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

 1-2           (In the Senate - Filed February 18, 1997; February 20, 1997,

 1-3     read first time and referred to Committee on Finance;

 1-4     April 7, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 9, Nays 0; April 7, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 645               By:  Armbrister

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to state fiscal matters, including holidays, employee

1-11     compensation and deductions, reports, consultants, and the

1-12     comptroller's powers.

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

1-14           SECTION 1.  Subsection (c), Section 659.083, Government Code,

1-15     is amended to read as follows:

1-16           (c)  In this section, "working day" means a day other than

1-17     Saturday, Sunday, or a national holiday[, or a state holiday] as

1-18     listed in the General Appropriations Act or Chapter 662.  A day

1-19     does not cease to be a national holiday because a state agency

1-20     maintains or is required to maintain a minimum working staff on the

1-21     holiday.

1-22           SECTION 2.  Subsection (b), Section 465.008, Government Code,

1-23     is amended to read as follows:

1-24           (b)  The commission may enter into a contract with another

1-25     state agency, a political subdivision of the state, including a

1-26     special utility district as defined by Section 65.001, Water Code,

1-27     the United States, or a private agency, college, university,

1-28     corporation, partnership, association, or other person for an

1-29     appropriate purpose in connection with the performance of its

1-30     duties, including a contract, study, investigation, or proposal

1-31     necessary to conduct its duties.  Subchapter B, Chapter 2254,  does

1-32     not apply to use by the commission of a [private] consultant to

1-33     provide services in connection with formulation or submission of

1-34     two or more siting proposals under this chapter, except that in

1-35     selecting the consultant the commission shall give the preference

1-36     required by Section 2254.027(2) [3(b)(2) of that chapter].

1-37           SECTION 3.  Section 2254.021, Government Code, is amended to

1-38     read as follows:

1-39           Sec. 2254.021.  DEFINITIONS.  In this subchapter:

1-40                 (1)  "Consulting service" means the service of studying

1-41     or advising a state agency under a contract that does not involve

1-42     the traditional relationship of employer and employee.

1-43                 (2)  "Major consulting services contract" means a

1-44     consulting services contract for which it is reasonably foreseeable

1-45     that the value of the contract will exceed $10,000.

1-46                 (3)  "Consultant" ["Private consultant"] means a person

1-47     that provides or proposes to provide a consulting service.  The

1-48     term includes a political subdivision but does not include the

1-49     federal government, a state agency, or a state governmental entity.

1-50                 (4)  "Political subdivision" means:

1-51                       (A)  a county;

1-52                       (B)  an incorporated or unincorporated

1-53     municipality;

1-54                       (C)  a public junior college;

1-55                       (D)  a public school district or other

1-56     educational or rehabilitative district;

1-57                       (E)  a metropolitan or regional transit

1-58     authority;

1-59                       (F)  an airport authority;

1-60                       (G)  a river authority or compact;

1-61                       (H)  a regional planning commission, a council of

1-62     governments, or a similar regional planning agency created under

1-63     Chapter 391, Local Government Code;

1-64                       (I)  the Edwards Aquifer Authority or a district

 2-1     governed by Title 4, Water Code;

 2-2                       (J)  a soil and water conservation district;

 2-3                       (K)  a county or municipal improvement district;

 2-4                       (L)  a county road or road utility district;

 2-5                       (M)  a county housing authority;

 2-6                       (N)  an emergency services or communications

 2-7     district;

 2-8                       (O)  a fire prevention district;

 2-9                       (P)  a public health or hospital authority or

2-10     district;

2-11                       (Q)  a mosquito control district;

2-12                       (R)  a special waste district;

2-13                       (S)  a rural rail transportation district; or

2-14                       (T)  any other local government or special

2-15     district of this state.

2-16                 (5)  "State agency" has the meaning assigned by Section

2-17     2151.002 [1.02, State Purchasing and General Services Act (Article

2-18     601b, Vernon's Texas Civil Statutes)].

2-19                 (6)  "State governmental entity" means a state

2-20     department, commission, board, office, institution, facility, or

2-21     other agency the jurisdiction of which is not limited to a

2-22     geographical portion of the state.  The term includes a university

2-23     system and an institution of higher education, other than a public

2-24     junior college, as defined by Section 61.003, Education Code. The

2-25     term does not include a political subdivision.

2-26           SECTION 4.  Section 2254.022, Government Code, is amended to

2-27     read as follows:

2-28           Sec. 2254.022.  INTERPRETATION OF SUBCHAPTER.  (a)  This

2-29     subchapter shall be interpreted to ensure:

2-30                 (1)  the greatest and fairest competition in the

2-31     selection by state agencies of [private] consultants; and

2-32                 (2)  the giving of notice to all potential [private]

2-33     consultants of the need for and opportunity to provide consulting

2-34     services.

2-35           (b)  This subchapter does not:

2-36                 (1)  discourage state agencies from using [private]

2-37     consultants if the agencies reasonably foresee that the use of

2-38     [private] consultants will produce a more efficient and less costly

2-39     operation or project;

2-40                 (2)  prohibit the making of a sole-source contract for

2-41     consulting services if a proposal is not received from a competent,

2-42     knowledgeable, and qualified [private] consultant at a reasonable

2-43     fee, after compliance with this subchapter; or

2-44                 (3)  require or prohibit the use of competitive bidding

2-45     procedures to purchase consulting services.

2-46           SECTION 5.  Subsections (a), (b), and (e), Section 2254.025,

2-47     Government Code, are amended to read as follows:

2-48           (a)  The governor, after receipt of a request complying with

2-49     this section, may grant a limited waiver of the provisions of this

2-50     subchapter for a state agency that requires [private] consulting

2-51     services before compliance with this subchapter can be completed

2-52     because of an unforeseen emergency.

2-53           (b)  A state agency's request for a waiver must include

2-54     information required by the governor, including:

2-55                 (1)  information about the nature of the emergency;

2-56                 (2)  the reason that the state agency did not foresee

2-57     the emergency;

2-58                 (3)  the name of the [private] consultant with whom the

2-59     agency intends to contract; and

2-60                 (4)  the amount of the intended contract.

2-61           (e)  In this section, "unforeseen emergency" means a

2-62     situation that suddenly and unexpectedly causes a state agency to

2-63     need the services of a [private] consultant.  The term includes the

2-64     issuance of a court order, an actual or imminent natural disaster,

2-65     and new state or federal legislation.  An emergency is not

2-66     unforeseen if a state agency was negligent in foreseeing the

2-67     occurrence of the emergency.

2-68           SECTION 6.  Section 2254.026, Government Code, is amended to

2-69     read as follows:

 3-1           Sec. 2254.026.  CONTRACT WITH [PRIVATE] CONSULTANT.  A state

 3-2     agency may contract with a [private] consultant only if:

 3-3                 (1)  there is a substantial need for the consulting

 3-4     services; and

 3-5                 (2)  the agency cannot adequately perform the services

 3-6     with its own personnel or obtain the consulting services through a

 3-7     contract with a [another] state governmental entity [agency].

 3-8           SECTION 7.  Section 2254.027, Government Code, is amended to

 3-9     read as follows:

3-10           Sec. 2254.027.  SELECTION OF [PRIVATE] CONSULTANT.  In

3-11     selecting a [private] consultant, a state agency shall:

3-12                 (1)  base its choice on demonstrated competence,

3-13     knowledge, and qualifications and on the reasonableness of the

3-14     proposed fee for the services; and

3-15                 (2)  if other considerations are equal, give preference

3-16     to a [private] consultant whose principal place of business is in

3-17     the state or who will manage the consulting contract wholly from an

3-18     office in the state.

3-19           SECTION 8.  Subsection (a), Section 2254.028, Government

3-20     Code, is amended to read as follows:

3-21           (a)  Before entering into a major consulting services

3-22     contract, a state agency shall:

3-23                 (1)  notify the Legislative Budget Board and the

3-24     governor's Budget and Planning Office that the agency intends to

3-25     contract with a [private] consultant;

3-26                 (2)  give information to the Legislative Budget Board

3-27     and the governor's Budget and Planning Office to demonstrate that

3-28     the agency has complied or will comply with Sections 2254.026 and

3-29     2254.027; and

3-30                 (3)  obtain a finding of fact from the governor's

3-31     Budget and Planning Office that the consulting services are

3-32     necessary.

3-33           SECTION 9.  Section 2254.029, Government Code, is amended to

3-34     read as follows:

3-35           Sec. 2254.029.  PUBLICATION IN TEXAS REGISTER BEFORE ENTERING

3-36     INTO MAJOR CONSULTING SERVICES CONTRACT.  (a)  Not later than the

3-37     30th day before the date it enters into a major consulting services

3-38     contract, a state agency shall file with the secretary of state for

3-39     publication in the Texas Register:

3-40                 (1)  an invitation for [private] consultants to provide

3-41     offers of consulting services;

3-42                 (2)  the name of the individual who should be contacted

3-43     by a [private] consultant that intends to make an offer;

3-44                 (3)  the closing date for the receipt of offers; and

3-45                 (4)  the procedure by which the state agency will award

3-46     the contract.

3-47           (b)  If the consulting services sought by a state agency

3-48     relate to services previously provided by a [private] consultant,

3-49     the agency shall disclose that fact in the invitation required by

3-50     Subsection (a).  If the state agency intends to award the contract

3-51     for the consulting services to a [private] consultant that

3-52     previously provided the services, unless a better offer is

3-53     received, the agency shall disclose its intention in the invitation

3-54     required by Subsection (a).

3-55           SECTION 10.  Section 2254.030, Government Code, is amended to

3-56     read as follows:

3-57           Sec. 2254.030.  PUBLICATION IN TEXAS REGISTER AFTER  ENTERING

3-58     INTO MAJOR CONSULTING SERVICES CONTRACT.  Not later than the 10th

3-59     day after the date of entering into a major consulting services

3-60     contract, the state agency shall file with the secretary of state

3-61     for publication in the Texas Register:

3-62                 (1)  a description of the activities that the [private]

3-63     consultant will conduct;

3-64                 (2)  the name and business address of the [private]

3-65     consultant;

3-66                 (3)  the total value and the beginning and ending dates

3-67     of the contract; and

3-68                 (4)  the dates on which documents, films, recordings,

3-69     or reports that the [private] consultant is required to present to

 4-1     the agency are due.

 4-2           SECTION 11.  Subsections (a) and (b), Section 2254.036,

 4-3     Government Code, are amended to read as follows:

 4-4           (a)  On request, a state agency shall, after the agency's

 4-5     contract with a [private] consultant has ended,  supply the

 4-6     Legislative Budget Board and the governor's Budget and Planning

 4-7     Office with copies of all documents, films, recordings, or reports

 4-8     compiled by the consultant under the contract.

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

4-10     compiled by the [private] consultant shall be filed with the Texas

4-11     State Library and shall be retained by the library for at least

4-12     five years.

4-13           SECTION 12.  Section 2254.037, Government Code, is amended to

4-14     read as follows:

4-15           Sec. 2254.037.  REPORTS.  As part of the biennial budgetary

4-16     hearing process conducted by the Legislative Budget Board and the

4-17     governor's Budget and Planning Office, a state agency shall report

4-18     to the Legislative Budget Board and the governor's Budget and

4-19     Planning Office on any actions taken in response to the

4-20     recommendations of any [private] consultant with whom the state

4-21     agency contracts during the previous biennium.

4-22           SECTION 13.  Subchapter B, Chapter 403, Government Code, is

4-23     amended by adding Section 403.026 to read as follows:

4-24           Sec. 403.026.  RULES.  (a)  The comptroller may adopt rules

4-25     to interpret, implement, and administer a state statute if:

4-26                 (1)  the statute specifically authorizes or requires

4-27     the comptroller to interpret, implement, or administer the statute;

4-28     or

4-29                 (2)  the comptroller determines that the rules are

4-30     necessary for fulfillment of the comptroller's constitutional or

4-31     statutory duties.

4-32           (b)  Subsection (a) does not apply to a state statute if the

4-33     statute specifically authorizes the comptroller or a state agency

4-34     to adopt rules to interpret, implement, and administer the statute.

4-35           SECTION 14.  Subsection (h), Section 403.071, Government

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

4-37           (h)  This subsection applies if the comptroller and a state

4-38     agency have contracted in accordance with Subsection (g).  The

4-39     comptroller shall audit claims after payment in the same way that

4-40     the comptroller audits claims before payment under Subsection (a).

4-41     The comptroller may establish requirements and adopt rules

4-42     concerning the time that a state agency must retain documentation

4-43     in its files to enable a postpayment audit.  If a postpayment audit

4-44     by the comptroller shows that a claim presented by a state agency

4-45     was invalid, the comptroller may:

4-46                 (1)  implement procedures to ensure that similar

4-47     invalid claims from the state agency are not paid in the future;

4-48                 (2)  report to the governor, the lieutenant governor,

4-49     the speaker of the house of representatives, the state auditor, and

4-50     the Legislative Budget Board the results of the audit;

4-51                 (3)  require the state agency to obtain a refund of the

4-52     monies from the payee;

4-53                 (4)  cancel the contract with the state agency; and

4-54                 (5)  reduce the state agency's remaining appropriations

4-55     by the amount of the claim.

4-56           SECTION 15.  Section 659.062, Government Code, is amended by

4-57     adding Subsection (e) to read as follows:

4-58           (e)  The comptroller may establish procedures and adopt rules

4-59     to administer this section.

4-60           SECTION 16.  Subchapter G, Chapter 659, Government Code, is

4-61     amended by adding Section 659.110 to read as follows:

4-62           Sec. 659.110.  RULES.  The comptroller may establish

4-63     procedures and adopt rules to administer the credit union deduction

4-64     program authorized by this subchapter.

4-65           SECTION 17.  Subchapter B, Chapter 661, Government Code, is

4-66     amended by adding Section 661.038 to read as follows:

4-67           Sec. 661.038.  RULES.  The comptroller may establish

4-68     procedures and adopt rules to administer this subchapter.

4-69           SECTION 18.  Subchapter C, Chapter 661, Government Code, is

 5-1     amended by adding Section 661.068 to read as follows:

 5-2           Sec. 661.068. RULES.  The comptroller may establish

 5-3     procedures and adopt rules to administer this subchapter.

 5-4           SECTION 19.  Subchapter D, Chapter 661, Government Code, is

 5-5     amended by adding Section 661.094 to read as follows:

 5-6           Sec. 661.094.  RULES.  The comptroller may establish

 5-7     procedures and adopt rules to administer this subchapter.

 5-8           SECTION 20.  Subchapter A, Chapter 662, Government Code, is

 5-9     amended by adding Section 662.012 to read as follows:

5-10           Sec. 662.012.  RULES.  The comptroller may establish

5-11     procedures and adopt rules to administer Sections 662.001-662.010.

5-12           SECTION 21.  Subsection (e), Section 57.48, Education Code,

5-13     is amended to read as follows:

5-14           (e)  This section does not prohibit the comptroller from

5-15     issuing a warrant to pay the compensation of:

5-16                 (1)  a state officer or employee; or

5-17                 (2)  an individual whose compensation is being paid by

5-18     a private person through a state agency.

5-19           SECTION 22.  Subdivision (4), Subsection (f), Section 57.48,

5-20     Education Code, is amended to read as follows:

5-21                 (4)  This subsection does not prohibit a state agency

5-22     from paying the compensation of:

5-23                       (A)  a state officer or employee; or

5-24                       (B)  an individual whose compensation is being

5-25     paid by a private person through the agency.

5-26           SECTION 23.  Subsection (c), Section 403.055, Government

5-27     Code, is amended to read as follows:

5-28           (c)  This section does not prohibit the comptroller from

5-29     issuing a warrant to pay the compensation of:

5-30                 (1)  a state officer or employee; or

5-31                 (2)  an individual whose compensation is being paid by

5-32     a private person through a state agency.

5-33           SECTION 24.  Subdivision (4), Subsection (e), Section

5-34     403.055, Government Code, is amended to read as follows:

5-35                 (4)  This subsection does not prohibit a state agency

5-36     from paying the compensation of:

5-37                       (A)  a state officer or employee; or

5-38                       (B)  an individual whose compensation is being

5-39     paid by a private person through the agency.

5-40           SECTION 25.  Subsection (c), Section 481.0841, Government

5-41     Code, is amended to read as follows:

5-42           (c)  This section does not prohibit the comptroller from

5-43     issuing a warrant or initiating an electronic funds transfer to pay

5-44     the compensation of:

5-45                 (1)  a state officer or employee; or

5-46                 (2)  an individual whose compensation is being paid by

5-47     a private person through a state agency.

5-48           SECTION 26.  Subdivisions (2) and (4), Subsection (d),

5-49     Section 481.0841, Government Code, are amended to read as follows:

5-50                 (2)  A state agency may not use funds inside or outside

5-51     the state treasury to pay a user if the [agency knows that the]

5-52     user is in default on a loan guaranteed under this subchapter and

5-53     with respect to which the department has been required to honor a

5-54     guarantee.

5-55                 (4)  This subsection does not prohibit a state agency

5-56     from paying the compensation of:

5-57                       (A)  a state officer or employee; or

5-58                       (B)  an individual whose compensation is being

5-59     paid by a private person through the agency.

5-60           SECTION 27.  Section 662.001, Government Code, is amended by

5-61     amending Subdivisions (1) and (3) and adding Subdivision (4) to

5-62     read as follows:

5-63                 (1)  "Part-time state employee" means a state employee

5-64     who normally works fewer [less] than 40 hours each week.

5-65                 (3)  "State employee" means an employee of a state

5-66     agency or an appointed officer of a state agency whose office is

5-67     not created by the state constitution.  The term includes a

5-68     part-time, hourly, or temporary state employee.

5-69                 (4)  "Workday" means a day on which a state employee is

 6-1     normally scheduled to work.  The term does not include a national

 6-2     or state holiday.

 6-3           SECTION 28.  Section 662.005, Government Code, is amended to

 6-4     read as follows:

 6-5           Sec. 662.005.  ENTITLEMENT TO PAID DAY OFF.  (a)  An

 6-6     individual who is a [A] state employee on the last workday before

 6-7     or the first workday after a national or state holiday, or on both

 6-8     workdays, is entitled, except as provided by Section 662.010, to a

 6-9     paid day off from working for a state agency [work] on the [each

6-10     national or state] holiday if:

6-11                 (1)  the holiday [that] does not fall on a Saturday  or

6-12     Sunday; and

6-13                 (2)  the General Appropriations Act does not prohibit

6-14     state agencies from observing the holiday.

6-15           (b)  In this [This] section, "state employee":

6-16                 (1)  includes an individual who uses paid leave from a

6-17     state agency; and

6-18                 (2)  does not include an individual who uses unpaid

6-19     leave from a state agency [does not apply to a holiday that the

6-20     General Appropriations Act prohibits state agencies from

6-21     observing].

6-22           SECTION 29.  Subsections (a) and (b), Section 662.006,

6-23     Government Code, are amended to read as follows:

6-24           (a)  An individual who is a [A] state employee on the last

6-25     workday before or the first workday after an optional holiday, or

6-26     on both workdays, is entitled, except as provided by Section

6-27     662.010,  to a paid day off from working for a state agency on the

6-28     [each day of an optional] holiday if:

6-29                 (1)  the holiday [that] does not fall on a Saturday or

6-30     Sunday;

6-31                 (2)  [if] the employee agrees to give up, during the

6-32     same fiscal year, a state holiday that:

6-33                       (A)  does not fall on a Saturday or Sunday; and

6-34                       (B)  the General Appropriations Act does not

6-35     prohibit state agencies from observing; and

6-36                 (3)  the General Appropriations Act does not prohibit

6-37     state agencies from observing the optional holiday.

6-38           (b)  A state employee is entitled to a paid day off from

6-39     working for a state agency on each day of an optional holiday that

6-40     extends for more than one day if the employee:

6-41                 (1)  qualifies for the paid day off under Subsection

6-42     (a); and

6-43                 (2)  agrees to give up during the same fiscal year an

6-44     equivalent number of state holidays that:

6-45                       (A)  do not fall on a Saturday or Sunday; and

6-46                       (B)  the General Appropriations Act does not

6-47     prohibit state agencies from observing.

6-48           SECTION 30.  Subsection (a), Section 662.007, Government

6-49     Code, is amended to read as follows:

6-50           (a)  A state employee who is required to work on a national

6-51     or state holiday [that does not fall on a Saturday or Sunday] is

6-52     entitled to compensatory time off during the 12 months after the

6-53     holiday if the state employee is entitled to a paid day off from

6-54     working for a state agency on the holiday under Section 662.005.

6-55           SECTION 31.  Section 662.010, Government Code, is amended to

6-56     read as follows:

6-57           Sec. 662.010.  HOLIDAY BEFORE WORK BEGINS OR AFTER WORK ENDS.

6-58     (a)  An individual who is not a [A] state employee [who begins

6-59     working for a state agency] on the last workday before a state or

6-60     national holiday but who is a state employee on the first workday

6-61     after the holiday may not [of a month is entitled to] be paid for

6-62     the [a state or national] holiday [that occurs before the first

6-63     workday] if it [the holiday:]

6-64                 [(1)]  occurs during the same month as the last workday

6-65     before the holiday[; and]

6-66                 [(2)  does not fall on a Saturday or Sunday].

6-67           (b)  An individual who is a [A] state employee [who stops

6-68     working for a state agency] on the last workday before a state or

6-69     national holiday but who is not a state employee on the first

 7-1     workday after the holiday may not [of a month is entitled to] be

 7-2     paid for the [a state or national] holiday [that occurs after the

 7-3     last workday] if it [the holiday:]

 7-4                 [(1)]  occurs before the first workday of a month and

 7-5     during that [the] month[; and]

 7-6                 [(2)  does not fall on a Saturday or Sunday].

 7-7           (c)  In this section, "state employee":

 7-8                 (1)  includes an individual who uses paid leave from a

 7-9     state agency; and

7-10                 (2)  does not include an individual who uses unpaid

7-11     leave from a state agency ["workday" means a day on which a state

7-12     employee is normally scheduled to work].

7-13           SECTION 32.  Subsections (f), (h), and (i), Section 403.0165,

7-14     Government Code, are amended to read as follows:

7-15           (f)  An organization not previously certified may submit an

7-16     application for certification as an eligible state employee

7-17     organization to the comptroller at any time except during the

7-18     period after June 2 and before September 1 [within 90 days prior to

7-19     the beginning of the fiscal year].

7-20           (h)  The comptroller may [shall] charge an administrative fee

7-21     to cover the costs incurred as a result of administering this

7-22     section.  The administrative [Administrative] fees charged by the

7-23     comptroller shall be paid by each qualifying state employee

7-24     organization on a pro rata basis to be determined by the

7-25     comptroller.  The comptroller by rule shall determine the most

7-26     efficient and effective method of collecting the [such

7-27     administrative] fees.  [The comptroller shall adopt rules for the

7-28     administration of this section.]

7-29           (i)  The comptroller may adopt rules for the administration

7-30     of this section  [shall allocate the administrative fees on a

7-31     proportional basis to each employing state agency that incurs costs

7-32     in administering this subsection].

7-33           SECTION 33.  Section 659.041, Government Code, is amended to

7-34     read as follows:

7-35           Sec. 659.041.  DEFINITIONS.  In this subchapter:

7-36                 (1)  "Appointment" means a job title.

7-37                 (2)  "Full-time state employee" means:

7-38                       (A)  a state employee who works in the executive

7-39     or judicial branch of state government, other than a state

7-40     institution of higher education, and who is normally scheduled to

7-41     work a total of at least 40 hours a week for a single state agency

7-42     [in one position]; [or]

7-43                       (B)  a state employee who works for a state

7-44     institution of higher education and who is normally scheduled to

7-45     work a total of at least 40 hours a week in one position, as

7-46     determined under Section 659.0411; or

7-47                       (C)  a state employee who works in the

7-48     legislative branch of state government and who is normally

7-49     scheduled to work a total of 40 or more hours a week in all

7-50     positions held in the legislative branch.

7-51                 (3) [(2)]  "Part-time state employee" means a state

7-52     employee who is not a full-time state employee.

7-53                 (4) [(3)]  "State employee" means an individual who:

7-54                       (A)  is covered by Chapter 654;

7-55                       (B)  holds a line item or exempt position;

7-56                       (C)  works in a nonacademic position at a state

7-57     institution of higher education at least 20 hours a week for at

7-58     least 4.5 consecutive months; or

7-59                       (D)  is an hourly employee of the state.

7-60           SECTION 34.  Subchapter D, Chapter 659, Government Code, is

7-61     amended by adding Section 659.0411 to read as follows:

7-62           Sec. 659.0411.  APPOINTMENTS AT STATE INSTITUTIONS OF HIGHER

7-63     EDUCATION.  (a)  A state institution of higher education shall

7-64     determine whether a state employee who has more than one

7-65     appointment with the institution holds only one position or holds

7-66     one position for each appointment.

7-67           (b)  A board of regents shall determine whether a state

7-68     employee who has an appointment with at least two state

7-69     institutions of higher education under the board's jurisdiction

 8-1     holds only one position or holds one position for each appointment.

 8-2           (c)  A state employee who has an appointment with at least

 8-3     two state institutions of higher education holds more than one

 8-4     position if those institutions are not governed by the same board

 8-5     of regents.

 8-6           SECTION 35.  Section 659.132, Government Code, is amended to

 8-7     read as follows:

 8-8           Sec. 659.132.  DEDUCTION AUTHORIZED.  (a)  A state employee

 8-9     may authorize a deduction each pay period from the employee's

8-10     salary or wage payment for a charitable contribution as provided by

8-11     this subchapter.

8-12           (b)  Except as provided by Subsections (c), (d), and (e), a

8-13     state employee may authorize a deduction only during a state

8-14     employee charitable campaign.

8-15           (c)  A state employee who begins working for the state when a

8-16     campaign is not being conducted may authorize a deduction according

8-17     to the comptroller's requirements.

8-18           (d)  A state employee who works for a state agency that does

8-19     not allow deduction authorizations under Subsection (i) may

8-20     authorize a deduction that is effective with the first full payroll

8-21     period after the agency is converted to a system in which uniform

8-22     statewide payroll procedures are followed.

8-23           (e)  A state employee who works for a state agency that does

8-24     not allow deduction authorizations under Subsection (i) may

8-25     authorize a deduction after transferring from that agency to:

8-26                 (1)  a state agency that allows deduction

8-27     authorizations even though it may prohibit them under Subsection

8-28     (i); or

8-29                 (2)  a state agency not covered by Subsection (i).

8-30           (f)  A state employee who authorized a deduction while

8-31     working for a state agency may continue the deduction after

8-32     transferring to another state agency if the comptroller's rules for

8-33     continuing the deduction are followed.

8-34           (g)  An authorization must direct the comptroller to

8-35     distribute the deducted funds to a participating federation or fund

8-36     and a local campaign manager as prescribed by rule.

8-37           (h) [(c)]  A deduction under this subchapter must be in the

8-38     form prescribed by the comptroller.

8-39           (i) [(d)]  A state agency other than an institution of higher

8-40     education is not required to permit an employee to authorize a

8-41     deduction under this subchapter until the first full payroll period

8-42     after the agency converts to a system in which uniform statewide

8-43     payroll procedures are followed.

8-44           (j) [(e)]  The comptroller by rule may establish a reasonable

8-45     minimum deduction for each pay period.

8-46           SECTION 36.  Subsections (a) and (c), Section 659.136,

8-47     Government Code, are amended to read as follows:

8-48           (a)  A state employee may revoke or change an authorization

8-49     by giving notice to the employing state agency.  A state employee

8-50     may not change the eligible charitable organization designated to

8-51     receive the employee's deductions.

8-52           (c)  A revocation or change takes effect on the date

8-53     designated [when it is approved] by the comptroller by rule.

8-54           SECTION 37.  Section 659.137, Government Code, is amended to

8-55     read as follows:

8-56           Sec. 659.137.  DURATION OF DEDUCTION.  (a)  A deduction under

8-57     this subchapter begins on the date designated by the comptroller by

8-58     rule.

8-59           (b)  A deduction [by a state employee] under this subchapter

8-60     is effective for a maximum of one campaign year and, unless revoked

8-61     or changed under Section 659.136, ends on[:]

8-62                 [(1)  the first anniversary of] the date designated by

8-63     the comptroller by rule [it begins; or]

8-64                 [(2)  the effective date of a revocation of or change

8-65     in the authorization by the employee].

8-66           SECTION 38.  Subsection (d), Section 659.148, Government

8-67     Code, is amended to read as follows:

8-68           (d)  Except as provided by this subsection, the [The]

8-69     comptroller shall charge an administrative fee to cover costs

 9-1     incurred by the comptroller and employing state agencies in the

 9-2     implementation of this subchapter to the charitable organizations

 9-3     participating in the first state employee charitable campaign

 9-4     conducted under this subchapter in the same proportion that the

 9-5     contributions to that charitable organization bear to the total of

 9-6     contributions in that campaign.  Except as provided by this

 9-7     subsection, the [The] comptroller shall charge an administrative

 9-8     fee to cover costs incurred by the comptroller and employing state

 9-9     agencies in the administration of this subchapter to the charitable

9-10     organizations in each subsequent state employee charitable campaign

9-11     in the same proportion that the contributions to that charitable

9-12     organization bear to the total of contributions in that campaign.

9-13     The comptroller may decline to charge an administrative fee if the

9-14     comptroller determines the costs that would be covered by the fee

9-15     are insignificant.  The comptroller shall determine the most

9-16     efficient and effective method of collecting the administrative fee

9-17     and shall adopt rules for the implementation of this section.

9-18           SECTION 39.  Section 659.109, Government Code, is amended to

9-19     read as follows:

9-20           Sec. 659.109.  ALLOCATION [AND APPROPRIATION] OF

9-21     ADMINISTRATIVE FEES. [(a)]  The state shall allocate and pay to

9-22     each state agency that incurs costs in administering this

9-23     subchapter the agency's proportional amount of the administrative

9-24     fees collected by the state under this subchapter.

9-25           [(b)  An administrative fee withheld under this subchapter

9-26     may be used, without further appropriation, by the comptroller and

9-27     the state agencies incurring costs in administering this

9-28     subchapter.]

9-29           SECTION 40.  Subsection (a), Section 659.146, Government

9-30     Code, is amended to read as follows:

9-31           (a)  To be eligible to participate in a state employee

9-32     charitable campaign, a charitable organization must:

9-33                 (1)  be governed by a voluntary board of citizens that

9-34     meets at least twice each year to set policy and manage the affairs

9-35     of the organization;

9-36                 (2)  if the organization's annual budget:

9-37                       (A)  does not exceed [is less than] $100,000,

9-38     provide a completed Internal Revenue Service Form 990 and an

9-39     accountant's review that offers full and open disclosure of the

9-40     organization's internal operations; or

9-41                       (B)  exceeds [is equal to or more than] $100,000,

9-42     be audited annually in accordance with generally accepted auditing

9-43     standards of the American Institute of Certified Public

9-44     Accountants; and

9-45                 (3)  not spend more than 25 percent of its annual

9-46     revenue for administrative and fund-raising expenses.

9-47           SECTION 41.  Subdivisions (1) and (3), Section 661.061,

9-48     Government Code, are amended to read as follows:

9-49                 (1)  "National holiday" includes only those days listed

9-50     under Section 662.003(a).  The term does not include a national

9-51     holiday on which a state employee is not entitled to a paid day off

9-52     from work under Section 662.005.

9-53                 (3)  "State holiday" includes only those days listed

9-54     under Section 662.003(b).  The term does not include a state

9-55     holiday on which a state employee is not entitled to a paid day off

9-56     from work under Section 662.005.

9-57           SECTION 42.  Subsection (b), Section 661.062, Government

9-58     Code, is amended to read as follows:

9-59           (b)  A separation from state employment includes a separation

9-60     in which the employee:

9-61                 (1)  leaves one state agency to begin working for

9-62     another state agency, if one or more workdays occur between the two

9-63     employments;

9-64                 (2)  moves from a position in a state agency that

9-65     accrues vacation time to a position in that agency that does not

9-66     accrue vacation time, if the agency agrees to pay the employee for

9-67     the accrued balance of the employee's vacation time;

9-68                 (3)  moves from a position in a state agency that

9-69     accrues vacation time to a position in another state agency that

 10-1    does not accrue vacation time, if the other state agency refuses to

 10-2    credit the employee for the balance of the employee's vacation time

 10-3    as of the date of the move; [or]

 10-4                (4)  moves from a position in a state agency that does

 10-5    not accrue vacation time to a position in another state agency that

 10-6    does not accrue vacation time, if the other state agency is not

 10-7    authorized or refuses to credit the employee for the balance of the

 10-8    employee's vacation time as of the date of the move; or

 10-9                (5)  holds two or more positions, and separates from

10-10    one that accrues vacation time.

10-11          SECTION 43.  Section 661.063, Government Code, is amended to

10-12    read as follows:

10-13          Sec. 661.063.  COMPUTATION OF PAYMENT.  (a)  Except as

10-14    provided by Subsection (b), the [The] payment to a state employee

10-15    under this subchapter shall be computed by multiplying the

10-16    employee's rate of compensation on the date of separation from

10-17    state employment by the total number of hours of vacation time

10-18    determined under Section 661.064.

10-19          (b)  The payment under this subchapter to a state employee

10-20    who separates from state employment while holding a position that

10-21    does not accrue vacation time shall be computed according to this

10-22    subsection.  The employee's final rate of compensation in the last

10-23    position held that accrues vacation time shall be multiplied by the

10-24    employee's total number of hours of vacation time determined under

10-25    Section 661.064.

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

10-27                (1)  includes an emolument in lieu of base pay for

10-28    which the state employee was eligible [on the last day of

10-29    employment]; and

10-30                (2)  does not include longevity or hazardous duty pay.

10-31          SECTION 44.  Section 661.064, Government Code, is amended by

10-32    amending Subsection (a) and adding Subsection (c) to read as

10-33    follows:

10-34          (a)  This subsection applies except as provided by Subsection

10-35    (c).  For a state employee who on the date of separation is

10-36    normally scheduled to work at least 40 hours a week, eight hours

10-37    are to be added to the employee's accrued vacation time for each

10-38    state or national holiday that is scheduled to fall within the

10-39    period after the date of separation and during which the employee

10-40    could have used the time.  To determine the period during which

10-41    vacation time could have been used and the number of state or

10-42    national holidays, the employee's vacation time is allocated over

10-43    the workdays after the employee's separation and eight hours are

10-44    added as a state or national holiday occurs during the period.

10-45          (c)  For a state employee who is paid under this subchapter

10-46    because the separation from state employment involves a move to a

10-47    position in a state agency that does not accrue vacation time, no

10-48    hours may be added to the employee's accrued vacation time for a

10-49    state or national holiday which is scheduled to fall within the

10-50    period after the date of separation and during which the employee

10-51    could have used the time.

10-52          SECTION 45.  Subchapter A, Chapter 662, Government Code, is

10-53    amended by adding Section 662.0071 to read as follows:

10-54          Sec. 662.0071.  TRANSFERS OF COMPENSATORY TIME BALANCES.

10-55    (a)  A state agency shall accept the balance of compensatory time

10-56    accrued under Section 662.007 by a state employee who transfers to

10-57    that agency from another state agency if the employee transfers as

10-58    a direct result of:

10-59                (1)  the legislature's transfer of legal authority or

10-60    duties from the agency that formerly employed the employee to the

10-61    agency that currently employs the employee; or

10-62                (2)  a requirement of the State Council on Competitive

10-63    Government for the agency that formerly employed the employee to

10-64    bid a commercially available service that the agency previously

10-65    performed.

10-66          (b)  Subsection (a) does not apply if the transferring state

10-67    employee is required to apply for the new position.

10-68          (c)  In this section, "bid" means any process developed by

10-69    the State Council on Competitive Government to provide a

 11-1    commercially available service in competition with private

 11-2    commercial sources or state agency providers.

 11-3          SECTION 46.  Subsection (f), Section 403.016, Government

 11-4    Code, is amended to read as follows:

 11-5          (f)(1)  Except as provided by Subdivision (2) and subject to

 11-6    any limitation in rules adopted by the comptroller, an automated

 11-7    clearinghouse, or the federal government [Subsection (e)], the

 11-8    comptroller may use the electronic funds transfer system to deposit

 11-9    payments only to one or more accounts of a payee [payee's account]

11-10    at one or more [a] financial institutions [institution].

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

11-12    transfer system to deposit a portion of an employee's net state

11-13    salary to the employee's account at a credit union if:

11-14                      (A)  the amount of the salary deposited to that

11-15    account exceeds the amount of salary deposited in any other account

11-16    of the employee at another type of financial institution; or

11-17                      (B)  the requirements concerning deductions for

11-18    payments to credit unions prescribed by Subchapter G, Chapter 659,

11-19    and by the rules adopted by the comptroller under that subchapter

11-20    are satisfied.

11-21                (3)  A single electronic funds transfer may contain

11-22    payments to multiple payees.  Individual transfers or warrants are

11-23    not required for each payee.

11-24          SECTION 47.  Subsection (c), Section 403.248, Government

11-25    Code, is amended to read as follows:

11-26          (c)  In this section, "final accounting" means a

11-27    reimbursement from or additional payment to a state officer or

11-28    employee so that the net amount received by the officer or employee

11-29    [advanced from a petty cash account] equals the actual travel

11-30    expenses incurred by the officer or employee.

11-31          SECTION 48.  Section 5, Texas Employees Uniform Group

11-32    Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance

11-33    Code), is amended by adding Subsection (k) to read as follows:

11-34          (k)  If the trustee establishes a group coverage plan that

11-35    protects against the long-term or short-term loss of salary, the

11-36    trustee may use an employee's annual salary in the calculation of

11-37    the amount of the employee's premium or coverage, or both, under

11-38    the plan.  For purposes of this subsection, an employee's annual

11-39    salary includes the benefit replacement pay the employee would be

11-40    earning annually under Subchapter H, Chapter 659, Government Code,

11-41    as added by Chapter 417, Acts of the 74th Legislature, 1995, if

11-42    Section 659.121(1), Government Code, defined "compensation" to

11-43    include only base salary or wages, longevity pay, hazardous duty

11-44    pay, and night differential pay.

11-45          SECTION 49.  Section 11, Texas Employees Uniform Group

11-46    Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance

11-47    Code), is amended by amending Subsection (c) and adding Subsection

11-48    (d) to read as follows:

11-49          (c)  Except as provided by Subsection (d), the [The] trustee

11-50    shall prescribe regulations providing for the conversion of other

11-51    than annual rates of pay, and specify the types of pay included in

11-52    annual pay and all other matters necessary to implement this

11-53    section.

11-54          (d)  For the purpose of determining the amount of an

11-55    employee's optional term life insurance coverage, an employee's

11-56    annual salary includes the benefit replacement pay the employee

11-57    would be earning annually under Subchapter H, Chapter 659,

11-58    Government Code, as added by Chapter 417, Acts of the 74th

11-59    Legislature, 1995, if Section 659.121(1), Government Code, defined

11-60    "compensation" to include only base salary or wages, longevity pay,

11-61    hazardous duty pay, and night differential pay.

11-62          SECTION 50.  Subdivision (7), Section 811.001, Government

11-63    Code, is amended to read as follows:

11-64                (7)  "Compensation" means the base salary of a person;

11-65    [, including] amounts that would otherwise qualify as compensation

11-66    but are not received directly by a [the] person pursuant to a good

11-67    faith, voluntary, written salary reduction agreement in order to

11-68    finance payments to a deferred compensation or tax sheltered

11-69    annuity program specifically authorized by state law or to finance

 12-1    benefit options under a cafeteria plan qualifying under Section 125

 12-2    of the Internal Revenue Code of 1986 (26 U.S.C. Section 125);[,

 12-3    plus] longevity and hazardous duty pay; [and includes] nonmonetary

 12-4    compensation, the value of which is determined by the retirement

 12-5    system; [, and] amounts by which a [the] person's salary is reduced

 12-6    under a salary reduction agreement authorized by Chapter 610; and

 12-7    the benefit replacement pay a person earns under Subchapter H,

 12-8    Chapter 659, as added by Chapter 417, Acts of the 74th Legislature,

 12-9    1995, except for the benefit replacement pay a person earns as a

12-10    result of a payment made under Subchapter B, C, or D, Chapter 661.

12-11    The term[, but] excludes overtime pay.

12-12          SECTION 51.  Subsections (b) and (c), Section 822.201,

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

12-14          (b)  "Salary and wages" as used in Subsection (a) means:

12-15                (1)  normal periodic payments of money for service the

12-16    right to which accrues on a regular basis in proportion to the

12-17    service performed;

12-18                (2)  amounts by which the member's salary is reduced

12-19    under a salary reduction agreement authorized by Chapter 610; [and]

12-20                (3)  amounts that would otherwise qualify as salary and

12-21    wages under Subdivision (1) but are not received directly by the

12-22    member pursuant to a good faith, voluntary written salary reduction

12-23    agreement in order to finance payments to a deferred compensation

12-24    or tax sheltered annuity program specifically authorized by state

12-25    law or to finance benefit options under a cafeteria plan qualifying

12-26    under Section 125 of the Internal Revenue Code of 1986 (26 U.S.C.

12-27    Section 125), if:

12-28                      (A)  the program or benefit options are made

12-29    available to all employees of the employer; and

12-30                      (B)  the benefit options in the cafeteria plan

12-31    are limited to one or more options that provide deferred

12-32    compensation, group health and disability insurance, group term

12-33    life insurance, dependent care assistance programs, or group legal

12-34    services plans; and

12-35                (4)  the benefit replacement pay a person earns under

12-36    Subchapter H, Chapter 659, as added by Chapter 417, Acts of the

12-37    74th Legislature, 1995, except as provided by Subsection (c).

12-38          (c)  Excluded from salary and wages are expense payments,

12-39    allowances, payments for unused vacation or sick leave, maintenance

12-40    or other nonmonetary compensation, fringe benefits, deferred

12-41    compensation other than as provided by Subsection (b)(3),

12-42    compensation that is not made pursuant to a valid employment

12-43    agreement, payments received in the 1995-1996 or a subsequent

12-44    school year for teaching a driver education and traffic safety

12-45    course, the benefit replacement pay a person earns as a result of a

12-46    payment made under Subchapter B or C, Chapter 661, and any

12-47    compensation not described in Subsection (b).

12-48          SECTION 52.  Subsection (a), Section 47.09, Penal Code, is

12-49    amended to read as follows:

12-50          (a)  It is a defense to prosecution under this chapter that

12-51    the conduct:

12-52                (1)  was authorized under:

12-53                      (A)  the Bingo Enabling Act (Article 179d,

12-54    Vernon's Texas Civil Statutes);

12-55                      (B)  the Texas Racing Act (Article 179e, Vernon's

12-56    Texas Civil Statutes); or

12-57                      (C)  the Charitable Raffle Enabling Act (Article

12-58    179f, Revised Statutes);

12-59                (2)  consisted entirely of participation in the state

12-60    lottery authorized by Chapter 466, Government Code; or

12-61                (3)  was a necessary incident to the operation of the

12-62    state lottery and was directly or indirectly authorized by:

12-63                      (A)  Chapter 466, Government Code;

12-64                      (B)  the lottery division of the Texas Lottery

12-65    Commission [comptroller's office];

12-66                      (C)  the Texas Lottery Commission [comptroller];

12-67    or

12-68                      (D)  the director of the lottery division of the

12-69    Texas Lottery Commission.

 13-1          SECTION 53.  Subsection (a), Section 2054.007, Government

 13-2    Code, is amended to read as follows:

 13-3          (a)  The lottery division of the Texas Lottery Commission [in

 13-4    the office of the comptroller is not included in the agency

 13-5    strategic plan or biennial operating plan of the comptroller.  The

 13-6    lottery division] is not subject to the planning and procurement

 13-7    requirements of this chapter.

 13-8          SECTION 54.  Section 2103.003, Government Code, is amended to

 13-9    read as follows:

13-10          Sec. 2103.003.  STATE AGENCY SPENDING OF APPROPRIATED FUNDS.

13-11    A state agency may spend appropriated funds only by:

13-12                (1)  a warrant drawn by:

13-13                      (A)  the comptroller; or

13-14                      (B)  a state agency to which the comptroller has

13-15    delegated authority to print warrants under Section 403.060; or

13-16                (2)  an electronic funds transfer initiated by [from]

13-17    the comptroller.

13-18          SECTION 55.  Subchapter A, Chapter 2103, Government Code, is

13-19    amended by adding Section 2103.0035 to read as follows:

13-20          Sec. 2103.0035.  STATE AGENCY SPENDING OF UNAPPROPRIATED

13-21    FUNDS.  (a)  A state agency may spend unappropriated funds only by:

13-22                (1)  a warrant drawn by:

13-23                      (A)  the comptroller; or

13-24                      (B)  a state agency to which the comptroller has

13-25    delegated authority to print warrants under Section 403.060; or

13-26                (2)  an electronic funds transfer initiated by the

13-27    comptroller.

13-28          (b)  Subsection (a) applies only to funds that Section

13-29    404.046 or 404.069 or other law requires to be spent on warrants

13-30    drawn or electronic funds transfers initiated by the comptroller.

13-31          SECTION 56.  Section 2103.004, Government Code, is amended to

13-32    read as follows:

13-33          Sec. 2103.004.  WARRANTS AND ELECTRONIC FUNDS TRANSFERS

13-34    [WARRANT DRAWN BY COMPTROLLER].  A [The comptroller may not draw a]

13-35    warrant may not be drawn or an electronic funds transfer initiated

13-36    until:

13-37                (1)  the state agency from whose appropriated or

13-38    unappropriated funds [appropriation] the warrant or electronic

13-39    funds transfer is payable has submitted a voucher to the

13-40    comptroller;

13-41                (2)  the state agency has approved the voucher in

13-42    accordance with this chapter; and

13-43                (3)  the comptroller has audited and approved the

13-44    voucher as required by law.

13-45          SECTION 57.  Section 2151.002, Government Code, is amended to

13-46    read as follows:

13-47          Sec. 2151.002.  DEFINITIONS.  Except as otherwise provided by

13-48    [In] this subtitle:

13-49                (1)  "Commission" means the General Services

13-50    Commission.

13-51                (2)  "State agency" means:

13-52                      (A)  a department, commission, board, office, or

13-53    other agency in the executive branch of state government created by

13-54    the state constitution or a state statute[, except the Texas

13-55    High-Speed Rail Authority];

13-56                      (B)  the supreme court, the court of criminal

13-57    appeals, a court of appeals, or the Texas Judicial Council; or

13-58                      (C)  a university system or an institution of

13-59    higher education as defined by Section 61.003, Education Code,

13-60    except a public junior college.

13-61          SECTION 58.  Section 2155.001, Government Code, is amended to

13-62    read as follows:

13-63          Sec. 2155.001.  DEFINITIONS.  Except as otherwise provided by

13-64    [In] this chapter and Chapters 2156, 2157, and 2158:

13-65                (1)  "Goods" means supplies, materials, or equipment.

13-66                (2)  "Service" means the furnishing of skilled or

13-67    unskilled labor or professional work, but does not include a:

13-68                      (A)  professional service subject to Subchapter

13-69    A, Chapter 2254;

 14-1                      (B)  service of a state agency employee;

 14-2                      (C)  consulting service or service of a [private]

 14-3    consultant as defined by Subchapter B, Chapter 2254; or

 14-4                      (D)  service of a public utility.

 14-5          SECTION 59.  Section 2155.321, Government Code, is amended by

 14-6    adding Subdivisions (3) and (4) to read as follows:

 14-7                (3)  "Service" means the furnishing of skilled or

 14-8    unskilled labor or professional work but does not include the

 14-9    service of a state agency employee.

14-10                (4)  "State agency" has the meaning assigned by Section

14-11    2103.001.

14-12          SECTION 60.  Subsection (b), Section 2155.322, Government

14-13    Code, is amended to read as follows:

14-14          (b)  If state law requires that a payment for the goods or

14-15    services be made on a warrant drawn or an electronic funds transfer

14-16    initiated by the comptroller or a state agency with delegated

14-17    authority under Section 403.060, promptly [Promptly] after the

14-18    later of the receipt of the invoice or the receipt of the goods or

14-19    services, the agency shall send to the comptroller the

14-20    certification, together with the financial information and purchase

14-21    information provided by the invoice and purchase voucher, on a form

14-22    or in the manner agreed to by the comptroller and the commission.

14-23          SECTION 61.  Subsection (c), Section 2155.325, Government

14-24    Code, is amended to read as follows:

14-25          (c)  For purchases audited after a warrant is issued, the

14-26    comptroller shall send the certification and purchase information

14-27    received by the comptroller under Section 2155.322(b) to the

14-28    commission under commission rules.

14-29          SECTION 62.  Section 2101.011, Government Code, is amended to

14-30    read as follows:

14-31          Sec. 2101.011.  FINANCIAL INFORMATION REQUIRED OF STATE

14-32    AGENCIES [("100-DAY REPORTS")].  (a)  A state agency as defined by

14-33    Section 403.013 shall submit the financial information requested by

14-34    the comptroller and such other information requested by the

14-35    legislature in the General Appropriations Act, including

14-36    information about state funds held outside the state treasury, to:

14-37                (1)  the governor;

14-38                (2)  the comptroller;

14-39                (3)  the Legislative Reference Library [state

14-40    treasurer];

14-41                (4)  the state auditor; and

14-42                (5)  the Legislative Budget Board.

14-43          (b)  A state agency [other than a university system or

14-44    institution of higher education, as defined by Section 61.003,

14-45    Education Code,] shall submit the information to the listed

14-46    officials by the date or dates provided in the General

14-47    Appropriations Act [not later than December 9 of each year.  A

14-48    university system or institution of higher education shall submit

14-49    the information to the listed officials not later than the

14-50    following January 1].

14-51          (c)  The comptroller may require the reporting of the

14-52    financial information for any entity that the comptroller

14-53    determines is a component unit of a statewide reporting entity in

14-54    accordance with generally accepted accounting principles as

14-55    prescribed or modified by the Governmental Accounting Standards

14-56    Board or its successors. [A state agency is not required to submit

14-57    the information if the comptroller determines the agency is not a

14-58    component unit of state government for purposes of this

14-59    subchapter.]

14-60          SECTION 63.  Subsection (a), Section 466.017, Government

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

14-62          (a)  The executive director shall provide for a certified

14-63    public accountant to conduct an independent audit for each fiscal

14-64    year of all accounts and transactions of the lottery.  The

14-65    certified public accountant may not have, as determined by the

14-66    executive director, a significant financial interest in a sales

14-67    agent, lottery vendor, or lottery operator.  The certified public

14-68    accountant shall present an audit report to the executive director,

14-69    the commission, the governor, the comptroller, and the legislature

 15-1    not later than the 30th day after the submission date for the

 15-2    annual financial report required by the General Appropriations Act

 15-3    [April 1 of the year following the fiscal year for which the audit

 15-4    was performed].  The report must contain recommendations to enhance

 15-5    the earnings capability of the lottery and improve the efficiency

 15-6    of lottery operations.  The state auditor may review the results of

 15-7    and working papers related to the audit.

 15-8          SECTION 64.  Subsection (a), Section 2306.074, Government

 15-9    Code, is amended to read as follows:

15-10          (a)  The state auditor or a certified public accountant shall

15-11    audit the department's books and accounts each fiscal year and file

15-12    a copy of the audit with the governor, the comptroller, and the

15-13    legislature not later than the 30th day after the submission date

15-14    for the annual financial report as required by the General

15-15    Appropriations Act [on or before March 1 of each year].  If the

15-16    state auditor is conducting the audit and it is not available by

15-17    the 30th day after the submission date as required by the General

15-18    Appropriations Act for annual financial reporting [March 1], it

15-19    must be filed as soon as it is available.

15-20          SECTION 65.  Subsection (a), Section 17, Article 5.76-3,

15-21    Insurance Code, is amended to read as follows:

15-22          (a)  The [Not later than March 1 of each subsequent year,

15-23    the] board shall publish an independently audited [a] report

15-24    analyzing the fund's activities and fiscal condition during the

15-25    preceding fiscal year and shall file the report with the Texas

15-26    Department of Insurance.  The board shall file the audited report

15-27    with the Texas Department of Insurance for inclusion in its [have

15-28    an independent audit made of the] annual financial report.  The

15-29    annual financial report shall be submitted by the Texas Department

15-30    of Insurance by the date provided for in the General Appropriations

15-31    Act.

15-32          SECTION 66.  Subsections (a) through (d), Section 403.021,

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

15-34          (a)  A state agency that expends appropriated funds shall

15-35    report into the uniform statewide accounting system all payables

15-36    and [submit a] binding encumbrances for the first three quarters of

15-37    the current appropriation year within 30 days after the close of

15-38    each quarter [encumbrance report to the comptroller and the state

15-39    auditor no later than October 30 of each year].  Binding

15-40    encumbrances for all appropriation years shall be reported annually

15-41    not later than September 30 of each fiscal year.

15-42          (b)  Payables and binding encumbrances must be reported for

15-43    all appropriations [The report must indicate the unencumbered

15-44    balance, if any, of each nonconstruction appropriation for the

15-45    preceding fiscal year.  The report must be made] in the format that

15-46    the comptroller prescribes.  [The comptroller may reject a report

15-47    if it does not contain sufficient information or comply with the

15-48    comptroller's prescribed format.]

15-49          (c)  On October 1 [31] of each fiscal year, the comptroller

15-50    shall lapse all unencumbered nonconstruction appropriation balances

15-51    for all prior appropriation years based on the payables and binding

15-52    encumbrances reported [information in the binding encumbrance

15-53    reports].

15-54          (d)  If an agency submits a valid claim against a prior

15-55    year's appropriation 30 days or more after the reporting due date

15-56    [has not submitted a report by October 31, the comptroller shall

15-57    lapse the unexpended balance of the agency's appropriations.  If

15-58    the agency subsequently submits a report], the comptroller may

15-59    [shall] reinstate the agency's appropriations to the extent of the

15-60    claim [they were encumbered but unexpended].

15-61          SECTION 67.  Section 403.031, Government Code, is amended by

15-62    adding Subsection (c) to read as follows:

15-63          (c)  The comptroller, in consultation with the state auditor

15-64    and the attorney general, may develop standards and criteria to

15-65    account for or to reclassify receivables determined to be

15-66    uncollectible.  The standards and criteria developed by the

15-67    comptroller must comply with generally accepted accounting

15-68    principles as prescribed or modified by the Governmental Accounting

15-69    Standards Board or its successors and must provide proper

 16-1    accounting controls to protect state finances.  The state auditor

 16-2    and the attorney general shall review and approve the standards and

 16-3    criteria for classification of receivables.  Receivables may be

 16-4    reclassified as collectible or uncollectible according to the

 16-5    process approved by the state auditor or on a case-by-case basis as

 16-6    determined or approved by that office.  The classification of

 16-7    receivables as uncollectible under this subsection does not

 16-8    constitute forgiveness of the debt, and any person indebted to the

 16-9    state remains subject to Section 403.055.

16-10          SECTION 68.  Section 183.023, Tax Code, is amended to read as

16-11    follows:

16-12          Sec. 183.023.  PAYMENT.  The tax due for the preceding month

16-13    shall accompany the return and shall be payable to the state.  The

16-14    comptroller shall deposit the revenue in the general revenue [mixed

16-15    beverage tax clearance] fund.

16-16          SECTION 69.  Subsection (d), Section 74.006, Human Resources

16-17    Code, is amended to read as follows:

16-18          (d)  Money in the trust fund may be invested and shall be

16-19    accounted for separately from other funds in the treasury.  The

16-20    council may direct the investment of funds consistent with the

16-21    comptroller's authority to invest funds under Section 404.024,

16-22    Government Code.  After the deduction of investment related

16-23    expenses, net income and interest [Interest] earned on money in the

16-24    trust fund shall be deposited to the credit of the trust fund.

16-25          SECTION 70.  Subsection (b), Section 403.003, Government

16-26    Code, is amended to read as follows:

16-27          (b)  The chief clerk shall take the official oath and give

16-28    bond in the amount of $70,000 [$10,000], payable in the same manner

16-29    as the comptroller's bond, and conditioned on the faithful

16-30    performance of the duties of the office.

16-31          SECTION 71.  Section 14, Texas State College and University

16-32    Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's

16-33    Texas Insurance Code), is amended to read as follows:

16-34          Sec. 14.  ADMINISTRATIVE COSTS.  No employee covered under

16-35    the provisions of this Act shall be required to pay out of the

16-36    amount of employer contributions due him or out of the amount of

16-37    his additional premiums due for selected coverages the expenses of

16-38    the committees established in this Act; however, expenses for the

16-39    administration of the self-insured plan as provided in Section 4(d)

16-40    of this Act may come from the contributions of employees and the

16-41    state after payments for any coverages provided for under this Act

16-42    have been made [, any administrative costs, fees, or tax whatsoever

16-43    to pay expenses of a state institution or committees as herein

16-44    established for administering this Act].  The duties of each member

16-45    of the advisory committees shall be considered additional duties to

16-46    those required of his other state office or employment, and all

16-47    expenses incurred by any such member in performing his duties as a

16-48    member of the committee shall be paid out of funds made available

16-49    for those purposes to the institution of which the member is an

16-50    employee or officer.

16-51          SECTION 72.  Subchapter A, Chapter 403, Government Code, is

16-52    amended by adding Section 403.008 to read as follows:

16-53          Sec. 403.008.  BONDS AND EMPLOYEES.  (a)  In addition to

16-54    other bonds required by this chapter, the comptroller shall give

16-55    any special bond required by an Act of Congress or a federal

16-56    department or official to protect federal funds deposited with the

16-57    comptroller.  The state shall pay the expenses necessary and

16-58    incidental to the execution of the bond.

16-59          (b)  The comptroller shall appoint other employees that are

16-60    authorized by law.  Employees who as part of their duties handle

16-61    money, drafts, checks, bills of exchange, warrants, securities, or

16-62    other evidences of debt that are or may be convertible into money,

16-63    or other valuable property shall execute a bond that is issued by a

16-64    good and solvent surety company authorized to do business in this

16-65    state, payable to the comptroller in the sum that the comptroller

16-66    requires, and conditioned on the faithful performance of the duties

16-67    of the employee's position.  The comptroller also may require an

16-68    employee to be insured in the manner and sum required by the

16-69    comptroller.

 17-1          (c)  The state shall pay any expense incident to the

 17-2    execution of the bonds and any insurance of the chief clerk and

 17-3    other employees.

 17-4          SECTION 73.  Subchapter B, Chapter 403, Government Code, is

 17-5    amended by adding Sections 403.027 and 403.028 to read as follows:

 17-6          Sec. 403.027.  ELECTRONIC STORAGE AND MAINTENANCE OF RECORDS.

 17-7    (a)  The comptroller may store and maintain a state record or an

 17-8    essential record in an electronic storage format if:

 17-9                (1)  the method used to store and maintain the record

17-10    allows accurate reproduction of the record;

17-11                (2)  the method used to store and maintain the record

17-12    conforms to any standards prescribed by the records preservation

17-13    officer to conform to any applicable rules of the National

17-14    Institute of Standards and Technology, unless those standards

17-15    conflict with the provisions of this section; and

17-16                (3)  the place and manner of safekeeping the medium or

17-17    equipment on which the record is stored and maintained conforms

17-18    with the records preservation officer's requirements under Section

17-19    441.059(a), except that the records preservation officer may not

17-20    prohibit the comptroller from retaining possession of that medium

17-21    or equipment.

17-22          (b)  An accurate reproduction of a state record that is

17-23    stored and maintained according to this section is a preservation

17-24    duplicate of the record for the purposes of Sections 441.058 and

17-25    441.059, regardless of whether the records preservation officer:

17-26                (1)  made the reproduction; or

17-27                (2)  designated the reproduction as a preservation

17-28    duplicate.

17-29          (c)  An accurate reproduction of an essential record that is

17-30    stored and maintained according to this section is a photographic

17-31    reproduction of the record for purposes of Section 441.038(f).

17-32          (d)  An accurate reproduction of a state record or an

17-33    essential record may be stored in tangible or intangible form,

17-34    including an electronic or optical image of the record.

17-35          (e)  In this section:

17-36                (1)  "Essential record" means written or graphic

17-37    material that is made or received by the comptroller in the conduct

17-38    of official state business and that is filed or intended to be

17-39    preserved permanently or for a definite period as a record of that

17-40    business.

17-41                (2)  "Records preservation officer" means the director

17-42    of the records management division of the Texas State Library.

17-43                (3)  "State record"  means a document, book, paper,

17-44    photograph, sound recording, or other material, regardless of

17-45    physical form or characteristic, that is made or received by the

17-46    comptroller according to law or in connection with the transaction

17-47    of official state business.

17-48          Sec. 403.028.  DIGITAL SIGNATURES.  (a)  The comptroller may

17-49    establish a procedure for a person to provide a digital signature

17-50    for any document or data submitted to the comptroller if the

17-51    comptroller determines the procedure will provide a degree of

17-52    security and authenticity at least equal to that provided by a

17-53    manual signature.

17-54          (b)  A digital signature provided according to a procedure

17-55    established under this section has the same legal force and effect

17-56    for all purposes as a manual signature.

17-57          (c)  This section does not apply to the electronic submission

17-58    and approval of vouchers under Chapter 2103.

17-59          SECTION 74.  Section 411.109, Government Code, is amended to

17-60    read as follows:

17-61          Sec. 411.109.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:

17-62    COMPTROLLER [STATE TREASURER].  (a)  The comptroller [treasurer] is

17-63    entitled to obtain from the department criminal history record

17-64    information maintained by the department that the comptroller

17-65    [treasurer] believes is necessary for the enforcement or

17-66    administration of Chapter 154 or Chapter 155, Tax Code, including

17-67    criminal history record information that relates to a person who

17-68    is:

17-69                (1)  an applicant for a permit under Chapter 154 or

 18-1    Chapter 155, Tax Code;

 18-2                (2)  a permit holder under either of those chapters;

 18-3                (3)  an officer, director, stockholder owning 10

 18-4    percent or more of the outstanding stock, partner, owner, or

 18-5    managing employee of an applicant or permit holder under either of

 18-6    those chapters that is a corporation, association, joint venture,

 18-7    syndicate, partnership, or proprietorship;

 18-8                (4)  believed to have violated Chapter 154 or Chapter

 18-9    155, Tax Code; or

18-10                (5)  being considered by the comptroller [treasurer]

18-11    for employment as a peace officer.

18-12          (b)  The comptroller is entitled to obtain from the

18-13    department criminal history record information maintained by the

18-14    department that relates to a person who is an employee of or an

18-15    applicant for employment with the comptroller's office in a

18-16    position that involves:

18-17                (1)  handling currency, checks, or other funds;

18-18                (2)  having access to taxpayer account information;

18-19                (3)  working in a location designated by the

18-20    comptroller as a security-sensitive area; or

18-21                (4)  performing financial management duties designated

18-22    by the comptroller as security sensitive.

18-23          (c)  Criminal history record information obtained by the

18-24    comptroller [treasurer] under Subsections [Subsection] (a)  and (b)

18-25    may not be released or disclosed to any person except on court

18-26    order or as provided by Subsection (d) [(c)].

18-27          (d) [(c)]  The comptroller [treasurer] is not prohibited from

18-28    disclosing to a person who is the subject of criminal history

18-29    record information the dates and places of arrests, the offenses,

18-30    and the dispositions in the criminal history record information.

18-31          SECTION 75.  Chapter 612, Government Code, is amended by

18-32    adding Section 612.004 to read as follows:

18-33          Sec. 612.004.  LIABILITY INSURANCE FOR CERTAIN BOARD MEMBERS,

18-34    OFFICIALS, AND EXECUTIVE MANAGEMENT STAFF.  (a)  A state agency

18-35    governed by a board may purchase or acquire liability insurance to

18-36    protect members of the board and the agency's executive management

18-37    staff.

18-38          (b)  A state agency governed by an appointed or elected

18-39    official may purchase or acquire liability insurance to protect the

18-40    official and the agency's executive management staff.

18-41          (c)  Insurance purchased or acquired by a state agency under

18-42    this section may:

18-43                (1)  protect against any type of liability to third

18-44    persons that may be incurred while conducting agency business; and

18-45                (2)  provide for all costs of defending against that

18-46    liability, including court costs and attorney's fees.

18-47          (d)  This section does not authorize the purchase or

18-48    acquisition of insurance to protect against liability other than

18-49    liability described by Subsection (c).

18-50          (e)  A state agency may use any available funds to purchase

18-51    or acquire insurance under this section.  A specific statement by

18-52    the legislature that a particular appropriation of funds may be

18-53    used to purchase or acquire insurance is not a prerequisite to

18-54    using funds to purchase or acquire insurance under this section.

18-55          (f)  In this section:

18-56                (1)  "Board" includes a board, commission, council,

18-57    committee, or other group of individuals.

18-58                (2)  "State agency" means a department, board,

18-59    commission, committee, council, agency, office, or other entity in

18-60    the executive, legislative, or judicial branch of state government,

18-61    the jurisdiction of which is not limited to a geographical portion

18-62    of the state.  The term includes an institution of higher education

18-63    as defined by Section 61.003, Education Code.

18-64          SECTION 76.  Subsection (b), Section 2101.031, Government

18-65    Code, is amended to read as follows:

18-66          (b)  The project includes each component of the uniform

18-67    statewide accounting system as designed in accordance with Chapter

18-68    852, Acts of the 70th Legislature, Regular Session, 1987, as

18-69    defined by Section 1, Chapter 781, Acts of the 71st Legislature,

 19-1    Regular Session, 1989, and as developed or revised by the

 19-2    comptroller [project advisory committee], including:

 19-3                (1)  the uniform statewide accounting system (USAS) and

 19-4    related subsystems;

 19-5                (2)  the uniform statewide payroll system (USPS); and

 19-6                (3)  the human resource information system (HRIS)[;]

 19-7                [(4)  the budget execution and monitoring system

 19-8    (BEAMS); and]

 19-9                [(5)  the statewide telecommunication network system].

19-10          SECTION 77.  Section 2101.035, Government Code, is amended by

19-11    amending Subsection (d) and adding Subsections (e), (f), and (g) to

19-12    read as follows:

19-13          (d)  The comptroller shall ensure that the uniform statewide

19-14    accounting system encompasses each state agency.  [The comptroller

19-15    may, after consulting with the project advisory committee, exclude

19-16    any state agency from the centralized computation function of the

19-17    statewide payroll component of the system.]

19-18          (e)  The comptroller shall ensure that the uniform statewide

19-19    payroll system includes a standardized payroll calculation

19-20    function.  A state agency shall use that function to calculate its

19-21    payrolls unless the comptroller temporarily exempts the agency from

19-22    this requirement.

19-23          (f)  The comptroller may designate a centralized or

19-24    decentralized computer system, or a combination of those systems,

19-25    to operate the uniform statewide accounting system or a component

19-26    of that system, including the uniform statewide payroll system and

19-27    the human resources information system.  A designated computer

19-28    system may be operated by the comptroller, another governmental

19-29    entity, or a private contractor.

19-30          (g)  If the comptroller designates a decentralized computer

19-31    system under Subsection (f), the comptroller may require each state

19-32    agency using that system to report data and other information from

19-33    the system to the comptroller at the time and in the manner

19-34    required by the comptroller.

19-35          SECTION 78.  Section 2101.037, Government Code, is amended by

19-36    amending Subsection (b) and adding Subsection (c) to read as

19-37    follows:

19-38          (b)  To ensure continuous reporting of comprehensive

19-39    financial management information, [including information on

19-40    encumbrances and performance and workload measures,] the

19-41    comptroller shall require each state agency to report the necessary

19-42    information to the project director on time.  The reports of each

19-43    agency must comply with the comptroller's rules and procedures

19-44    about content and frequency.

19-45          (c)  In this section, "financial management information"

19-46    means:

19-47                (1)  information about:

19-48                      (A)  encumbrances;

19-49                      (B)  performance and workload measures; or

19-50                      (C)  salaries, compensation, and benefits of

19-51    state officers and employees;

19-52                (2)  directory information about state officers and

19-53    employees; and

19-54                (3)  any other information the comptroller finds

19-55    necessary or appropriate for the administration, maintenance, and

19-56    modification of the uniform statewide accounting system.

19-57          SECTION 79.  Subchapter C, Chapter 2101, Government Code, is

19-58    amended by adding Sections 2101.0375 and 2101.0376 to read as

19-59    follows:

19-60          Sec. 2101.0375.  WITHHOLDING OF TRAVEL EXPENSE REIMBURSEMENTS

19-61    FOR LATE OR IMPROPER REPORTING.  (a)  The comptroller may withhold

19-62    all reimbursements for the travel expenses incurred by the chief

19-63    administrative officer of a state agency whose report under this

19-64    subchapter is not properly received by the comptroller on or before

19-65    the comptroller's deadline.

19-66          (b)  The comptroller may withhold all reimbursements for the

19-67    travel expenses incurred by the officers and employees of a state

19-68    agency whose report under this subchapter is not properly received

19-69    by the comptroller on or before the 30th day after the

 20-1    comptroller's deadline.

 20-2          (c)  The comptroller may prohibit a state agency from using

 20-3    local funds to reimburse the travel expenses incurred by:

 20-4                (1)  the agency's chief administrative officer if the

 20-5    agency's report under this subchapter is not properly received by

 20-6    the comptroller on or before the comptroller's deadline; or

 20-7                (2)  the agency's officers or employees if the agency's

 20-8    report under this subchapter is not properly received by the

 20-9    comptroller on or before the 30th day after the comptroller's

20-10    deadline.

20-11          (d)  Immediately after the comptroller determines that a

20-12    state agency's report has been properly received, the comptroller

20-13    shall:

20-14                (1)  release each travel expense reimbursement that the

20-15    comptroller withheld under Subsection (a) or (b); and

20-16                (2)  rescind any prohibition that the comptroller

20-17    issued under Subsection (c).

20-18          (e)  A travel expense reimbursement is subject to withholding

20-19    under Subsection (a), (b), or (c) regardless of when the expense is

20-20    incurred.  A travel expense reimbursement is subject to withholding

20-21    under Subsection (a) or (b) regardless of whether the reimbursement

20-22    is payable to an individual or a state agency.

20-23          (f)  A report is properly received under this section if the

20-24    report complies with the format, submission method, content, and

20-25    other requirements of the comptroller and this subchapter.

20-26          (g)  In this section:

20-27                (1)  "Chief administrative officer" means:

20-28                      (A)  the appointed or elected individual who is

20-29    authorized by law to administer a state agency that is not headed

20-30    by a governing body; or

20-31                      (B)  the executive director or other individual

20-32    with an equivalent title who administers a state agency headed by a

20-33    governing body.

20-34                (2)  "Local funds" means funds that are not expended on

20-35    warrants drawn or electronic funds transfers initiated by the

20-36    comptroller.

20-37          Sec. 2101.0376.  ADMINISTRATIVE PENALTIES FOR LATE OR

20-38    IMPROPER REPORTING.  (a)  The comptroller may impose an

20-39    administrative penalty against a state agency if the comptroller:

20-40                (1)  is late in submitting a statewide report or

20-41    submits an incomplete statewide report; and

20-42                (2)  determines that the statewide report is late or

20-43    incomplete because a report from the agency under this subchapter

20-44    was not properly received by the comptroller on or before the

20-45    comptroller's deadline.

20-46          (b)  A penalty imposed under Subsection (a) may be in an

20-47    amount not to exceed $2,000 for each report that is not properly

20-48    received by the comptroller on or before the comptroller's

20-49    deadline.

20-50          (c)  A state agency shall ensure that the comptroller

20-51    receives payment of a penalty imposed under Subsection (a) not

20-52    later than the 30th day after the date the agency receives notice

20-53    of the penalty.  The comptroller shall deposit the payment to the

20-54    credit of the general revenue fund.

20-55          (d)  A report is properly received under this section if the

20-56    report complies with the format, submission method, content, and

20-57    other requirements of the comptroller and this subchapter.

20-58          (e)  The comptroller may adopt rules to administer this

20-59    section.

20-60          (f)  In this section, "statewide report" means a report

20-61    periodically submitted by the comptroller to the legislature, the

20-62    state auditor, or another state officer or agency that provides

20-63    statistical or financial information about the state agencies or

20-64    their officers and employees.

20-65          SECTION 80.  Section 2101.038, Government Code, is amended to

20-66    read as follows:

20-67          Sec. 2101.038.  DUTIES OF STATE AUDITOR.  The state auditor,

20-68    when reviewing the operation of a state agency, shall audit for

20-69    compliance with the uniform statewide accounting system, the

 21-1    comptroller's rules, and the Legislative Budget Board's performance

 21-2    and workload measures.  The state auditor shall notify [the project

 21-3    advisory committee,] the comptroller, the governor, and the

 21-4    Legislative Budget Board as soon as practicable when a state agency

 21-5    is not in compliance.

 21-6          SECTION 81.  Section 2101.039, Government Code, is amended to

 21-7    read as follows:

 21-8          Sec. 2101.039.  CONTRACTS; EXEMPTION.  [(a)]  Contracts made

 21-9    under this subchapter are not subject to:

21-10                (1)  Subtitle D, Title 10 [the State Purchasing and

21-11    General Services Act (Article 601b, Vernon's Texas Civil

21-12    Statutes)];

21-13                (2)  Chapter 2254; or

21-14                (3)  Chapter 2054.

21-15          [(b)  The project director must submit all proposed contracts

21-16    for professional or consulting services and all proposed purchases

21-17    of computer equipment or software to the project advisory committee

21-18    for review and recommendation before procurement.]

21-19          SECTION 82.  (a)  Sections 403.005, 403.016(e), 403.0165(j),

21-20    2101.032, 2101.035(b), and 2103.032(c), Government Code, are

21-21    repealed.

21-22          (b)  Sections 403.021(f) and 404.042, Government Code, are

21-23    repealed.

21-24          SECTION 83.  This Act takes effect immediately, except that

21-25    Sections 1, 41 through 45, 47 through 51, 62 through 72, 78, 79,

21-26    and 82(b) of this Act take effect September 1, 1997.

21-27          SECTION 84.  (a)  The changes in law made by Sections 42 and

21-28    43 of this Act apply only to a separation from state employment

21-29    that occurs on or after the effective date of those sections.  A

21-30    separation that occurs before that date is governed by the law in

21-31    effect at the time of the separation, and the former law is

21-32    continued in effect for that purpose.

21-33          (b)  The changes in law made by Sections 48 and 49 of this

21-34    Act apply only to coverages for periods on or after the effective

21-35    date of those sections.  The coverages for periods before that date

21-36    are governed by the law as it existed immediately before the

21-37    effective date of those sections, and the former law is continued

21-38    in effect for that purpose.

21-39          (c)  The changes in law made by Section 79 of this Act apply

21-40    to a state agency report that the comptroller has not properly

21-41    received according to the applicable deadline, regardless of

21-42    whether the deadline was before, on, or after the effective date of

21-43    Section 79 of this Act.  The changes in law do not apply to a state

21-44    agency report that the comptroller properly received before the

21-45    effective date of Section 79 of this Act.

21-46          SECTION 85.  The importance of this legislation and the

21-47    crowded condition of the calendars in both houses create an

21-48    emergency and an imperative public necessity that the

21-49    constitutional rule requiring bills to be read on three several

21-50    days in each house be suspended, and this rule is hereby suspended,

21-51    and that this Act take effect and be in force according to its

21-52    terms, and it is so enacted.

21-53                                 * * * * *