SRC-SLL, PNG S.B. 178 76(R)BILL ANALYSIS Senate Research CenterS.B. 178 By: Ratliff Finance 8/5/1999 Enrolled DIGEST Currently, under the Texas Constitution, no bill shall contain more than one subject. The one exception to this rule is the General Appropriations Act, which must contain more than one subject because it aggregates all the subjects on which the state spends money, with the limitation that the general appropriations bill must be strictly limited to the subjects and accounts of money. This bill codifies certain state agency practices and duties currently prescribed by the General Appropriations Act as general law to ensure their constitutional validity. PURPOSE As enrolled, S.B. 178 codifies certain state agency practices and duties currently prescribed by the General Appropriations Act. RULEMAKING AUTHORITY Rulemaking authority is granted to the Texas Comptroller of Public Accounts in SECTION 1.07 (Section 403.097, Chapter 403F, Government Code) and to the General Services Commission in SECTIONS 1.22 and 2.10 (Sections 2161.002(c) and 2161.253(e), Government Code) of this bill. SECTION BY SECTION ANALYSIS ARTICLE 1. PROVISIONS RELATED TO STATE AGENCY PRACTICES AND DUTIES IN GENERAL APPROPRIATIONS ACT SECTION 1.01. Amends Section 101.027(a), Civil Practice and Remedies Code, to authorize each governmental unit other than a unit of state government to purchase certain insurance policies. Authorizes a unit of state government to purchase such a policy only to the extent authorized or required by law. SECTION 1.02. Amends Section 106.001, Civil Practice and Remedies Code, by adding Subsection (c), to provide that this section does not prohibit the adoption of a program designed to increase the participation of businesses owned and controlled by women, minorities, or disadvantaged persons in public contract awards. SECTION 1.03. Amends Chapter 306, Government Code, by adding Section 306.007, as follows: Sec. 306.007. MINUTES AND REPORTS ELECTRONICALLY AVAILABLE TO LEGISLATURE. Requires a state officer or board, commission, or other executive branch or judicial branch agency other than a court to make required reports and minutes of meetings of the agency's governing body available in a certain electronic format. SECTION 1.04. Amends Section 321.013(c), Government Code, to require the state auditor to recommend, rather than determine, the audit plan to the legislative audit committee. Requires the state auditor to consider recommendations concerning coordination of agency functions made jointly by representatives of the Legislative Budget Board, Sunset Advisory Commission, and State Auditor's Office. Requires the state auditor to consider the extent to which a state department has received a significant increase in appropriations and procurement activities for compliance with Section 2161.123. SECTION 1.05. Amends Section 321.014(c), Government Code, to require the state auditor to file a copy of each report prepared under this section with, among others, each member of the governing body and the administrative head of each entity that is the subject of the report, rather than the chairman of the governing body. SECTION 1.06. Amends Section 325.011, Government Code, to require GSC and its staff, in determining whether a public need exists for the continuation of a state agency or its advisory committees or for the performance of the functions of the agency or its advisory committees, to consider the extent to which an agency has complied with the applicable requirements of state law and applicable rules of any state agency regarding purchasing goals and programs for historically underutilized businesses (HUB), among other criteria. SECTION 1.07. Amends Chapter 403F, Government Code, by adding Section 403.097, as follows: Sec. 403.097. FUNDS EXPENDED IN PROPORTION TO METHOD OF FINANCING. Grants rulemaking authority to the Texas Comptroller of Public Accounts (comptroller) to ensure that appropriations are drawn from the treasury in proportion to certain methods of financing, when it is necessary to preserve cash balances in the state treasury. Authorizes the rules to include procedures relating to the deposit of receipts and the issuance of warrants. Provides that this section does not affect other powers of the comptroller. Provides that this section does not apply if the method of financing specified for an agency or an institution of higher education in the Act authorizing appropriations includes interest earned or to be earned on local funds of the agency or institution. SECTION 1.08. Amends Section 403.245(b), Government Code, to require the replenishment of the petty cash account to be drawn from the appropriation from which the expenditure would otherwise have been made. SECTION 1.09. Amends Section 771.008, Government Code, by adding Subsection (d), to provide that this subsection applies only if the services or resources are provided under a written contract or agreement. Requires the receiving agency to reimburse the providing agency within 30 days after the services or resources are provided and an invoice is received. Requires the receiving agency to notify in writing the providing agency of any error in the invoice, if the receiving agency does not accept the services or resources within 30 days, and make payment within 10 days after the date the problems are corrected or the error resolved. Requires the comptroller to determine the appropriate amount if the agencies cannot agree on the reimbursement amount. Authorizes the comptroller to transfer from the receiving agency, on request of the providing agency, the appropriate amount, if the receiving agency does not reimburse the providing agency or provide written notice of a problem or error within a certain period. SECTION 1.10. Amends Section 811.001(7), Government Code, to redefine "compensation." SECTION 1.11. (a) Amends Chapter 2001B, Government Code, by adding Section 2001.039, as follows: Sec. 2001.039. AGENCY REVIEW OF EXISTING RULES. Requires a state agency to review and consider for readoption each of its rules in accordance with this section. Requires a state agency to review a rule by a certain date. Provides that the adoption of an amendment of an existing rule does not affect the dates on which the rule must be reviewed except under certain situations. Requires the state agency to readopt, readopt with amendments, or repeal a rule as the result of reviewing the rule under this section. Provides that the procedures of this subchapter relating to the original adoption of a rule apply to the review of a rule and to the resulting repeal, readoption, or readoption with amendments, except as provided by this subsection. Establishes that publishing the Texas Administrative Code citation to a rule under review satisfies certain requirements of this subchapter unless the agency readopts the rule with amendments as a result of the review. Requires a state agency's review of a rule to include an assessment of whether the reasons for initially adopting the rule continue to exist. (b) Provides that the duties prescribed by this subsection apply only to state agency rules that are in effect on September 1, 1999, and have not already been reviewed in accordance with Section 167, Article IX, Chapter 1452, Acts of the 75th Legislature, Regular Session (General Appropriations Act). Requires a state agency to review each of those rules in accordance with Section 2001.039, Government Code, and in accordance with this subsection not later than August 31, 2003. Requires each state agency to develop and send to the secretary of state a plan for reviewing its existing rules by August 31, 2000 for publication in the Texas Register. Requires the plan to state the date by which the agency will begin review for each rule. (c) Establishes the effective date of an existing rule initially reviewed under Subsection (b). SECTION 1.12. Amends Chapter 2052D, Government Code, by adding Section 2052.304, as follows: Sec. 2052.304. USE OF CERTAIN PRINTING STOCK. Prohibits a state officer or board, court, commission, or other agency in the executive or judicial branch of state government from publishing a report on certain stock unless a fee is imposed. Provides that this section does not apply to a publication that promotes tourism or economic development. SECTION 1.13. Amends Section 2054.003(6), Government Code, to redefine "information resources." SECTION 1.14. Amends Chapter 2054F, Government Code, by adding Sections 2054.121 and 2054.122, as follows: Sec. 2054.121. COORDINATION AMONG INSTITUTIONS OF HIGHER EDUCATION. Requires a higher education institution to coordinate its use of information technologies with other such institutions. Sec. 2054.122. COORDINATED TECHNOLOGY TRAINING. Requires a state agency every calendar quarter to coordinate agency technology training with department technology training. Requires the agency to use department technology training if it meets certain requirements. SECTION 1.15. Amends Chapter 2101C, Government Code, by adding Section 2101.0377, as follows: Sec. 2101.0377. REPORTING ACCOUNTING IRREGULARITIES TO STATE AUDITOR. Requires the comptroller to report an agency or institution to the state auditor for accounting irregularities for appropriate action. SECTION 1.16. Amends Chapter 2155B, Government Code, by adding Section 2155.084, as follows: Sec. 2155.084. PURCHASES FROM FEDERAL GOVERNMENT. Authorizes the General Services Commission (GSC) or the governing body of a higher education institution to negotiate the purchases of goods needed by a state agency or higher education institution with the appropriate federal agency. Authorizes the governing body of a higher education institution to act directly or through GSC or another state agency. Prohibits the price of goods purchased from the federal government from exceeding fair market value. Authorizes GSC or the governing body of a higher education institution to waive the requirement of a bidder's bond and performance bond, in negotiating purchases of goods from the federal government. SECTION 1.17. Amends Section 2155.132(a), Government Code, to require GSC to report a state agency that has not followed the GSC's rules related to delegated purchases to members of the state agency's governing body, among others. SECTION 1.18. Amends Section 2155.268, Government Code, to prohibit a state agency from maintaining or using its own bidders list. Provides that the prohibition does not apply to the Department of Transportation or to a higher education institution, but higher education institutions should use the master bidders list when possible. Deletes text granting rulemaking authority to the GSC to prescribe the categories of purchases for which a state agency's specialized bidders list may be used. Deletes text allowing a state agency to use its own bidders list in certain situations. Makes conforming changes. SECTION 1.19. Amends Chapter 2155H, Government Code, by adding Section 2155.4441, as follows: Sec. 2155.4441. PREFERENCE UNDER SERVICE CONTRACTS. Requires a state agency that contracts for services to require the contractor to purchase products and materials produced in this state when they are available at a comparable price and time as materials produced out of this state. SECTION 1.20. Amends Chapter 2158A, Government Code, by adding Section 2158.0031, as follows: Sec. 2158.0031. PURCHASE PREFERENCE FOR AMERICAN VEHICLES. Requires a state agency authorized to purchase vehicles to purchase economical, fuel-efficient U.S.made vehicles unless such a purchase would be detrimental to the vehicle's use. SECTION 1.21. Amends Sections 2161.001(2) and (3), Government Code, to redefine "historically underutilized business" and to define "economically disadvantaged person." SECTION 1.22. Amends Section 2161.002, Government Code, by adding Subsection (c), to require GSC to adopt rules that are based on the results of the "State of Texas Disparity Study, A Report to the Texas Legislature as Mandated by H.B. 2626, 73rd Legislature, December 1994." Requires GSC to revise the rules if other similar disparity studies are prepared on behalf of state government in response to the findings of any updates of the study that are prepared on behalf of the state. SECTION 1.23. Amends Chapter 2161A, Government Code, by adding Sections 2161.003, 2161.004, and 2161.005, as follows: Sec. 2161.003. AGENCY RULES. Requires a state agency, including an institution of higher education, to adopt GSC's rules under Section 2161.002 as the agency's or institution's own rules. Provides that those rules apply to the agency's construction projects and purchases of goods and services paid for with appropriated money without regard to whether a project or purchase is otherwise subject to this subtitle. Sec. 2161.004. APPLICABILITY; INTENT. Sets forth application of this chapter and the rules adopted by GSC under this chapter. Provides that the legislature intends that all qualified businesses have access to compete for business from the state. Sec. 2161.005. TRANSFER OF FUNDS FOR PURCHASING. Requires GSC to report to the Legislative Budget Board (LBB) if the state auditor reports to GSC under Section 2161.123(d) that a state agency is not complying with Section 2161.123. Authorizes the LBB, under certain circumstances, to direct the emergency transfer of the agency's appropriated funds for making purchases under purchasing authority delegated under Section 2155.131 or 2155.133. Requires the amount transferred from the agency's funds to the appropriate agency to be an amount determined by the LBB. SECTION 1.24. Amends Section 2161.122, Government Code, by adding Subsection (c) and redesignating existing Subsections (c) and (d) as Subsections (d) and (e), to require state agencies to report to GSC in accordance with Section 2161.125, certain information on the expenditure of both treasury and non-treasury funds on HUBs. SECTION 1.25. Amends Section 2161.123, Government Code, by adding Subsections (d) - (g), to require the GSC and the state auditor to periodically monitor state agency compliance with this section. Requires the state auditor to report to GSC a state agency that is not complying with this section. Requires the state auditor to consider whether the agency has performed certain actions in determining whether a state agency is making a good faith effort to comply. Prohibits the state auditor from considering the success or failure of an agency to contract with HUBs in any specific quantity. Restricts the state auditor's review to the agency's procedural compliance with Subsection (d). Requires GSC to assist an agency that the state auditor reports is not complying with this section. SECTION 1.26. Amends Section 2161.181, Government Code, to require a state agency, including GSC, to make a good faith effort to increase the contract awards for certain purchases that the agency expects to make during a fiscal year to HUBs based on rules adopted by GSC to implement the disparity study described by Section 2161.002(c). Deletes a provision regarding awarding 30 percent of contracts to HUBs. SECTION 1.27. Amends Section 2161.182(a), Government Code, to make conforming changes. SECTION 1.28. Amends Section 2165.104(c), Government Code, to prohibit GSC from allocating usable office space to a state agency under Article I, II, V, VI, VII, or VIII of the General Appropriations Act or to the Texas Higher Education Coordinating Board, the Texas Education Agency, the State Board for Educator Certification, the Telecommunications Infrastructure Board, or the Office of Court Administration of the Texas Judicial System beyond a certain amount of space per employee. Requires any agency that allocates its own office space to achieve the same ratio. Makes conforming changes. SECTION 1.29. Amends Chapter 2170A, Government Code, by adding Sections 2170.009 and 2170.010, as follows: Sec. 2170.009. PAY TELEPHONES AUTHORIZED. Authorizes a pay telephone to be located in the Capitol Complex only with GSC's approval. Requires GSC to collect the revenue from the installation and operation of the pay telephone and deposit the revenue in the general revenue fund. Authorizes the installation of a pay telephone in a state-owned or state-leased building or state-owned land only with the approval of the state entity in charge and control of the building or land. Requires the entity to collect the revenue from the installation and operation of the pay telephone and deposit the revenue in the general revenue fund, unless the disposition of the revenue is covered by law. Requires GSC or other state entity to account for the revenue in the entity's annual report. Sec. 2170.010. UNLISTED TELEPHONE NUMBERS PROHIBITED. Prohibits a state agency and its officers and employees from buying, renting, or paying toll charges for an unlisted telephone number, unless certain conditions are met. SECTION 1.30. Amends Section 2170.051, Government Code, as follows: Sec. 2170.051. New heading: MANAGEMENT AND USE OF SYSTEM. Requires a state agency to use the consolidated telecommunications system to the fullest extent possible. Prohibits a state agency from acquiring telecommunications services unless the telecommunications planning group makes certain determinations. Prohibits a state agency from entering into or renewing a contract with a carrier or other provider of telecommunications services without obtaining a certain waiver from the telecommunications planning group. Requires the telecommunications planning group to evaluate requests for waivers based on cost-effectiveness to the state government as a whole. Authorizes a waiver to be granted only for a specific period and will expire on the stated date unless an extension is approved by the telecommunications planning group. Prohibits a contract for telecommunications services obtained under a waiver from extending beyond the expiration date of the waiver. Requires the telecommunications planning group to notify the agency and the comptroller if the telecommunications planning group becomes aware of any state agency receiving telecommunications services without a waiver. Requires the state agency to submit a waiver request by a certain date to the telecommunications planning group. SECTION 1.31. Amends Section 2170.057(b), Government Code, to require receipts attributable to the centralized capitol complex telephone system to be deposited in the revolving fund account for the administration of this chapter, but separately identified within the account. SECTION 1.32. Amends Section 2201.002, Government Code, by adding Subsection (c), to prohibit the Texas capital trust fund from being used to pay salaries. SECTION 1.33. Amends Chapter 2203, Government Code, by adding Sections 2203.004 and 2203.005, as follows: Sec. 2203.004. REQUIREMENT TO USE STATE PROPERTY FOR STATE PURPOSES. Authorizes state property to be used only for state purposes. Prohibits a person from entrusting state property to a state officer or employee or any other person if the property is not to be used for state purposes. Sec. 2203.005. VENDING MACHINES AUTHORIZED. Authorizes a vending machine to be located in certain buildings or properties only with the approval of certain authorities. Requires the approval to be recorded in the minutes of the meeting of the authority approving the use. Requires the state agency to file with GSC a copy of all contracts between the state agency and the vendor relating to the vending machine and a written description of the location of the vending machine. Requires all net revenue the state agency receives in connection with the vending machine to be accounted for as state money and deposited in the general revenue fund unless otherwise governed by law. Requires the state agency to account for the revenue in the agency's annual report. Authorizes a vending machine to be located in certain buildings served by a vendor associated with the Texas Commission for the Blind only under certain conditions. SECTION 1.34. Amends Chapter 2204A, Government Code, by adding Sections 2204.002 and 2204.003, as follows: Sec. 2204.002. RESTRICTION ON ACQUISITION OF REAL PROPERTY. Prohibits a state agency from accepting real property as a gift or devise or spending appropriated money to purchase real property without statutory authority or other legislative authorization. Sec. 2204.003. GIFTS OF REAL PROPERTY TO INSTITUTIONS OF HIGHER EDUCATION. Authorizes a higher education institution to accept real property as a gift or devise from a private entity for certain purposes only if done consistently with rules and regulations adopted by the Texas Higher Education Coordinating Board pursuant to its power to adopt such rules and regulations under chapter 61, Education Code. SECTION 1.35. Amends Section 2251.030, Government Code, as follows: Sec. 2251.030. New heading: PROMPT OR EARLY PAYMENT DISCOUNT. Requires a state agency to negotiate a prompt payment discount with a vendor whenever possible. Requires a state agency to submit the necessary payment documents or information to the comptroller in advance of the prompt or early payment deadline to allow the comptroller or the agency to pay the vendor in time to obtain the discount. SECTION 1.36. Amends Section 2252.901, Government Code, as follows: Sec. 2252.901. New heading: CONTRACTS WITH FORMER OR RETIRED AGENCY EMPLOYEES. Prohibits a state agency from entering into certain service contracts with a former or retired employee of the agency before the first anniversary on which the individual was employed by the agency, if appropriated money will be used to make payments under the contract. Provides that this section does not prohibit an agency from entering into a professional services contract with a corporation, firm, or other business entity that employs a former or retired employee provided that the former or retired employee does not perform services on projects for the corporation, firm or other business entity that the employee worked on while employed by the agency. Prohibits a state agency that contracts at any time with a retired agency employee to perform substantially similar services as the employee did in the year before retirement from paying the employee from any source of revenue above a maximum rate. Defines "employment contract." Makes conforming changes. SECTION 1.37. Amends Chapter 2254A, Government Code, by adding Section 2254.0031, as follows: Sec. 2254.0031. INDEMNIFICATION. Authorizes a state governmental entity to require a contractor selected under this subchapter to indemnify or hold harmless the state from claims and liabilities resulting from the negligent act or omissions of the contractor or the contractor's employees. Prohibits a state governmental entity from requiring a contractor to indemnify or hold harmless the state for claims or liabilities resulting from negligent acts or omissions of the state governmental entity or its employees. SECTION 1.38. Amends Chapter 205B, Labor Code, by adding Section 205.019, as follows: Sec. 205.019. REIMBURSEMENT FROM NON-TREASURY FUNDS. Requires any state instrumentality that reimburses GSC with non-treasury funds to reimburse GSC by writing a check for deposit into a certain account. Requires a deposit under this section to be made by a certain date. Requires GSC to send a copy of each statement of amounts due from each state instrumentality that reimburses GSC with non-treasury funds to the comptroller and the state auditor. Authorizes a branch, department, or other instrumentality affected by this section to allocate appropriate funds to a revolving account on its books to receive contributions from funds other than general revenue funds, based on an assessment it determines to be appropriate for the purpose of reimbursing the appropriate unemployment compensation account for benefits paid. Requires the state auditor to review affected entities for compliance with this section. SECTION 1.39. Amends the heading to Chapter 506, Labor Code, as follows: CHAPTER 506. New heading: MISCELLANEOUS PROVISIONS APPLICABLE TO GOVERNMENT EMPLOYEES SECTION 1.40. Amends Chapter 506, Labor Code, by adding Section 506.002, as follows: Sec. 506.002. REIMBURSEMENT FROM NON-TREASURY FUNDS. Requires any state instrumentality that reimburses the general revenue fund with non-treasury funds for certain workers' compensation payments to reimburse the general revenue fund by writing a check to the comptroller with certain conditions and by a certain date. Requires the workers' compensation division of the Office of the Attorney General to send to the comptroller and the state auditor a copy of certain statements of amounts due that reimburse the general revenue fund with non-treasury funds for workers' compensation payments. Authorizes an agency or other state governmental instrumentality affected by this section to allocate appropriate funds to a revolving account on its books to receive contributions from funds other than general revenue funds, based on an assessment it determines to be appropriate for the purpose of reimbursing the general revenue fund for the workers' compensation payments made to its current or former employees. Requires the state auditor to review affected entities for compliance with this section. SECTION 1.41. Amends Chapter 11D, Natural Resources Code, by adding Section 11.0791, as follows: Sec. 11.0791. OTHER PROVISIONS REGARDING ACCESS TO STATE LANDS. Requires a state governmental entity that sells state land to require that the state have the right of ingress and egress to remaining state land in the immediate area by an easement to a public thoroughfare. SECTION 1.42. Amends Chapter 11D, Natural Resources Code, by adding Section 11.083, as follows: Sec. 11.083. RETENTION OF MINERAL RIGHTS. Requires the state to retain the mineral rights to state land that is sold unless it is impractical to do so. SECTION 1.43. Amends Section 31.401, Natural Resources Code, to require the General Land Office to review and approve any contract entered into by a state agency for the acquisition of a certain amount of natural gas used to meet its energy requirements. Requires the commissioner of GSC to inform the comptroller each month of the amount of savings attributable if the General Land Office is able to substitute a contract using in-kind royalty gas from state-owned lands for a contract under which the state agency acquires its own natural gas supplies. Makes conforming changes. SECTION 1.44. Repealer: Section 403.273(d), Government Code (stating state property may be used only for state purposes). SECTION 1.45. Provides that Section 2165.104(c), Government Code, does not apply to the Texas Higher Education Coordinating Board or the State Board for Educator Certification until the expiration of all leases under which the board occupies space on the effective date of this Act. SECTION 1.46. Provides that this Act does not affect the authority of a higher education institution to collect, account for, and control local funds and institutional funds in the manner authorized by Chapter 51A, Education Code. SECTION 1.47. Provides a derivation table for provisions of the General Appropriations Act divided by codified law and source provisions. ARTICLE 2. CERTAIN OTHER PROVISIONS RELATED TO STATE AGENCY CONTRACTING WITH HISTORICALLY UNDERUTILIZED BUSINESSES SECTION 2.01. Amends Section 2155.074(g), Government Code, to require a state agency to post notice that includes all information necessary to make a successful bid, proposal, or other applicable expression of interest for a procurement contract. SECTION 2.02. Amends Chapter 2161A, Government Code, by adding Section 2161.0015, as follows: Sec. 2161.0015. DETERMINING SIZE STANDARDS FOR HISTORICALLY UNDERUTILIZED BUSINESSES. Authorizes GSC to establish size standards that a business may not exceed if it is to be considered a HUB under this chapter. Requires GSC, in determining the size standards, to determine the size at which a business should be considered sufficiently large that the business probably does not significantly suffer from the effects of past discriminatory practices. SECTION 2.03. Amends Sections 2161.061(b) and (c), Government Code, to authorize GSC, as one of its certification procedures, to approve the certification program of one or more local governments in this state that certify HUBs, minority business enterprises, women's business enterprises, or disadvantaged business enterprises under substantially the same definition, to the extent applicable, used by Section 2161.001; and to certify a business under the local government program as a HUB under this chapter. Requires GSC to enter into agreements with local governments in this state that conduct certification programs to maximize the number of certified HUBs. Sets forth requirements for the agreements. Deletes text regarding certification of HUBs by a municipality. SECTION 2.04. Amends Section 2161.062, Government Code, by adding Subsections (d) and (e), to require GSC to send HUBs an orientation package on certification or recertification. Sets forth contents of the package. Requires a state agency with a biennial budget that exceeds $10 million to designate a staff member to serve as the HUBs coordinator (coordinator) for the agency during the fiscal year. Authorizes the procurement director to serve as the coordinator. Requires the position of coordinator, with the agency's structure, to be at least equal to the position of procurement director. Sets for the responsibilities of the coordinator. SECTION 2.05. Amends Section 2161.063(b), Government Code, to require GSC to assist the Texas Department of Economic Development in performing the department's duties under Section 481.0068, rather than 481.103. SECTION 2.06. Amends Section 2161.064(b), Government Code, to require GSC, at least semiannually, to update the directory and provide access to the directory electronically or in another form to each state agency. SECTION 2.07. Amends Sections 2161.121(a) and (e), to require GSC to prepare a consolidated report that tracks, by vendor identification number and, to the extent allowed by federal law, by social security number, the graduation rates for HUBs that grew to exceed the size standards determined by GSC, in addition to reporting other information. Makes a nonsubstantive change. SECTION 2.08. Amends Chapter 2161B, Government Code, by adding Sections 2161.065 and 2161.066, as follows: Sec. 2161.065. MENTOR-PROTEGE PROGRAM. Requires GSC to design a mentorprotege program to foster long-term relationships between prime contractors and HUBs and to increase the ability of HUBs to contract with the state or to receive subcontracts under a state contract. Requires each state agency with a biennial appropriation that exceeds $10 million to implement the program designed by GSC. Requires participation in the program to be voluntary for both the contractor and the HUB subcontractor. Sec. 2161.066. HISTORICALLY UNDERUTILIZED BUSINESS FORUMS. Requires GSC to design a program of forums in which HUBs are invited by state agencies to deliver technical and business presentations that demonstrate their capability to do certain business with the agency. Requires the forums to be held at state agency offices. Requires certain state agencies to participate in the program by sending certain personnel to attend relevant presentations and by informing the agency's contractors about presentations that may be relevant to anticipated subcontracting opportunities. Sets forth actions to be taken by each state agency that has a coordinator. Requires GSC and certain state agencies to aggressively identify and notify individual HUBs regarding opportunities to make a presentation regarding the types of goods and services suppled by the HUB and to advertise in appropriate trade publications that target HUBs regarding opportunities to make a presentation. SECTION 2.09. Amends Chapter 2161C, Government Code, by adding Sections 2161.126 and 2161.127, as follows: Sec. 2161.126. EDUCATION AND OUTREACH BY COMMISSION. Requires GSC to report to certain persons on the education and training efforts that GSC has made toward HUBs before September 1 of each year. Sets forth information to be included in the report. Sec. 2161.127. LEGISLATIVE APPROPRIATIONS REQUESTS. Requires each state agency to include as part of its legislative appropriations request a detailed report of reconsideration by the budget committees of the legislature that shows the extent to which the agency complied with this chapter and rules of GSC adopted under this chapter during the two calendar years preceding the calendar year in which the request is submitted. Requires the report to demonstrate the reasons for agency noncompliance. Provides that the extent to which a state agency complies with this chapter and rules of GSC adopted under this chapter is considered a performance measure for purposes of the appropriations process. SECTION 2.10. Amends Chapter 2161, Government Code, by adding Subchapter F, as follows: SUBCHAPTER F. SUBCONTRACTING Sec. 2161.251. APPLICABILITY. Sets forth the applicability of this chapter. Sec. 2161.252. AGENCY DETERMINATION REGARDING SUBCONTRACTING OPPORTUNITIES; BUSINESS SUBCONTRACTING PLAN. Requires each state agency, before soliciting bids, proposals, offers, or other applicable expressions of interest for certain contracts (bid), to determine whether there will be subcontracting opportunities under the contract. Requires the agency, if the agency determines that there is that probability, to require that each bid include a HUB subcontracting plan. Requires a bid, when an agency requires a HUB subcontracting plan, to contain a plan in order to be considered responsive. Sec. 2161.253. GOOD FAITH COMPLIANCE WITH BUSINESS SUBCONTRACTING PLAN. Requires an awarded contract, when an agency requires a HUB subcontracting plan, to contain the plan that the contractor submitted in its bid. Requires the contractor to make good faith efforts to implement the plan. Requires the contractor, to the extent that the subcontracts are not contracted for as originally submitted in the HUB subcontracting plan, to report to the agency all circumstances that explain that fact and describe the good faith efforts made to find and subcontract with another HUB. Requires the agency to audit the contractor's compliance with the HUB subcontracting plan. Prohibits the agency, in determining whether the contractor made the required good faith effort, from considering the success or failure of the contractor to subcontract with HUBs in any specific quantity. Provides that the agency's determination is restricted to considering factors indicating good faith. Authorizes the agency, if a determination is made that the contractor failed to implement the plan in good faith, to bar the contractor from further contracting opportunities with the agency, in addition to any other remedies. Requires GSC to adopt rules to administer this subchapter. SECTION 2.11. Makes application of Chapter 2161F, Government Code, as added by this Act, prospective to April 1, 2000. ARTICLE 3. PROVISIONS RELATING TO STATE AGENCY CONTINGENCY FEE CONTRACTS FOR LEGAL SERVICES SECTION 3.01. Sets forth legislative findings regarding contingency fee contracts for legal services. SECTION 3.02. Amends Chapter 404F, Government Code, by adding Section 404.097, as follows: Sec. 404.097. DEPOSIT OF FUNDS RECOVERED BY LITIGATION OR SETTLEMENT. Provides that, notwithstanding Section 404.093, this section applies by its terms to each state governmental entity. Defines "contingent fee contract" and "state governmental entity." Provides that all funds recovered by a state governmental entity in certain litigations or settlements are public funds of the state or the state governmental entity and shall be deposited in the state treasury to the credit of the appropriate fund or account. Authorizes legal fees and expenses to be paid from the recovered funds under a contingent fee contact for legal services only after the funds are deposited in accordance with this section and in accordance with Chapter 2254C. SECTION 3.03. Amends Chapter 2254, Government Code, by adding Subchapter C, as follows: SUBCHAPTER C. CONTINGENT FEE CONTRACT FOR LEGAL SERVICES Sec. 2254.101. DEFINITIONS. Defines "contingent fee," "contingent fee contract," and "state governmental entity." Sec. 2254.102. APPLICABILITY. Sets forth the applicability of this chapter. Sec. 2254.103. CONTRACT APPROVAL; SIGNATURE. Authorizes a state governmental entity that has authority to enter into a contract for legal services in its own name to enter into a contingent fee contract for legal services only if certain conditions are met. Authorizes the attorney general to enter into a contingent fee contract for legal services in the name of the state in relation to a matter that has been referred to the attorney general under law by another state governmental entity only if the other state governmental entity approves and signs the contract in accordance with Subsection (a). Authorizes a state governmental entity to enter into a contingent gee contract for legal services that is not described by Subsection (a) or (b) only if the governor approves and signs the contract. Requires certain findings to be made before the governing body, elected or appointed officer, or the governor approves the contract. Sets forth actions to be taken by a state governmental entity before entering into a contingent fee contract for legal services in which the estimated amount that may be recovered exceeds $100,000. Prohibits a state governmental entity from entering into certain proposed contracts unless the LBB finds that the state governmental entity does not have appropriated funds available to pay the estimated amounts required under a contract for the legal services providing only for the payment of hourly fees. Provides that a contingent fee contract for legal services that is subject to Subsection (e) and requires a finding by the LBB is void unless the LBB has made the finding required by Subsection (e). Sec. 2254.104. TIME AND EXPENSE RECORDS REQUIRED; FINAL STATEMENT. Requires the contract to require that the contracting attorney or law firm keep current and complete written time and expense records that describe in detail the time and money spent each day in performing the contract. Requires the contracting attorney or law firm to permit certain persons to inspect or obtain copies of the time and expense records at any time on request. Requires the contracting attorney or law firm, on conclusion of the matter for which legal services were obtained, to provide the contracting state governmental entity with certain information. Provides that the complete written statement required by this subsection is public information under Chapter 552 and may not be withheld from a requestor under that chapter under Section 552.103 or any other exception from required disclosure. Provides that this subsection does not apply to the complete written statement required by Subsection (c). Provides that all time and expense records required under this section are public information subject to required public disclosure under Chapter 552. Authorizes information in the records to be withheld from a member of the public under certain circumstances. Requires information withheld from public disclosure under this subsection to be segregated from information that is subject to required public disclosure. Sec. 2254.105. CERTAIN GENERAL CONTRACT REQUIREMENTS. Sets forth general contract requirements. Sec. 224.106. CONTRACT REQUIREMENTS: COMPUTATION OF CONTINGENT FEE; REIMBURSEMENT OF EXPENSES. Sets forth provisions regarding contract specifications regarding hourly rates for work performed under the contract. Requires the contract to establish a base fee to be computed in a certain manner. Provides that, subject to Subsection (d), the contingent fee is computed by multiplying the base fee by a multiplier. Sets forth provisions for determining the multiplier. Requires the contract to limit the amount of the contingent fee to a state percentage of the amount recovered. Sets forth provisions regarding the amount of the contingent fee. Authorizes the contract to contain certain provisions. Provide that this section does not apply to certain contingent fee contracts for legal services. Provides that this section applies to a contract described by Subsection (f) for each individual recovery under the contract that actually exceeds $100,000, and the contract must provide for computing the fee in accordance with this section for each individual recovery that actually exceeds $100,000. Sec. 2254.107. MIXED HOURLY AND CONTINGENT FEE CONTRACTS; REIMBURSEMENT FOR SUBCONTRACTED WORK. Provides that this section applies only to certain contingent fee contracts. Provides that Sections 2254.106(a) and (e) apply to the contract without regard to the expected or actual amount of recovery under the contract. Provides that the limitations prescribed by Section 2254.106 on the amount of the contingent fee apply to the entire amount of the fee under the contingent fee contract, including the part of the fee the Amount and payment of which is not contingent on the outcome of the matter. Provides that the limitations prescribed by Section 2254.108 on payment of the fee apply only to payment of the contingent portion of the fee. Sec. 2254.108. FEE PAYMENT AND EXPENSE REIMBURSEMENT. Provides that, except as provided by Subsection (b), a contingent fee and a reimbursement of an expense under a contract with a state governmental entity is payable only from funds the legislature specifically appropriates to pay the fee or reimburse the expense. Requires an appropriation to pay the fee or reimburse the expense to specifically describe the individual contract, or the class of contracts classified by subject matter, on account of which the fee is payable or expense is reimbursable. Provides that a general reference to contingent fee contracts for legal services or to contracts subject to this subchapter or a similar general description is not a sufficient description for purposes of this subsection. Authorizes a state governmental entity, if the legislature has not specifically appropriated funds for paying the fee or reimbursing the expense, to pay the fee or reimburse the expense from other available funds only if certain conditions are met. Prohibits a payment or reimbursement under the contract from being made until certain conditions are met. Authorizes litigation and other expenses payable under the contract to be reimbursed only if the state governmental entity and the state auditor make certain determinations. Prohibits the contingent fee from being paid until the state auditor has reviewed the relevant time and expense records and verified that the hours of work on which the fee computation is based were actually worked in performing reasonable and necessary services for the state governmental entity under the contract. Sec. 2254.109. EFFECT ON OTHER LAW. Provides that this subchapter does not limit the right of a state governmental entity to recover fees and expenses from opposing parties under other law. Provides that compliance with this subchapter does not relieve a contracting attorney or law firm of an obligation or responsibility under other law, including under the Texas Disciplinary Rules of Professional Conduct. Prohibits a state officer, employee, or governing body from waiving the requirements of this subchapter or prejudicing the interests of the state under this subchapter. Provides that this subchapter does not waive the state's sovereign immunity from suit or its immunity from suit in federal court under the Eleventh Amendment to the federal constitution. SECTION 3.04. Makes application of this article prospective. ARTICLE 4. EFFECTIVE DATE; EMERGENCY SECTION 4.01. Effective date: September 1, 1999. SECTION 4.02. Emergency clause.