By Armbrister                                    S.B. No. 645

      75R3412 MLS-F                           

                                A BILL TO BE ENTITLED

 1-1                                   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.  Section 659.083(c), Government Code, is amended

 1-7     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.  Section 465.008(b), Government Code, is amended

1-15     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

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

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

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

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

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

 2-6     read as follows:

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

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

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

2-10     the traditional relationship of employer and employee.

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

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

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

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

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

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

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

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

2-19                       (A)  a county;

2-20                       (B)  an incorporated or unincorporated

2-21     municipality;

2-22                       (C)  a public junior college;

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

2-24     educational or rehabilitative district;

2-25                       (E)  a metropolitan or regional transit

2-26     authority;

2-27                       (F)  an airport authority;

 3-1                       (G)  a river authority or compact;

 3-2                       (H)  a regional planning commission, a council of

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

 3-4     Chapter 391, Local Government Code;

 3-5                       (I)  the Edwards Aquifer Authority or a district

 3-6     governed by Title 4, Water Code;

 3-7                       (J)  a soil and water conservation district;

 3-8                       (K)  a county or municipal improvement district;

 3-9                       (L)  a county road or road utility district;

3-10                       (M)  a county housing authority;

3-11                       (N)  an emergency services or communications

3-12     district;

3-13                       (O)  a fire prevention district;

3-14                       (P)  a public health or hospital authority or

3-15     district;

3-16                       (Q)  a mosquito control district;

3-17                       (R)  a special waste district;

3-18                       (S)  a rural rail transportation district; or

3-19                       (T)  any other local government or special

3-20     district of this state.

3-21                 (5)  "State agency" has the meaning assigned by Section

3-22     2151.002(2) [1.02, State Purchasing and General Services Act

3-23     (Article 601b,  Vernon's Texas Civil Statutes)].

3-24                 (6)  "State governmental entity" means a state

3-25     department, commission, board, office, institution, facility, or

3-26     other agency the jurisdiction of which is not limited to a

3-27     geographical portion of the state.  The term includes a university

 4-1     system and an institution of higher education, other than a public

 4-2     junior college, as defined by Section 61.003, Education Code.  The

 4-3     term does not include a political subdivision.

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

 4-5     read as follows:

 4-6           Sec. 2254.022.  INTERPRETATION OF SUBCHAPTER.  (a)  This

 4-7     subchapter shall be interpreted to ensure:

 4-8                 (1)  the greatest and fairest competition in the

 4-9     selection by state agencies of [private] consultants; and

4-10                 (2)  the giving of notice to all potential [private]

4-11     consultants of the need for and opportunity to provide consulting

4-12     services.

4-13           (b)  This subchapter does not:

4-14                 (1)  discourage state agencies from using [private]

4-15     consultants if the agencies reasonably foresee that the use of

4-16     [private] consultants will produce a more efficient and less costly

4-17     operation or project;

4-18                 (2)  prohibit the making of a sole-source contract for

4-19     consulting services if a proposal is not received from a competent,

4-20     knowledgeable, and qualified [private] consultant at a reasonable

4-21     fee, after compliance with this subchapter; or

4-22                 (3)  require or prohibit the use of competitive bidding

4-23     procedures to purchase consulting services.

4-24           SECTION 5.  Sections 2254.025(a), (b), and (e), Government

4-25     Code, are amended  to read as follows:

4-26           (a)  The governor, after receipt of a request complying with

4-27     this section, may grant a limited waiver of the provisions of this

 5-1     subchapter for a state agency that requires [private] consulting

 5-2     services before compliance with this subchapter can be completed

 5-3     because of an unforeseen emergency.

 5-4           (b)  A state agency's request for a waiver must include

 5-5     information required by the governor, including:

 5-6                 (1)  information about the nature of the emergency;

 5-7                 (2)  the reason that the state agency did not foresee

 5-8     the emergency;

 5-9                 (3)  the name of the [private] consultant with whom the

5-10     agency intends to contract; and

5-11                 (4)  the amount of the intended contract.

5-12           (e)  In this section, "unforeseen emergency" means a

5-13     situation that suddenly and unexpectedly causes a state agency to

5-14     need the services of a [private] consultant.  The term includes the

5-15     issuance of a court order, an actual or imminent natural disaster,

5-16     and new state or federal legislation.  An emergency is not

5-17     unforeseen if a state agency was negligent in foreseeing the

5-18     occurrence of the emergency.

5-19           SECTION 6.  Section 2254.026, Government Code, is amended to

5-20     read as follows:

5-21           Sec. 2254.026.  CONTRACT WITH [PRIVATE] CONSULTANT.   A state

5-22     agency may contract with a [private] consultant only if:

5-23                 (1)  there is a substantial need for the consulting

5-24     services; and

5-25                 (2)  the agency cannot adequately perform the services

5-26     with its own personnel or obtain the consulting services through a

5-27     contract with a [another] state governmental entity  [agency].

 6-1           SECTION 7.  Section 2254.027, Government Code, is amended to

 6-2     read as follows:

 6-3           Sec. 2254.027. SELECTION OF [PRIVATE] CONSULTANT.   In

 6-4     selecting a [private] consultant, a state agency shall:

 6-5                 (1)  base its choice on demonstrated competence,

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

 6-7     proposed fee for the services; and

 6-8                 (2)  if other considerations are equal, give preference

 6-9     to a [private] consultant whose principal place of business is in

6-10     the state or who will manage the consulting contract wholly from an

6-11     office in the state.

6-12           SECTION 8.  Section 2254.028(a), Government Code, is amended

6-13     to read as follows:

6-14           (a)  Before entering into a major consulting services

6-15     contract, a state agency shall:

6-16                 (1)  notify the Legislative Budget Board and the

6-17     governor's Budget and Planning Office that the agency intends to

6-18     contract with a [private] consultant;

6-19                 (2)  give information to the Legislative Budget Board

6-20     and the governor's Budget and Planning Office to demonstrate that

6-21     the agency has complied or will comply with Sections 2254.026 and

6-22     2254.027; and

6-23                 (3)  obtain a finding of fact from the governor's

6-24     Budget and Planning Office that the consulting services are

6-25     necessary.

6-26           SECTION 9.  Section 2254.029, Government Code, is amended to

6-27     read as follows:

 7-1           Sec. 2254.029.  PUBLICATION IN TEXAS REGISTER BEFORE ENTERING

 7-2     INTO MAJOR CONSULTING SERVICES CONTRACT.  (a)  Not later than the

 7-3     30th day before the date it enters into a major consulting services

 7-4     contract, a state agency shall file with the secretary of state for

 7-5     publication in the Texas Register:

 7-6                 (1)  an invitation for [private] consultants to provide

 7-7     offers of consulting services;

 7-8                 (2)  the name of the individual who should be contacted

 7-9     by a [private] consultant that intends to make an offer;

7-10                 (3)  the closing date for the receipt of offers; and

7-11                 (4)  the procedure by which the state agency will award

7-12     the contract.

7-13           (b)  If the consulting services sought by a state agency

7-14     relate to services previously provided by a [private] consultant,

7-15     the agency shall disclose that fact in the invitation required by

7-16     Subsection (a).  If the state agency intends to award the contract

7-17     for the consulting services to a [private] consultant that

7-18     previously provided the services, unless a better offer is

7-19     received, the agency shall disclose its intention in the invitation

7-20     required by Subsection (a).

7-21           SECTION 10.  Section 2254.030, Government Code, is amended to

7-22     read as follows:

7-23           Sec. 2254.030.  PUBLICATION IN TEXAS REGISTER AFTER  ENTERING

7-24     INTO MAJOR CONSULTING SERVICES CONTRACT.   Not later than the 10th

7-25     day after the date of entering into a major consulting services

7-26     contract, the state agency shall file with the secretary of state

7-27     for publication in the Texas Register:

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

 8-2     consultant will conduct;

 8-3                 (2)  the name and business address of the [private]

 8-4     consultant;

 8-5                 (3)  the total value and the beginning and ending dates

 8-6     of the contract; and

 8-7                 (4)  the dates on which documents, films, recordings,

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

 8-9     the agency are due.

8-10           SECTION 11.  Sections 2254.036(a) and (b), Government Code,

8-11     are amended  to read as follows:

8-12           (a)  On request, a state agency shall, after the agency's

8-13     contract with a [private] consultant has ended,  supply the

8-14     Legislative Budget Board and the governor's Budget and Planning

8-15     Office with copies of all documents, films, recordings, or reports

8-16     compiled by the consultant under the contract.

8-17           (b)  Copies of all documents, films, recordings, or reports

8-18     compiled by the [private] consultant shall be filed with the Texas

8-19     State Library and shall be retained by the library for at least

8-20     five years.

8-21           SECTION 12.  Section 2254.037, Government Code, is amended to

8-22     read as follows:

8-23           Sec. 2254.037.  REPORTS.   As part of the biennial budgetary

8-24     hearing process conducted by the Legislative Budget Board and the

8-25     governor's Budget and Planning Office, a state agency shall report

8-26     to the Legislative Budget Board and the governor's Budget and

8-27     Planning Office on any actions taken in response to the

 9-1     recommendations of any [private] consultant with whom the state

 9-2     agency contracts during the previous biennium.

 9-3           SECTION 13.  Subchapter B, Chapter 403, Government Code, is

 9-4     amended by adding Section 403.026 to read as follows:

 9-5           Sec. 403.026.  RULES.  (a)  The comptroller may adopt rules

 9-6     to interpret, implement, and administer a state statute if:

 9-7                 (1)  the statute specifically authorizes or requires

 9-8     the comptroller to interpret, implement, or administer the statute;

 9-9     or

9-10                 (2)  the comptroller determines that the rules are

9-11     necessary for fulfillment of the comptroller's constitutional or

9-12     statutory duties.

9-13           (b)  Subsection (a) does not apply to a state statute if  the

9-14     statute specifically authorizes the comptroller or a state agency

9-15     to adopt rules to interpret, implement, and administer the statute.

9-16           SECTION 14.  Section 403.071(h), Government Code, is amended

9-17     to read as follows:

9-18           (h)  This subsection applies if the comptroller and a state

9-19     agency have contracted in accordance with Subsection (g). The

9-20     comptroller shall audit claims after payment in the same way that

9-21     the comptroller audits claims before payment under Subsection (a).

9-22     The comptroller may establish requirements and adopt rules

9-23     concerning the time that a state agency must retain documentation

9-24     in its files to enable a postpayment audit.  If a postpayment audit

9-25     by the comptroller shows that a claim presented by a state agency

9-26     was invalid, the comptroller may:

9-27                 (1)  implement procedures to ensure that similar

 10-1    invalid claims from the state agency are not paid in the future;

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

 10-3    the speaker of the house of representatives, the state auditor, and

 10-4    the Legislative Budget Board the results of the audit;

 10-5                (3)  require the state agency to obtain a refund of the

 10-6    monies from the payee;

 10-7                (4)  cancel the contract with the state agency;  and

 10-8                (5)  reduce the state agency's remaining appropriations

 10-9    by the amount of the claim.

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

10-11    adding Subsection (e)  to read as follows:

10-12          (e)  The comptroller may establish procedures and adopt rules

10-13    to administer this section.

10-14          SECTION 16.  Subchapter G, Chapter 659, Government Code, is

10-15    amended by adding Section 659.110 to read as follows:                     

10-16          Sec. 659.110.  RULES.  The comptroller may establish

10-17    procedures and adopt rules to administer the credit union deduction

10-18    program authorized by this subchapter.

10-19          SECTION 17.  Subchapter B, Chapter 661, Government Code, is

10-20    amended by adding Section 661.038 to read as follows:

10-21          Sec. 661.038.  RULES.   The comptroller may establish

10-22    procedures and adopt rules to administer this subchapter.

10-23          SECTION 18.  Subchapter C, Chapter 661, Government Code, is

10-24    amended by adding Section 661.068 to read as follows:

10-25          Sec. 661.068. RULES.   The comptroller may establish

10-26    procedures and adopt rules to administer this subchapter.

10-27          SECTION 19.  Subchapter D, Chapter 661, Government Code, is

 11-1    amended by adding Section 661.094 to read as follows:

 11-2          Sec. 661.094.  RULES.   The comptroller may establish

 11-3    procedures and adopt rules to administer this subchapter.

 11-4          SECTION 20.  Subchapter A, Chapter 662, Government Code, is

 11-5    amended by adding Section 662.012 to read as follows:

 11-6          Sec. 662.012.  RULES.   The comptroller may establish

 11-7    procedures and adopt rules to administer Sections 662.001-662.010.

 11-8          SECTION 21.  Section 57.48(e), Education Code, is amended to

 11-9    read as follows:

11-10          (e)  This section does not prohibit the comptroller from

11-11    issuing a warrant to pay the compensation of:

11-12                (1)  a state officer or employee; or

11-13                (2)  an individual whose compensation is being paid by

11-14    a private person through a state agency.

11-15          SECTION 22.  Section 57.48(f)(4), Education Code, is amended

11-16    to read as follows:

11-17                (4)  This subsection does not prohibit a state agency

11-18    from paying the compensation of:

11-19                      (A)  a state officer or employee; or

11-20                      (B)  an individual whose compensation is being

11-21    paid by a private person through the agency.

11-22          SECTION 23.  Section 403.055(c), Government Code, is amended

11-23    to read as follows:

11-24          (c)  This section does not prohibit the comptroller from

11-25    issuing a warrant to pay the compensation of:

11-26                (1)  a state officer or employee; or

11-27                (2)  an individual whose compensation is being paid by

 12-1    a private person through a state agency.

 12-2          SECTION 24.  Section 403.055(e)(4), Government Code, is

 12-3    amended to read as follows:

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

 12-5    from paying the compensation of:

 12-6                      (A)  a state officer or employee; or

 12-7                      (B)  an individual whose compensation is being

 12-8    paid by a private person through the agency.

 12-9          SECTION 25.  Section 481.0841(c), Government Code, is amended

12-10    to read as follows:

12-11          (c)  This section does not prohibit the comptroller from

12-12    issuing a warrant or initiating an electronic funds transfer to pay

12-13    the compensation of:

12-14                (1)  a state officer or employee; or

12-15                (2)  an individual whose compensation is being paid by

12-16    a private person through a state agency.

12-17          SECTION 26.  Sections 481.0841(d)(2) and (4), Government

12-18    Code, are amended to read as follows:

12-19                (2)  A state agency may not use funds inside or outside

12-20    the state treasury to pay a user if the [agency knows that the]

12-21    user is in default on a loan guaranteed under this subchapter and

12-22    with respect to which the department has been required to honor a

12-23    guarantee.

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

12-25    from paying the compensation of:

12-26                      (A)  a state officer or employee; or

12-27                      (B)  an individual whose compensation is being

 13-1    paid by a private person through the agency.

 13-2          SECTION 27.  Section 662.001, Government Code, is amended to

 13-3    read as follows:

 13-4          Sec. 662.001.  DEFINITIONS.   In this subchapter:

 13-5                (1)  "Part-time state employee" means a state employee

 13-6    who normally works fewer [less] than 40 hours each week.

 13-7                (2)  "State agency" means a unit of state government,

 13-8    including a state board, commission, council, department,

 13-9    committee, agency, or office that was created by the constitution

13-10    or a statute of this state and is in any branch of state

13-11    government.  The term does not include a local government, a river

13-12    authority, a special district, any other political subdivision, or

13-13    an institution of higher education as defined by Section 61.003,

13-14    Education Code.

13-15                (3)  "State employee" means an employee of a state

13-16    agency or an appointed officer of a state agency whose office is

13-17    not created by the state constitution.  The term includes a

13-18    part-time, hourly, or temporary state employee.

13-19                (4)  "Workday" means a day on which a state employee is

13-20    normally scheduled to work.  The term does not include a national

13-21    or state holiday.

13-22          SECTION 28.  Section 662.005, Government Code, is amended to

13-23    read as follows:

13-24          Sec. 662.005.  ENTITLEMENT TO PAID DAY OFF.  (a)  An

13-25    individual who is a [A] state employee on the last  workday before

13-26    or the first workday after a national or state holiday, or on both

13-27    workdays, is entitled, except as provided by Section 662.010, to a

 14-1    paid day off from working for a state agency [work] on the [each

 14-2    national or state] holiday if:

 14-3                (1)  the holiday [that] does not fall on a Saturday  or

 14-4    Sunday; and

 14-5                (2)  the General Appropriations Act does not prohibit

 14-6    state agencies from observing the holiday.

 14-7          (b)  In this [This] section, "state employee":

 14-8                (1)  includes an individual who uses paid leave from a

 14-9    state agency; and

14-10                (2)  does not include an individual who uses unpaid

14-11    leave from a state agency [does not apply to a holiday that the

14-12    General  Appropriations Act prohibits state agencies from

14-13    observing].

14-14          SECTION 29.  Sections 662.006(a) and (b), Government Code,

14-15    are amended to read as follows:

14-16          (a)  An individual who is a [A] state employee on the last

14-17    workday  before or the first workday after an optional holiday, or

14-18    on both workdays, is entitled, except as provided by Section

14-19    662.010,  to a paid  day off from working for a state agency on the

14-20    [each day of an optional] holiday if:

14-21                (1)  the holiday [that] does not fall on a Saturday or

14-22    Sunday;

14-23                (2)  [if] the employee agrees to give up, during the

14-24    same fiscal year, a state holiday that:

14-25                      (A)  does not fall on a Saturday or Sunday; and

14-26                      (B)  the General Appropriations Act does not

14-27    prohibit state agencies  from observing; and

 15-1                (3)  the General Appropriations Act does not prohibit

 15-2    state agencies from observing the optional holiday.

 15-3          (b)  A state employee is entitled to a paid day off from

 15-4    working for a state agency on each day of an optional holiday that

 15-5    extends for more than one day if the employee:

 15-6                (1)  qualifies for the paid day off under Subsection

 15-7    (a); and

 15-8                (2)  agrees to give up during the same fiscal year an

 15-9    equivalent number of state holidays that:

15-10                      (A)  do not fall on a Saturday or Sunday; and

15-11                      (B)  the General Appropriations Act does not

15-12    prohibit state agencies from observing.

15-13          SECTION 30.  Section 662.007(a), Government Code, is amended

15-14    to read as follows:

15-15          (a)  A state employee who is required to work on a national

15-16    or state holiday [that does not fall on a Saturday or Sunday] is

15-17    entitled to compensatory time off during the 12 months after the

15-18    holiday if the state employee is entitled to a paid day off from

15-19    working for a state agency on the holiday under Section 662.005.

15-20          SECTION 31.  Section 662.010, Government Code, is amended to

15-21    read as follows:

15-22          Sec. 662.010.  HOLIDAY BEFORE WORK BEGINS OR AFTER WORK ENDS.

15-23    (a)  An individual who is not a [A] state employee [who begins

15-24    working for a state agency] on the last workday before a state or

15-25    national holiday but who is a state employee on the first workday

15-26    after the holiday may not [of a month is entitled to] be paid for

15-27    the [a state or national] holiday [that occurs before the first

 16-1    workday] if it [the holiday:]

 16-2                [(1)]  occurs during the same month as the last workday

 16-3    before the holiday[; and]

 16-4                [(2)  does not fall on a Saturday or Sunday].

 16-5          (b)  An individual who is a [A] state employee [who stops

 16-6    working for a state agency] on the last workday before a state or

 16-7    national holiday but who is not a state employee on the first

 16-8    workday after the holiday may not [of a month is entitled to] be

 16-9    paid for the [a state or national] holiday [that occurs after the

16-10    last  workday] if it [the holiday:]

16-11                [(1)]  occurs before the first workday of a month and

16-12    during that [the] month[; and]

16-13                [(2)  does not fall on a Saturday or Sunday].

16-14          (c)  In this section, "state employee":

16-15                (1)  includes an individual who uses paid leave from a

16-16    state agency; and

16-17                (2)  does not include an individual who uses unpaid

16-18    leave from a state agency ["workday" means a day on which a state

16-19    employee  is normally scheduled to work].

16-20          SECTION 32.  Sections 403.0165(f), (h), and (i), Government

16-21    Code, are amended to read as follows:

16-22          (f)  An organization not previously certified may submit an

16-23    application for certification as an eligible state employee

16-24    organization to the comptroller at any time except during the

16-25    period after June 2 and before September 1 [within 90 days prior to

16-26    the beginning  of the fiscal year].

16-27          (h)  The comptroller may [shall] charge an administrative fee

 17-1    to cover the costs incurred as a result of administering this

 17-2    section.  The administrative [Administrative] fees charged by the

 17-3    comptroller shall be paid by each qualifying state employee

 17-4    organization on a pro rata basis to be determined by the

 17-5    comptroller.  The comptroller by rule shall determine the most

 17-6    efficient and effective method of collecting the [such

 17-7    administrative] fees.  [The comptroller shall adopt rules for the

 17-8    administration of this section.]

 17-9          (i)  The comptroller may adopt rules for the administration

17-10    of this section  [shall allocate the administrative  fees on a

17-11    proportional basis to each employing state agency that incurs costs

17-12    in administering this subsection].

17-13          SECTION 33.  Section 659.041, Government Code, is amended to

17-14    read as follows:

17-15          Sec. 659.041.  DEFINITIONS.  In this subchapter:

17-16                (1)  "Appointment" means a job title.

17-17                (2)  "Full-time state employee" means:

17-18                      (A)  a state employee who works in the executive

17-19    or judicial branch of state government, other than a state

17-20    institution of higher education, and who is normally scheduled to

17-21    work a total  of at least 40 hours a week for a single state agency

17-22    [in one position];

17-23                      (B)  a state employee who works for a state

17-24    institution of higher  education and who is normally scheduled to

17-25    work a total of at least 40 hours a week in one position, as

17-26    determined under Section 659.0411; or

17-27                      (C) [(B)]  a state employee who works in the

 18-1    legislative branch of state government and who is normally

 18-2    scheduled to work a total of 40 or more hours a week in all

 18-3    positions held in the legislative branch.

 18-4                (3) [(2)]  "Part-time state employee" means a state

 18-5    employee who is not a full-time state employee.

 18-6                (4) [(3)]  "State employee" means an individual who:

 18-7                      (A)  is covered by Chapter 654;

 18-8                      (B)  holds a line item or exempt position;

 18-9                      (C)  works in a nonacademic position at a state

18-10    institution of higher education at least 20 hours a week for at

18-11    least 4.5 consecutive months; or

18-12                      (D)  is an hourly employee of the state.

18-13          SECTION 34.  Subchapter D, Chapter 659, Government Code, is

18-14    amended by adding Section 659.0411 to read as follows:

18-15          Sec. 659.0411.  APPOINTMENTS AT STATE INSTITUTIONS OF HIGHER

18-16    EDUCATION.  (a)  A state institution of higher education shall

18-17    determine whether a state employee who has more than one

18-18    appointment with the institution holds only one position or holds

18-19    one position for each appointment.

18-20          (b)  A board of regents shall determine whether a state

18-21    employee who has an appointment with at least two state

18-22    institutions of higher education under the board's jurisdiction

18-23    holds only one position or holds one position for each appointment.

18-24          (c)  A state employee who has an appointment with at least

18-25    two state institutions of higher education holds more than one

18-26    position if those institutions are not governed by the same board

18-27    of regents.

 19-1          SECTION 35.  Section 659.132, Government Code, is amended to

 19-2    read as follows:

 19-3          Sec. 659.132.  DEDUCTION AUTHORIZED.  (a)  A state employee

 19-4    may authorize a deduction each pay period from the employee's

 19-5    salary or wage payment for a charitable contribution as provided by

 19-6    this subchapter.

 19-7          (b)  Except as provided by Subsections (c), (d), and (e), a

 19-8    state employee may authorize a deduction only during a state

 19-9    employee charitable campaign.

19-10          (c)  A state employee who begins working for the state when a

19-11    campaign is not being conducted may authorize a deduction according

19-12    to the comptroller's requirements.

19-13          (d)  A state employee who works for a state agency that does

19-14    not allow deduction authorizations under Subsection (i) may

19-15    authorize a deduction that is effective with the first full payroll

19-16    period after the agency is converted to a system in which uniform

19-17    statewide payroll procedures are followed.

19-18          (e)  A state employee who works for a state agency that does

19-19    not allow deduction authorizations under Subsection (i) may

19-20    authorize a deduction after transferring from that agency to:

19-21                (1)  a state agency that allows deduction

19-22    authorizations even though it may prohibit them under Subsection

19-23    (i); or

19-24                (2)  a state agency not covered by Subsection (i).

19-25          (f)  A state employee who authorized a deduction while

19-26    working for a state agency may continue the deduction after

19-27    transferring to another state agency if the comptroller's rules for

 20-1    continuing the deduction are followed.

 20-2          (g)  An authorization must direct the comptroller to

 20-3    distribute the deducted funds to a participating federation or fund

 20-4    and a local campaign manager as prescribed by rule.

 20-5          (h) [(c)]  A deduction under this subchapter must be in the

 20-6    form prescribed by the comptroller.

 20-7          (i) [(d)]  A state agency other than an institution of higher

 20-8    education is not required to permit an employee to authorize a

 20-9    deduction under this subchapter until the first full payroll period

20-10    after the agency converts to a system in which uniform statewide

20-11    payroll procedures are followed.

20-12          (j) [(e)]  The comptroller by rule may establish a reasonable

20-13    minimum deduction for each pay period.

20-14          SECTION 36.  Sections 659.136(a) and (c), Government Code,

20-15    are amended to read as follows:

20-16          (a)  A state employee may revoke or change an authorization

20-17    by giving notice to the employing state agency.  A state employee

20-18    may not change the eligible charitable organization designated to

20-19    receive the employee's deductions.

20-20          (c)  A revocation or change takes effect on the date

20-21    designated [when it is approved] by the comptroller by rule.

20-22          SECTION 37.  Section 659.137, Government Code, is amended to

20-23    read as follows:

20-24          Sec. 659.137. DURATION OF DEDUCTION. (a)  A deduction under

20-25    this subchapter begins on the date designated by the comptroller by

20-26    rule.

20-27          (b)  A deduction [by a state employee] under this subchapter

 21-1    is effective for a maximum of one campaign year and, unless revoked

 21-2    or changed under Section 659.136, ends on[:]

 21-3                [(1)  the first anniversary of] the date designated by

 21-4    the comptroller by rule [it begins; or]

 21-5                [(2)  the effective date of a revocation of or change

 21-6    in the authorization by the employee].

 21-7          SECTION 38.  Section 659.148(d), Government Code, is amended

 21-8    to read as follows:

 21-9          (d)  Except as provided by this subsection, the [The]

21-10    comptroller shall charge an administrative fee to cover costs

21-11    incurred by the comptroller and employing state agencies in the

21-12    implementation of this subchapter to the charitable organizations

21-13    participating in the first state employee charitable campaign

21-14    conducted under this subchapter in the same proportion that the

21-15    contributions to that charitable organization bear to the total of

21-16    contributions in that campaign.  Except as provided by this

21-17    subsection, the [The] comptroller shall charge an administrative

21-18    fee to cover costs incurred by the comptroller and employing state

21-19    agencies in the administration of this subchapter to the charitable

21-20    organizations in each subsequent state employee charitable campaign

21-21    in the same proportion that the contributions to that charitable

21-22    organization bear to the total of contributions in that campaign.

21-23    The comptroller may decline to charge an administrative fee if the

21-24    comptroller determines the costs that would be covered by the fee

21-25    are insignificant.  The comptroller shall determine the most

21-26    efficient and effective method of collecting the administrative fee

21-27    and shall adopt rules for the implementation of this section.

 22-1          SECTION 39.  Section 659.109, Government Code, is amended to

 22-2    read as follows:

 22-3          Sec. 659.109.  ALLOCATION [AND APPROPRIATION] OF

 22-4    ADMINISTRATIVE FEES.  [(a)]  The state shall allocate and pay to

 22-5    each state agency that incurs costs in administering this

 22-6    subchapter the agency's proportional amount of the administrative

 22-7    fees collected by the state under this subchapter.

 22-8          [(b)  An administrative fee withheld under this subchapter

 22-9    may be used, without further appropriation, by the comptroller and

22-10    the state agencies incurring costs in administering this

22-11    subchapter.]

22-12          SECTION 40.  Section 659.146(a), Government Code, is amended

22-13    to read as follows:

22-14          (a)  To be eligible to participate in a state employee

22-15    charitable campaign, a charitable organization must:

22-16                (1)  be governed by a voluntary board of citizens that

22-17    meets at least twice each year to set policy and manage the affairs

22-18    of the organization;

22-19                (2)  if the organization's annual budget:

22-20                      (A)  does not exceed [is less than] $100,000,

22-21    provide a completed Internal Revenue Service Form 990 and an

22-22    accountant's review that offers full and open disclosure of the

22-23    organization's internal operations;  or

22-24                      (B)  exceeds [is equal to or more than] $100,000,

22-25    be audited annually in accordance with generally accepted auditing

22-26    standards of the American Institute of Certified Public

22-27    Accountants;  and

 23-1                (3)  not spend more than 25 percent of its annual

 23-2    revenue for administrative and fund-raising expenses.

 23-3          SECTION 41.  Sections 661.061(1) and (3), Government Code,

 23-4    are amended to read as follows:

 23-5                (1)  "National holiday" includes only those days listed

 23-6    under Section 662.003(a).  The term does not include a national

 23-7    holiday on which a state employee is not entitled to a paid day off

 23-8    from work under Section 662.005.

 23-9                (3)  "State holiday" includes only those days listed

23-10    under Section 662.003(b).  The term does not include a state

23-11    holiday on which a state employee is not entitled to a paid day off

23-12    from work under Section 662.005.

23-13          SECTION 42.  Section 661.062(b), Government Code, is amended

23-14    to read as follows:

23-15          (b)  A separation from state employment includes a separation

23-16    in which the employee:

23-17                (1)  leaves one state agency to begin working for

23-18    another state agency, if one or more workdays occur between the two

23-19    employments;

23-20                (2)  moves from a position in a state agency that

23-21    accrues vacation time to a position in that agency that does not

23-22    accrue vacation time, if the agency agrees to pay the employee for

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

23-24                (3)  moves from a position in a state agency that

23-25    accrues vacation time to a position in another state agency that

23-26    does not accrue vacation time, if the other state agency refuses to

23-27    credit the employee for the balance of the employee's vacation time

 24-1    as of the date of the move; [or]

 24-2                (4)  moves from a position in a state agency that does

 24-3    not accrue vacation time to a position in another state agency that

 24-4    does not accrue vacation time, if the other state agency is not

 24-5    authorized or refuses to credit the employee for the balance of the

 24-6    employee's vacation time as of the date of the move; or

 24-7                (5)  holds two or more positions, and separates from

 24-8    one that accrues vacation time.

 24-9          SECTION 43.  Section 661.063, Government Code, is amended to

24-10    read as follows:

24-11          Sec. 661.063.  COMPUTATION OF PAYMENT.  (a)  Except as

24-12    provided by Subsection (b), the [The] payment to a state employee

24-13    under this subchapter shall be computed by multiplying the

24-14    employee's rate of compensation on the date of separation from

24-15    state employment by the total number of hours of vacation time

24-16    determined under Section 661.064.

24-17          (b)  The payment under this subchapter to a state employee

24-18    who separates from state employment while holding a position that

24-19    does not accrue vacation time shall be computed according to this

24-20    subsection.  The employee's final rate of compensation in the last

24-21    position held that accrues vacation time shall be multiplied by the

24-22    employee's total number of hours of vacation time determined under

24-23    Section 661.064.

24-24          (c)  Under this section, rate of compensation:

24-25                (1)  includes an emolument in lieu of base pay for

24-26    which the state employee was eligible [on the last day of

24-27    employment]; and

 25-1                (2)  does not include longevity or hazardous duty pay.

 25-2          SECTION 44.  Section 661.064, Government Code, is amended by

 25-3    amending Subsection (a) and adding Subsection (c) to read as

 25-4    follows:

 25-5          (a)  This subsection applies except as provided by Subsection

 25-6    (c).  For a state employee who on the date of separation is

 25-7    normally  scheduled to work at least 40 hours a week, eight hours

 25-8    are to be added to the employee's accrued vacation time for each

 25-9    state or national holiday that is scheduled to fall within the

25-10    period after the date of separation and during which the employee

25-11    could have used the time.  To determine the period during which

25-12    vacation time could have been used and the number of state or

25-13    national holidays, the employee's vacation time is allocated over

25-14    the workdays after the employee's separation and eight hours are

25-15    added as a state or national holiday occurs during the period.

25-16          (c)  For a state employee who is paid under this subchapter

25-17    because the separation from state employment involves a move to a

25-18    position in a state agency that does not accrue vacation time, no

25-19    hours may be added to the employee's accrued vacation time for a

25-20    state or national holiday that is scheduled to fall within the

25-21    period after the date of separation and during which the employee

25-22    could have used the time.

25-23          SECTION 45.  Subchapter A, Chapter 662, Government Code, is

25-24    amended by adding Section 662.0071 to read as follows:

25-25          Sec. 662.0071.  TRANSFERS OF COMPENSATORY TIME BALANCES.

25-26    (a)  A state agency shall accept the balance of compensatory time

25-27    accrued under Section 662.007 by a state employee who transfers to

 26-1    that agency from another state agency if the employee transfers as

 26-2    a direct result of:

 26-3                (1)  the legislature's transfer of legal authority or

 26-4    duties from the agency that formerly employed the employee to the

 26-5    agency that currently employs the employee; or

 26-6                (2)  a requirement of the State Council on Competitive

 26-7    Government for the agency that formerly employed the employee to

 26-8    bid a commercially available service that the agency previously

 26-9    performed.

26-10          (b)  Subsection (a) does not apply if the transferring state

26-11    employee is required to apply for the new position.

26-12          (c)  In this section, "bid" means any process developed by

26-13    the State Council on Competitive Government to provide a

26-14    commercially available service in competition with private

26-15    commercial sources or state agency providers.

26-16          SECTION 46.  Sections 403.016(e) and (f), Government Code,

26-17    are amended to read as follows:

26-18          (e)  The comptroller may use the electronic funds transfer

26-19    system to:

26-20                (1)  transfer directly any portion of employees' gross

26-21    state salaries into employees' accounts in a money market mutual

26-22    fund established in the Texas Treasury Safekeeping Trust Company;

26-23    or

26-24                (2)  transfer directly a portion of an employee's net

26-25    state salary to the employee's account at a credit union if:

26-26                      (A)  the amount of the salary deposited to that

26-27    account exceeds the amount of salary deposited in any other account

 27-1    of the employee at another type of financial institution; or

 27-2                      (B)  the requirements concerning deductions for

 27-3    payments to credit unions prescribed by Subchapter G, Chapter 659,

 27-4    and by the rules adopted by the comptroller under that subchapter

 27-5    are satisfied.

 27-6          (f)  Except as provided by Subsection (e) and subject to any

 27-7    limitation in rules adopted by the comptroller, an automated

 27-8    clearinghouse, or the federal government, the comptroller may use

 27-9    the electronic funds transfer system to deposit payments only to

27-10    one or more accounts of a payee [payee's account] at one or more

27-11    [a] financial institutions [institution].  A single  electronic

27-12    funds transfer may contain payments to multiple payees. Individual

27-13    transfers or warrants are not required for each payee.

27-14          SECTION 47.  Section 403.248(c), Government Code, is amended

27-15    to read as follows:

27-16          (c)  In this section, "final accounting" means a

27-17    reimbursement from or additional payment to a state officer or

27-18    employee so that the net amount received by the officer or employee

27-19    [advanced from a petty cash account] equals the actual travel

27-20    expenses incurred by the officer or employee.

27-21          SECTION 48.  Section 5, Texas Employees Uniform Group

27-22    Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance

27-23    Code), is amended by adding Subsection (k) to read as follows:

27-24          (k)  If the trustee establishes a group coverage plan that

27-25    protects against the long- or short-term loss of salary, the

27-26    trustee may use an employee's annual salary in the calculation of

27-27    the amount of the employee's premium or coverage, or both, under

 28-1    the plan.  For purposes of this subsection, an employee's annual

 28-2    salary includes the benefit replacement pay the employee would be

 28-3    earning annually under Subchapter H, Chapter 659, Government Code

 28-4    (as added by Section 3, Chapter 417, Acts of the 74th Legislature,

 28-5    Regular Session, 1995), if Section 659.121(1), Government Code,

 28-6    defined "compensation" to include base salary or wages, longevity

 28-7    pay, hazardous duty pay, and night differential pay.

 28-8          SECTION 49.  Section 11, Texas Employees Uniform Group

 28-9    Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance

28-10    Code), is amended by amending Subsection (c) and adding Subsection

28-11    (d) to read as follows:

28-12          (c)  Except as provided by Subsection (d), the [The] trustee

28-13    shall prescribe regulations providing for the conversion of other

28-14    than annual rates of pay, and specify the types of pay included in

28-15    annual pay and all other matters necessary to implement this

28-16    section.

28-17          (d)  For the purpose of determining the amount of an

28-18    employee's optional term life insurance coverage, an employee's

28-19    annual salary includes the benefit replacement pay the employee

28-20    would be earning annually under Subchapter H, Chapter 659,

28-21    Government Code (as added by Section 3, Chapter 417, Acts of the

28-22    74th Legislature, Regular Session, 1995), if Section 659.121(1),

28-23    Government Code, defined "compensation" to include base salary or

28-24    wages, longevity pay, hazardous duty pay, and night differential

28-25    pay.

28-26          SECTION 50.  Section 811.001(7), Government Code, is amended

28-27    to read as follows:

 29-1                (7)  "Compensation" means the base salary of a person;

 29-2    [, including] amounts that would otherwise qualify as compensation

 29-3    but are not received directly by a [the] person pursuant to a good

 29-4    faith, voluntary, written salary reduction agreement in order to

 29-5    finance payments to a deferred compensation or tax sheltered

 29-6    annuity program specifically authorized by state law or to finance

 29-7    benefit options under a cafeteria plan qualifying under Section 125

 29-8    of the Internal Revenue Code of 1986 (26 U.S.C. Section 125);[,

 29-9    plus] longevity and hazardous duty pay; [and includes] nonmonetary

29-10    compensation, the value of which is determined by the retirement

29-11    system; [, and] amounts by which a [the] person's salary is reduced

29-12    under a salary reduction agreement authorized by Chapter 610; and

29-13    the benefit replacement pay a person earns under Subchapter H,

29-14    Chapter  659, Government Code (as added by Section 3, Chapter 417,

29-15    Acts of the 74th Legislature, Regular Session, 1995), except for

29-16    the benefit replacement pay a person earns as a result of a payment

29-17    made under Subchapter B, C, or D, Chapter 661.  The term[, but]

29-18    excludes overtime pay.

29-19          SECTION 51.  Sections 822.201(b) and (c), Government Code,

29-20    are amended to read as follows:

29-21          (b)  "Salary and wages" as used in Subsection (a) means:

29-22                (1)  normal periodic payments of money for service the

29-23    right to which accrues on a regular basis in proportion to the

29-24    service performed;

29-25                (2)  amounts by which the member's salary is reduced

29-26    under a salary reduction agreement authorized by Chapter 610; [and]

29-27                (3)  amounts that would otherwise qualify as salary and

 30-1    wages under Subdivision (1) but are not received directly by the

 30-2    member pursuant to a good faith, voluntary written salary reduction

 30-3    agreement in order to finance payments to a deferred compensation

 30-4    or tax sheltered annuity program specifically authorized by state

 30-5    law or to finance benefit options under a cafeteria plan qualifying

 30-6    under Section 125 of the Internal Revenue Code of 1986 (26 U.S.C.

 30-7    Section 125), if:

 30-8                      (A)  the program or benefit options are made

 30-9    available to all employees of the employer; and

30-10                      (B)  the benefit options in the cafeteria plan

30-11    are limited to one or more options that provide deferred

30-12    compensation, group health and disability insurance, group term

30-13    life insurance, dependent care assistance programs, or group legal

30-14    services plans; and

30-15                (4)  the benefit replacement pay a person earns under

30-16    Subchapter H, Chapter 659, Government Code (as added by Section 3,

30-17    Chapter 417, Acts of the 74th Legislature, Regular Session, 1995),

30-18    except as provided by Subsection (c).

30-19          (c)  Excluded from salary and wages are expense payments,

30-20    allowances, payments for unused vacation or sick leave, maintenance

30-21    or other nonmonetary compensation, fringe benefits, deferred

30-22    compensation other than as provided by Subsection (b)(3),

30-23    compensation that is not made pursuant to a valid employment

30-24    agreement, payments received in the 1995-1996 or a subsequent

30-25    school year for teaching a driver education and traffic safety

30-26    course, the benefit replacement pay a person earns as a result of a

30-27    payment made under Subchapter B or C, Chapter 661, and any

 31-1    compensation not  described in Subsection (b).

 31-2          SECTION 52.  Section 47.09(a), Penal Code, is amended to read

 31-3    as follows:

 31-4          (a)  It is a defense to prosecution under this chapter that

 31-5    the conduct:

 31-6                (1)  was authorized under:

 31-7                      (A)  the Bingo Enabling Act (Article 179d,

 31-8    Vernon's Texas Civil Statutes);

 31-9                      (B)  the Texas Racing Act (Article 179e, Vernon's

31-10    Texas Civil Statutes); or

31-11                      (C)  the Charitable Raffle Enabling Act (Article

31-12    179f, Revised Statutes);

31-13                (2)  consisted entirely of participation in the state

31-14    lottery authorized by Chapter 466, Government Code; or

31-15                (3)  was a necessary incident to the operation of the

31-16    state lottery and was directly or indirectly authorized by:

31-17                      (A)  Chapter 466, Government Code;

31-18                      (B)  the lottery division of the Texas Lottery

31-19    Commission [comptroller's office];

31-20                      (C)  the Texas Lottery Commission [comptroller];

31-21    or

31-22                      (D)  the director of the lottery division of the

31-23    Texas Lottery Commission.

31-24          SECTION 53.  Section 2054.007(a), Government Code, is amended

31-25    to read as follows:

31-26          (a)  The lottery division of the Texas Lottery Commission [in

31-27    the office of the comptroller is not included in the agency

 32-1    strategic plan or biennial operating plan of the comptroller.  The

 32-2    lottery division] is not subject to the planning and procurement

 32-3    requirements of this chapter.

 32-4          SECTION 54.  Section 2103.003, Government Code, is amended to

 32-5    read as follows:

 32-6          Sec. 2103.003.  STATE AGENCY SPENDING OF APPROPRIATED FUNDS.

 32-7    A state agency may spend appropriated funds only by:

 32-8                (1)  a warrant drawn by:

 32-9                      (A)  the comptroller; or

32-10                      (B)  a state agency to which the comptroller has

32-11    delegated authority to print warrants under Section 403.060; or

32-12                (2)  an electronic funds transfer initiated by [from]

32-13    the comptroller.

32-14          SECTION 55.  Subchapter A, Chapter 2103, Government Code, is

32-15    amended by adding Section 2103.0035 to read as follows:

32-16          Sec. 2103.0035.  STATE AGENCY SPENDING OF UNAPPROPRIATED

32-17    FUNDS.  (a)  A state agency may spend unappropriated funds only by:

32-18                (1)  a warrant drawn by:

32-19                      (A)  the comptroller; or

32-20                      (B)  a state agency to which the comptroller has

32-21    delegated authority to print warrants under Section 403.060; or

32-22                (2)  an electronic funds transfer initiated by the

32-23    comptroller.

32-24          (b)  Subsection (a) applies only to funds that Section

32-25    404.046 or 404.069 or other law requires to be spent on warrants

32-26    drawn or electronic funds transfers initiated by the comptroller.

32-27          SECTION 56.  Section 2103.004, Government Code, is amended to

 33-1    read as follows:

 33-2          Sec. 2103.004.  WARRANTS AND ELECTRONIC FUNDS TRANSFERS

 33-3    [WARRANT DRAWN BY COMPTROLLER].  A [The comptroller may not draw a]

 33-4    warrant  may not be drawn or an electronic funds transfer initiated

 33-5    until:

 33-6                (1)  the state agency from whose appropriated or

 33-7    unappropriated funds [appropriation] the warrant or electronic

 33-8    funds transfer is  payable has submitted a voucher to the

 33-9    comptroller;

33-10                (2)  the state agency has approved the voucher in

33-11    accordance with this chapter; and

33-12                (3)  the comptroller has audited and approved the

33-13    voucher as required by law.

33-14          SECTION 57.  Section 2151.002, Government Code, is amended to

33-15    read as follows:

33-16          Sec. 2151.002.  DEFINITIONS.  Except as otherwise provided by

33-17    [In] this subtitle:

33-18                (1)  "Commission" means the General Services

33-19    Commission.

33-20                (2)  "State agency" means:

33-21                      (A)  a department, commission, board, office, or

33-22    other agency in the executive branch of state government created by

33-23    the state constitution or a state statute[, except the Texas

33-24    High-Speed Rail Authority];

33-25                      (B)  the supreme court, the court of criminal

33-26    appeals, a court of appeals, or the Texas Judicial Council;  or

33-27                      (C)  a university system or an institution of

 34-1    higher education as defined by Section 61.003, Education Code,

 34-2    except a public junior college.

 34-3          SECTION 58.  Section 2155.001, Government Code, is amended to

 34-4    read as follows:

 34-5          Sec. 2155.001.  DEFINITIONS.  Except as otherwise provided by

 34-6    [In] this chapter and Chapters 2156, 2157, and 2158:

 34-7                (1)  "Goods" means supplies, materials, or equipment.

 34-8                (2)  "Service" means the furnishing of skilled or

 34-9    unskilled labor or professional work, but does not include a:

34-10                      (A)  professional service subject to Subchapter

34-11    A, Chapter 2254;

34-12                      (B)  service of a state agency employee;

34-13                      (C)  consulting service or service of a [private]

34-14    consultant as defined by Subchapter B, Chapter 2254; or

34-15                      (D)  service of a public utility.

34-16          SECTION 59.  Section 2155.321, Government Code, is amended by

34-17    adding Subdivisions (3) and (4) to read as follows:

34-18                (3)  "Service" means the furnishing of skilled or

34-19    unskilled labor or professional work but does not include the

34-20    service of a state agency employee.

34-21                (4)  "State agency" has the meaning assigned by Section

34-22    2103.001.

34-23          SECTION 60.  Section 2155.322(b), Government Code, is amended

34-24    to read as follows:

34-25          (b)  If state law requires that a payment for the goods or

34-26    services be made on a warrant drawn or an electronic funds transfer

34-27    initiated by the comptroller or a state agency with delegated

 35-1    authority under Section 403.060, promptly [Promptly] after the

 35-2    later of the receipt of the invoice or the receipt of the goods or

 35-3    services, the agency shall send to the comptroller the

 35-4    certification, together with the financial information and purchase

 35-5    information provided by the invoice and purchase voucher, on a form

 35-6    or in the manner agreed to by the comptroller and the commission.

 35-7          SECTION 61.  Section 2155.325(c), Government Code, is amended

 35-8    to read as follows:

 35-9          (c)  For purchases audited after a warrant is issued, the

35-10    comptroller shall send the certification and purchase information

35-11    received by the comptroller under Section 2155.322(b) to the

35-12    commission under commission rules.

35-13          SECTION 62.  Section 2101.011, Government Code, is amended to

35-14    read as follows:

35-15          Sec. 2101.011.  FINANCIAL INFORMATION REQUIRED OF STATE

35-16    AGENCIES [("100-DAY REPORTS")].  (a)  A state agency shall submit

35-17    the financial information requested by the comptroller and such

35-18    other information requested by the legislature in the General

35-19    Appropriations Act, including information about state funds held

35-20    outside the state treasury, to:

35-21                (1)  the governor;

35-22                (2)  the comptroller;

35-23                (3)  the Legislative Reference Library [state

35-24    treasurer];

35-25                (4)  the state auditor; and

35-26                (5)  the Legislative Budget Board.

35-27          (b)  A state agency [other than a university system or

 36-1    institution of higher education, as defined by Section 61.003,

 36-2    Education Code,] shall submit the information to the listed

 36-3    officials by the date or dates provided in the General

 36-4    Appropriations Act [not later than December 9 of each year.  A

 36-5    university system or institution of higher education shall submit

 36-6    the information to the listed officials not later than the

 36-7    following January 1].

 36-8          (c)  The comptroller may require the reporting of the

 36-9    financial information for any entity that the comptroller

36-10    determines is a component unit of a statewide reporting entity in

36-11    accordance with generally accepted accounting principles as

36-12    prescribed or modified by the Governmental Accounting Standards

36-13    Board or its successors [A state agency is not required to submit

36-14    the information if the comptroller  determines the agency is not a

36-15    component unit of state government for purposes of this

36-16    subchapter].

36-17          SECTION 63.  Section 466.017(a), Government Code, is amended

36-18    to read as follows:

36-19          (a)  The executive director shall provide for a certified

36-20    public accountant to conduct an independent audit for each fiscal

36-21    year of all accounts and transactions of the lottery.  The

36-22    certified public accountant may not have, as determined by the

36-23    executive director, a significant financial interest in a sales

36-24    agent, lottery vendor, or lottery operator.  The certified public

36-25    accountant shall present an audit report to the executive director,

36-26    the commission, the governor, the comptroller, and the legislature

36-27    not later than the 30th day after the submission date for the

 37-1    annual financial report required by the General Appropriations Act

 37-2    [April 1 of the year following the fiscal year for which the audit

 37-3    was performed].  The report must contain recommendations to enhance

 37-4    the earnings capability of the lottery and improve the efficiency

 37-5    of lottery operations.  The state auditor may review the results of

 37-6    and working papers related to the audit.

 37-7          SECTION 64.  Section 2306.074(a), Government Code, is amended

 37-8    to read as follows:

 37-9          (a)  The state auditor or a certified public accountant shall

37-10    audit the department's books and accounts each fiscal year and file

37-11    a copy of the audit with the governor, the comptroller, and the

37-12    legislature not later than the 30th day after the submission date

37-13    for the annual financial report as required by the General

37-14    Appropriations Act [on or before March 1 of each year].  If the

37-15    state auditor is conducting the audit and it is not available by

37-16    the 30th day after the submission date as required by the General

37-17    Appropriations Act for annual financial reporting [March 1], it

37-18    must be filed as soon as it is available.

37-19          SECTION 65.  Section 17(a), Article 5.76-3, Insurance Code,

37-20    is amended to read as follows:

37-21          (a)  The [Not later than March 1 of each subsequent year,

37-22    the] board shall publish an independently audited [a] report

37-23    analyzing the fund's activities and fiscal condition during the

37-24    preceding fiscal year and shall file the report with the Texas

37-25    Department of Insurance.  The board shall file the audited report

37-26    with the Texas Department of Insurance for inclusion in its [have

37-27    an independent audit made of the] annual financial report.  The

 38-1    annual financial report shall be submitted by the Texas Department

 38-2    of Insurance by the date provided for in the General Appropriations

 38-3    Act.

 38-4          SECTION 66.  Sections 403.021(a), (b), (c), and (d),

 38-5    Government Code, are amended to read as follows:

 38-6          (a)  A state agency that expends appropriated funds shall

 38-7    report into the uniform statewide accounting system (USAS) all

 38-8    payables and [submit a] binding encumbrances for the first three

 38-9    quarters of the current appropriation year within 30 days after the

38-10    close of each quarter [encumbrance report to the comptroller and

38-11    the state auditor no later than October 30 of each year].  Binding

38-12    encumbrances for all appropriation years shall be reported annually

38-13    not later than September 30 of each fiscal year.

38-14          (b)  Payables and binding encumbrances must be reported for

38-15    all appropriations [The report must indicate the unencumbered

38-16    balance, if any, of each nonconstruction appropriation for the

38-17    preceding fiscal year. The report must be made] in the format that

38-18    the comptroller prescribes.  [The comptroller may reject a report

38-19    if it does not contain sufficient information or comply with the

38-20    comptroller's prescribed format.]

38-21          (c)  On October 1 [31] of each fiscal year, the comptroller

38-22    shall lapse all unencumbered nonconstruction appropriation balances

38-23    for all prior appropriation years based on the payables and binding

38-24    encumbrances reported [information in the binding encumbrance

38-25    reports].

38-26          (d)  If an agency submits a valid claim against a prior year

38-27    appropriation 30 days or more after the reporting due date [has not

 39-1    submitted a report by October 31, the comptroller shall lapse the

 39-2    unexpended balance of the agency's appropriations.  If the agency

 39-3    subsequently submits a report], the comptroller may [shall]

 39-4    reinstate the agency's appropriations to the extent of the claim

 39-5    [they were encumbered but unexpended].

 39-6          SECTION 67.  Section 403.031, Government Code, is amended by

 39-7    adding Subsection (c) to read as follows:

 39-8          (c)  The comptroller, in consultation with the state auditor,

 39-9    may develop standards and criteria to account for or to reclassify

39-10    receivables determined to be uncollectible.  The standards and

39-11    criteria developed by the comptroller must comply with generally

39-12    accepted accounting principles as prescribed or modified by the

39-13    Governmental Accounting Standards Board or its successors and must

39-14    provide proper accounting controls to protect state finances.  The

39-15    state auditor shall review and approve the standards and criteria

39-16    for classification of receivables.  Receivables may be reclassified

39-17    as collectible or uncollectible according to the process approved

39-18    by the state auditor or on a case-by-case basis as determined or

39-19    approved by that office.  The classification of receivables as

39-20    uncollectible under this subsection does not constitute forgiveness

39-21    of the debt, and any person indebted to the state remains subject

39-22    to Section 403.055.

39-23          SECTION 68.  Section 183.023, Tax Code, is amended to read as

39-24    follows:

39-25          Sec. 183.023. PAYMENT.   The tax due for the preceding month

39-26    shall accompany the return and shall be payable to the state.  The

39-27    comptroller shall deposit the revenue in the general revenue [mixed

 40-1    beverage tax clearance] fund.

 40-2          SECTION 69.  Section 183.051(b), Tax Code, is amended to read

 40-3    as follows:

 40-4          (b)  The legislature may appropriate for payment [comptroller

 40-5    shall issue] to each county or incorporated municipality an amount

 40-6    equal to a percentage of revenues received [a warrant drawn on the

 40-7    mixed beverage tax clearance fund in the amount of 10.7143 percent

 40-8    of receipts] from permittees within each [the] county or [during

 40-9    the quarter and shall issue to each] incorporated municipality

40-10    based on percentages or specific amounts provided for in the

40-11    General Appropriations Act [a warrant drawn on that fund in the

40-12    amount of 10.7143 percent of receipts from permittees within the

40-13    incorporated municipality during the quarter.  The remainder of the

40-14    receipts for the quarter and all interest earned on that fund shall

40-15    be transferred to the general revenue fund].

40-16          SECTION 70.  Section 74.006(d), Human Resources Code, is

40-17    amended to read as follows:

40-18          (d)  Money in the trust fund may be invested and shall be

40-19    accounted for separately from other funds in the treasury.  The

40-20    council may direct the investment of funds consistent with the

40-21    comptroller's authority to invest funds under Section 404.024,

40-22    Government Code.  After the deduction of investment related

40-23    expenses, net income and interest [Interest] earned on money in the

40-24    trust fund shall be deposited to the credit of the trust fund.

40-25          SECTION 71.  (a)  Sections 403.005, 403.016(e), 403.0165(j),

40-26    and 2103.032(c), Government Code, are repealed.

40-27          (b)  Section 403.021(f), Government Code, is repealed.

 41-1          SECTION 72.  This Act takes effect immediately, except that

 41-2    Sections 1, 26, 41-45, 47-51, 62-70, and 71(b) take effect

 41-3    September 1, 1997.

 41-4          SECTION 73.  (a)  The changes in law made by Sections 42 and

 41-5    43 of this Act apply only to a separation from state employment

 41-6    that occurs on or after the effective date of this Act.  A

 41-7    separation that occurs before that date is governed by the law in

 41-8    effect at the time of the separation, and the former law is

 41-9    continued in effect for that purpose.

41-10          (b)  The changes in law made by Sections 48 and 49 of this

41-11    Act apply only to coverages for periods on or after the effective

41-12    date of this Act. The coverages for periods before that date are

41-13    governed by the law as it existed immediately before the effective

41-14    date of this Act, and that former law is continued in effect for

41-15    that purpose.

41-16          SECTION 74.  The importance of this legislation and the

41-17    crowded condition of the calendars in both houses create an

41-18    emergency and an imperative public necessity that the

41-19    constitutional rule requiring bills to be read on three several

41-20    days in each house be suspended, and this rule is hereby suspended,

41-21    and that this Act take effect and be in force according to its

41-22    terms, and it is so enacted.