compensation is being

13-22    paid by a private person through the agency.

13-23          SECTION 27.  Section 662.001, Government Code, is amended by

13-24    amending Subdivisions (1) and (3) and adding Subdivision (4) to

13-25    read as follows:

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

 14-2    who normally works fewer [less] than 40 hours each week.

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

 14-4    agency or an appointed officer of a state agency whose office is

 14-5    not created by the state constitution.  The term includes a

 14-6    part-time, hourly, or temporary state employee.

 14-7                (4)  "Workday" means a day on which a state employee is

 14-8    normally scheduled to work.  The term does not include a national

 14-9    or state holiday.

14-10          SECTION 28.  Section 662.005, Government Code, is amended to

14-11    read as follows:

14-12          Sec. 662.005.  ENTITLEMENT TO PAID DAY OFF.  (a)  An

14-13    individual who is a [A] state employee on the last workday before

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

14-15    workdays, is entitled, except as provided by Section 662.010, to a

14-16    paid day off from working for a state agency [work] on the [each

14-17    national or state] holiday if:

14-18                (1)  the holiday [that] does not fall on a Saturday  or

14-19    Sunday; and

14-20                (2)  the General Appropriations Act does not prohibit

14-21    state agencies from observing the holiday.

14-22          (b)  In this [This] section, "state employee":

14-23                (1)  includes an individual who uses paid leave from a

14-24    state agency; and

14-25                (2)  does not include an individual who uses unpaid

 15-1    leave from a state agency [does not apply to a holiday that the

 15-2    General Appropriations Act prohibits state agencies from

 15-3    observing].

 15-4          SECTION 29.  Subsections (a) and (b), Section 662.006,

 15-5    Government Code, are amended to read as follows:

 15-6          (a)  An individual who is a [A] state employee on the last

 15-7    workday before or the first workday after an optional holiday, or

 15-8    on both workdays, is entitled, except as provided by Section

 15-9    662.010,  to a paid day off from working for a state agency on the

15-10    [each day of an optional] holiday if:

15-11                (1)  the holiday [that] does not fall on a Saturday or

15-12    Sunday;

15-13                (2)  [if] the employee agrees to give up, during the

15-14    same fiscal year, a state holiday that:

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

15-16                      (B)  the General Appropriations Act does not

15-17    prohibit state agencies from observing; and

15-18                (3)  the General Appropriations Act does not prohibit

15-19    state agencies from observing the optional holiday.

15-20          (b)  A state employee is entitled to a paid day off from

15-21    working for a state agency on each day of an optional holiday that

15-22    extends for more than one day if the employee:

15-23                (1)  qualifies for the paid day off under Subsection

15-24    (a); and

15-25                (2)  agrees to give up during the same fiscal year an

 16-1    equivalent number of state holidays that:

 16-2                      (A)  do not fall on a Saturday or Sunday; and

 16-3                      (B)  the General Appropriations Act does not

 16-4    prohibit state agencies from observing.

 16-5          SECTION 30.  Subsection (a), Section 662.007, Government

 16-6    Code, is amended to read as follows:

 16-7          (a)  A state employee who is required to work on a national

 16-8    or state holiday [that does not fall on a Saturday or Sunday] is

 16-9    entitled to compensatory time off during the 12 months after the

16-10    holiday if the state employee is entitled to a paid day off from

16-11    working for a state agency on the holiday under Section 662.005.

16-12          SECTION 31.  Section 662.010, Government Code, is amended to

16-13    read as follows:

16-14          Sec. 662.010.  HOLIDAY BEFORE WORK BEGINS OR AFTER WORK ENDS.

16-15    (a)  An individual who is not a [A] state employee [who begins

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

16-17    national holiday but who is a state employee on the first workday

16-18    after the holiday may not [of a month is entitled to] be paid for

16-19    the [a state or national] holiday [that occurs before the first

16-20    workday] if it [the holiday:]

16-21                [(1)]  occurs during the same month as the last workday

16-22    before the holiday[; and]

16-23                [(2)  does not fall on a Saturday or Sunday].

16-24          (b)  An individual who is a [A] state employee [who stops

16-25    working for a state agency] on the last workday before a state or

 17-1    national holiday but who is not a state employee on the first

 17-2    workday after the holiday may not [of a month is entitled to] be

 17-3    paid for the [a state or national] holiday [that occurs after the

 17-4    last workday] if it [the holiday:]

 17-5                [(1)]  occurs before the first workday of a month and

 17-6    during that [the] month[; and]

 17-7                [(2)  does not fall on a Saturday or Sunday].

 17-8          (c)  In this section, "state employee":

 17-9                (1)  includes an individual who uses paid leave from a

17-10    state agency; and

17-11                (2)  does not include an individual who uses unpaid

17-12    leave from a state agency ["workday" means a day on which a state

17-13    employee is normally scheduled to work].

17-14          SECTION 32.  Subsections (f), (h), and (i), Section 403.0165,

17-15    Government Code, are amended to read as follows:

17-16          (f)  An organization not previously certified may submit an

17-17    application for certification as an eligible state employee

17-18    organization to the comptroller at any time except during the

17-19    period after June 2 and before September 1 [within 90 days prior to

17-20    the beginning of the fiscal year].

17-21          (h)  The comptroller may [shall] charge an administrative fee

17-22    to cover the costs incurred as a result of administering this

17-23    section.  The administrative [Administrative] fees charged by the

17-24    comptroller shall be paid by each qualifying state employee

17-25    organization on a pro rata basis to be determined by the

 18-1    comptroller.  The comptroller by rule shall determine the most

 18-2    efficient and effective method of collecting the [such

 18-3    administrative] fees.  [The comptroller shall adopt rules for the

 18-4    administration of this section.]

 18-5          (i)  The comptroller may adopt rules for the administration

 18-6    of this section  [shall allocate the administrative fees on a

 18-7    proportional basis to each employing state agency that incurs costs

 18-8    in administering this subsection].

 18-9          SECTION 33.  Section 659.041, Government Code, is amended to

18-10    read as follows:

18-11          Sec. 659.041.  DEFINITIONS.  In this subchapter:

18-12                (1)  "Appointment" means a job title.

18-13                (2)  "Full-time state employee" means:

18-14                      (A)  a state employee who works in the executive

18-15    or judicial branch of state government, other than a state

18-16    institution of higher education, and who is normally scheduled to

18-17    work a total of at least 40 hours a week for a single state agency

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

18-19                      (B)  a state employee who works for a state

18-20    institution of higher education and who is normally scheduled to

18-21    work a total of at least 40 hours a week in one position, as

18-22    determined under Section 659.0411; or

18-23                      (C)  a state employee who works in the

18-24    legislative branch of state government and who is normally

18-25    scheduled to work a total of 40 or more hours a week in all

 19-1    positions held in the legislative branch.

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

 19-3    employee who is not a full-time state employee.

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

 19-5                      (A)  is covered by Chapter 654;

 19-6                      (B)  holds a line item or exempt position;

 19-7                      (C)  works in a nonacademic position at a state

 19-8    institution of higher education at least 20 hours a week for at

 19-9    least 4.5 consecutive months; or

19-10                      (D)  is an hourly employee of the state.

19-11          SECTION 34.  Subchapter D, Chapter 659, Government Code, is

19-12    amended by adding Section 659.0411 to read as follows:

19-13          Sec. 659.0411.  APPOINTMENTS AT STATE INSTITUTIONS OF HIGHER

19-14    EDUCATION.  (a)  A state institution of higher education shall

19-15    determine whether a state employee who has more than one

19-16    appointment with the institution holds only one position or holds

19-17    one position for each appointment.

19-18          (b)  A board of regents shall determine whether a state

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

19-20    institutions of higher education under the board's jurisdiction

19-21    holds only one position or holds one position for each appointment.

19-22          (c)  A state employee who has an appointment with at least

19-23    two state institutions of higher education holds more than one

19-24    position if those institutions are not governed by the same board

19-25    of regents.

 20-1          SECTION 35.  Subsections (b) and (c), Section 659.044,

 20-2    Government Code, are amended to read as follows:

 20-3          (b)  The amount increases when the 10th, 15th, 20th, [and]

 20-4    25th, 30th, 35th, and 40th years of lifetime service credit are

 20-5    accrued.

 20-6          (c)  An increase is effective beginning with the month

 20-7    following the month in which the 10th, 15th, 20th, [and] 25th,

 20-8    30th, 35th, and 40th years of lifetime service credit are accrued.

 20-9          SECTION 36.  Section 659.132, Government Code, is amended to

20-10    read as follows:

20-11          Sec. 659.132.  DEDUCTION AUTHORIZED.  (a)  A state employee

20-12    may authorize a deduction each pay period from the employee's

20-13    salary or wage payment for a charitable contribution as provided by

20-14    this subchapter.

20-15          (b)  Except as provided by Subsections (c), (d), and (e), a

20-16    state employee may authorize a deduction only during a state

20-17    employee charitable campaign.

20-18          (c)  A state employee who begins working for the state when a

20-19    campaign is not being conducted may authorize a deduction according

20-20    to the comptroller's requirements.

20-21          (d)  A state employee who works for a state agency that does

20-22    not allow deduction authorizations under Subsection (i) may

20-23    authorize a deduction that is effective with the first full payroll

20-24    period after the agency is converted to a system in which uniform

20-25    statewide payroll procedures are followed.

 21-1          (e)  A state employee who works for a state agency that does

 21-2    not allow deduction authorizations under Subsection (i) may

 21-3    authorize a deduction after transferring from that agency to:

 21-4                (1)  a state agency that allows deduction

 21-5    authorizations even though it may prohibit them under Subsection

 21-6    (i); or

 21-7                (2)  a state agency not covered by Subsection (i).

 21-8          (f)  A state employee who authorized a deduction while

 21-9    working for a state agency may continue the deduction after

21-10    transferring to another state agency if the comptroller's rules for

21-11    continuing the deduction are followed.

21-12          (g)  An authorization must direct the comptroller to

21-13    distribute the deducted funds to a participating federation or fund

21-14    and a local campaign manager as prescribed by rule.

21-15          (h) [(c)]  A deduction under this subchapter must be in the

21-16    form prescribed by the comptroller.

21-17          (i) [(d)]  A state agency other than an institution of higher

21-18    education is not required to permit an employee to authorize a

21-19    deduction under this subchapter until the first full payroll period

21-20    after the agency converts to a system in which uniform statewide

21-21    payroll procedures are followed.

21-22          (j) [(e)]  The comptroller by rule may establish a reasonable

21-23    minimum deduction for each pay period.

21-24          SECTION 37.  Subsections (a) and (c), Section 659.136,

21-25    Government Code, are amended to read as follows:

 22-1          (a)  A state employee may revoke or change an authorization

 22-2    by giving notice to the employing state agency.  A state employee

 22-3    may not change the eligible charitable organization designated to

 22-4    receive the employee's deductions.

 22-5          (c)  A revocation or change takes effect on the date

 22-6    designated [when it is approved] by the comptroller by rule.

 22-7          SECTION 38.  Section 659.137, Government Code, is amended to

 22-8    read as follows:

 22-9          Sec. 659.137.  DURATION OF DEDUCTION.  (a)  A deduction under

22-10    this subchapter begins on the date designated by the comptroller by

22-11    rule.

22-12          (b)  A deduction [by a state employee] under this subchapter

22-13    is effective for a maximum of one campaign year and, unless revoked

22-14    or changed under Section 659.136, ends on[:]

22-15                [(1)  the first anniversary of] the date designated by

22-16    the comptroller by rule [it begins; or]

22-17                [(2)  the effective date of a revocation of or change

22-18    in the authorization by the employee].

22-19          SECTION 39.  Subsection (d), Section 659.148, Government

22-20    Code, is amended to read as follows:

22-21          (d)  Except as provided by this subsection, the [The]

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

22-23    incurred by the comptroller and employing state agencies in the

22-24    implementation of this subchapter to the charitable organizations

22-25    participating in the first state employee charitable campaign

 23-1    conducted under this subchapter in the same proportion that the

 23-2    contributions to that charitable organization bear to the total of

 23-3    contributions in that campaign.  Except as provided by this

 23-4    subsection, the [The] comptroller shall charge an administrative

 23-5    fee to cover costs incurred by the comptroller and employing state

 23-6    agencies in the administration of this subchapter to the charitable

 23-7    organizations in each subsequent state employee charitable campaign

 23-8    in the same proportion that the contributions to that charitable

 23-9    organization bear to the total of contributions in that campaign.

23-10    The comptroller may decline to charge an administrative fee if the

23-11    comptroller determines the costs that would be covered by the fee

23-12    are insignificant.  The comptroller shall determine the most

23-13    efficient and effective method of collecting the administrative fee

23-14    and shall adopt rules for the implementation of this section.

23-15          SECTION 40.  Section 659.109, Government Code, is amended to

23-16    read as follows:

23-17          Sec. 659.109.  ALLOCATION [AND APPROPRIATION] OF

23-18    ADMINISTRATIVE FEES.  [(a)]  The state shall allocate and pay to

23-19    each state agency that incurs costs in administering this

23-20    subchapter the agency's proportional amount of the administrative

23-21    fees collected by the state under this subchapter.

23-22          [(b)  An administrative fee withheld under this subchapter

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

23-24    the state agencies incurring costs in administering this

23-25    subchapter.]

 24-1          SECTION 41.  Subsection (a), Section 659.146, Government

 24-2    Code, is amended to read as follows:

 24-3          (a)  To be eligible to participate in a state employee

 24-4    charitable campaign, a charitable organization must:

 24-5                (1)  be governed by a voluntary board of citizens that

 24-6    meets at least twice each year to set policy and manage the affairs

 24-7    of the organization;

 24-8                (2)  if the organization's annual budget:

 24-9                      (A)  does not exceed [is less than] $100,000,

24-10    provide a completed Internal Revenue Service Form 990 and an

24-11    accountant's review that offers full and open disclosure of the

24-12    organization's internal operations; or

24-13                      (B)  exceeds [is equal to or more than] $100,000,

24-14    be audited annually in accordance with generally accepted auditing

24-15    standards of the American Institute of Certified Public

24-16    Accountants; and

24-17                (3)  not spend more than 25 percent of its annual

24-18    revenue for administrative and fund-raising expenses.

24-19          SECTION 42.  Subdivisions (1) and (3), Section 661.061,

24-20    Government Code, are amended to read as follows:

24-21                (1)  "National holiday" includes only those days listed

24-22    under Section 662.003(a).  The term does not include a national

24-23    holiday on which a state employee is not entitled to a paid day off

24-24    from work under Section 662.005.

24-25                (3)  "State holiday" includes only those days listed

 25-1    under Section 662.003(b).  The term does not include a state

 25-2    holiday on which a state employee is not entitled to a paid day off

 25-3    from work under Section 662.005.

 25-4          SECTION 43.  Subsection (b), Section 661.062, Government

 25-5    Code, is amended to read as follows:

 25-6          (b)  A separation from state employment includes a separation

 25-7    in which the employee:

 25-8                (1)  leaves one state agency to begin working for

 25-9    another state agency, if one or more workdays occur between the two

25-10    employments;

25-11                (2)  moves from a position in a state agency that

25-12    accrues vacation time to a position in that agency that does not

25-13    accrue vacation time, if the agency agrees to pay the employee for

25-14    the accrued balance of the employee's vacation time;

25-15                (3)  moves from a position in a state agency that

25-16    accrues vacation time to a position in another state agency that

25-17    does not accrue vacation time, if the other state agency refuses to

25-18    credit the employee for the balance of the employee's vacation time

25-19    as of the date of the move; [or]

25-20                (4)  moves from a position in a state agency that does

25-21    not accrue vacation time to a position in another state agency that

25-22    does not accrue vacation time, if the other state agency is not

25-23    authorized or refuses to credit the employee for the balance of the

25-24    employee's vacation time as of the date of the move; or

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

 26-1    one that accrues vacation time.

 26-2          SECTION 44.  Section 661.063, Government Code, is amended to

 26-3    read as follows:

 26-4          Sec. 661.063.  COMPUTATION OF PAYMENT.  (a)  Except as

 26-5    provided by Subsection (b), the [The] payment to a state employee

 26-6    under this subchapter shall be computed by multiplying the

 26-7    employee's rate of compensation on the date of separation from

 26-8    state employment by the total number of hours of vacation time

 26-9    determined under Section 661.064.

26-10          (b)  The payment under this subchapter to a state employee

26-11    who separates from state employment while holding a position that

26-12    does not accrue vacation time shall be computed according to this

26-13    subsection.  The employee's final rate of compensation in the last

26-14    position held that accrues vacation time shall be multiplied by the

26-15    employee's total number of hours of vacation time determined under

26-16    Section 661.064.

26-17          (c)  Under this section, rate of compensation:

26-18                (1)  includes an emolument in lieu of base pay for

26-19    which the state employee was eligible [on the last day of

26-20    employment]; and

26-21                (2)  does not include longevity or hazardous duty pay.

26-22          SECTION 45.  Section 661.064, Government Code, is amended by

26-23    amending Subsection (a) and adding Subsection (c) to read as

26-24    follows:

26-25          (a)  This subsection applies except as provided by Subsection

 27-1    (c).  For a state employee who on the date of separation is

 27-2    normally scheduled to work at least 40 hours a week, eight hours

 27-3    are to be added to the employee's accrued vacation time for each

 27-4    state or national holiday that is scheduled to fall within the

 27-5    period after the date of separation and during which the employee

 27-6    could have used the time.  To determine the period during which

 27-7    vacation time could have been used and the number of state or

 27-8    national holidays, the employee's vacation time is allocated over

 27-9    the workdays after the employee's separation and eight hours are

27-10    added as a state or national holiday occurs during the period.

27-11          (c)  For a state employee who is paid under this subchapter

27-12    because the separation from state employment involves a move to a

27-13    position in a state agency that does not accrue vacation time, no

27-14    hours may be added to the employee's accrued vacation time for a

27-15    state or national holiday which is scheduled to fall within the

27-16    period after the date of separation and during which the employee

27-17    could have used the time.

27-18          SECTION 46.  Subchapter A, Chapter 662, Government Code, is

27-19    amended by adding Section 662.0071 to read as follows:

27-20          Sec. 662.0071.  TRANSFERS OF COMPENSATORY TIME BALANCES.

27-21    (a)  A state agency shall accept the balance of compensatory time

27-22    accrued under Section 662.007 by a state employee who transfers to

27-23    that agency from another state agency if the employee transfers as

27-24    a direct result of:

27-25                (1)  the legislature's transfer of legal authority or

 28-1    duties from the agency that formerly employed the employee to the

 28-2    agency that currently employs the employee; or

 28-3                (2)  a requirement of the State Council on Competitive

 28-4    Government for the agency that formerly employed the employee to

 28-5    bid a commercially available service that the agency previously

 28-6    performed.

 28-7          (b)  Subsection (a) does not apply if the transferring state

 28-8    employee is required to apply for the new position.

 28-9          (c)  In this section, "bid" means any process developed by

28-10    the State Council on Competitive Government to provide a

28-11    commercially available service in competition with private

28-12    commercial sources or state agency providers.

28-13          SECTION 47.  Section 403.014, Government Code, is amended to

28-14    read as follows:

28-15          Sec. 403.014.  REPORT ON EFFECT OF CERTAIN TAX PROVISIONS.

28-16    (a)  Before each regular session of the legislature, the

28-17    comptroller shall report to the legislature and the governor on the

28-18    effect, if it is possible to assess, of exemptions, discounts,

28-19    exclusions, special valuations, special accounting treatments,

28-20    special rates, and special methods of reporting relating to:

28-21                (1)  sales, excise, and use tax under Chapter 151, Tax

28-22    Code;

28-23                (2)  [, and exemptions from and special rates relating

28-24    to] franchise tax under Chapter 171, Tax Code;

28-25                (3)  school district property taxes under Title 1, Tax

 29-1    Code; and

 29-2                (4)  any other tax generating more than five percent of

 29-3    state tax revenue in the prior fiscal year.

 29-4          (b)  The report must include:

 29-5                (1)  an analysis of each special provision that reduces

 29-6    the amount of tax payable, to include [and] an estimate of the loss

 29-7    of revenue for a six-year period including the current fiscal

 29-8    biennium and a citation of the statutory or legal authority for the

 29-9    provision; and

29-10                (2)  for provisions reducing revenue by more than one

29-11    percent of total revenue for a tax covered by this section, the

29-12    effect of each provision on the distribution of the tax burden by

29-13    income class and industry or business class, as appropriate.

29-14          (c)  The report may include:

29-15                (1)  an assessment of the intended purpose of the

29-16    provision and whether the provision is achieving that objective;

29-17    and

29-18                (2)  a recommendation for retaining, eliminating, or

29-19    amending the provision.

29-20          (d)  The report may be included in any other report made by

29-21    the comptroller.

29-22          (e)  At the request of the chair of a committee of the senate

29-23    or house of representatives to which has been referred a bill or

29-24    resolution establishing, extending, or restricting an exemption,

29-25    discount, exclusion, special valuation, special accounting

 30-1    treatment, special rate, or special method of reporting relating to

 30-2    any state tax, the Legislative Budget Board with the assistance, as

 30-3    requested, of the comptroller shall prepare a letter analysis of

 30-4    the effect on the state's tax revenues that would result from the

 30-5    passage of the bill or resolution.  The letter analysis shall

 30-6    contain the same information as provided in Subsection (b), as

 30-7    appropriate.

 30-8          (f) [(c)]  The comptroller and Legislative Budget Board may

 30-9    request from any state officer or agency information necessary to

30-10    complete the report or letter analysis.  Each state officer or

30-11    agency shall cooperate with the comptroller and Legislative Budget

30-12    Board in providing information or analysis for the report or letter

30-13    analysis.

30-14          SECTION 48.  Subchapter B, Chapter 403, Government Code, is

30-15    amended by adding Section 403.0141 to read as follows:

30-16          Sec. 403.0141.  REPORT ON INCIDENCE OF TAX.  (a)  Before each

30-17    regular session of the legislature, the comptroller shall report to

30-18    the legislature and the governor on the overall incidence of the

30-19    school district property tax and any state tax generating more than

30-20    2.5 percent of state tax revenue in the prior fiscal year.  The

30-21    analysis shall report on the distribution of the tax burden for the

30-22    taxes included in the report.

30-23          (b)  At the request of the chair of a committee of the senate

30-24    or house of representatives to which has been referred a bill or

30-25    resolution to change the tax system that would increase, decrease,

 31-1    or redistribute tax by more than $20 million, the Legislative

 31-2    Budget Board with the assistance, as requested, of the comptroller

 31-3    shall prepare an incidence impact analysis of the bill or

 31-4    resolution.  The analysis shall report on the incidence effects

 31-5    that would result if the bill or resolution were enacted.

 31-6          (c)  To the extent data is available, the incidence impact

 31-7    analysis under Subsections (a) and (b):

 31-8                (1)  shall evaluate the tax burden:

 31-9                      (A)  on the overall income distribution, using a

31-10    systemwide incidence measure or other appropriate measures of

31-11    equality and inequality; and

31-12                      (B)  on income classes, including, at a minimum,

31-13    quintiles of the income distribution, on renters and homeowners, on

31-14    industry or business classes, as appropriate, and on various types

31-15    of business organizations;

31-16                (2)  may evaluate the tax burden:

31-17                      (A)  by other appropriate taxpayer

31-18    characteristics, such as whether the taxpayer is a farmer, rancher,

31-19    retired elderly, or resident or nonresident of the state; and

31-20                      (B)  by distribution of impact on consumers,

31-21    labor, capital, and out-of-state persons and entities; and

31-22                (3)  shall:

31-23                      (A)  use the broadest measure of economic income

31-24    for which reliable data is available; and

31-25                      (B)  include a statement of the incidence

 32-1    assumptions that were used in making the analysis.

 32-2          SECTION 49.  Subsection (f), Section 403.016, Government

 32-3    Code, is amended to read as follows:

 32-4          (f)(1)  Except as provided by Subdivision (2) and subject to

 32-5    any limitation in rules adopted by the comptroller, an automated

 32-6    clearinghouse, or the federal government [Subsection (e)], the

 32-7    comptroller may use the electronic funds transfer system to deposit

 32-8    payments only to one or more accounts of a payee [payee's account]

 32-9    at one or more [a] financial institutions, including credit unions

32-10    [institution].

32-11                (2)  The comptroller may also use the electronic funds

32-12    transfer system to deposit a portion of an employee's gross pay

32-13    into the employee's account at a credit union as prescribed by

32-14    Subchapter G, Chapter 659.

32-15                (3)  A single electronic funds transfer may contain

32-16    payments to multiple payees.  Individual transfers or warrants are

32-17    not required for each payee.

32-18          SECTION 50.  Subsection (c), Section 403.248, Government

32-19    Code, is amended to read as follows:

32-20          (c)  In this section, "final accounting" means a

32-21    reimbursement from or additional payment to a state officer or

32-22    employee so that the net amount received by the officer or employee

32-23    [advanced from a petty cash account] equals the actual travel

32-24    expenses incurred by the officer or employee.

32-25          SECTION 51.  Section 5, Texas Employees Uniform Group

 33-1    Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance

 33-2    Code), is amended by adding Subsection (k) to read as follows:

 33-3          (k)  If the trustee establishes a group coverage plan that

 33-4    protects against the long-term or short-term loss of salary, the

 33-5    trustee may use an employee's annual salary in the calculation of

 33-6    the amount of the employee's premium or coverage, or both, under

 33-7    the plan.  For purposes of this subsection, an employee's annual

 33-8    salary includes the benefit replacement pay the employee would be

 33-9    earning annually under Subchapter H, Chapter 659, Government Code,

33-10    as added by Chapter 417, Acts of the 74th Legislature, 1995, if

33-11    Section 659.121(1), Government Code, defined "compensation" to

33-12    include only base salary or wages, longevity pay, hazardous duty

33-13    pay, and night differential pay.

33-14          SECTION 52.  Section 11, Texas Employees Uniform Group

33-15    Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance

33-16    Code), is amended by amending Subsection (c) and adding Subsection

33-17    (d) to read as follows:

33-18          (c)  Except as provided by Subsection (d), the [The] trustee

33-19    shall prescribe regulations providing for the conversion of other

33-20    than annual rates of pay, and specify the types of pay included in

33-21    annual pay and all other matters necessary to implement this

33-22    section.

33-23          (d)  For the purpose of determining the amount of an

33-24    employee's optional term life insurance coverage, an employee's

33-25    annual salary includes the benefit replacement pay the employee

 34-1    would be earning annually under Subchapter H, Chapter 659,

 34-2    Government Code, as added by Chapter 417, Acts of the 74th

 34-3    Legislature, 1995, if Section 659.121(1), Government Code, defined

 34-4    "compensation" to include only base salary or wages, longevity pay,

 34-5    hazardous duty pay, and night differential pay.

 34-6          SECTION 53.  Subdivision (7), Section 811.001, Government

 34-7    Code, is amended to read as follows:

 34-8                (7)  "Compensation" means the base salary of a person;

 34-9    [, including] amounts that would otherwise qualify as compensation

34-10    but are not received directly by a [the] person pursuant to a good

34-11    faith, voluntary, written salary reduction agreement in order to

34-12    finance payments to a deferred compensation or tax sheltered

34-13    annuity program specifically authorized by state law or to finance

34-14    benefit options under a cafeteria plan qualifying under Section 125

34-15    of the Internal Revenue Code of 1986 (26 U.S.C. Section 125);[,

34-16    plus] longevity and hazardous duty pay; [and includes] nonmonetary

34-17    compensation, the value of which is determined by the retirement

34-18    system;[, and] amounts by which a [the] person's salary is reduced

34-19    under a salary reduction agreement authorized by Chapter 610; and

34-20    the benefit replacement pay a person earns under Subchapter H,

34-21    Chapter 659, as added by Chapter 417, Acts of the 74th Legislature,

34-22    1995, except for the benefit replacement pay a person earns as a

34-23    result of a payment made under Subchapter B, C, or D, Chapter 661.

34-24    The term[, but] excludes overtime pay.

34-25          SECTION 54.  Subsections (b) and (c), Section 822.201,

 35-1    Government Code, are amended to read as follows:

 35-2          (b)  "Salary and wages" as used in Subsection (a) means:

 35-3                (1)  normal periodic payments of money for service the

 35-4    right to which accrues on a regular basis in proportion to the

 35-5    service performed;

 35-6                (2)  amounts by which the member's salary is reduced

 35-7    under a salary reduction agreement authorized by Chapter 610; [and]

 35-8                (3)  amounts that would otherwise qualify as salary and

 35-9    wages under Subdivision (1) but are not received directly by the

35-10    member pursuant to a good faith, voluntary written salary reduction

35-11    agreement in order to finance payments to a deferred compensation

35-12    or tax sheltered annuity program specifically authorized by state

35-13    law or to finance benefit options under a cafeteria plan qualifying

35-14    under Section 125 of the Internal Revenue Code of 1986 (26 U.S.C.

35-15    Section 125), if:

35-16                      (A)  the program or benefit options are made

35-17    available to all employees of the employer; and

35-18                      (B)  the benefit options in the cafeteria plan

35-19    are limited to one or more options that provide deferred

35-20    compensation, group health and disability insurance, group term

35-21    life insurance, dependent care assistance programs, or group legal

35-22    services plans; and

35-23                (4)  the benefit replacement pay a person earns under

35-24    Subchapter H, Chapter 659, as added by Chapter 417, Acts of the

35-25    74th Legislature, 1995, except as provided by Subsection (c).

 36-1          (c)  Excluded from salary and wages are expense payments,

 36-2    allowances, payments for unused vacation or sick leave, maintenance

 36-3    or other nonmonetary compensation, fringe benefits, deferred

 36-4    compensation other than as provided by Subsection (b)(3),

 36-5    compensation that is not made pursuant to a valid employment

 36-6    agreement, payments received in the 1995-1996 or a subsequent

 36-7    school year for teaching a driver education and traffic safety

 36-8    course, the benefit replacement pay a person earns as a result of a

 36-9    payment made under Subchapter B or C, Chapter 661, and any

36-10    compensation not described in Subsection (b).

36-11          SECTION 55.  Subsection (a), Section 47.09, Penal Code, is

36-12    amended to read as follows:

36-13          (a)  It is a defense to prosecution under this chapter that

36-14    the conduct:

36-15                (1)  was authorized under:

36-16                      (A)  the Bingo Enabling Act (Article 179d,

36-17    Vernon's Texas Civil Statutes);

36-18                      (B)  the Texas Racing Act (Article 179e, Vernon's

36-19    Texas Civil Statutes); or

36-20                      (C)  the Charitable Raffle Enabling Act (Article

36-21    179f, Revised Statutes);

36-22                (2)  consisted entirely of participation in the state

36-23    lottery authorized by Chapter 466, Government Code; or

36-24                (3)  was a necessary incident to the operation of the

36-25    state lottery and was directly or indirectly authorized by:

 37-1                      (A)  Chapter 466, Government Code;

 37-2                      (B)  the lottery division of the Texas Lottery

 37-3    Commission [comptroller's office];

 37-4                      (C)  the Texas Lottery Commission [comptroller];

 37-5    or

 37-6                      (D)  the director of the lottery division of the

 37-7    Texas Lottery Commission.

 37-8          SECTION 56.  Subsection (a), Section 2054.007, Government

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

37-10          (a)  The lottery division of the Texas Lottery Commission [in

37-11    the office of the comptroller is not included in the agency

37-12    strategic plan or biennial operating plan of the comptroller.  The

37-13    lottery division] is not subject to the planning and procurement

37-14    requirements of this chapter.

37-15          SECTION 57.  Section 2103.003, Government Code, is amended to

37-16    read as follows:

37-17          Sec. 2103.003.  STATE AGENCY SPENDING OF APPROPRIATED FUNDS.

37-18    A state agency may spend appropriated funds only by:

37-19                (1)  a warrant drawn by:

37-20                      (A)  the comptroller; or

37-21                      (B)  a state agency to which the comptroller has

37-22    delegated authority to print warrants under Section 403.060; or

37-23                (2)  an electronic funds transfer initiated by [from]

37-24    the comptroller.

37-25          SECTION 58.  Subchapter A, Chapter 2103, Government Code, is

 38-1    amended by adding Section 2103.0035 to read as follows:

 38-2          Sec. 2103.0035.  STATE AGENCY SPENDING OF UNAPPROPRIATED

 38-3    FUNDS.  (a)  A state agency may spend unappropriated funds only by:

 38-4                (1)  a warrant drawn by:

 38-5                      (A)  the comptroller; or

 38-6                      (B)  a state agency to which the comptroller has

 38-7    delegated authority to print warrants under Section 403.060; or

 38-8                (2)  an electronic funds transfer initiated by the

 38-9    comptroller.

38-10          (b)  Subsection (a) applies only to funds that Section

38-11    404.046 or 404.069 or other law requires to be spent on warrants

38-12    drawn or electronic funds transfers initiated by the comptroller.

38-13          SECTION 59.  Section 2103.004, Government Code, is amended to

38-14    read as follows:

38-15          Sec. 2103.004.  WARRANTS AND ELECTRONIC FUNDS TRANSFERS

38-16    [WARRANT DRAWN BY COMPTROLLER].  A [The comptroller may not draw a]

38-17    warrant may not be drawn or an electronic funds transfer initiated

38-18    until:

38-19                (1)  the state agency from whose appropriated or

38-20    unappropriated funds [appropriation] the warrant or electronic

38-21    funds transfer is payable has submitted a voucher to the

38-22    comptroller;

38-23                (2)  the state agency has approved the voucher in

38-24    accordance with this chapter; and

38-25                (3)  the comptroller has audited and approved the

 39-1    voucher as required by law.

 39-2          SECTION 60.  Section 2151.002, Government Code, is amended to

 39-3    read as follows:

 39-4          Sec. 2151.002.  DEFINITIONS.  Except as otherwise provided by

 39-5    [In] this subtitle:

 39-6                (1)  "Commission" means the General Services

 39-7    Commission.

 39-8                (2)  "State agency" means:

 39-9                      (A)  a department, commission, board, office, or

39-10    other agency in the executive branch of state government created by

39-11    the state constitution or a state statute[, except the Texas

39-12    High-Speed Rail Authority];

39-13                      (B)  the supreme court, the court of criminal

39-14    appeals, a court of appeals, or the Texas Judicial Council; or

39-15                      (C)  a university system or an institution of

39-16    higher education as defined by Section 61.003, Education Code,

39-17    except a public junior college.

39-18          SECTION 61.  Section 2155.001, Government Code, is amended to

39-19    read as follows:

39-20          Sec. 2155.001.  DEFINITIONS.  Except as otherwise provided by

39-21    [In] this chapter and Chapters 2156, 2157, and 2158:

39-22                (1)  "Goods" means supplies, materials, or equipment.

39-23                (2)  "Service" means the furnishing of skilled or

39-24    unskilled labor or professional work, but does not include a:

39-25                      (A)  professional service subject to Subchapter

 40-1    A, Chapter 2254;

 40-2                      (B)  service of a state agency employee;

 40-3                      (C)  consulting service or service of a [private]

 40-4    consultant as defined by Subchapter B, Chapter 2254; or

 40-5                      (D)  service of a public utility.

 40-6          SECTION 62.  Section 2155.321, Government Code, is amended by

 40-7    adding Subdivisions (3) and (4) to read as follows:

 40-8                (3)  "Service" means the furnishing of skilled or

 40-9    unskilled labor or professional work but does not include the

40-10    service of a state agency employee.

40-11                (4)  "State agency" has the meaning assigned by Section

40-12    2103.001.

40-13          SECTION 63.  Subsection (b), Section 2155.322, Government

40-14    Code, is amended to read as follows:

40-15          (b)  If state law requires that a payment for the goods or

40-16    services be made on a warrant drawn or an electronic funds transfer

40-17    initiated by the comptroller or a state agency with delegated

40-18    authority under Section 403.060, promptly [Promptly] after the

40-19    later of the receipt of the invoice or the receipt of the goods or

40-20    services, the agency shall send to the comptroller the

40-21    certification, together with the financial information and purchase

40-22    information provided by the invoice and purchase voucher, on a form

40-23    or in the manner agreed to by the comptroller and the commission.

40-24          SECTION 64.  Subsection (c), Section 2155.325, Government

40-25    Code, is amended to read as follows:

 41-1          (c)  For purchases audited after a warrant is issued, the

 41-2    comptroller shall send the certification and purchase information

 41-3    received by the comptroller under Section 2155.322(b) to the

 41-4    commission under commission rules.

 41-5          SECTION 65.  Section 2101.011, Government Code, is amended to

 41-6    read as follows:

 41-7          Sec. 2101.011.  FINANCIAL INFORMATION REQUIRED OF STATE

 41-8    AGENCIES [("100-DAY REPORTS")].  (a)  A state agency as defined by

 41-9    Section 403.013 shall submit the financial information requested by

41-10    the comptroller and such other information requested by the

41-11    legislature in the General Appropriations Act, including

41-12    information about state funds held outside the state treasury, to:

41-13                (1)  the governor;

41-14                (2)  the comptroller;

41-15                (3)  the Legislative Reference Library [state

41-16    treasurer];

41-17                (4)  the state auditor; and

41-18                (5)  the Legislative Budget Board.

41-19          (b)  A state agency [other than a university system or

41-20    institution of higher education, as defined by Section 61.003,

41-21    Education Code,] shall submit the information to the listed

41-22    officials by the date or dates provided in the General

41-23    Appropriations Act [not later than December 9 of each year.  A

41-24    university system or institution of higher education shall submit

41-25    the information to the listed officials not later than the

 42-1    following January 1].

 42-2          (c)  The comptroller may require the reporting of the

 42-3    financial information for any entity that the comptroller

 42-4    determines is a component unit of a statewide reporting entity in

 42-5    accordance with generally accepted accounting principles as

 42-6    prescribed or modified by the Governmental Accounting Standards

 42-7    Board or its successors. [A state agency is not required to submit

 42-8    the information if the comptroller determines the agency is not a

 42-9    component unit of state government for purposes of this

42-10    subchapter.]

42-11          SECTION 66.  Subsection (a), Section 466.017, Government

42-12    Code, is amended to read as follows:

42-13          (a)  The executive director shall provide for a certified

42-14    public accountant to conduct an independent audit for each fiscal

42-15    year of all accounts and transactions of the lottery.  The

42-16    certified public accountant may not have, as determined by the

42-17    executive director, a significant financial interest in a sales

42-18    agent, lottery vendor, or lottery operator.  The certified public

42-19    accountant shall present an audit report to the executive director,

42-20    the commission, the governor, the comptroller, and the legislature

42-21    not later than the 30th day after the submission date for the

42-22    annual financial report required by the General Appropriations Act

42-23    [April 1 of the year following the fiscal year for which the audit

42-24    was performed].  The report must contain recommendations to enhance

42-25    the earnings capability of the lottery and improve the efficiency

 43-1    of lottery operations.  The state auditor may review the results of

 43-2    and working papers related to the audit.

 43-3          SECTION 67.  Subsection (a), Section 2306.074, Government

 43-4    Code, is amended to read as follows:

 43-5          (a)  The state auditor or a certified public accountant shall

 43-6    audit the department's books and accounts each fiscal year and file

 43-7    a copy of the audit with the governor, the comptroller, and the

 43-8    legislature not later than the 30th day after the submission date

 43-9    for the annual financial report as required by the General

43-10    Appropriations Act [on or before March 1 of each year].  If the

43-11    state auditor is conducting the audit and it is not available by

43-12    the 30th day after the submission date as required by the General

43-13    Appropriations Act for annual financial reporting [March 1], it

43-14    must be filed as soon as it is available.

43-15          SECTION 68.  Subsection (a), Section 17, Article 5.76-3,

43-16    Insurance Code, is amended to read as follows:

43-17          (a)  The [Not later than March 1 of each subsequent year,

43-18    the] board shall publish an independently audited [a] report

43-19    analyzing the fund's activities and fiscal condition during the

43-20    preceding fiscal year and shall file the report with the Texas

43-21    Department of Insurance.  The board shall file the audited report

43-22    with the Texas Department of Insurance for submission

43-23    simultaneously with its [have an independent audit made of the]

43-24    annual financial report.  The board's annual financial report shall

43-25    be submitted by the Texas Department of Insurance by the date

 44-1    provided for in the General Appropriations Act.

 44-2          SECTION 69.  Subsections (a) through (d), Section 403.021,

 44-3    Government Code, are amended to read as follows:

 44-4          (a)  A state agency that expends appropriated funds shall

 44-5    report into the uniform statewide accounting system all payables

 44-6    and estimated encumbrances for the first three quarters of the

 44-7    current appropriation year within 30 days after the close of each

 44-8    quarter and submit a binding encumbrance report to the comptroller,

 44-9    [and] the state auditor, and the Legislative Budget Office no later

44-10    than October 30 of each year.

44-11          (b)  Payables and binding encumbrances must be reported for

44-12    all appropriations [The report must indicate the unencumbered

44-13    balance, if any, of each nonconstruction appropriation for the

44-14    preceding fiscal year.  The report must be made] in the format that

44-15    the comptroller prescribes.  [The comptroller may reject a report

44-16    if it does not contain sufficient information or comply with the

44-17    comptroller's prescribed format.]

44-18          (c)  On October 1 [31] of each fiscal year, the comptroller

44-19    shall lapse all unencumbered nonconstruction appropriation balances

44-20    for all prior appropriation years based on the payables and binding

44-21    encumbrances reported [information in the binding encumbrance

44-22    reports].

44-23          (d)  If an agency submits a valid claim against a prior

44-24    year's appropriation 30 days or more after the reporting due date

44-25    [has not submitted a report by October 31, the comptroller shall

 45-1    lapse the unexpended balance of the agency's appropriations.  If

 45-2    the agency subsequently submits a report], the comptroller shall

 45-3    reinstate the agency's appropriations to the extent of the claim

 45-4    [they were encumbered but unexpended].

 45-5          SECTION 70.  Section 403.031, Government Code, is amended by

 45-6    adding Subsection (c) to read as follows:

 45-7          (c)  The comptroller, in consultation with the state auditor

 45-8    and the attorney general, may develop standards and criteria to

 45-9    account for or to reclassify receivables determined to be

45-10    uncollectible.  The standards and criteria developed by the

45-11    comptroller must comply with generally accepted accounting

45-12    principles as prescribed or modified by the Governmental Accounting

45-13    Standards Board or its successors and must provide proper

45-14    accounting controls to protect state finances.  The state auditor

45-15    and the attorney general shall review and approve the standards and

45-16    criteria for classification of receivables.  Receivables may be

45-17    reclassified as collectible or uncollectible according to the

45-18    process approved by the state auditor or on a case-by-case basis as

45-19    determined or approved by that office.  The classification of

45-20    receivables as uncollectible under this subsection does not

45-21    constitute forgiveness of the debt, and any person indebted to the

45-22    state remains subject to Section 403.055.

45-23          SECTION 71.  Section 183.023, Tax Code, is amended to read as

45-24    follows:

45-25          Sec. 183.023.  PAYMENT.  The tax due for the preceding month

 46-1    shall accompany the return and shall be payable to the state.  The

 46-2    comptroller shall deposit the revenue in the general revenue [mixed

 46-3    beverage tax clearance] fund.

 46-4          SECTION 72.  Subsection (d), Section 74.006, Human Resources

 46-5    Code, is amended to read as follows:

 46-6          (d)  Money in the trust fund may be invested and shall be

 46-7    accounted for separately from other funds in the treasury.  The

 46-8    council may direct the investment of funds consistent with the

 46-9    comptroller's authority to invest funds under Section 404.024,

46-10    Government Code.  After the deduction of investment related

46-11    expenses, net income and interest [Interest] earned on money in the

46-12    trust fund shall be deposited to the credit of the trust fund.

46-13          SECTION 73.  Subsection (b), Section 403.003, Government

46-14    Code, is amended to read as follows:

46-15          (b)  The chief clerk shall take the official oath and give

46-16    bond in the amount of $70,000 [$10,000], payable in the same manner

46-17    as the comptroller's bond, and conditioned on the faithful

46-18    performance of the duties of the office.

46-19          SECTION 74.  Section 14, Texas State College and University

46-20    Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's

46-21    Texas Insurance Code), is amended to read as follows:

46-22          Sec. 14.  ADMINISTRATIVE COSTS.  No employee covered under

46-23    the provisions of this Act shall be required to pay out of the

46-24    amount of employer contributions due him or out of the amount of

46-25    his additional premiums due for selected coverages the expenses of

 47-1    the committees established in this Act; however, expenses for the

 47-2    administration of the self-insured plan as provided in Section 4(d)

 47-3    of this Act may come from the contributions of employees and the

 47-4    state after payments for any coverages provided for under this Act

 47-5    have been made[, any administrative costs, fees, or tax whatsoever

 47-6    to pay expenses of a state institution or committees as herein

 47-7    established for administering this Act].  The duties of each member

 47-8    of the advisory committees shall be considered additional duties to

 47-9    those required of his other state office or employment, and all

47-10    expenses incurred by any such member in performing his duties as a

47-11    member of the committee shall be paid out of funds made available

47-12    for those purposes to the institution of which the member is an

47-13    employee or officer.

47-14          SECTION 75.  Subchapter A, Chapter 403, Government Code, is

47-15    amended by adding Section 403.008 to read as follows:

47-16          Sec. 403.008.  BONDS AND EMPLOYEES.  (a)  In addition to

47-17    other bonds required by this chapter, the comptroller shall give

47-18    any special bond required by an Act of Congress or a federal

47-19    department or official to protect federal funds deposited with the

47-20    comptroller.  The state shall pay the expenses necessary and

47-21    incidental to the execution of the bond.

47-22          (b)  The comptroller shall appoint other employees that are

47-23    authorized by law.  Employees who as part of their duties handle

47-24    money, drafts, checks, bills of exchange, warrants, securities, or

47-25    other evidences of debt that are or may be convertible into money,

 48-1    or other valuable property shall execute a bond that is issued by a

 48-2    good and solvent surety company authorized to do business in this

 48-3    state, payable to the comptroller in the sum that the comptroller

 48-4    requires, and conditioned on the faithful performance of the duties

 48-5    of the employee's position.  The comptroller also may require an

 48-6    employee to be insured in the manner and sum required by the

 48-7    comptroller.

 48-8          (c)  The state shall pay any expense incident to the

 48-9    execution of the bonds and any insurance of the chief clerk and

48-10    other employees.

48-11          SECTION 76.  Subchapter B, Chapter 403, Government Code, is

48-12    amended by adding Sections 403.026 and 403.027 to read as follows:

48-13          Sec. 403.026.  ELECTRONIC STORAGE AND MAINTENANCE OF RECORDS.

48-14    (a)  The comptroller may store and maintain a state record or an

48-15    essential record in an electronic storage format if:

48-16                (1)  the method used to store and maintain the record

48-17    allows accurate reproduction of the record;

48-18                (2)  the method used to store and maintain the record

48-19    conforms to any standards prescribed by the records preservation

48-20    officer to conform to any applicable rules of the National

48-21    Institute of Standards and Technology, unless those standards

48-22    conflict with the provisions of this section; and

48-23                (3)  the place and manner of safekeeping the medium or

48-24    equipment on which the record is stored and maintained conforms

48-25    with the records preservation officer's requirements under Section

 49-1    441.059(a), except that the records preservation officer may not

 49-2    prohibit the comptroller from retaining possession of that medium

 49-3    or equipment.

 49-4          (b)  An accurate reproduction of a state record that is

 49-5    stored and maintained according to this section is a preservation

 49-6    duplicate of the record for the purposes of Sections 441.058 and

 49-7    441.059, regardless of whether the records preservation officer:

 49-8                (1)  made the reproduction; or

 49-9                (2)  designated the reproduction as a preservation

49-10    duplicate.

49-11          (c)  An accurate reproduction of an essential record that is

49-12    stored and maintained according to this section is a photographic

49-13    reproduction of the record for purposes of Section 441.038(f).

49-14          (d)  An accurate reproduction of a state record or an

49-15    essential record may be stored in tangible or intangible form,

49-16    including an electronic or optical image of the record.

49-17          (e)  In this section:

49-18                (1)  "Essential record" means written or graphic

49-19    material that is made or received by the comptroller in the conduct

49-20    of official state business and that is filed or intended to be

49-21    preserved permanently or for a definite period as a record of that

49-22    business.

49-23                (2)  "Records preservation officer" means the director

49-24    of the records management division of the Texas State Library.

49-25                (3)  "State record"  means a document, book, paper,

 50-1    photograph, sound recording, or other material, regardless of

 50-2    physical form or characteristic, that is made or received by the

 50-3    comptroller according to law or in connection with the transaction

 50-4    of official state business.

 50-5          Sec. 403.027.  DIGITAL SIGNATURES.  (a)  The comptroller may

 50-6    establish a procedure for a person to provide a digital signature

 50-7    for any document or data submitted to the comptroller if the

 50-8    comptroller determines the procedure will provide a degree of

 50-9    security and authenticity at least equal to that provided by a

50-10    manual signature.

50-11          (b)  A digital signature provided according to a procedure

50-12    established under this section has the same legal force and effect

50-13    for all purposes as a manual signature.

50-14          (c)  This section does not apply to the electronic submission

50-15    and approval of vouchers under Chapter 2103.

50-16          SECTION 77.  Section 411.109, Government Code, is amended to

50-17    read as follows:

50-18          Sec. 411.109.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:

50-19    COMPTROLLER [STATE TREASURER].  (a)  The comptroller [treasurer] is

50-20    entitled to obtain from the department criminal history record

50-21    information maintained by the department that the comptroller

50-22    [treasurer] believes is necessary for the enforcement or

50-23    administration of Chapter 154 or Chapter 155, Tax Code, including

50-24    criminal history record information that relates to a person who

50-25    is:

 51-1                (1)  an applicant for a permit under Chapter 154 or

 51-2    Chapter 155, Tax Code;

 51-3                (2)  a permit holder under either of those chapters;

 51-4                (3)  an officer, director, stockholder owning 10

 51-5    percent or more of the outstanding stock, partner, owner, or

 51-6    managing employee of an applicant or permit holder under either of

 51-7    those chapters that is a corporation, association, joint venture,

 51-8    syndicate, partnership, or proprietorship;

 51-9                (4)  believed to have violated Chapter 154 or Chapter

51-10    155, Tax Code; or

51-11                (5)  being considered by the comptroller [treasurer]

51-12    for employment as a peace officer.

51-13          (b)  The comptroller is entitled to obtain from the

51-14    department criminal history record information maintained by the

51-15    department that relates to a person who is an employee of or an

51-16    applicant for employment with the comptroller's office in a

51-17    position that involves:

51-18                (1)  handling currency, checks, or other funds;

51-19                (2)  having access to taxpayer account information;

51-20                (3)  working in a location designated by the

51-21    comptroller as a security-sensitive area; or

51-22                (4)  performing financial management duties designated

51-23    by the comptroller as security sensitive.

51-24          (c)  Criminal history record information obtained by the

51-25    comptroller [treasurer] under Subsections [Subsection] (a)  and (b)

 52-1    may not be released or disclosed to any person except on court

 52-2    order or as provided by Subsection (d) [(c)].

 52-3          (d) [(c)]  The comptroller [treasurer] is not prohibited from

 52-4    disclosing to a person who is the subject of criminal history

 52-5    record information the dates and places of arrests, the offenses,

 52-6    and the dispositions in the criminal history record information.

 52-7          SECTION 78.  Chapter 612, Government Code, is amended by

 52-8    adding Section 612.004 to read as follows:

 52-9          Sec. 612.004.  LIABILITY INSURANCE FOR CERTAIN BOARD MEMBERS,

52-10    OFFICIALS, AND EXECUTIVE MANAGEMENT STAFF.  (a)  A state agency

52-11    governed by a board may purchase or acquire liability insurance to

52-12    protect members of the board and the agency's executive management

52-13    staff.

52-14          (b)  A state agency governed by an appointed or elected

52-15    official may purchase or acquire liability insurance to protect the

52-16    official and the agency's executive management staff.

52-17          (c)  Insurance purchased or acquired by a state agency under

52-18    this section may:

52-19                (1)  protect against any type of liability to third

52-20    persons that may be incurred while conducting agency business; and

52-21                (2)  provide for all costs of defending against that

52-22    liability, including court costs and attorney's fees.

52-23          (d)  This section does not authorize the purchase or

52-24    acquisition of insurance to protect against liability other than

52-25    liability described by Subsection (c).

 53-1          (e)  A state agency may use any available funds to purchase

 53-2    or acquire insurance under this section.  A specific statement by

 53-3    the legislature that a particular appropriation of funds may be

 53-4    used to purchase or acquire insurance is not a prerequisite to

 53-5    using funds to purchase or acquire insurance under this section.

 53-6          (f)  In this section:

 53-7                (1)  "Board" includes a board, commission, council,

 53-8    committee, or other group of individuals.

 53-9                (2)  "State agency" means a department, board,

53-10    commission, committee, council, agency, office, or other entity in

53-11    the executive, legislative, or judicial branch of state government,

53-12    the jurisdiction of which is not limited to a geographical portion

53-13    of the state.  The term includes an institution of higher education

53-14    as defined by Section 61.003, Education Code.

53-15          SECTION 79.  Subsection (b), Section 2101.031, Government

53-16    Code, is amended to read as follows:

53-17          (b)  The project includes each component of the uniform

53-18    statewide accounting system as designed in accordance with Chapter

53-19    852, Acts of the 70th Legislature, Regular Session, 1987, as

53-20    defined by Section 1, Chapter 781, Acts of the 71st Legislature,

53-21    Regular Session, 1989, and as developed or revised by the

53-22    comptroller [project advisory committee], including:

53-23                (1)  the uniform statewide accounting system (USAS) and

53-24    related subsystems;

53-25                (2)  the uniform statewide payroll system (USPS); and

 54-1                (3)  the human resource information system (HRIS)[;]

 54-2                [(4)  the budget execution and monitoring system

 54-3    (BEAMS); and]

 54-4                [(5)  the statewide telecommunication network system].

 54-5          SECTION 80.  Section 2101.035, Government Code, is amended by

 54-6    amending Subsection (d) and adding Subsections (e), (f), and (g) to

 54-7    read as follows:

 54-8          (d)  The comptroller shall ensure that the uniform statewide

 54-9    accounting system encompasses each state agency.  [The comptroller

54-10    may, after consulting with the project advisory committee, exclude

54-11    any state agency from the centralized computation function of the

54-12    statewide payroll component of the system.]

54-13          (e)  The comptroller shall ensure that the uniform statewide

54-14    payroll system includes a standardized payroll calculation

54-15    function.  A state agency shall use that function to calculate its

54-16    payrolls unless the comptroller temporarily exempts the agency from

54-17    this requirement.

54-18          (f)  The comptroller may designate a centralized or

54-19    decentralized computer system, or a combination of those systems,

54-20    to operate the uniform statewide accounting system or a component

54-21    of that system, including the uniform statewide payroll system and

54-22    the human resources information system.  A designated computer

54-23    system may be operated by the comptroller, another governmental

54-24    entity, or a private contractor.

54-25          (g)  If the comptroller designates a decentralized computer

 55-1    system under Subsection (f), the comptroller may require each state

 55-2    agency using that system to report data and other information from

 55-3    the system to the comptroller at the time and in the manner

 55-4    required by the comptroller.

 55-5          SECTION 81.  Subchapter C, Chapter 2101, Government Code, is

 55-6    amended by adding Sections 2101.0375 and 2101.0376 to read as

 55-7    follows:

 55-8          Sec. 2101.0375.  WITHHOLDING OF TRAVEL EXPENSE REIMBURSEMENTS

 55-9    FOR LATE OR IMPROPER REPORTING.  (a)  The comptroller may withhold

55-10    all reimbursements for the travel expenses incurred by the chief

55-11    administrative officer of a state agency whose report under this

55-12    subchapter is not properly received by the comptroller on or before

55-13    the comptroller's deadline.

55-14          (b)  The comptroller may withhold all reimbursements for the

55-15    travel expenses incurred by the officers and employees of a state

55-16    agency whose report under this subchapter is not properly received

55-17    by the comptroller on or before the 30th day after the

55-18    comptroller's deadline.

55-19          (c)  The comptroller may prohibit a state agency from using

55-20    local funds to reimburse the travel expenses incurred by:

55-21                (1)  the agency's chief administrative officer if the

55-22    agency's report under this subchapter is not properly received by

55-23    the comptroller on or before the comptroller's deadline; or

55-24                (2)  the agency's officers or employees if the agency's

55-25    report under this subchapter is not properly received by the

 56-1    comptroller on or before the 30th day after the comptroller's

 56-2    deadline.

 56-3          (d)  Immediately after the comptroller determines that a

 56-4    state agency's report has been properly received, the comptroller

 56-5    shall:

 56-6                (1)  release each travel expense reimbursement that the

 56-7    comptroller withheld under Subsection (a) or (b); and

 56-8                (2)  rescind any prohibition that the comptroller

 56-9    issued under Subsection (c).

56-10          (e)  A travel expense reimbursement is subject to withholding

56-11    under Subsection (a), (b), or (c) regardless of when the expense is

56-12    incurred.  A travel expense reimbursement is subject to withholding

56-13    under Subsection (a) or (b) regardless of whether the reimbursement

56-14    is payable to an individual or a state agency.

56-15          (f)  A report is properly received under this section if the

56-16    report complies with the format, submission method, content, and

56-17    other requirements of the comptroller and this subchapter.

56-18          (g)  In this section:

56-19                (1)  "Chief administrative officer" means:

56-20                      (A)  the appointed or elected individual who is

56-21    authorized by law to administer a state agency that is not headed

56-22    by a governing body; or

56-23                      (B)  the executive director or other individual

56-24    with an equivalent title who administers a state agency headed by a

56-25    governing body.

 57-1                (2)  "Local funds" means funds that are not expended on

 57-2    warrants drawn or electronic funds transfers initiated by the

 57-3    comptroller.

 57-4                (3)  "State agency" does not include:

 57-5                      (A)  a state agency under the direct supervision

 57-6    and control of the governor, the secretary of state, the

 57-7    comptroller, the Commissioner of the General Land Office, or the

 57-8    attorney general if the agency is not headed by a governing body;

 57-9                      (B)  a state agency in the legislative or

57-10    judicial branch of government;

57-11                      (C)  the Department of Agriculture; or

57-12                      (D)  the Railroad Commission of Texas.

57-13          Sec. 2101.0376.  ADMINISTRATIVE PENALTIES FOR LATE OR

57-14    IMPROPER REPORTING.  (a)  The comptroller may impose an

57-15    administrative penalty against a state agency if the comptroller:

57-16                (1)  is late in submitting a statewide report or

57-17    submits an incomplete statewide report; and

57-18                (2)  determines that the statewide report is late or

57-19    incomplete because a report from the agency under this subchapter

57-20    was not properly received by the comptroller on or before the

57-21    comptroller's deadline.

57-22          (b)  A penalty imposed under Subsection (a) may be in an

57-23    amount not to exceed $2,000 for each report that is not properly

57-24    received by the comptroller on or before the comptroller's

57-25    deadline.

 58-1          (c)  A state agency shall ensure that the comptroller

 58-2    receives payment of a penalty imposed under Subsection (a) not

 58-3    later than the 30th day after the date the agency receives notice

 58-4    of the penalty.  The comptroller shall deposit the payment to the

 58-5    credit of the general revenue fund.

 58-6          (d)  A report is properly received under this section if the

 58-7    report complies with the format, submission method, content, and

 58-8    other requirements of the comptroller and this subchapter.

 58-9          (e)  The comptroller may adopt rules to administer this

58-10    section.

58-11          (f)  In this section, "statewide report" means a report

58-12    periodically submitted by the comptroller to the legislature, the

58-13    state auditor, or another state officer or agency that provides

58-14    statistical or financial information about the state agencies or

58-15    their officers and employees.

58-16          (g)  "State agency" does not include:

58-17                (1)  a state agency under the direct supervision and

58-18    control of the governor, the secretary of state, the comptroller,

58-19    the Commissioner of the General Land Office, or the attorney

58-20    general if the agency is not headed by a governing body;

58-21                (2)  a state agency in the legislative or judicial

58-22    branch of government;

58-23                (3)  the Department of Agriculture; or

58-24                (4)  the Railroad Commission of Texas.

58-25          SECTION 82.  Section 2101.038, Government Code, is amended to

 59-1    read as follows:

 59-2          Sec. 2101.038.  DUTIES OF STATE AUDITOR.  The state auditor,

 59-3    when reviewing the operation of a state agency, shall audit for

 59-4    compliance with the uniform statewide accounting system, the

 59-5    comptroller's rules, and the Legislative Budget Board's performance

 59-6    and workload measures.  The state auditor shall notify [the project

 59-7    advisory committee,] the comptroller, the governor, and the

 59-8    Legislative Budget Board as soon as practicable when a state agency

 59-9    is not in compliance.

59-10          SECTION 83.  Section 2101.039, Government Code, is amended to

59-11    read as follows:

59-12          Sec. 2101.039.  CONTRACTS; EXEMPTION.  [(a)]  Contracts made

59-13    under this subchapter are not subject to:

59-14                (1)  Subtitle D, Title 10 [the State Purchasing and

59-15    General Services Act (Article 601b, Vernon's Texas Civil

59-16    Statutes)];

59-17                (2)  Chapter 2254; or

59-18                (3)  Chapter 2054.

59-19          [(b)  The project director must submit all proposed contracts

59-20    for professional or consulting services and all proposed purchases

59-21    of computer equipment or software to the project advisory committee

59-22    for review and recommendation before procurement.]

59-23          SECTION 84.  The chapter heading to Chapter 556, Government

59-24    Code, is amended to read as follows:

 60-1          CHAPTER 556. POLITICAL ACTIVITIES BY STATE AGENCIES AND

 60-2                                 EMPLOYEES

 60-3          SECTION 85.  Section 556.002, Government Code, is amended to

 60-4    read as follows:

 60-5          Sec. 556.002.  EXCEPTION.  Except for Section 556.006, this

 60-6    [This] chapter does not apply to an individual employed by the

 60-7    Department of Public Safety.

 60-8          SECTION 86.  Chapter 556, Government Code, is amended by

 60-9    adding Section 556.006 to read as follows:

60-10          Sec. 556.006.  LEGISLATIVE LOBBYING.  (a)  A state agency may

60-11    not use appropriated money to attempt to influence the passage or

60-12    defeat of a legislative measure.

60-13          (b)  This section does not prohibit a state officer or

60-14    employee from using state resources to provide public information

60-15    or to provide information responsive to a request.

60-16          SECTION 87.  Chapter 772, Government Code, is amended by

60-17    adding Section 772.0031 to read as follows:

60-18          Sec. 772.0031.  HUMAN RESOURCE TASK FORCE.  (a)  The Human

60-19    Resource Task Force is composed of a representative of:

60-20                (1)  the governor's office, appointed by the governor;

60-21                (2)  the state auditor's office, appointed by the state

60-22    auditor;

60-23                (3)  the comptroller's office, appointed by the

60-24    comptroller;

60-25                (4)  the attorney general's office, appointed by the

 61-1    attorney general;

 61-2                (5)  the Commission on Human Rights, appointed by the

 61-3    presiding officer of that agency;

 61-4                (6)  the Employees Retirement System of Texas,

 61-5    appointed by the presiding officer of the board of trustees of that

 61-6    agency;

 61-7                (7)  the Texas Workforce Commission, appointed by the

 61-8    presiding officer of that agency;

 61-9                (8)  the Texas Workers' Compensation Commission,

61-10    appointed by the presiding officer of that agency;

61-11                (9)  the Legislative Budget Board, appointed by the

61-12    presiding officer of the board;

61-13                (10)  the State Agency Coordinating Council, appointed

61-14    by the presiding officer of that entity;

61-15                (11)  the Texas Small State Agency Task Force,

61-16    appointed by the presiding officer of that entity;

61-17                (12)  the Texas State Personnel Administrators

61-18    Association, appointed by the presiding officer of that entity; and

61-19                (13)  each eligible state employee organization

61-20    certified by the comptroller under Section 403.0165, who must be

61-21    the chief elected representative of the organization.

61-22          (b)  The representatives of the State Agency Coordinating

61-23    Council, the Texas Small State Agency Task Force, and the Texas

61-24    State Personnel Administrators Association serve as nonvoting

61-25    members of the Human Resource Task Force.

 62-1          (c)  The representative of the governor's office serves as

 62-2    the presiding officer of the task force.

 62-3          (d)  The task force shall meet at the call of the presiding

 62-4    officer.

 62-5          (e)  A member of the task force is not entitled to

 62-6    compensation but is entitled to reimbursement of travel expenses

 62-7    incurred by the member while conducting the business of the task

 62-8    force, as provided by the General Appropriations Act. The

 62-9    appointing entity is responsible for the reimbursement of the

62-10    entity's appointee.

62-11          (f)  The member entities of the task force shall provide the

62-12    staff for the task force.

62-13          (g)  The task force shall:

62-14                (1)  identify and develop strategies to coordinate

62-15    personnel policies and information dissemination within state

62-16    government;

62-17                (2)  propose a method for the sharing and coordination

62-18    of human resource training activities among state agencies; and

62-19                (3)  develop a "best practices" personnel manual to

62-20    assist state agencies in developing, adapting, and revising human

62-21    resource policies and implementing new programs.

62-22          (h)  Not later than December 1, 1998, the task force shall

62-23    submit to the legislature a report on the task force's

62-24    recommendations and a draft of the "best practices" personnel

62-25    manual.

 63-1          (i)  This section expires and the Human Resource Task Force

 63-2    is abolished September 1, 1999.

 63-3          SECTION 88.  Chapter 651, Government Code, is amended by

 63-4    adding Section 651.004 to read as follows:

 63-5          Sec. 651.004.  MANAGEMENT-TO-STAFF RATIOS.  (a)  A state

 63-6    agency shall develop procedures for use in achieving a

 63-7    management-to-staff ratio of one manager for each 11 staff members.

 63-8          (b)  In this section, "state agency" has the meaning assigned

 63-9    by Section 2052.101.

63-10          SECTION 89.  Subsections (a) and (b), Section 2052.103,

63-11    Government Code, are amended to read as follows:

63-12          (a)  Not later than the last day of the first month following

63-13    each quarter of the fiscal year, a state agency shall file with the

63-14    state auditor a written report that provides for that fiscal

63-15    quarter:

63-16                (1)  the number of full-time equivalent state employees

63-17    employed by the agency and paid from funds in the state treasury;

63-18                (2)  the number of full-time equivalent state employees

63-19    employed by the agency and paid from funds outside of the state

63-20    treasury;

63-21                (3)  the increase or decrease, if any, of the number of

63-22    full-time equivalent employees from the fiscal quarter preceding

63-23    the quarter covered by the report;

63-24                (4)  the number of positions of the agency paid from

63-25    funds in the state treasury;

 64-1                (5)  the number of positions of the agency paid from

 64-2    funds outside of the state treasury; [and]

 64-3                (6)  the number of individuals who performed services

 64-4    for the agency under a contract, including consultants and

 64-5    individuals employed under contracts with temporary help services;

 64-6    and

 64-7                (7)  the number of managers, supervisors, and staff.

 64-8          (b)  The report must be made in the manner prescribed by the

 64-9    state auditor and include:

64-10                (1)  an annotated organizational chart depicting the

64-11    total number of full-time equivalent employees, without regard to

64-12    the source of funds used to pay all or part of the salary of an

64-13    employee, and the total number of managers, supervisors, and staff

64-14    for each functional area in the state agency;

64-15                (2)  the management-to-staff ratio for each functional

64-16    area; and

64-17                (3)  a separate organizational chart that summarizes

64-18    the categories of employees in the agency's regional offices

64-19    without regard to the source of funds used to pay all or part of

64-20    the salary of an employee.

64-21          SECTION 90.  (a)  Sections 403.005, 403.016(e), 403.0165(j),

64-22    2101.032, 2101.035(b), and 2103.032(c), Government Code, are

64-23    repealed.

64-24          (b)  Sections 403.021(f) and 404.042, Government Code, are

64-25    repealed.

 65-1          SECTION 91.  This Act takes effect immediately, except that

 65-2    Sections 1, 42 through 46, 50 through 54, 65 through 75, 81, and

 65-3    90(b) of this Act take effect September 1, 1997.

 65-4          SECTION 92.  (a)  The changes in law made by Sections 43 and

 65-5    44 of this Act apply only to a separation from state employment

 65-6    that occurs on or after the effective date of those sections.  A

 65-7    separation that occurs before that date is governed by the law in

 65-8    effect at the time of the separation, and the former law is

 65-9    continued in effect for that purpose.

65-10          (b)  The changes in law made by Sections 51 and 52 of this

65-11    Act apply only to coverages for periods on or after the effective

65-12    date of those sections.  The coverages for periods before that date

65-13    are governed by the law as it existed immediately before the

65-14    effective date of those sections, and the former law is continued

65-15    in effect for that purpose.

65-16          (c)  The changes in law made by Section 81 of this Act apply

65-17    to a state agency report that the comptroller has not properly

65-18    received according to the applicable deadline, regardless of

65-19    whether the deadline was before, on, or after the effective date of

65-20    Section 81 of this Act.  The changes in law do not apply to a state

65-21    agency report that the comptroller properly received before the

65-22    effective date of Section 81 of this Act.

65-23          SECTION 93.  The importance of this legislation and the

65-24    crowded condition of the calendars in both houses create an

65-25    emergency and an imperative public necessity that the

 66-1    constitutional rule requiring bills to be read on three several

 66-2    days in each house be suspended, and this rule is hereby suspended,

 66-3    and that this Act take effect and be in force according to its

 66-4    terms, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 645 passed the Senate on

         April 17, 1997, by the following vote:  Yeas 31, Nays 0; and that

         the Senate concurred in House amendments on May 28, 1997, by the

         following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 645 passed the House, with

         amendments, on May 25, 1997, by the following vote:  Yeas 143,

         Nays 0, one present not voting.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor