SRC-PNG S.B. 178 76(R)   BILL ANALYSIS


Senate Research CenterC.S.S.B. 178
76R8411 JRD-DBy: Ratliff
Finance
3/5/1999
Committee Report (Substituted)


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 proposed, C.S.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 7 (Section 403.097, Chapter 403F, Government Code) and to the
General Services Commission in SECTION 21 (Section 2161.002(c), Government
Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. 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 2.   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 3. 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 4. 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 5. 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 6.  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, among other criteria. 

SECTION 7. 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 8. 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 9. 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 10. Amends Section 811.001(7), Government Code, to redefine
"compensation." 

SECTION 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 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 13. Amends Section 2054.003(6), Government Code, to redefine
"information resources." 

SECTION 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 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 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 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 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 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 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 21.  Amends Section 2161.002, Government Code, by adding Subsection
(c), to require GSC to adopt rules that are based on the results of the
disparity study prepared by the comptroller under Section 65(c), Chapter
684, Acts of the 73rd Legislature, Regular Session, 1993.  Requires GSC to
revise the rules if other similar disparity studies are prepared on behalf
of state government in response to the findings of the latest disparity
study.  Requires all state agencies and higher education institutions to
adopt the GSC rules.  Requires each state agency and higher education
institution to make a good faith effort to increase purchases and contract
awards to historically underutilized businesses based on the adopted rules. 

SECTION 22.  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 historically underutilized businesses. 

SECTION 23.  Amends Section 2161.123, Government Code, by adding
Subsections (d) - (g), to require the state auditor to report to GSC a
state agency that is not complying with this section or is not making a
good faith effort to implement the plan adopted under this section.
Requires the state auditor to consider whether the agency has performed
certain action in determining whether a state agency is making a good faith
effort to implement the plan.  Prohibits the state auditor from considering
the success or failure of an agency to contract with historically
underutilized businesses 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 or is not making a good faith effort to
implement the plan, in complying or in making a good faith effort to
implement the plan.  Authorizes GSC to revoke the purchasing authority of
an agency after one year from the state auditor's report stating the agency
was not complying with Section 2161.123 or making a good faith effort to
implement the plan adopted under this section, if the agency is still not
complying with Section 2161.123 or making a good faith effort to implement
the plan.  Authorizes the comptroller, if GSC revokes an agency's
purchasing authority, to consider the revocation of the purchasing
authority in the event GSC needs a transfer  
of the agency's appropriated funds to cover the costs to GSC of assuming
the agency's purchasing functions.  Requires the amount transferred from
the agency's funds to GSC to be determined by the Legislative Budget Board.

SECTION 24. 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 25. 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 26. 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 27. 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 28. Amends Section 2201.002, Government Code, by adding Subsection
(c), to prohibit the Texas capital trust fund from being used to pay
salaries. 

SECTION 29. 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 30. 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 certain authorities from the higher education institution certify
to the Legislative Budget Board that additional appropriations will not be
necessary to operate, maintain, repair, or construct a building on the
property. 

SECTION 31. 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 32. 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.
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 33. 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 34. 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 35. Amends the chapter heading to Chapter 506, Labor Code, as
follows: 

CHAPTER 506.  New heading: MISCELLANEOUS PROVISIONS APPLICABLE TO
GOVERNMENT EMPLOYEES 

SECTION 36. 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 37. 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 38. 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 39. 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 40. Repealer: Section 403.273(d), Government Code (stating state
property may be used only for state purposes). 

SECTION 41. 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 42.  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 43. Provides a derivation table for provisions of the General
Appropriations Act divided by codified law and source provisions. 

SECTION 44. Effective date: September 1, 1999.

SECTION 45. Emergency clause.

 SUMMARY OF COMMITTEE CHANGES

SECTION 2.    

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.  Redesignates existing SECTIONS appropriately. 

SECTION 4. 

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 6.  

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, among other criteria. 

SECTION 7.

Amends Section 403.097, Chapter 403F, Government Code, by adding Subsection
(d), to provide 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 12.

Amends Section 2052.304, Chapter 2052D, Government Code, by adding
Subsection (d), to provide that this section does not apply to a
publication that promotes tourism or economic development.  Makes a
conforming change. 

SECTION 21.  

Amends Section 2161.002, Texas Government Code, by adding Subsection (c),
to require GSC to adopt rules that are based on the results of the
disparity study prepared by the comptroller under Section 65(c), Chapter
684, Acts of the 73rd Legislature, Regular Session, 1993.  Requires GSC to
revise the rules if other similar disparity studies are prepared on behalf
of state government in response to the findings of the latest disparity
study.  Requires all state agencies and higher education institutions to
adopt the GSC rules.  Requires each state agency and higher education
institution to make a good faith effort to increase purchases and contract
awards to historically underutilized businesses based on the adopted rules.

SECTION 22.  

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 historically underutilized businesses. 
 
SECTION 23. 

Amends Section 2161.123, Government Code, by adding Subsections (d) - (g),
to require the state auditor to report to GSC a state agency that is not
complying with this section or is not making a good faith effort to
implement the plan adopted under 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 implement the plan.
Prohibits the state auditor from considering the success or failure of an
agency to contract with historically underutilized businesses 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 or
is not making a good faith effort to implement the plan, in complying or in
making a good faith effort to implement the plan. Authorizes GSC to revoke
the purchasing authority of an agency after one year from the state
auditor's report stating the agency was not complying with Section 2161.123
or making a good faith effort to implement the plan adopted under this
section, if the agency is still not complying with Section 2161.123 or
making a good faith effort to implement the plan. Authorizes the
comptroller, if GSC revokes an agency's purchasing authority, to consider
the revocation of the purchasing authority in the event GSC needs a
transfer of the agency's appropriated funds to cover the costs to GSC of
assuming the agency's purchasing functions. Requires the amount transferred
from the agency's funds to GSC to be determined by the Legislative Budget
Board.  

SECTION 26. 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,
rather than GSC, 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, rather than from GSC.  Requires the
telecommunications planning group, rather than GSC, 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, rather than GSC.  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 30.

Amends Section 2204.002, Chapter 2204A, Government Code, to prohibit 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. 

SECTION 34.

Amends Section 205.019, Chapter 205B, Labor Code, by adding Subsection (c),
to authorize 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.   

SECTION 36.

Amends Section 506.002, Labor Code, by adding Subsection (c), to authorize
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.   

SECTION 42.

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.