1-1              By:  Armbrister                                        S.B. No. 645

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-2     relating to state fiscal matters, including holidays, employee

 1-3     compensation and deductions, reports, consultants, and the

 1-4     comptroller's powers.

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

 1-6           SECTION 1.  Subsection (c), Section 659.083, Government Code,

 1-7     is amended to read as follows:

 1-8           (c)  In this section, "working day" means a day other than

 1-9     Saturday, Sunday, or a national holiday[, or a state holiday] as

1-10     listed in the General Appropriations Act or Chapter 662.  A day

1-11     does not cease to be a national holiday because a state agency

1-12     maintains or is required to maintain a minimum working staff on the

1-13     holiday.

1-14           SECTION 2.  Subsection (b), Section 465.008, Government Code,

1-15     is amended to read as follows:

1-16           (b)  The commission may enter into a contract with another

1-17     state agency, a political subdivision of the state, including a

1-18     special utility district as defined by Section 65.001, Water Code,

1-19     the United States, or a private agency, college, university,

1-20     corporation, partnership, association, or other person for an

1-21     appropriate purpose in connection with the performance of its

1-22     duties, including a contract, study, investigation, or proposal

1-23     necessary to conduct its duties.  Subchapter B, Chapter 2254,  does

1-24     not apply to use by the commission of a [private] consultant to

1-25     provide services in connection with formulation or submission of

1-26     two or more siting proposals under this chapter, except that in

1-27     selecting the consultant the commission shall give the preference

1-28     required by Section 2254.027(2) [3(b)(2) of that chapter].

1-29           SECTION 3.  Section 2254.021, Government Code, is amended to

1-30     read as follows:

1-31           Sec. 2254.021.  DEFINITIONS.  In this subchapter:

                                       1                           

                                                                S.B. No. 645

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

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

 2-3     the traditional relationship of employer and employee.

 2-4                 (2)  "Major consulting services contract" means a

 2-5     consulting services contract for which it is reasonably foreseeable

 2-6     that the value of the contract will exceed $10,000.

 2-7                 (3)  "Consultant" ["Private consultant"] means a person

 2-8     that provides or proposes to provide a consulting service.  The

 2-9     term includes a political subdivision but does not include the

2-10     federal government, a state agency, or a state governmental entity.

2-11                 (4)  "Political subdivision" means:

2-12                       (A)  a county;

2-13                       (B)  an incorporated or unincorporated

2-14     municipality;

2-15                       (C)  a public junior college;

2-16                       (D)  a public school district or other

2-17     educational or rehabilitative district;

2-18                       (E)  a metropolitan or regional transit

2-19     authority;

2-20                       (F)  an airport authority;

2-21                       (G)  a river authority or compact;

2-22                       (H)  a regional planning commission, a council of

2-23     governments, or a similar regional planning agency created under

                                       2                           

                                                                S.B. No. 645

 3-1     Chapter 391, Local Government Code;

 3-2                       (I)  the Edwards Aquifer Authority or a district

 3-3     governed by Title 4, Water Code;

 3-4                       (J)  a soil and water conservation district;

 3-5                       (K)  a county or municipal improvement district;

 3-6                       (L)  a county road or road utility district;

 3-7                       (M)  a county housing authority;

 3-8                       (N)  an emergency services or communications

 3-9     district;

3-10                       (O)  a fire prevention district;

3-11                       (P)  a public health or hospital authority or

3-12     district;

3-13                       (Q)  a mosquito control district;

3-14                       (R)  a special waste district;

3-15                       (S)  a rural rail transportation district; or

3-16                       (T)  any other local government or special

3-17     district of this state.

3-18                 (5)  "State agency" has the meaning assigned by Section

3-19     2151.002 [1.02, State Purchasing and General Services Act (Article

3-20     601b, Vernon's Texas Civil Statutes)].

3-21                 (6)  "State governmental entity" means a state

3-22     department, commission, board, office, institution, facility, or

3-23     other agency the jurisdiction of which is not limited to a

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                                                                S.B. No. 645

 4-1     geographical portion of the state.  The term includes a university

 4-2     system and an institution of higher education, other than a public

 4-3     junior college, as defined by Section 61.003, Education Code.  The

 4-4     term does not include a political subdivision.

 4-5           SECTION 4.  Section 2254.022, Government Code, is amended to

 4-6     read as follows:

 4-7           Sec. 2254.022.  INTERPRETATION OF SUBCHAPTER.  (a)  This

 4-8     subchapter shall be interpreted to ensure:

 4-9                 (1)  the greatest and fairest competition in the

4-10     selection by state agencies of [private] consultants; and

4-11                 (2)  the giving of notice to all potential [private]

4-12     consultants of the need for and opportunity to provide consulting

4-13     services.

4-14           (b)  This subchapter does not:

4-15                 (1)  discourage state agencies from using [private]

4-16     consultants if the agencies reasonably foresee that the use of

4-17     [private] consultants will produce a more efficient and less costly

4-18     operation or project;

4-19                 (2)  prohibit the making of a sole-source contract for

4-20     consulting services if a proposal is not received from a competent,

4-21     knowledgeable, and qualified [private] consultant at a reasonable

4-22     fee, after compliance with this subchapter; or

4-23                 (3)  require or prohibit the use of competitive bidding

                                       4                           

                                                                S.B. No. 645

 5-1     procedures to purchase consulting services.

 5-2           SECTION 5.  Subsections (a), (b), and (e), Section 2254.025,

 5-3     Government Code, are amended to read as follows:

 5-4           (a)  The governor, after receipt of a request complying with

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

 5-6     subchapter for a state agency that requires [private] consulting

 5-7     services before compliance with this subchapter can be completed

 5-8     because of an unforeseen emergency.

 5-9           (b)  A state agency's request for a waiver must include

5-10     information required by the governor, including:

5-11                 (1)  information about the nature of the emergency;

5-12                 (2)  the reason that the state agency did not foresee

5-13     the emergency;

5-14                 (3)  the name of the [private] consultant with whom the

5-15     agency intends to contract; and

5-16                 (4)  the amount of the intended contract.

5-17           (e)  In this section, "unforeseen emergency" means a

5-18     situation that suddenly and unexpectedly causes a state agency to

5-19     need the services of a [private] consultant.  The term includes the

5-20     issuance of a court order, an actual or imminent natural disaster,

5-21     and new state or federal legislation.  An emergency is not

5-22     unforeseen if a state agency was negligent in foreseeing the

5-23     occurrence of the emergency.

                                       5                           

                                                                S.B. No. 645

 6-1           SECTION 6.  Section 2254.026, Government Code, is amended to

 6-2     read as follows:

 6-3           Sec. 2254.026.  CONTRACT WITH [PRIVATE] CONSULTANT.  A state

 6-4     agency may contract with a [private] consultant only if:

 6-5                 (1)  there is a substantial need for the consulting

 6-6     services; and

 6-7                 (2)  the agency cannot adequately perform the services

 6-8     with its own personnel or obtain the consulting services through a

 6-9     contract with a [another] state governmental entity [agency].

6-10           SECTION 7.  Section 2254.027, Government Code, is amended to

6-11     read as follows:

6-12           Sec. 2254.027.  SELECTION OF [PRIVATE] CONSULTANT.  In

6-13     selecting a [private] consultant, a state agency shall:

6-14                 (1)  base its choice on demonstrated competence,

6-15     knowledge, and qualifications and on the reasonableness of the

6-16     proposed fee for the services; and

6-17                 (2)  if other considerations are equal, give preference

6-18     to a [private] consultant whose principal place of business is in

6-19     the state or who will manage the consulting contract wholly from an

6-20     office in the state.

6-21           SECTION 8.  Subsection (a), Section 2254.028, Government

6-22     Code, is amended to read as follows:

6-23           (a)  Before entering into a major consulting services

                                       6                           

                                                                S.B. No. 645

 7-1     contract, a state agency shall:

 7-2                 (1)  notify the Legislative Budget Board and the

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

 7-4     contract with a [private] consultant;

 7-5                 (2)  give information to the Legislative Budget Board

 7-6     and the governor's Budget and Planning Office to demonstrate that

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

 7-8     2254.027; and

 7-9                 (3)  obtain a finding of fact from the governor's

7-10     Budget and Planning Office that the consulting services are

7-11     necessary.

7-12           SECTION 9.  Section 2254.029, Government Code, is amended to

7-13     read as follows:

7-14           Sec. 2254.029.  PUBLICATION IN TEXAS REGISTER BEFORE ENTERING

7-15     INTO MAJOR CONSULTING SERVICES CONTRACT.  (a)  Not later than the

7-16     30th day before the date it enters into a major consulting services

7-17     contract, a state agency shall file with the secretary of state for

7-18     publication in the Texas Register:

7-19                 (1)  an invitation for [private] consultants to provide

7-20     offers of consulting services;

7-21                 (2)  the name of the individual who should be contacted

7-22     by a [private] consultant that intends to make an offer;

7-23                 (3)  the closing date for the receipt of offers; and

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                                                                S.B. No. 645

 8-1                 (4)  the procedure by which the state agency will award

 8-2     the contract.

 8-3           (b)  If the consulting services sought by a state agency

 8-4     relate to services previously provided by a [private] consultant,

 8-5     the agency shall disclose that fact in the invitation required by

 8-6     Subsection (a).  If the state agency intends to award the contract

 8-7     for the consulting services to a [private] consultant that

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

 8-9     received, the agency shall disclose its intention in the invitation

8-10     required by Subsection (a).

8-11           SECTION 10.  Section 2254.030, Government Code, is amended to

8-12     read as follows:

8-13           Sec. 2254.030.  PUBLICATION IN TEXAS REGISTER AFTER  ENTERING

8-14     INTO MAJOR CONSULTING SERVICES CONTRACT.  Not later than the 10th

8-15     day after the date of entering into a major consulting services

8-16     contract, the state agency shall file with the secretary of state

8-17     for publication in the Texas Register:

8-18                 (1)  a description of the activities that the [private]

8-19     consultant will conduct;

8-20                 (2)  the name and business address of the [private]

8-21     consultant;

8-22                 (3)  the total value and the beginning and ending dates

8-23     of the contract; and

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                                                                S.B. No. 645

 9-1                 (4)  the dates on which documents, films, recordings,

 9-2     or reports that the [private] consultant is required to present to

 9-3     the agency are due.

 9-4           SECTION 11.  Subsections (a) and (b), Section 2254.036,

 9-5     Government Code, are amended to read as follows:

 9-6           (a)  On request, a state agency shall, after the agency's

 9-7     contract with a [private] consultant has ended,  supply the

 9-8     Legislative Budget Board and the governor's Budget and Planning

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

9-10     compiled by the consultant under the contract.

9-11           (b)  Copies of all documents, films, recordings, or reports

9-12     compiled by the [private] consultant shall be filed with the Texas

9-13     State Library and shall be retained by the library for at least

9-14     five years.

9-15           SECTION 12.  Section 2254.037, Government Code, is amended to

9-16     read as follows:

9-17           Sec. 2254.037.  REPORTS.  As part of the biennial budgetary

9-18     hearing process conducted by the Legislative Budget Board and the

9-19     governor's Budget and Planning Office, a state agency shall report

9-20     to the Legislative Budget Board and the governor's Budget and

9-21     Planning Office on any actions taken in response to the

9-22     recommendations of any [private] consultant with whom the state

9-23     agency contracts during the previous biennium.

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                                                                S.B. No. 645

 10-1          SECTION 13.  Subchapter B, Chapter 403, Government Code, is

 10-2    amended by adding Section 403.026 to read as follows:

 10-3          Sec. 403.026.  RULES.  (a)  The comptroller may adopt rules

 10-4    to interpret, implement, and administer a state statute if:

 10-5                (1)  the statute specifically authorizes or requires

 10-6    the comptroller to interpret, implement, or administer the statute;

 10-7    or

 10-8                (2)  the comptroller determines that the rules are

 10-9    necessary for fulfillment of the comptroller's constitutional or

10-10    statutory duties.

10-11          (b)  Subsection (a) does not apply to a state statute if the

10-12    statute specifically authorizes the comptroller or a state agency

10-13    to adopt rules to interpret, implement, and administer the statute.

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

10-15    Code, is amended to read as follows:

10-16          (h)  This subsection applies if the comptroller and a state

10-17    agency have contracted in accordance with Subsection (g).  The

10-18    comptroller shall audit claims after payment in the same way that

10-19    the comptroller audits claims before payment under Subsection (a).

10-20    The comptroller may establish requirements and adopt rules

10-21    concerning the time that a state agency must retain documentation

10-22    in its files to enable a postpayment audit.  If a postpayment audit

10-23    by the comptroller shows that a claim presented by a state agency

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                                                                S.B. No. 645

 11-1    was invalid, the comptroller may:

 11-2                (1)  implement procedures to ensure that similar

 11-3    invalid claims from the state agency are not paid in the future;

 11-4                (2)  report to the governor, the lieutenant governor,

 11-5    the speaker of the house of representatives, the state auditor, and

 11-6    the Legislative Budget Board the results of the audit;

 11-7                (3)  require the state agency to obtain a refund of the

 11-8    monies from the payee;

 11-9                (4)  cancel the contract with the state agency; and

11-10                (5)  reduce the state agency's remaining appropriations

11-11    by the amount of the claim.

11-12          SECTION 15.  Section 659.062, Government Code, is amended by

11-13    adding Subsection (e) to read as follows:

11-14          (e)  The comptroller may establish procedures and adopt rules

11-15    to administer this section.

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

11-17    amended by adding Section 659.110 to read as follows:

11-18          Sec. 659.110.  RULES.  The comptroller may establish

11-19    procedures and adopt rules to administer the credit union deduction

11-20    program authorized by this subchapter.

11-21          SECTION 17.  Subchapter B, Chapter 661, Government Code, is

11-22    amended by adding Section 661.038 to read as follows:

11-23          Sec. 661.038.  RULES.  The comptroller may establish

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                                                                S.B. No. 645

 12-1    procedures and adopt rules to administer this subchapter.

 12-2          SECTION 18.  Subchapter C, Chapter 661, Government Code, is

 12-3    amended by adding Section 661.068 to read as follows:

 12-4          Sec. 661.068.  RULES.  The comptroller may establish

 12-5    procedures and adopt rules to administer this subchapter.

 12-6          SECTION 19.  Subchapter D, Chapter 661, Government Code, is

 12-7    amended by adding Section 661.094 to read as follows:

 12-8          Sec. 661.094.  RULES.  The comptroller may establish

 12-9    procedures and adopt rules to administer this subchapter.

12-10          SECTION 20.  Subchapter A, Chapter 662, Government Code, is

12-11    amended by adding Section 662.012 to read as follows:

12-12          Sec. 662.012.  RULES.  The comptroller may establish

12-13    procedures and adopt rules to administer Sections 662.001-662.010.

12-14          SECTION 21.  Subsection (e), Section 57.48, Education Code,

12-15    is amended to read as follows:

12-16          (e)  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 22.  Subdivision (4), Subsection (f), Section 57.48,

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

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

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                                                                S.B. No. 645

 13-1    from paying the compensation of:

 13-2                      (A)  a state officer or employee; or

 13-3                      (B)  an individual whose compensation is being

 13-4    paid by a private person through the agency.

 13-5          SECTION 23.  Subsection (c), Section 403.055, Government

 13-6    Code, is amended to read as follows:

 13-7          (c)  This section does not prohibit the comptroller from

 13-8    issuing a warrant to pay the compensation of:

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

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

13-11    a private person through a state agency.

13-12          SECTION 24.  Subdivision (4), Subsection (e), Section

13-13    403.055, Government Code, is amended to read as follows:

13-14                (4)  This subsection does not prohibit a state agency

13-15    from paying the compensation of:

13-16                      (A)  a state officer or employee; or

13-17                      (B)  an individual whose compensation is being

13-18    paid by a private person through the agency.

13-19          SECTION 25.  Subsection (c), Section 481.0841, Government

13-20    Code, is amended to read as follows:

13-21          (c)  This section does not prohibit the comptroller from

13-22    issuing a warrant or initiating an electronic funds transfer to pay

13-23    the compensation of:

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                                                                S.B. No. 645

 14-1                (1)  a state officer or employee; or

 14-2                (2)  an individual whose compensation is being paid by

 14-3    a private person through a state agency.

 14-4          SECTION 26.  Subdivisions (2) and (4), Subsection (d),

 14-5    Section 481.0841, Government Code, are amended to read as follows:

 14-6                (2)  A state agency may not use funds inside or outside

 14-7    the state treasury to pay a user if the [agency knows that the]

 14-8    user is in default on a loan guaranteed under this subchapter and

 14-9    with respect to which the department has been required to honor a

14-10    guarantee.

14-11                (4)  This subsection does not prohibit a state agency

14-12    from paying the compensation of:

14-13                      (A)  a state officer or employee; or

14-14                      (B)  an individual whose compensation is being

14-15    paid by a private person through the agency.

14-16          SECTION 27.  Section 662.001, Government Code, is amended by

14-17    amending Subdivisions (1) and (3) and adding Subdivision (4) to

14-18    read as follows:

14-19                (1)  "Part-time state employee" means a state employee

14-20    who normally works fewer [less] than 40 hours each week.

14-21                (3)  "State employee" means an employee of a state

14-22    agency or an appointed officer of a state agency whose office is

14-23    not created by the state constitution.  The term includes a

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                                                                S.B. No. 645

 15-1    part-time, hourly, or temporary state employee.

 15-2                (4)  "Workday" means a day on which a state employee is

 15-3    normally scheduled to work.  The term does not include a national

 15-4    or state holiday.

 15-5          SECTION 28.  Section 662.005, Government Code, is amended to

 15-6    read as follows:

 15-7          Sec. 662.005.  ENTITLEMENT TO PAID DAY OFF.  (a)  An

 15-8    individual who is a [A] state employee on the last workday before

 15-9    or the first workday after a national or state holiday, or on both

15-10    workdays, is entitled, except as provided by Section 662.010, to a

15-11    paid day off from working for a state agency [work] on the [each

15-12    national or state] holiday if:

15-13                (1)  the holiday [that] does not fall on a Saturday  or

15-14    Sunday; and

15-15                (2)  the General Appropriations Act does not prohibit

15-16    state agencies from observing the holiday.

15-17          (b)  In this [This] section, "state employee":

15-18                (1)  includes an individual who uses paid leave from a

15-19    state agency; and

15-20                (2)  does not include an individual who uses unpaid

15-21    leave from a state agency [does not apply to a holiday that the

15-22    General Appropriations Act prohibits state agencies from

15-23    observing].

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                                                                S.B. No. 645

 16-1          SECTION 29.  Subsections (a) and (b), Section 662.006,

 16-2    Government Code, are amended to read as follows:

 16-3          (a)  An individual who is a [A] state employee on the last

 16-4    workday before or the first workday after an optional holiday, or

 16-5    on both workdays, is entitled, except as provided by Section

 16-6    662.010,  to a paid day off from working for a state agency on the

 16-7    [each day of an optional] holiday if:

 16-8                (1)  the holiday [that] does not fall on a Saturday or

 16-9    Sunday;

16-10                (2)  [if] the employee agrees to give up, during the

16-11    same fiscal year, a state holiday that:

16-12                      (A)  does not fall on a Saturday or Sunday; and

16-13                      (B)  the General Appropriations Act does not

16-14    prohibit state agencies from observing; and

16-15                (3)  the General Appropriations Act does not prohibit

16-16    state agencies from observing the optional holiday.

16-17          (b)  A state employee is entitled to a paid day off from

16-18    working for a state agency on each day of an optional holiday that

16-19    extends for more than one day if the employee:

16-20                (1)  qualifies for the paid day off under Subsection

16-21    (a); and

16-22                (2)  agrees to give up during the same fiscal year an

16-23    equivalent number of state holidays that:

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                                                                S.B. No. 645

 17-1                      (A)  do not fall on a Saturday or Sunday; and

 17-2                      (B)  the General Appropriations Act does not

 17-3    prohibit state agencies from observing.

 17-4          SECTION 30.  Subsection (a), Section 662.007, Government

 17-5    Code, is amended to read as follows:

 17-6          (a)  A state employee who is required to work on a national

 17-7    or state holiday [that does not fall on a Saturday or Sunday] is

 17-8    entitled to compensatory time off during the 12 months after the

 17-9    holiday if the state employee is entitled to a paid day off from

17-10    working for a state agency on the holiday under Section 662.005.

17-11          SECTION 31.  Section 662.010, Government Code, is amended to

17-12    read as follows:

17-13          Sec. 662.010.  HOLIDAY BEFORE WORK BEGINS OR AFTER WORK ENDS.

17-14    (a)  An individual who is not a [A] state employee [who begins

17-15    working for a state agency] on the last workday before a state or

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

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

17-18    the [a state or national] holiday [that occurs before the first

17-19    workday] if it [the holiday:]

17-20                [(1)]  occurs during the same month as the last workday

17-21    before the holiday[; and]

17-22                [(2)  does not fall on a Saturday or Sunday].

17-23          (b)  An individual who is a [A] state employee [who stops

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                                                                S.B. No. 645

 18-1    working for a state agency] on the last workday before a state or

 18-2    national holiday but who is not a state employee on the first

 18-3    workday after the holiday may not [of a month is entitled to] be

 18-4    paid for the [a state or national] holiday [that occurs after the

 18-5    last workday] if it [the holiday:]

 18-6                [(1)]  occurs before the first workday of a month and

 18-7    during that [the] month[; and]

 18-8                [(2)  does not fall on a Saturday or Sunday].

 18-9          (c)  In this section, "state employee":

18-10                (1)  includes an individual who uses paid leave from a

18-11    state agency; and

18-12                (2)  does not include an individual who uses unpaid

18-13    leave from a state agency ["workday" means a day on which a state

18-14    employee is normally scheduled to work].

18-15          SECTION 32.  Subsections (f), (h), and (i), Section 403.0165,

18-16    Government Code, are amended to read as follows:

18-17          (f)  An organization not previously certified may submit an

18-18    application for certification as an eligible state employee

18-19    organization to the comptroller at any time except during the

18-20    period after June 2 and before September 1 [within 90 days prior to

18-21    the beginning of the fiscal year].

18-22          (h)  The comptroller may [shall] charge an administrative fee

18-23    to cover the costs incurred as a result of administering this

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                                                                S.B. No. 645

 19-1    section.  The administrative [Administrative] fees charged by the

 19-2    comptroller shall be paid by each qualifying state employee

 19-3    organization on a pro rata basis to be determined by the

 19-4    comptroller.  The comptroller by rule shall determine the most

 19-5    efficient and effective method of collecting the [such

 19-6    administrative] fees.  [The comptroller shall adopt rules for the

 19-7    administration of this section.]

 19-8          (i)  The comptroller may adopt rules for the administration

 19-9    of this section  [shall allocate the administrative fees on a

19-10    proportional basis to each employing state agency that incurs costs

19-11    in administering this subsection].

19-12          SECTION 33.  Section 659.041, Government Code, is amended to

19-13    read as follows:

19-14          Sec. 659.041.  DEFINITIONS.  In this subchapter:

19-15                (1)  "Appointment" means a job title.

19-16                (2)  "Full-time state employee" means:

19-17                      (A)  a state employee who works in the executive

19-18    or judicial branch of state government, other than a state

19-19    institution of higher education, and who is normally scheduled to

19-20    work a total of at least 40 hours a week for a single state agency

19-21    [in one position]; [or]

19-22                      (B)  a state employee who works for a state

19-23    institution of higher education and who is normally scheduled to

                                      19                           

                                                                S.B. No. 645

 20-1    work a total of at least 40 hours a week in one position, as

 20-2    determined under Section 659.0411; or

 20-3                      (C)  a state employee who works in the

 20-4    legislative branch of state government and who is normally

 20-5    scheduled to work a total of 40 or more hours a week in all

 20-6    positions held in the legislative branch.

 20-7                (3) [(2)]  "Part-time state employee" means a state

 20-8    employee who is not a full-time state employee.

 20-9                (4) [(3)]  "State employee" means an individual who:

20-10                      (A)  is covered by Chapter 654;

20-11                      (B)  holds a line item or exempt position;

20-12                      (C)  works in a nonacademic position at a state

20-13    institution of higher education at least 20 hours a week for at

20-14    least 4.5 consecutive months; or

20-15                      (D)  is an hourly employee of the state.

20-16          SECTION 34.  Subchapter D, Chapter 659, Government Code, is

20-17    amended by adding Section 659.0411 to read as follows:

20-18          Sec. 659.0411.  APPOINTMENTS AT STATE INSTITUTIONS OF HIGHER

20-19    EDUCATION.  (a)  A state institution of higher education shall

20-20    determine whether a state employee who has more than one

20-21    appointment with the institution holds only one position or holds

20-22    one position for each appointment.

20-23          (b)  A board of regents shall determine whether a state

                                      20                           

                                                                S.B. No. 645

 21-1    employee who has an appointment with at least two state

 21-2    institutions of higher education under the board's jurisdiction

 21-3    holds only one position or holds one position for each appointment.

 21-4          (c)  A state employee who has an appointment with at least

 21-5    two state institutions of higher education holds more than one

 21-6    position if those institutions are not governed by the same board

 21-7    of regents.

 21-8          SECTION 35.  Section 659.132, Government Code, is amended to

 21-9    read as follows:

21-10          Sec. 659.132.  DEDUCTION AUTHORIZED.  (a)  A state employee

21-11    may authorize a deduction each pay period from the employee's

21-12    salary or wage payment for a charitable contribution as provided by

21-13    this subchapter.

21-14          (b)  Except as provided by Subsections (c), (d), and (e), a

21-15    state employee may authorize a deduction only during a state

21-16    employee charitable campaign.

21-17          (c)  A state employee who begins working for the state when a

21-18    campaign is not being conducted may authorize a deduction according

21-19    to the comptroller's requirements.

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

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

21-22    authorize a deduction that is effective with the first full payroll

21-23    period after the agency is converted to a system in which uniform

                                      21                           

                                                                S.B. No. 645

 22-1    statewide payroll procedures are followed.

 22-2          (e)  A state employee who works for a state agency that does

 22-3    not allow deduction authorizations under Subsection (i) may

 22-4    authorize a deduction after transferring from that agency to:

 22-5                (1)  a state agency that allows deduction

 22-6    authorizations even though it may prohibit them under Subsection

 22-7    (i); or

 22-8                (2)  a state agency not covered by Subsection (i).

 22-9          (f)  A state employee who authorized a deduction while

22-10    working for a state agency may continue the deduction after

22-11    transferring to another state agency if the comptroller's rules for

22-12    continuing the deduction are followed.

22-13          (g)  An authorization must direct the comptroller to

22-14    distribute the deducted funds to a participating federation or fund

22-15    and a local campaign manager as prescribed by rule.

22-16          (h) [(c)]  A deduction under this subchapter must be in the

22-17    form prescribed by the comptroller.

22-18          (i) [(d)]  A state agency other than an institution of higher

22-19    education is not required to permit an employee to authorize a

22-20    deduction under this subchapter until the first full payroll period

22-21    after the agency converts to a system in which uniform statewide

22-22    payroll procedures are followed.

22-23          (j) [(e)]  The comptroller by rule may establish a reasonable

                                      22                           

                                                                S.B. No. 645

 23-1    minimum deduction for each pay period.

 23-2          SECTION 36.  Subsections (a) and (c), Section 659.136,

 23-3    Government Code, are amended to read as follows:

 23-4          (a)  A state employee may revoke or change an authorization

 23-5    by giving notice to the employing state agency.  A state employee

 23-6    may not change the eligible charitable organization designated to

 23-7    receive the employee's deductions.

 23-8          (c)  A revocation or change takes effect on the date

 23-9    designated [when it is approved] by the comptroller by rule.

23-10          SECTION 37.  Section 659.137, Government Code, is amended to

23-11    read as follows:

23-12          Sec. 659.137.  DURATION OF DEDUCTION.  (a)  A deduction under

23-13    this subchapter begins on the date designated by the comptroller by

23-14    rule.

23-15          (b)  A deduction [by a state employee] under this subchapter

23-16    is effective for a maximum of one campaign year and, unless revoked

23-17    or changed under Section 659.136, ends on[:]

23-18                [(1)  the first anniversary of] the date designated by

23-19    the comptroller by rule [it begins; or]

23-20                [(2)  the effective date of a revocation of or change

23-21    in the authorization by the employee].

23-22          SECTION 38.  Subsection (d), Section 659.148, Government

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

                                      23                           

                                                                S.B. No. 645

 24-1          (d)  Except as provided by this subsection, the [The]

 24-2    comptroller shall charge an administrative fee to cover costs

 24-3    incurred by the comptroller and employing state agencies in the

 24-4    implementation of this subchapter to the charitable organizations

 24-5    participating in the first state employee charitable campaign

 24-6    conducted under this subchapter in the same proportion that the

 24-7    contributions to that charitable organization bear to the total of

 24-8    contributions in that campaign.  Except as provided by this

 24-9    subsection, the [The] comptroller shall charge an administrative

24-10    fee to cover costs incurred by the comptroller and employing state

24-11    agencies in the administration of this subchapter to the charitable

24-12    organizations in each subsequent state employee charitable campaign

24-13    in the same proportion that the contributions to that charitable

24-14    organization bear to the total of contributions in that campaign.

24-15    The comptroller may decline to charge an administrative fee if the

24-16    comptroller determines the costs that would be covered by the fee

24-17    are insignificant.  The comptroller shall determine the most

24-18    efficient and effective method of collecting the administrative fee

24-19    and shall adopt rules for the implementation of this section.

24-20          SECTION 39.  Section 659.109, Government Code, is amended to

24-21    read as follows:

24-22          Sec. 659.109.  ALLOCATION [AND APPROPRIATION] OF

24-23    ADMINISTRATIVE FEES.  [(a)]  The state shall allocate and pay to

                                      24                           

                                                                S.B. No. 645

 25-1    each state agency that incurs costs in administering this

 25-2    subchapter the agency's proportional amount of the administrative

 25-3    fees collected by the state under this subchapter.

 25-4          [(b)  An administrative fee withheld under this subchapter

 25-5    may be used, without further appropriation, by the comptroller and

 25-6    the state agencies incurring costs in administering this

 25-7    subchapter.]

 25-8          SECTION 40.  Subsection (a), Section 659.146, Government

 25-9    Code, is amended to read as follows:

25-10          (a)  To be eligible to participate in a state employee

25-11    charitable campaign, a charitable organization must:

25-12                (1)  be governed by a voluntary board of citizens that

25-13    meets at least twice each year to set policy and manage the affairs

25-14    of the organization;

25-15                (2)  if the organization's annual budget:

25-16                      (A)  does not exceed [is less than] $100,000,

25-17    provide a completed Internal Revenue Service Form 990 and an

25-18    accountant's review that offers full and open disclosure of the

25-19    organization's internal operations; or

25-20                      (B)  exceeds [is equal to or more than] $100,000,

25-21    be audited annually in accordance with generally accepted auditing

25-22    standards of the American Institute of Certified Public

25-23    Accountants; and

                                      25                           

                                                                S.B. No. 645

 26-1                (3)  not spend more than 25 percent of its annual

 26-2    revenue for administrative and fund-raising expenses.

 26-3          SECTION 41.  Subdivisions (1) and (3), Section 661.061,

 26-4    Government Code, are amended to read as follows:

 26-5                (1)  "National holiday" includes only those days listed

 26-6    under Section 662.003(a).  The term does not include a national

 26-7    holiday on which a state employee is not entitled to a paid day off

 26-8    from work under Section 662.005.

 26-9                (3)  "State holiday" includes only those days listed

26-10    under Section 662.003(b).  The term does not include a state

26-11    holiday on which a state employee is not entitled to a paid day off

26-12    from work under Section 662.005.

26-13          SECTION 42.  Subsection (b), Section 661.062, Government

26-14    Code, is amended to read as follows:

26-15          (b)  A separation from state employment includes a separation

26-16    in which the employee:

26-17                (1)  leaves one state agency to begin working for

26-18    another state agency, if one or more workdays occur between the two

26-19    employments;

26-20                (2)  moves from a position in a state agency that

26-21    accrues vacation time to a position in that agency that does not

26-22    accrue vacation time, if the agency agrees to pay the employee for

26-23    the accrued balance of the employee's vacation time;

                                      26                           

                                                                S.B. No. 645

 27-1                (3)  moves from a position in a state agency that

 27-2    accrues vacation time to a position in another state agency that

 27-3    does not accrue vacation time, if the other state agency refuses to

 27-4    credit the employee for the balance of the employee's vacation time

 27-5    as of the date of the move; [or]

 27-6                (4)  moves from a position in a state agency that does

 27-7    not accrue vacation time to a position in another state agency that

 27-8    does not accrue vacation time, if the other state agency is not

 27-9    authorized or refuses to credit the employee for the balance of the

27-10    employee's vacation time as of the date of the move; or

27-11                (5)  holds two or more positions, and separates from

27-12    one that accrues vacation time.

27-13          SECTION 43.  Section 661.063, Government Code, is amended to

27-14    read as follows:

27-15          Sec. 661.063.  COMPUTATION OF PAYMENT.  (a)  Except as

27-16    provided by Subsection (b), the [The] payment to a state employee

27-17    under this subchapter shall be computed by multiplying the

27-18    employee's rate of compensation on the date of separation from

27-19    state employment by the total number of hours of vacation time

27-20    determined under Section 661.064.

27-21          (b)  The payment under this subchapter to a state employee

27-22    who separates from state employment while holding a position that

27-23    does not accrue vacation time shall be computed according to this

                                      27                           

                                                                S.B. No. 645

 28-1    subsection.  The employee's final rate of compensation in the last

 28-2    position held that accrues vacation time shall be multiplied by the

 28-3    employee's total number of hours of vacation time determined under

 28-4    Section 661.064.

 28-5          (c)  Under this section, rate of compensation:

 28-6                (1)  includes an emolument in lieu of base pay for

 28-7    which the state employee was eligible [on the last day of

 28-8    employment]; and

 28-9                (2)  does not include longevity or hazardous duty pay.

28-10          SECTION 44.  Section 661.064, Government Code, is amended by

28-11    amending Subsection (a) and adding Subsection (c) to read as

28-12    follows:

28-13          (a)  This subsection applies except as provided by Subsection

28-14    (c).  For a state employee who on the date of separation is

28-15    normally scheduled to work at least 40 hours a week, eight hours

28-16    are to be added to the employee's accrued vacation time for each

28-17    state or national holiday that is scheduled to fall within the

28-18    period after the date of separation and during which the employee

28-19    could have used the time.  To determine the period during which

28-20    vacation time could have been used and the number of state or

28-21    national holidays, the employee's vacation time is allocated over

28-22    the workdays after the employee's separation and eight hours are

28-23    added as a state or national holiday occurs during the period.

                                      28                           

                                                                S.B. No. 645

 29-1          (c)  For a state employee who is paid under this subchapter

 29-2    because the separation from state employment involves a move to a

 29-3    position in a state agency that does not accrue vacation time, no

 29-4    hours may be added to the employee's accrued vacation time for a

 29-5    state or national holiday which is scheduled to fall within the

 29-6    period after the date of separation and during which the employee

 29-7    could have used the time.

 29-8          SECTION 45.  Subchapter A, Chapter 662, Government Code, is

 29-9    amended by adding Section 662.0071 to read as follows:

29-10          Sec. 662.0071.  TRANSFERS OF COMPENSATORY TIME BALANCES.

29-11    (a)  A state agency shall accept the balance of compensatory time

29-12    accrued under Section 662.007 by a state employee who transfers to

29-13    that agency from another state agency if the employee transfers as

29-14    a direct result of:

29-15                (1)  the legislature's transfer of legal authority or

29-16    duties from the agency that formerly employed the employee to the

29-17    agency that currently employs the employee; or

29-18                (2)  a requirement of the State Council on Competitive

29-19    Government for the agency that formerly employed the employee to

29-20    bid a commercially available service that the agency previously

29-21    performed.

29-22          (b)  Subsection (a) does not apply if the transferring state

29-23    employee is required to apply for the new position.

                                      29                           

                                                                S.B. No. 645

 30-1          (c)  In this section, "bid" means any process developed by

 30-2    the State Council on Competitive Government to provide a

 30-3    commercially available service in competition with private

 30-4    commercial sources or state agency providers.

 30-5          SECTION 46.  Subsection (f), Section 403.016, Government

 30-6    Code, is amended to read as follows:

 30-7          (f)(1)  Except as provided by Subdivision (2) and subject to

 30-8    any limitation in rules adopted by the comptroller, an automated

 30-9    clearinghouse, or the federal government [Subsection (e)], the

30-10    comptroller may use the electronic funds transfer system to deposit

30-11    payments only to one or more accounts of a payee [payee's account]

30-12    at one or more [a] financial institutions [institution].

30-13                (2)  The comptroller may use the electronic funds

30-14    transfer system to deposit a portion of an employee's net state

30-15    salary to the employee's account at a credit union if:

30-16                      (A)  the amount of the salary deposited to that

30-17    account exceeds the amount of salary deposited in any other account

30-18    of the employee at another type of financial institution; or

30-19                      (B)  the requirements concerning deductions for

30-20    payments to credit unions prescribed by Subchapter G, Chapter 659,

30-21    and by the rules adopted by the comptroller under that subchapter

30-22    are satisfied.

30-23                (3)  A single electronic funds transfer may contain

                                      30                           

                                                                S.B. No. 645

 31-1    payments to multiple payees.  Individual transfers or warrants are

 31-2    not required for each payee.

 31-3          SECTION 47.  Subsection (c), Section 403.248, Government

 31-4    Code, is amended to read as follows:

 31-5          (c)  In this section, "final accounting" means a

 31-6    reimbursement from or additional payment to a state officer or

 31-7    employee so that the net amount received by the officer or employee

 31-8    [advanced from a petty cash account] equals the actual travel

 31-9    expenses incurred by the officer or employee.

31-10          SECTION 48.  Section 5, Texas Employees Uniform Group

31-11    Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance

31-12    Code), is amended by adding Subsection (k) to read as follows:

31-13          (k)  If the trustee establishes a group coverage plan that

31-14    protects against the long-term or short-term loss of salary, the

31-15    trustee may use an employee's annual salary in the calculation of

31-16    the amount of the employee's premium or coverage, or both, under

31-17    the plan.  For purposes of this subsection, an employee's annual

31-18    salary includes the benefit replacement pay the employee would be

31-19    earning annually under Subchapter H, Chapter 659, Government Code,

31-20    as added by Chapter 417, Acts of the 74th Legislature, 1995, if

31-21    Section 659.121(1), Government Code, defined "compensation" to

31-22    include only base salary or wages, longevity pay, hazardous duty

31-23    pay, and night differential pay.

                                      31                           

                                                                S.B. No. 645

 32-1          SECTION 49.  Section 11, Texas Employees Uniform Group

 32-2    Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance

 32-3    Code), is amended by amending Subsection (c) and adding Subsection

 32-4    (d) to read as follows:

 32-5          (c)  Except as provided by Subsection (d), the [The] trustee

 32-6    shall prescribe regulations providing for the conversion of other

 32-7    than annual rates of pay, and specify the types of pay included in

 32-8    annual pay and all other matters necessary to implement this

 32-9    section.

32-10          (d)  For the purpose of determining the amount of an

32-11    employee's optional term life insurance coverage, an employee's

32-12    annual salary includes the benefit replacement pay the employee

32-13    would be earning annually under Subchapter H, Chapter 659,

32-14    Government Code, as added by Chapter 417, Acts of the 74th

32-15    Legislature, 1995, if Section 659.121(1), Government Code, defined

32-16    "compensation" to include only base salary or wages, longevity pay,

32-17    hazardous duty pay, and night differential pay.

32-18          SECTION 50.  Subdivision (7), Section 811.001, Government

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

32-20                (7)  "Compensation" means the base salary of a person;

32-21    [, including] amounts that would otherwise qualify as compensation

32-22    but are not received directly by a [the] person pursuant to a good

32-23    faith, voluntary, written salary reduction agreement in order to

                                      32                           

                                                                S.B. No. 645

 33-1    finance payments to a deferred compensation or tax sheltered

 33-2    annuity program specifically authorized by state law or to finance

 33-3    benefit options under a cafeteria plan qualifying under Section 125

 33-4    of the Internal Revenue Code of 1986 (26 U.S.C. Section 125);[,

 33-5    plus] longevity and hazardous duty pay; [and includes] nonmonetary

 33-6    compensation, the value of which is determined by the retirement

 33-7    system; [, and] amounts by which a [the] person's salary is reduced

 33-8    under a salary reduction agreement authorized by Chapter 610; and

 33-9    the benefit replacement pay a person earns under Subchapter H,

33-10    Chapter 659, as added by Chapter 417, Acts of the 74th Legislature,

33-11    1995, except for the benefit replacement pay a person earns as a

33-12    result of a payment made under Subchapter B, C, or D, Chapter 661.

33-13    The term[, but] excludes overtime pay.

33-14          SECTION 51.  Subsections (b) and (c), Section 822.201,

33-15    Government Code, are amended to read as follows:

33-16          (b)  "Salary and wages" as used in Subsection (a) means:

33-17                (1)  normal periodic payments of money for service the

33-18    right to which accrues on a regular basis in proportion to the

33-19    service performed;

33-20                (2)  amounts by which the member's salary is reduced

33-21    under a salary reduction agreement authorized by Chapter 610; [and]

33-22                (3)  amounts that would otherwise qualify as salary and

33-23    wages under Subdivision (1) but are not received directly by the

                                      33                           

                                                                S.B. No. 645

 34-1    member pursuant to a good faith, voluntary written salary reduction

 34-2    agreement in order to finance payments to a deferred compensation

 34-3    or tax sheltered annuity program specifically authorized by state

 34-4    law or to finance benefit options under a cafeteria plan qualifying

 34-5    under Section 125 of the Internal Revenue Code of 1986 (26 U.S.C.

 34-6    Section 125), if:

 34-7                      (A)  the program or benefit options are made

 34-8    available to all employees of the employer; and

 34-9                      (B)  the benefit options in the cafeteria plan

34-10    are limited to one or more options that provide deferred

34-11    compensation, group health and disability insurance, group term

34-12    life insurance, dependent care assistance programs, or group legal

34-13    services plans; and

34-14                (4)  the benefit replacement pay a person earns under

34-15    Subchapter H, Chapter 659, as added by Chapter 417, Acts of the

34-16    74th Legislature, 1995, except as provided by Subsection (c).

34-17          (c)  Excluded from salary and wages are expense payments,

34-18    allowances, payments for unused vacation or sick leave, maintenance

34-19    or other nonmonetary compensation, fringe benefits, deferred

34-20    compensation other than as provided by Subsection (b)(3),

34-21    compensation that is not made pursuant to a valid employment

34-22    agreement, payments received in the 1995-1996 or a subsequent

34-23    school year for teaching a driver education and traffic safety

                                      34                           

                                                                S.B. No. 645

 35-1    course, the benefit replacement pay a person earns as a result of a

 35-2    payment made under Subchapter B or C, Chapter 661, and any

 35-3    compensation not described in Subsection (b).

 35-4          SECTION 52.  Subsection (a), Section 47.09, Penal Code, is

 35-5    amended to read as follows:

 35-6          (a)  It is a defense to prosecution under this chapter that

 35-7    the conduct:

 35-8                (1)  was authorized under:

 35-9                      (A)  the Bingo Enabling Act (Article 179d,

35-10    Vernon's Texas Civil Statutes);

35-11                      (B)  the Texas Racing Act (Article 179e, Vernon's

35-12    Texas Civil Statutes); or

35-13                      (C)  the Charitable Raffle Enabling Act (Article

35-14    179f, Revised Statutes);

35-15                (2)  consisted entirely of participation in the state

35-16    lottery authorized by Chapter 466, Government Code; or

35-17                (3)  was a necessary incident to the operation of the

35-18    state lottery and was directly or indirectly authorized by:

35-19                      (A)  Chapter 466, Government Code;

35-20                      (B)  the lottery division of the Texas Lottery

35-21    Commission [comptroller's office];

35-22                      (C)  the Texas Lottery Commission [comptroller];

35-23    or

                                      35                           

                                                                S.B. No. 645

 36-1                      (D)  the director of the lottery division of the

 36-2    Texas Lottery Commission.

 36-3          SECTION 53.  Subsection (a), Section 2054.007, Government

 36-4    Code, is amended to read as follows:

 36-5          (a)  The lottery division of the Texas Lottery Commission [in

 36-6    the office of the comptroller is not included in the agency

 36-7    strategic plan or biennial operating plan of the comptroller.  The

 36-8    lottery division] is not subject to the planning and procurement

 36-9    requirements of this chapter.

36-10          SECTION 54.  Section 2103.003, Government Code, is amended to

36-11    read as follows:

36-12          Sec. 2103.003.  STATE AGENCY SPENDING OF APPROPRIATED FUNDS.

36-13    A state agency may spend appropriated funds only by:

36-14                (1)  a warrant drawn by:

36-15                      (A)  the comptroller; or

36-16                      (B)  a state agency to which the comptroller has

36-17    delegated authority to print warrants under Section 403.060; or

36-18                (2)  an electronic funds transfer initiated by [from]

36-19    the comptroller.

36-20          SECTION 55.  Subchapter A, Chapter 2103, Government Code, is

36-21    amended by adding Section 2103.0035 to read as follows:

36-22          Sec. 2103.0035.  STATE AGENCY SPENDING OF UNAPPROPRIATED

36-23    FUNDS.  (a)  A state agency may spend unappropriated funds only by:

                                      36                           

                                                                S.B. No. 645

 37-1                (1)  a warrant drawn by:

 37-2                      (A)  the comptroller; or

 37-3                      (B)  a state agency to which the comptroller has

 37-4    delegated authority to print warrants under Section 403.060; or

 37-5                (2)  an electronic funds transfer initiated by the

 37-6    comptroller.

 37-7          (b)  Subsection (a) applies only to funds that Section

 37-8    404.046 or 404.069 or other law requires to be spent on warrants

 37-9    drawn or electronic funds transfers initiated by the comptroller.

37-10          SECTION 56.  Section 2103.004, Government Code, is amended to

37-11    read as follows:

37-12          Sec. 2103.004.  WARRANTS AND ELECTRONIC FUNDS TRANSFERS

37-13    [WARRANT DRAWN BY COMPTROLLER].  A [The comptroller may not draw a]

37-14    warrant may not be drawn or an electronic funds transfer initiated

37-15    until:

37-16                (1)  the state agency from whose appropriated or

37-17    unappropriated funds [appropriation] the warrant or electronic

37-18    funds transfer is payable has submitted a voucher to the

37-19    comptroller;

37-20                (2)  the state agency has approved the voucher in

37-21    accordance with this chapter; and

37-22                (3)  the comptroller has audited and approved the

37-23    voucher as required by law.

                                      37                           

                                                                S.B. No. 645

 38-1          SECTION 57.  Section 2151.002, Government Code, is amended to

 38-2    read as follows:

 38-3          Sec. 2151.002.  DEFINITIONS.  Except as otherwise provided by

 38-4    [In] this subtitle:

 38-5                (1)  "Commission" means the General Services

 38-6    Commission.

 38-7                (2)  "State agency" means:

 38-8                      (A)  a department, commission, board, office, or

 38-9    other agency in the executive branch of state government created by

38-10    the state constitution or a state statute[, except the Texas

38-11    High-Speed Rail Authority];

38-12                      (B)  the supreme court, the court of criminal

38-13    appeals, a court of appeals, or the Texas Judicial Council; or

38-14                      (C)  a university system or an institution of

38-15    higher education as defined by Section 61.003, Education Code,

38-16    except a public junior college.

38-17          SECTION 58.  Section 2155.001, Government Code, is amended to

38-18    read as follows:

38-19          Sec. 2155.001.  DEFINITIONS.  Except as otherwise provided by

38-20    [In] this chapter and Chapters 2156, 2157, and 2158:

38-21                (1)  "Goods" means supplies, materials, or equipment.

38-22                (2)  "Service" means the furnishing of skilled or

38-23    unskilled labor or professional work, but does not include a:

                                      38                           

                                                                S.B. No. 645

 39-1                      (A)  professional service subject to Subchapter

 39-2    A, Chapter 2254;

 39-3                      (B)  service of a state agency employee;

 39-4                      (C)  consulting service or service of a [private]

 39-5    consultant as defined by Subchapter B, Chapter 2254; or

 39-6                      (D)  service of a public utility.

 39-7          SECTION 59.  Section 2155.321, Government Code, is amended by

 39-8    adding Subdivisions (3) and (4) to read as follows:

 39-9                (3)  "Service" means the furnishing of skilled or

39-10    unskilled labor or professional work but does not include the

39-11    service of a state agency employee.

39-12                (4)  "State agency" has the meaning assigned by Section

39-13    2103.001.

39-14          SECTION 60.  Subsection (b), Section 2155.322, Government

39-15    Code, is amended to read as follows:

39-16          (b)  If state law requires that a payment for the goods or

39-17    services be made on a warrant drawn or an electronic funds transfer

39-18    initiated by the comptroller or a state agency with delegated

39-19    authority under Section 403.060, promptly [Promptly] after the

39-20    later of the receipt of the invoice or the receipt of the goods or

39-21    services, the agency shall send to the comptroller the

39-22    certification, together with the financial information and purchase

39-23    information provided by the invoice and purchase voucher, on a form

                                      39                           

                                                                S.B. No. 645

 40-1    or in the manner agreed to by the comptroller and the commission.

 40-2          SECTION 61.  Subsection (c), Section 2155.325, Government

 40-3    Code, is amended to read as follows:

 40-4          (c)  For purchases audited after a warrant is issued, the

 40-5    comptroller shall send the certification and purchase information

 40-6    received by the comptroller under Section 2155.322(b) to the

 40-7    commission under commission rules.

 40-8          SECTION 62.  Section 2101.011, Government Code, is amended to

 40-9    read as follows:

40-10          Sec. 2101.011.  FINANCIAL INFORMATION REQUIRED OF STATE

40-11    AGENCIES [("100-DAY REPORTS")].  (a)  A state agency as defined by

40-12    Section 403.013 shall submit the financial information requested by

40-13    the comptroller and such other information requested by the

40-14    legislature in the General Appropriations Act, including

40-15    information about state funds held outside the state treasury, to:

40-16                (1)  the governor;

40-17                (2)  the comptroller;

40-18                (3)  the Legislative Reference Library [state

40-19    treasurer];

40-20                (4)  the state auditor; and

40-21                (5)  the Legislative Budget Board.

40-22          (b)  A state agency [other than a university system or

40-23    institution of higher education, as defined by Section 61.003,

                                      40                           

                                                                S.B. No. 645

 41-1    Education Code,] shall submit the information to the listed

 41-2    officials by the date or dates provided in the General

 41-3    Appropriations Act [not later than December 9 of each year.  A

 41-4    university system or institution of higher education shall submit

 41-5    the information to the listed officials not later than the

 41-6    following January 1].

 41-7          (c)  The comptroller may require the reporting of the

 41-8    financial information for any entity that the comptroller

 41-9    determines is a component unit of a statewide reporting entity in

41-10    accordance with generally accepted accounting principles as

41-11    prescribed or modified by the Governmental Accounting Standards

41-12    Board or its successors.  [A state agency is not required to submit

41-13    the information if the comptroller determines the agency is not a

41-14    component unit of state government for purposes of this

41-15    subchapter.]

41-16          SECTION 63.  Subsection (a), Section 466.017, Government

41-17    Code, is amended to read as follows:

41-18          (a)  The executive director shall provide for a certified

41-19    public accountant to conduct an independent audit for each fiscal

41-20    year of all accounts and transactions of the lottery.  The

41-21    certified public accountant may not have, as determined by the

41-22    executive director, a significant financial interest in a sales

41-23    agent, lottery vendor, or lottery operator.  The certified public

                                      41                           

                                                                S.B. No. 645

 42-1    accountant shall present an audit report to the executive director,

 42-2    the commission, the governor, the comptroller, and the legislature

 42-3    not later than the 30th day after the submission date for the

 42-4    annual financial report required by the General Appropriations Act

 42-5    [April 1 of the year following the fiscal year for which the audit

 42-6    was performed].  The report must contain recommendations to enhance

 42-7    the earnings capability of the lottery and improve the efficiency

 42-8    of lottery operations.  The state auditor may review the results of

 42-9    and working papers related to the audit.

42-10          SECTION 64.  Subsection (a), Section 2306.074, Government

42-11    Code, is amended to read as follows:

42-12          (a)  The state auditor or a certified public accountant shall

42-13    audit the department's books and accounts each fiscal year and file

42-14    a copy of the audit with the governor, the comptroller, and the

42-15    legislature not later than the 30th day after the submission date

42-16    for the annual financial report as required by the General

42-17    Appropriations Act [on or before March 1 of each year].  If the

42-18    state auditor is conducting the audit and it is not available by

42-19    the 30th day after the submission date as required by the General

42-20    Appropriations Act for annual financial reporting [March 1], it

42-21    must be filed as soon as it is available.

42-22          SECTION 65.  Subsection (a), Section 17, Article 5.76-3,

42-23    Insurance Code, is amended to read as follows:

                                      42                           

                                                                S.B. No. 645

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

 43-2    the] board shall publish an independently audited [a] report

 43-3    analyzing the fund's activities and fiscal condition during the

 43-4    preceding fiscal year and shall file the report with the Texas

 43-5    Department of Insurance.  The board shall file the audited report

 43-6    with the Texas Department of Insurance for inclusion in its [have

 43-7    an independent audit made of the] annual financial report.  The

 43-8    annual financial report shall be submitted by the Texas Department

 43-9    of Insurance by the date provided for in the General Appropriations

43-10    Act.

43-11          SECTION 66.  Subsections (a) through (d), Section 403.021,

43-12    Government Code, are amended to read as follows:

43-13          (a)  A state agency that expends appropriated funds shall

43-14    report into the uniform statewide accounting system all payables

43-15    and [submit a] binding encumbrances for the first three quarters of

43-16    the current appropriation year within 30 days after the close of

43-17    each quarter [encumbrance report to the comptroller and the state

43-18    auditor no later than October 30 of each year].  Binding

43-19    encumbrances for all appropriation years shall be reported annually

43-20    not later than September 30 of each fiscal year.

43-21          (b)  Payables and binding encumbrances must be reported for

43-22    all appropriations [The report must indicate the unencumbered

43-23    balance, if any, of each nonconstruction appropriation for the

                                      43                           

                                                                S.B. No. 645

 44-1    preceding fiscal year.  The report must be made] in the format that

 44-2    the comptroller prescribes.  [The comptroller may reject a report

 44-3    if it does not contain sufficient information or comply with the

 44-4    comptroller's prescribed format.]

 44-5          (c)  On October 1 [31] of each fiscal year, the comptroller

 44-6    shall lapse all unencumbered nonconstruction appropriation balances

 44-7    for all prior appropriation years based on the payables and binding

 44-8    encumbrances reported [information in the binding encumbrance

 44-9    reports].

44-10          (d)  If an agency submits a valid claim against a prior

44-11    year's appropriation 30 days or more after the reporting due date

44-12    [has not submitted a report by October 31, the comptroller shall

44-13    lapse the unexpended balance of the agency's appropriations.  If

44-14    the agency subsequently submits a report], the comptroller may

44-15    [shall] reinstate the agency's appropriations to the extent of the

44-16    claim [they were encumbered but unexpended].

44-17          SECTION 67.  Section 403.031, Government Code, is amended by

44-18    adding Subsection (c) to read as follows:

44-19          (c)  The comptroller, in consultation with the state auditor

44-20    and the attorney general, may develop standards and criteria to

44-21    account for or to reclassify receivables determined to be

44-22    uncollectible.  The standards and criteria developed by the

44-23    comptroller must comply with generally accepted accounting

                                      44                           

                                                                S.B. No. 645

 45-1    principles as prescribed or modified by the Governmental Accounting

 45-2    Standards Board or its successors and must provide proper

 45-3    accounting controls to protect state finances.  The state auditor

 45-4    and the attorney general shall review and approve the standards and

 45-5    criteria for classification of receivables.  Receivables may be

 45-6    reclassified as collectible or uncollectible according to the

 45-7    process approved by the state auditor or on a case-by-case basis as

 45-8    determined or approved by that office.  The classification of

 45-9    receivables as uncollectible under this subsection does not

45-10    constitute forgiveness of the debt, and any person indebted to the

45-11    state remains subject to Section 403.055.

45-12          SECTION 68.  Section 183.023, Tax Code, is amended to read as

45-13    follows:

45-14          Sec. 183.023.  PAYMENT.  The tax due for the preceding month

45-15    shall accompany the return and shall be payable to the state.  The

45-16    comptroller shall deposit the revenue in the general revenue [mixed

45-17    beverage tax clearance] fund.

45-18          SECTION 69.  Subsection (d), Section 74.006, Human Resources

45-19    Code, is amended to read as follows:

45-20          (d)  Money in the trust fund may be invested and shall be

45-21    accounted for separately from other funds in the treasury.  The

45-22    council may direct the investment of funds consistent with the

45-23    comptroller's authority to invest funds under Section 404.024,

                                      45                           

                                                                S.B. No. 645

 46-1    Government Code.  After the deduction of investment related

 46-2    expenses, net income and interest [Interest] earned on money in the

 46-3    trust fund shall be deposited to the credit of the trust fund.

 46-4          SECTION 70.  Subsection (b), Section 403.003, Government

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

 46-6          (b)  The chief clerk shall take the official oath and give

 46-7    bond in the amount of $70,000 [$10,000], payable in the same manner

 46-8    as the comptroller's bond, and conditioned on the faithful

 46-9    performance of the duties of the office.

46-10          SECTION 71.  Section 14, Texas State College and University

46-11    Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's

46-12    Texas Insurance Code), is amended to read as follows:

46-13          Sec. 14.  ADMINISTRATIVE COSTS.  No employee covered under

46-14    the provisions of this Act shall be required to pay out of the

46-15    amount of employer contributions due him or out of the amount of

46-16    his additional premiums due for selected coverages the expenses of

46-17    the committees established in this Act; however, expenses for the

46-18    administration of the self-insured plan as provided in Section 4(d)

46-19    of this Act may come from the contributions of employees and the

46-20    state after payments for any coverages provided for under this Act

46-21    have been made[, any administrative costs, fees, or tax whatsoever

46-22    to pay expenses of a state institution or committees as herein

46-23    established for administering this Act].  The duties of each member

                                      46                           

                                                                S.B. No. 645

 47-1    of the advisory committees shall be considered additional duties to

 47-2    those required of his other state office or employment, and all

 47-3    expenses incurred by any such member in performing his duties as a

 47-4    member of the committee shall be paid out of funds made available

 47-5    for those purposes to the institution of which the member is an

 47-6    employee or officer.

 47-7          SECTION 72.  Subchapter A, Chapter 403, Government Code, is

 47-8    amended by adding Section 403.008 to read as follows:

 47-9          Sec. 403.008.  BONDS AND EMPLOYEES.  (a)  In addition to

47-10    other bonds required by this chapter, the comptroller shall give

47-11    any special bond required by an Act of Congress or a federal

47-12    department or official to protect federal funds deposited with the

47-13    comptroller.  The state shall pay the expenses necessary and

47-14    incidental to the execution of the bond.

47-15          (b)  The comptroller shall appoint other employees that are

47-16    authorized by law.  Employees who as part of their duties handle

47-17    money, drafts, checks, bills of exchange, warrants, securities, or

47-18    other evidences of debt that are or may be convertible into money,

47-19    or other valuable property shall execute a bond that is issued by a

47-20    good and solvent surety company authorized to do business in this

47-21    state, payable to the comptroller in the sum that the comptroller

47-22    requires, and conditioned on the faithful performance of the duties

47-23    of the employee's position.  The comptroller also may require an

                                      47                           

                                                                S.B. No. 645

 48-1    employee to be insured in the manner and sum required by the

 48-2    comptroller.

 48-3          (c)  The state shall pay any expense incident to the

 48-4    execution of the bonds and any insurance of the chief clerk and

 48-5    other employees.

 48-6          SECTION 73.  Subchapter B, Chapter 403, Government Code, is

 48-7    amended by adding Sections 403.027 and 403.028 to read as follows:

 48-8          Sec. 403.027.  ELECTRONIC STORAGE AND MAINTENANCE OF RECORDS.

 48-9    (a)  The comptroller may store and maintain a state record or an

48-10    essential record in an electronic storage format if:

48-11                (1)  the method used to store and maintain the record

48-12    allows accurate reproduction of the record;

48-13                (2)  the method used to store and maintain the record

48-14    conforms to any standards prescribed by the records preservation

48-15    officer to conform to any applicable rules of the National

48-16    Institute of Standards and Technology, unless those standards

48-17    conflict with the provisions of this section; and

48-18                (3)  the place and manner of safekeeping the medium or

48-19    equipment on which the record is stored and maintained conforms

48-20    with the records preservation officer's requirements under Section

48-21    441.059(a), except that the records preservation officer may not

48-22    prohibit the comptroller from retaining possession of that medium

48-23    or equipment.

                                      48                           

                                                                S.B. No. 645

 49-1          (b)  An accurate reproduction of a state record that is

 49-2    stored and maintained according to this section is a preservation

 49-3    duplicate of the record for the purposes of Sections 441.058 and

 49-4    441.059, regardless of whether the records preservation officer:

 49-5                (1)  made the reproduction; or

 49-6                (2)  designated the reproduction as a preservation

 49-7    duplicate.

 49-8          (c)  An accurate reproduction of an essential record that is

 49-9    stored and maintained according to this section is a photographic

49-10    reproduction of the record for purposes of Section 441.038(f).

49-11          (d)  An accurate reproduction of a state record or an

49-12    essential record may be stored in tangible or intangible form,

49-13    including an electronic or optical image of the record.

49-14          (e)  In this section:

49-15                (1)  "Essential record" means written or graphic

49-16    material that is made or received by the comptroller in the conduct

49-17    of official state business and that is filed or intended to be

49-18    preserved permanently or for a definite period as a record of that

49-19    business.

49-20                (2)  "Records preservation officer" means the director

49-21    of the records management division of the Texas State Library.

49-22                (3)  "State record"  means a document, book, paper,

49-23    photograph, sound recording, or other material, regardless of

                                      49                           

                                                                S.B. No. 645

 50-1    physical form or characteristic, that is made or received by the

 50-2    comptroller according to law or in connection with the transaction

 50-3    of official state business.

 50-4          Sec. 403.028.  DIGITAL SIGNATURES.  (a)  The comptroller may

 50-5    establish a procedure for a person to provide a digital signature

 50-6    for any document or data submitted to the comptroller if the

 50-7    comptroller determines the procedure will provide a degree of

 50-8    security and authenticity at least equal to that provided by a

 50-9    manual signature.

50-10          (b)  A digital signature provided according to a procedure

50-11    established under this section has the same legal force and effect

50-12    for all purposes as a manual signature.

50-13          (c)  This section does not apply to the electronic submission

50-14    and approval of vouchers under Chapter 2103.

50-15          SECTION 74.  Section 411.109, Government Code, is amended to

50-16    read as follows:

50-17          Sec. 411.109.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:

50-18    COMPTROLLER [STATE TREASURER].  (a)  The comptroller [treasurer] is

50-19    entitled to obtain from the department criminal history record

50-20    information maintained by the department that the comptroller

50-21    [treasurer] believes is necessary for the enforcement or

50-22    administration of Chapter 154 or Chapter 155, Tax Code, including

50-23    criminal history record information that relates to a person who

                                      50                           

                                                                S.B. No. 645

 51-1    is:

 51-2                (1)  an applicant for a permit under Chapter 154 or

 51-3    Chapter 155, Tax Code;

 51-4                (2)  a permit holder under either of those chapters;

 51-5                (3)  an officer, director, stockholder owning 10

 51-6    percent or more of the outstanding stock, partner, owner, or

 51-7    managing employee of an applicant or permit holder under either of

 51-8    those chapters that is a corporation, association, joint venture,

 51-9    syndicate, partnership, or proprietorship;

51-10                (4)  believed to have violated Chapter 154 or Chapter

51-11    155, Tax Code; or

51-12                (5)  being considered by the comptroller [treasurer]

51-13    for employment as a peace officer.

51-14          (b)  The comptroller is entitled to obtain from the

51-15    department criminal history record information maintained by the

51-16    department that relates to a person who is an employee of or an

51-17    applicant for employment with the comptroller's office in a

51-18    position that involves:

51-19                (1)  handling currency, checks, or other funds;

51-20                (2)  having access to taxpayer account information;

51-21                (3)  working in a location designated by the

51-22    comptroller as a security-sensitive area; or

51-23                (4)  performing financial management duties designated

                                      51                           

                                                                S.B. No. 645

 52-1    by the comptroller as security sensitive.

 52-2          (c)  Criminal history record information obtained by the

 52-3    comptroller [treasurer] under Subsections [Subsection] (a)  and (b)

 52-4    may not be released or disclosed to any person except on court

 52-5    order or as provided by Subsection (d) [(c)].

 52-6          (d) [(c)]  The comptroller [treasurer] is not prohibited from

 52-7    disclosing to a person who is the subject of criminal history

 52-8    record information the dates and places of arrests, the offenses,

 52-9    and the dispositions in the criminal history record information.

52-10          SECTION 75.  Chapter 612, Government Code, is amended by

52-11    adding Section 612.004 to read as follows:

52-12          Sec. 612.004.  LIABILITY INSURANCE FOR CERTAIN BOARD MEMBERS,

52-13    OFFICIALS, AND EXECUTIVE MANAGEMENT STAFF.  (a)  A state agency

52-14    governed by a board may purchase or acquire liability insurance to

52-15    protect members of the board and the agency's executive management

52-16    staff.

52-17          (b)  A state agency governed by an appointed or elected

52-18    official may purchase or acquire liability insurance to protect the

52-19    official and the agency's executive management staff.

52-20          (c)  Insurance purchased or acquired by a state agency under

52-21    this section may:

52-22                (1)  protect against any type of liability to third

52-23    persons that may be incurred while conducting agency business; and

                                      52                           

                                                                S.B. No. 645

 53-1                (2)  provide for all costs of defending against that

 53-2    liability, including court costs and attorney's fees.

 53-3          (d)  This section does not authorize the purchase or

 53-4    acquisition of insurance to protect against liability other than

 53-5    liability described by Subsection (c).

 53-6          (e)  A state agency may use any available funds to purchase

 53-7    or acquire insurance under this section.  A specific statement by

 53-8    the legislature that a particular appropriation of funds may be

 53-9    used to purchase or acquire insurance is not a prerequisite to

53-10    using funds to purchase or acquire insurance under this section.

53-11          (f)  In this section:

53-12                (1)  "Board" includes a board, commission, council,

53-13    committee, or other group of individuals.

53-14                (2)  "State agency" means a department, board,

53-15    commission, committee, council, agency, office, or other entity in

53-16    the executive, legislative, or judicial branch of state government,

53-17    the jurisdiction of which is not limited to a geographical portion

53-18    of the state.  The term includes an institution of higher education

53-19    as defined by Section 61.003, Education Code.

53-20          SECTION 76.  Subsection (b), Section 2101.031, Government

53-21    Code, is amended to read as follows:

53-22          (b)  The project includes each component of the uniform

53-23    statewide accounting system as designed in accordance with Chapter

                                      53                           

                                                                S.B. No. 645

 54-1    852, Acts of the 70th Legislature, Regular Session, 1987, as

 54-2    defined by Section 1, Chapter 781, Acts of the 71st Legislature,

 54-3    Regular Session, 1989, and as developed or revised by the

 54-4    comptroller [project advisory committee], including:

 54-5                (1)  the uniform statewide accounting system (USAS) and

 54-6    related subsystems;

 54-7                (2)  the uniform statewide payroll system (USPS); and

 54-8                (3)  the human resource information system (HRIS)[;]

 54-9                [(4)  the budget execution and monitoring system

54-10    (BEAMS); and]

54-11                [(5)  the statewide telecommunication network system].

54-12          SECTION 77.  Section 2101.035, Government Code, is amended by

54-13    amending Subsection (d) and adding Subsections (e), (f), and (g) to

54-14    read as follows:

54-15          (d)  The comptroller shall ensure that the uniform statewide

54-16    accounting system encompasses each state agency.  [The comptroller

54-17    may, after consulting with the project advisory committee, exclude

54-18    any state agency from the centralized computation function of the

54-19    statewide payroll component of the system.]

54-20          (e)  The comptroller shall ensure that the uniform statewide

54-21    payroll system includes a standardized payroll calculation

54-22    function.  A state agency shall use that function to calculate its

54-23    payrolls unless the comptroller temporarily exempts the agency from

                                      54                           

                                                                S.B. No. 645

 55-1    this requirement.

 55-2          (f)  The comptroller may designate a centralized or

 55-3    decentralized computer system, or a combination of those systems,

 55-4    to operate the uniform statewide accounting system or a component

 55-5    of that system, including the uniform statewide payroll system and

 55-6    the human resources information system.  A designated computer

 55-7    system may be operated by the comptroller, another governmental

 55-8    entity, or a private contractor.

 55-9          (g)  If the comptroller designates a decentralized computer

55-10    system under Subsection (f), the comptroller may require each state

55-11    agency using that system to report data and other information from

55-12    the system to the comptroller at the time and in the manner

55-13    required by the comptroller.

55-14          SECTION 78.  Section 2101.037, Government Code, is amended by

55-15    amending Subsection (b) and adding Subsection (c) to read as

55-16    follows:

55-17          (b)  To ensure continuous reporting of comprehensive

55-18    financial management information, [including information on

55-19    encumbrances and performance and workload measures,] the

55-20    comptroller shall require each state agency to report the necessary

55-21    information to the project director on time.  The reports of each

55-22    agency must comply with the comptroller's rules and procedures

55-23    about content and frequency.

                                      55                           

                                                                S.B. No. 645

 56-1          (c)  In this section, "financial management information"

 56-2    means:

 56-3                (1)  information about:

 56-4                      (A)  encumbrances;

 56-5                      (B)  performance and workload measures; or

 56-6                      (C)  salaries, compensation, and benefits of

 56-7    state officers and employees;

 56-8                (2)  directory information about state officers and

 56-9    employees; and

56-10                (3)  any other information the comptroller finds

56-11    necessary or appropriate for the administration, maintenance, and

56-12    modification of the uniform statewide accounting system.

56-13          SECTION 79.  Subchapter C, Chapter 2101, Government Code, is

56-14    amended by adding Sections 2101.0375 and 2101.0376 to read as

56-15    follows:

56-16          Sec. 2101.0375.  WITHHOLDING OF TRAVEL EXPENSE REIMBURSEMENTS

56-17    FOR LATE OR IMPROPER REPORTING.  (a)  The comptroller may withhold

56-18    all reimbursements for the travel expenses incurred by the chief

56-19    administrative officer of a state agency whose report under this

56-20    subchapter is not properly received by the comptroller on or before

56-21    the comptroller's deadline.

56-22          (b)  The comptroller may withhold all reimbursements for the

56-23    travel expenses incurred by the officers and employees of a state

                                      56                           

                                                                S.B. No. 645

 57-1    agency whose report under this subchapter is not properly received

 57-2    by the comptroller on or before the 30th day after the

 57-3    comptroller's deadline.

 57-4          (c)  The comptroller may prohibit a state agency from using

 57-5    local funds to reimburse the travel expenses incurred by:

 57-6                (1)  the agency's chief administrative officer if the

 57-7    agency's report under this subchapter is not properly received by

 57-8    the comptroller on or before the comptroller's deadline; or

 57-9                (2)  the agency's officers or employees if the agency's

57-10    report under this subchapter is not properly received by the

57-11    comptroller on or before the 30th day after the comptroller's

57-12    deadline.

57-13          (d)  Immediately after the comptroller determines that a

57-14    state agency's report has been properly received, the comptroller

57-15    shall:

57-16                (1)  release each travel expense reimbursement that the

57-17    comptroller withheld under Subsection (a) or (b); and

57-18                (2)  rescind any prohibition that the comptroller

57-19    issued under Subsection (c).

57-20          (e)  A travel expense reimbursement is subject to withholding

57-21    under Subsection (a), (b), or (c) regardless of when the expense is

57-22    incurred.  A travel expense reimbursement is subject to withholding

57-23    under Subsection (a) or (b) regardless of whether the reimbursement

                                      57                           

                                                                S.B. No. 645

 58-1    is payable to an individual or a state agency.

 58-2          (f)  A report is properly received under this section if the

 58-3    report complies with the format, submission method, content, and

 58-4    other requirements of the comptroller and this subchapter.

 58-5          (g)  In this section:

 58-6                (1)  "Chief administrative officer" means:

 58-7                      (A)  the appointed or elected individual who is

 58-8    authorized by law to administer a state agency that is not headed

 58-9    by a governing body; or

58-10                      (B)  the executive director or other individual

58-11    with an equivalent title who administers a state agency headed by a

58-12    governing body.

58-13                (2)  "Local funds" means funds that are not expended on

58-14    warrants drawn or electronic funds transfers initiated by the

58-15    comptroller.

58-16          Sec. 2101.0376.  ADMINISTRATIVE PENALTIES FOR LATE OR

58-17    IMPROPER REPORTING.  (a)  The comptroller may impose an

58-18    administrative penalty against a state agency if the comptroller:

58-19                (1)  is late in submitting a statewide report or

58-20    submits an incomplete statewide report; and

58-21                (2)  determines that the statewide report is late or

58-22    incomplete because a report from the agency under this subchapter

58-23    was not properly received by the comptroller on or before the

                                      58                           

                                                                S.B. No. 645

 59-1    comptroller's deadline.

 59-2          (b)  A penalty imposed under Subsection (a) may be in an

 59-3    amount not to exceed $2,000 for each report that is not properly

 59-4    received by the comptroller on or before the comptroller's

 59-5    deadline.

 59-6          (c)  A state agency shall ensure that the comptroller

 59-7    receives payment of a penalty imposed under Subsection (a) not

 59-8    later than the 30th day after the date the agency receives notice

 59-9    of the penalty.  The comptroller shall deposit the payment to the

59-10    credit of the general revenue fund.

59-11          (d)  A report is properly received under this section if the

59-12    report complies with the format, submission method, content, and

59-13    other requirements of the comptroller and this subchapter.

59-14          (e)  The comptroller may adopt rules to administer this

59-15    section.

59-16          (f)  In this section, "statewide report" means a report

59-17    periodically submitted by the comptroller to the legislature, the

59-18    state auditor, or another state officer or agency that provides

59-19    statistical or financial information about the state agencies or

59-20    their officers and employees.

59-21          SECTION 80.  Section 2101.038, Government Code, is amended to

59-22    read as follows:

59-23          Sec. 2101.038.  DUTIES OF STATE AUDITOR.  The state auditor,

                                      59                           

                                                                S.B. No. 645

 60-1    when reviewing the operation of a state agency, shall audit for

 60-2    compliance with the uniform statewide accounting system, the

 60-3    comptroller's rules, and the Legislative Budget Board's performance

 60-4    and workload measures.  The state auditor shall notify [the project

 60-5    advisory committee,] the comptroller, the governor, and the

 60-6    Legislative Budget Board as soon as practicable when a state agency

 60-7    is not in compliance.

 60-8          SECTION 81.  Section 2101.039, Government Code, is amended to

 60-9    read as follows:

60-10          Sec. 2101.039.  CONTRACTS; EXEMPTION.  [(a)]  Contracts made

60-11    under this subchapter are not subject to:

60-12                (1)  Subtitle D, Title 10 [the State Purchasing and

60-13    General Services Act (Article 601b, Vernon's Texas Civil

60-14    Statutes)];

60-15                (2)  Chapter 2254; or

60-16                (3)  Chapter 2054.

60-17          [(b)  The project director must submit all proposed contracts

60-18    for professional or consulting services and all proposed purchases

60-19    of computer equipment or software to the project advisory committee

60-20    for review and recommendation before procurement.]

60-21          SECTION 82.  (a)  Sections 403.005, 403.016(e), 403.0165(j),

60-22    2101.032, 2101.035(b), and 2103.032(c), Government Code, are

60-23    repealed.

                                      60                           

                                                                S.B. No. 645

 61-1          (b)  Sections 403.021(f) and 404.042, Government Code, are

 61-2    repealed.

 61-3          SECTION 83.  This Act takes effect immediately, except that

 61-4    Sections 1, 41 through 45, 47 through 51, 62 through 72, 78, 79,

 61-5    and 82(b) of this Act take effect September 1, 1997.

 61-6          SECTION 84.  (a)  The changes in law made by Sections 42 and

 61-7    43 of this Act apply only to a separation from state employment

 61-8    that occurs on or after the effective date of those sections.  A

 61-9    separation that occurs before that date is governed by the law in

61-10    effect at the time of the separation, and the former law is

61-11    continued in effect for that purpose.

61-12          (b)  The changes in law made by Sections 48 and 49 of this

61-13    Act apply only to coverages for periods on or after the effective

61-14    date of those sections.  The coverages for periods before that date

61-15    are governed by the law as it existed immediately before the

61-16    effective date of those sections, and the former law is continued

61-17    in effect for that purpose.

61-18          (c)  The changes in law made by Section 79 of this Act apply

61-19    to a state agency report that the comptroller has not properly

61-20    received according to the applicable deadline, regardless of

61-21    whether the deadline was before, on, or after the effective date of

61-22    Section 79 of this Act.  The changes in law do not apply to a state

61-23    agency report that the comptroller properly received before the

                                      61                           

                                                                S.B. No. 645

 62-1    effective date of Section 79 of this Act.

 62-2          SECTION 85.  The importance of this legislation and the

 62-3    crowded condition of the calendars in both houses create an

 62-4    emergency and an imperative public necessity that the

 62-5    constitutional rule requiring bills to be read on three several

 62-6    days in each house be suspended, and this rule is hereby suspended,

 62-7    and that this Act take effect and be in force according to its

 62-8    terms, and it is so enacted.

 62-9                         COMMITTEE AMENDMENT NO. 1

62-10          Amend SB 645, SECTION 46 of the bill, as follows:

62-11          On page 28, line 13, Subsection (f)(1), between

62-12    "institutions" and "[institution]", insert ", including credit

62-13    unions"

62-14    AND

62-15          On page 28, lines 14-23 strike Subdivision (2) in its

62-16    entirety and insert a new Subdivision (2) to read:

62-17                (2)  The comptroller may also use the electronic funds

62-18    transfer system to deposit a portion of an employee's gross pay

62-19    into the employee's account at a credit union as prescribed by

62-20    Subchapter G, Chapter 659, Government Code.

62-21                                                                          Ramsay

62-22                         COMMITTEE AMENDMENT NO. 2

62-23          Amend S.B. 645 as follows:

                                      62                           

                                                                S.B. No. 645

 63-1          In SECTION 65 of the bill, in Section 17, Article 5.76-3,

 63-2    Insurance Code (page 40, line 6,) strike "for inclusion in" and

 63-3    substitute "submission simultaneously with"; and (page 40, line

 63-4    7-8) between "The" and "annual financial report" insert "board's"

 63-5                                                                          Ramsay

 63-6                         COMMITTEE AMENDMENT NO. 3

 63-7          Amend SB 645:

 63-8          In Section 66, Subsection (a), Section 403.021, Government

 63-9    Code, page 40, lines 13-20, strike Subsection (a) and insert the

63-10    following Subsection (a):

63-11          (a)  A state agency that expends appropriated funds shall

63-12    report into the uniform statewide accounting system all payables

63-13    and [submit a binding] estimated encumbrances for the first three

63-14    quarters of the current appropriation year within 30 days after the

63-15    close of each quarter and submit a binding encumbrance report to

63-16    the comptroller, the state auditor, and the Legislative Budget

63-17    Office no later than October 30 of each year.

63-18                                                                          Ramsay

                                      63