By Junell                                             H.B. No. 2957
         76R9371 T                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to codification of certain state agency practices and
 1-3     duties currently prescribed by the General Appropriations Act.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subsection (a), Section 101.027, Civil Practice
 1-6     and Remedies Code, is amended to read as follows:
 1-7           (a)  Each governmental unit other than a unit of state
 1-8     government may purchase insurance policies protecting the unit and
 1-9     the unit's employees against claims under this chapter.  A unit of
1-10     state government may purchase such a policy only to the extent that
1-11     the unit is authorized or required to do so under other law.
1-12           SECTION 2.  Section 106.001, Civil Practice and Remedies
1-13     Code, is amended by adding Subsection (c) to read as follows:
1-14           (c)  This section does not prohibit the adoption of a program
1-15     designed to increase the participation of businesses owned and
1-16     controlled by women, minorities, or disadvantaged persons in public
1-17     contract awards.
1-18           SECTION 3.  Chapter 306, Government Code, is amended by
1-19     adding Section 306.007 to read as follows:
1-20           Sec. 306.007.  MINUTES AND REPORTS ELECTRONICALLY AVAILABLE
1-21     TO LEGISLATURE.  A state officer or board, commission, or other
1-22     agency in the executive branch of state government, and an agency
1-23     in the judicial branch of state government other than a court,
1-24     shall make reports required by law and minutes of meetings of the
 2-1     agency's governing body available to members of the legislature and
 2-2     to agencies in the legislative branch of state government in an
 2-3     electronic format determined by the Texas Legislative Council.
 2-4           SECTION 4.  Subsection (c), Section 321.013, Government Code,
 2-5     is amended to read as follows:
 2-6           (c)  The State Auditor shall recommend [determine] the audit
 2-7     plan for the state for each fiscal year to the committee.  In
 2-8     devising the plan, the State Auditor shall consider recommendations
 2-9     concerning coordination of agency functions made jointly by
2-10     representatives [the committee composed] of the Legislative Budget
2-11     Board, Sunset Advisory Commission, and State Auditor's Office.  The
2-12     State Auditor shall also consider the extent to which a department
2-13     has received a significant increase in appropriations, including a
2-14     significant increase in federal or other money passed through to
2-15     the department, and shall review procurement activities for
2-16     compliance with Section 2161.123.  The plan shall provide for
2-17     auditing of federal programs at least once in each fiscal biennium
2-18     and shall ensure that audit requirements of all bond covenants and
2-19     other credit or financial agreements are satisfied.  The committee
2-20     shall review and approve the plan.
2-21           SECTION 5.  Subsection (c), Section 321.014, Government Code,
2-22     is amended to read as follows:
2-23           (c)  The State Auditor shall submit each report to the
2-24     committee prior to publication.  The State Auditor shall file a
2-25     copy of each report prepared under this section with:
2-26                 (1)  the governor;
2-27                 (2)  the lieutenant governor;
 3-1                 (3)  the speaker of the house of representatives;
 3-2                 (4)  the secretary of state;
 3-3                 (5)  the Legislative Reference Library;
 3-4                 (6)  each member of [the chairman of] the governing
 3-5     body and the administrative head of each entity that is the subject
 3-6     of the report; and
 3-7                 (7)  members of the legislature on a committee with
 3-8     oversight responsibility for the entity or program that is the
 3-9     subject of the report.
3-10           SECTION 6.  Section 325.011, Government Code, is amended to
3-11     read as follows:
3-12           Sec. 325.011.  Criteria for Review.  The commission and its
3-13     staff shall consider the following criteria in determining whether
3-14     a public need exists for the continuation of a state agency or its
3-15     advisory committees or for the performance of the functions of the
3-16     agency or its advisory committees:
3-17                 (1)  the efficiency with which the agency or advisory
3-18     committee operates;
3-19                 (2)  an identification of the objectives intended for
3-20     the agency or advisory committee and the problem or need that the
3-21     agency or advisory committee was intended to address, the extent to
3-22     which the objectives have been achieved, and any activities of the
3-23     agency in addition to those granted by statute and the authority
3-24     for these activities;
3-25                 (3)  an assessment of less restrictive or alternative
3-26     methods of performing any regulation that the agency performs that
3-27     could adequately protect the public;
 4-1                 (4)  the extent to which the advisory committee is
 4-2     needed and is used;
 4-3                 (5)  the extent to which the jurisdiction of the agency
 4-4     and the programs administered by the agency overlap or duplicate
 4-5     those of other agencies and the extent to which the programs
 4-6     administered by the agency can be consolidated with the programs of
 4-7     other state agencies;
 4-8                 (6)  whether the agency has recommended to the
 4-9     legislature statutory changes calculated to be of benefit to the
4-10     public rather than to an occupation, business, or institution that
4-11     the agency regulates;
4-12                 (7)  the promptness and effectiveness with which the
4-13     agency disposes of complaints concerning persons affected by the
4-14     agency;
4-15                 (8)  the extent to which the agency has encouraged
4-16     participation by the public in making its rules and decisions as
4-17     opposed to participation solely by those it regulates and the
4-18     extent to which the public participation has resulted in rules
4-19     compatible with the objectives of the agency;
4-20                 (9)  the extent to which the agency has complied with
4-21     applicable requirements of:
4-22                       (A)  an agency of the United States or of this
4-23     state regarding equality of employment opportunity and the rights
4-24     and privacy of individuals; and
4-25                       (B)  state law and applicable rules of any state
4-26     agency regarding purchasing goals and programs for historically
4-27     underutilized businesses;
 5-1                 (10)  the extent to which changes are necessary in the
 5-2     enabling statutes of the agency so that the agency can adequately
 5-3     comply with the criteria listed in this section;
 5-4                 (11)  the extent to which the agency issues and
 5-5     enforces rules relating to potential conflicts of interest of its
 5-6     employees;
 5-7                 (12)  the extent to which the agency complies with
 5-8     Chapter 552, and with Chapter 551; and
 5-9                 (13)  the effect of federal intervention or loss of
5-10     federal funds if the agency is abolished.
5-11           SECTION 7.  Subchapter F, Chapter 403, Government Code, is
5-12     amended by adding Section 403.097 to read as follows:
5-13           Sec. 403.097.  FUNDS EXPENDED IN PROPORTION TO METHOD OF
5-14     FINANCING.  (a)  The comptroller may prescribe rules to ensure
5-15     that, when it is necessary to preserve cash balances in the funds
5-16     and accounts in the state treasury, appropriations are drawn from
5-17     the treasury in proportion to the methods of financing specified in
5-18     the Acts authorizing the appropriations.
5-19           (b)  The rules may include procedures relating to the deposit
5-20     of receipts and the issuance of warrants.
5-21           (c)  This section does not affect other powers of the
5-22     comptroller under this subchapter, Subchapter H of Chapter 404, or
5-23     other law.
5-24           (d)  This section does not apply if the method of financing
5-25     specified for an agency or an institution of higher education in
5-26     the Act authorizing appropriations includes interest earned or to
5-27     be earned on local funds of the agency or institution.
 6-1           SECTION 8.  Subsection (b), Section 403.245, Government Code,
 6-2     is amended to read as follows:
 6-3           (b)  The replenishment of a petty cash account is an
 6-4     expenditure from the corresponding fund and shall be drawn from the
 6-5     appropriation from which the expenditure would otherwise have been
 6-6     made.
 6-7           SECTION 9.  Section 771.008, Government Code, is amended by
 6-8     adding Subsection (d) to read as follows:
 6-9           (d)  This subsection applies only if the services or
6-10     resources are provided under a written contract or agreement.  The
6-11     receiving agency shall reimburse the providing agency within 30
6-12     days after the date by which the services or resources are provided
6-13     and an invoice is received.  If the receiving agency does not
6-14     accept the services or resources or finds an error in the invoice,
6-15     it shall notify the providing agency of the fact in writing as soon
6-16     as possible within the 30-day period and make payment within 10
6-17     days after the date the agencies agree the problems are corrected
6-18     or the error resolved.  If the agencies cannot agree on the amount
6-19     of the reimbursement, the comptroller shall determine the
6-20     appropriate amount.  If the receiving agency does not, within the
6-21     30-day period, reimburse the providing agency or give the providing
6-22     agency written notice of a problem or error, the comptroller on
6-23     request of the providing agency may transfer from amounts
6-24     appropriated to the receiving agency the appropriate amount in
6-25     accordance with this section.
6-26           SECTION 10.  Subdivision (7), Section 811.001, Government
6-27     Code, is amended to read as follows:
 7-1                 (7)  "Compensation" means the base salary of a person;
 7-2     amounts that would otherwise qualify as compensation but are not
 7-3     received directly by a person pursuant to a good faith, voluntary,
 7-4     written salary reduction agreement in order to finance payments to
 7-5     a deferred compensation or tax sheltered annuity program
 7-6     specifically authorized by state law or to finance benefit options
 7-7     under a cafeteria plan qualifying under Section 125 of the Internal
 7-8     Revenue Code of 1986 (26 U.S.C. Section 125); longevity and
 7-9     hazardous duty pay;  nonmonetary compensation, the value of which
7-10     is determined by the retirement system; amounts by which a person's
7-11     salary is reduced under a salary reduction agreement authorized by
7-12     Chapter 610; and the benefit replacement pay a person earns under
7-13     Subchapter H, Chapter 659, as added by Chapter 417, Acts of the
7-14     74th Legislature, 1995, except for the benefit replacement pay a
7-15     person earns as a result of a payment made under Subchapter B, C,
7-16     or D, Chapter 661.  The term excludes overtime pay and a cleaning
7-17     or clothing allowance.
7-18           SECTION 11.  (a)  Subchapter B, Chapter 2001, Government
7-19     Code, is amended by adding Section 2001.039 to read as follows:
7-20           Sec. 2001.039.  AGENCY REVIEW OF EXISTING RULES.  (a)  A
7-21     state agency shall review and consider for readoption each of its
7-22     rules in accordance with this section.
7-23           (b)  A state agency shall review a rule not later than the
7-24     fourth anniversary of the date on which the rule takes effect and
7-25     every four years after that date.  The adoption of an amendment to
7-26     an existing rule does not affect the dates on which the rule must
7-27     be reviewed except that the effective date of an amendment is
 8-1     considered to be the effective date of the rule if the agency
 8-2     formally conducts a review of the rule in accordance with this
 8-3     section as part of the process of adopting the amendment.
 8-4           (c)  The state agency shall readopt, readopt with amendments,
 8-5     or repeal a rule as the result of reviewing the rule under this
 8-6     section.
 8-7           (d)  The procedures of this subchapter relating to the
 8-8     original adoption of a rule apply to the review of a rule and to
 8-9     the resulting repeal, readoption, or readoption with amendments of
8-10     the rule, except as provided by this subsection.  Publishing the
8-11     Texas Administrative Code citation to a rule under review satisfies
8-12     the requirements of this subchapter relating to publishing the text
8-13     of the rule unless the agency readopts the rule with amendments as
8-14     a result of the review.
8-15           (e)  A state agency's review of a rule must include an
8-16     assessment of whether the reasons for initially adopting the rule
8-17     continue to exist.
8-18           (b)  The duties prescribed by this subsection apply only to
8-19     state agency rules that are in effect on September 1, 1999, and
8-20     that have not already been reviewed in accordance with Section 167,
8-21     Article IX, Chapter 1452, Acts of the 75th Legislature, Regular
8-22     Session, 1997 (General Appropriations Act).  A state agency shall
8-23     review each of those rules in accordance with Section 2001.039,
8-24     Government Code, as added by this Act, and in accordance with this
8-25     subsection not later than August 31, 2003.  Not later than August
8-26     31, 2000, each state agency shall develop and send to the secretary
8-27     of state for publication in the Texas Register a plan under which
 9-1     the agency will review its existing rules.  The plan must state for
 9-2     each of those rules the date by which the state agency will begin
 9-3     the review required by Section 2001.039, Government Code, as added
 9-4     by this Act.
 9-5           (c)  For purposes of subsequent reviews under Section
 9-6     2001.039, Government Code, as added by this Act, the effective date
 9-7     of an existing rule initially reviewed under Subsection (b) of this
 9-8     section or under Section 167, Article IX, Chapter 1452, Acts of the
 9-9     75th Legislature, Regular Session, 1997 (General Appropriations
9-10     Act), is considered to be the date on which the state agency begins
9-11     the review of the rule by publishing in the Texas Register the
9-12     notice for the review required under Section 2001.024, Government
9-13     Code, through either Subsection (d), Section 2001.039 or Section
9-14     167.
9-15           SECTION 12.  Subchapter D, Chapter 2052, Government Code, is
9-16     amended by adding Section 2052.304 to read as follows:
9-17           Sec. 2052.304.  USE OF CERTAIN PRINTING STOCK.  (a)  A state
9-18     officer or board, court, commission, or other agency in the
9-19     executive or judicial branch of state government may not publish a
9-20     report or other printed materials on enamel-coated, cast-coated, or
9-21     dull-coated printing stock unless the agency imposes a fee for
9-22     receipt of the printed materials.
9-23           (b)  This section does not apply to a publication that
9-24     promotes tourism or economic development.
9-25           SECTION 13.  Subdivision (6), Section 2054.003, Government
9-26     Code, is amended to read as follows:
9-27                 (6)  "Information resources" means the procedures,
 10-1    equipment, and software that are employed, designed, built,
 10-2    operated, and maintained to collect, record, process, store,
 10-3    retrieve, display, and transmit information, and associated
 10-4    personnel including consultants and contractors.
 10-5          SECTION 14.  Subchapter F, Chapter 2054, Government Code, is
 10-6    amended by adding Sections 2054.121 and 2054.122 to read as
 10-7    follows:
 10-8          Sec. 2054.121.  COORDINATION AMONG INSTITUTIONS OF HIGHER
 10-9    EDUCATION.  An institution of higher education shall coordinate its
10-10    use of information technologies with other such institutions to
10-11    more effectively provide education, research, and community
10-12    service.
10-13          Sec. 2054.122.  COORDINATED TECHNOLOGY TRAINING.  A state
10-14    agency each calendar quarter shall coordinate agency training for
10-15    the use of information resources technologies with training offered
10-16    or coordinated by the department.  The agency shall use training
10-17    offered or coordinated by the department if it meets agency
10-18    requirements and is cost-competitive.
10-19          SECTION 15.  Subchapter C, Chapter 2101, Government Code, is
10-20    amended by adding Section 2101.0377 to read as follows:
10-21          Sec. 2101.0377.  REPORTING ACCOUNTING IRREGULARITIES TO STATE
10-22    AUDITOR.  On determining that a state agency, as defined by Section
10-23    658.001, or an institution of higher education, as defined by
10-24    Section 61.003, Education Code, has inaccurately reported the
10-25    expenditure of appropriated funds or engaged in recurring
10-26    accounting irregularities, the comptroller shall report the agency
10-27    or institution to the state auditor for appropriate action,
 11-1    including a comprehensive financial audit.
 11-2          SECTION 16.  Subchapter B, Chapter 2155, Government Code, is
 11-3    amended by adding Section 2155.084 to read as follows:
 11-4          Sec. 2155.084.  PURCHASES FROM FEDERAL GOVERNMENT.  (a)  The
 11-5    commission or the governing body of an institution of higher
 11-6    education may negotiate purchases of goods of any kind needed by a
 11-7    state agency or the institution of higher education with the
 11-8    appropriate agency of the federal government.  The governing body
 11-9    of an institution of higher education may act under this section
11-10    either directly or through the commission or another state agency.
11-11          (b)  The price of goods that are purchased from the federal
11-12    government may not exceed the fair market value of the goods.
11-13          (c)  In negotiating purchases of goods from the federal
11-14    government under this section or under Subchapter G, Chapter 2175,
11-15    the commission or the governing body of the institution of higher
11-16    education may waive the requirement of a bidder's bond and
11-17    performance bond that otherwise would be required.
11-18          SECTION 17.  Subsection (a), Section 2155.132, Government
11-19    Code, is amended to read as follows:
11-20          (a)  A state agency is delegated the authority to purchase
11-21    goods and services if the purchase does not exceed $15,000.  If the
11-22    commission determines that a state agency has not followed the
11-23    commission's rules or the laws related to the delegated purchases,
11-24    the commission shall report its determination to the members of the
11-25    state agency's governing body and to the governor, lieutenant
11-26    governor, speaker of the house of representatives, and Legislative
11-27    Budget Board.
 12-1          SECTION 18.  Section 2155.268, Government Code, is amended to
 12-2    read as follows:
 12-3          Sec. 2155.268.  USE OF STATE AGENCY BIDDERS LIST.  (a)  A
 12-4    state agency may not maintain and use its own bidders list [only if
 12-5    the commission determines by rule that the agency has specialized
 12-6    needs that can best be met through maintaining and using its own
 12-7    specialized bidders list].  The prohibition of this subsection does
 12-8    not apply to the Texas Department of Transportation or to an
 12-9    institution of higher education as defined by Section 61.003,
12-10    Education Code, but an institution of higher education should use
12-11    the master bidders list when possible.
12-12          (b)  [The commission by rule may prescribe the categories of
12-13    purchases or other acquisitions for which a state agency's
12-14    specialized bidders list may be used.]
12-15          [(c)]  A state agency may supplement the bidders list with
12-16    its own list of historically underutilized businesses if it
12-17    determines that the supplementation will increase the number of
12-18    historically underutilized businesses that submit bids.
12-19          (c) [(d)]  A state agency may purchase goods and services
12-20    from a vendor who is not on the bidders list if the purchase price
12-21    does not exceed $5,000.
12-22          SECTION 19.  Subchapter H, Chapter 2155, Government Code, is
12-23    amended by adding Section 2155.4441 to read as follows:
12-24          Sec. 2155.4441.  PREFERENCE UNDER SERVICE CONTRACTS.  A state
12-25    agency that contracts for services shall require the contractor, in
12-26    performing the contract, to purchase products and materials
12-27    produced in this state when they are available at a price and time
 13-1    comparable to products and materials produced outside this state.
 13-2          SECTION 20.  Subchapter A, Chapter 2158, Government Code, is
 13-3    amended by adding Section 2158.0031 to read as follows:
 13-4          Sec. 2158.0031.  PURCHASE PREFERENCE FOR AMERICAN VEHICLES.
 13-5    A state agency authorized to purchase passenger vehicles or other
 13-6    ground transportation vehicles for general use shall purchase
 13-7    economical, fuel-efficient vehicles assembled in the United States
 13-8    unless such a purchase would have a significant detrimental effect
 13-9    on the use to which the vehicles will be put.
13-10          SECTION 21.  Section 2161.002, Government Code, is amended by
13-11    adding Subsection (c) to read as follows:
13-12          (c)  In adopting rules to administer this chapter, the
13-13    commission shall adopt rules that are based on the results of the
13-14    disparity study prepared by the comptroller under Section 65(c),
13-15    Chapter 684, Acts of the 73rd Legislature, Regular Session, 1993.
13-16    If other similar disparity studies are prepared on behalf of state
13-17    government, the commission shall revise the rules in response to
13-18    the findings of the latest disparity study.  All state agencies and
13-19    institutions of higher education shall adopt the commission rules.
13-20    Each state agency and institution of higher education shall make a
13-21    good faith effort to increase purchases and contract awards to
13-22    historically underutilized businesses based on the rules adopted by
13-23    the commission.
13-24          SECTION 22.  Section 2161.122, Government Code, is amended by
13-25    adding a new Subsection (c) and redesignating Subsections (c) and
13-26    (d) as Subsections (d) and (e) to read as follows:
13-27          (c)  State agencies shall report to the commission in
 14-1    accordance with Section 2161.125 the following information on
 14-2    historically underutilized businesses with regard to the
 14-3    expenditure of both treasury and nontreasury funds:
 14-4                (1)  the total dollar amount of purchases and payments
 14-5    made under contracts awarded to historically underutilized
 14-6    businesses;
 14-7                (2)  the number of contracts awarded to historically
 14-8    underutilized and all other businesses; and
 14-9                (3)  the number of bids, proposals, or other applicable
14-10    expressions of interest made by historically underutilized
14-11    businesses with regard to contracting opportunities with the
14-12    agency.
14-13          (d)  A state agency participating in a group purchasing
14-14    program described under Section 2155.139(b) shall send to the
14-15    commission in the agency's report under Section 2161.121 a separate
14-16    list of purchases from historically underutilized businesses that
14-17    are made through the group purchasing program, including the dollar
14-18    amount of each purchase allocated to the reporting agency.
14-19          (e) [(d)]  A state agency's report is a record of the
14-20    agency's purchases for which the agency selected the vendor.  If
14-21    the vendor was selected by the commission as part of its state
14-22    contract program, the commission shall include the purchase in the
14-23    commission's report of its own purchases unless the commission made
14-24    a sole source purchase for the  agency under Section 2155.067.  The
14-25    state agency for which the purchase was made shall report the
14-26    selection of the vendor on its report as if the agency selected the
14-27    vendor when the agency drew specifications for goods or services
 15-1    that are proprietary to one vendor.
 15-2          SECTION 23.  Section 2161.123, Government Code, is amended by
 15-3    adding Subsections (d), (e), (f), and (g) to read as follows:
 15-4          (d)  The state auditor shall report to the commission a state
 15-5    agency that is not complying with this section or is not making a
 15-6    good faith effort to implement the plan adopted under this section.
 15-7    In determining whether a state agency is making a good faith effort
 15-8    to implement the plan, the state auditor shall consider at a
 15-9    minimum whether the agency has:
15-10                (1)  adopted rules under Section 2161.002;
15-11                (2)  used the commission's directory under Section
15-12    2161.064 and other resources to identify historically underutilized
15-13    businesses that are able and available to contract with the agency;
15-14                (3)  made good faith, timely efforts to contact
15-15    identified historically underutilized businesses regarding
15-16    contracting opportunities; and
15-17                (4)  conducted its procurement program in accordance
15-18    with the good faith effort methodology set out in commission rules.
15-19          (e)  In conducting an audit of an agency's compliance with
15-20    this section or an agency's making of a good faith effort to
15-21    implement the plan adopted under this section, the state auditor
15-22    shall not consider the success or failure of the agency to contract
15-23    with historically underutilized businesses in any specific
15-24    quantity.  The state auditor's review shall be restricted to the
15-25    agency's procedural compliance with Subsection (d).
15-26          (f)  If the state auditor reports to the commission that a
15-27    state agency is not complying with this section or is not making a
 16-1    good faith effort to implement the plan adopted under this section,
 16-2    the commission shall assist the agency in complying with or in
 16-3    making a good faith effort to implement the plan.
 16-4          (g)  If the state auditor reports to the commission under
 16-5    Subsection (d) that a state agency is not complying with this
 16-6    section or is not making a good faith effort to implement the plan
 16-7    adopted under this section and the commission determines that one
 16-8    year after the date of the state auditor's report to the commission
 16-9    the agency is still either not complying with this section or not
16-10    making a good faith effort to implement the plan adopted under this
16-11    section, the commission may revoke the purchasing authority of the
16-12    agency.  If the commission revokes an agency's delegated purchasing
16-13    authority under this section, the comptroller may consider that
16-14    fact in the event the commission needs a transfer of the agency's
16-15    appropriated funds to cover the costs to the commission of assuming
16-16    the agency's purchasing functions.  The amount transferred from the
16-17    agency's funds to the commission shall be an amount determined by
16-18    the Legislative Budget Board.
16-19          SECTION 24.  Subsection (c), Section 2165.104, Government
16-20    Code, is amended to read as follows:
16-21          (c)  To the extent possible without sacrificing critical
16-22    public or client services, the commission may not allocate usable
16-23    office space, as defined by the commission, to a state agency under
16-24    Article I, [or] II, V, VI, VII, or VIII of the General
16-25    Appropriations Act or to the Texas Higher Education Coordinating
16-26    Board, the Texas Education Agency, the State Board for Educator
16-27    Certification, the Telecommunications Infrastructure Fund Board, or
 17-1    the Office of Court Administration of the Texas Judicial System in
 17-2    an amount that exceeds an average of 153 square feet per agency
 17-3    employee for each agency site.  To the extent that any of those
 17-4    agencies allocates its own usable office space, as defined by the
 17-5    commission, the agency shall allocate the space to achieve the
 17-6    required ratio.  This subsection does not apply to:
 17-7                (1)  an agency site at which fewer than 16 employees
 17-8    are located;
 17-9                (2)  warehouse space;
17-10                (3)  laboratory space;
17-11                (4)  storage space exceeding 1,000 gross square feet;
17-12                (5)  library space;
17-13                (6)  space for hearing rooms used to conduct hearings
17-14    required under the administrative procedure law, Chapter 2001; or
17-15                (7)  another type of space specified by commission
17-16    rule, if the commission determines that it is not practical to
17-17    apply this subsection to that space.
17-18          SECTION 25.  Subchapter A, Chapter 2170, Government Code, is
17-19    amended by adding Sections 2170.009 and 2170.010 to read as
17-20    follows:
17-21          Sec. 2170.009.  PAY TELEPHONES AUTHORIZED.  (a)  A pay
17-22    telephone may be located in the Capitol Complex only with the
17-23    approval of the commission.  The commission shall collect the
17-24    revenue from the installation and operation of the pay telephone
17-25    and deposit it to the credit of the general revenue fund.
17-26          (b)  In a state-owned or state-leased building or on
17-27    state-owned land to which Subsection (a) does not apply, a pay
 18-1    telephone may be installed only with the approval of the governing
 18-2    body of the state entity that has charge and control of the
 18-3    building or land.  The entity shall collect the revenue from the
 18-4    installation and operation of the pay telephone and deposit it to
 18-5    the credit of the general revenue fund unless the disposition of
 18-6    the revenue is governed by other law.
 18-7          (c)  The commission or other state entity shall account for
 18-8    the revenue collected under this section in the entity's annual
 18-9    report.
18-10          Sec. 2170.010.  UNLISTED TELEPHONE NUMBERS PROHIBITED.  A
18-11    state agency and its officers and employees may not buy, rent, or
18-12    pay toll charges for a telephone for which the telephone number is
18-13    not listed or available from directory assistance to the general
18-14    public unless the unlisted telephone number is used:
18-15                (1)  to provide access to computers, telephone system
18-16    control centers, long-distance networks, elevator control systems,
18-17    and other tone-controlled devices for which restricted access to
18-18    the telephone number is justified for security or other purposes;
18-19                (2)  in narcotics undercover operations; or
18-20                (3)  in the detection of illegal sales of securities.
18-21          SECTION 26.  Section 2170.051, Government Code, is amended to
18-22    read as follows:
18-23          Sec. 2170.051.  MANAGEMENT AND USE OF SYSTEM.  (a)  The
18-24    commission shall manage the operation of a system of
18-25    telecommunications services for all state agencies.  Each agency
18-26    shall identify its particular requirements for telecommunications
18-27    services and the site at which the services are to be provided.
 19-1          (b)  The commission shall fulfill the telecommunications
 19-2    requirements of each state agency to the extent possible and to the
 19-3    extent that money is appropriated or available for that purpose.
 19-4          (c)  A state agency shall use the consolidated
 19-5    telecommunications system to the fullest extent possible.  A state
 19-6    agency may not acquire telecommunications services unless the
 19-7    telecommunications planning group determines that the agency's
 19-8    requirement for telecommunications services cannot be met at a
 19-9    comparable cost by the consolidated telecommunications system.
19-10          (d)  A state agency may not enter into or renew a contract
19-11    with a carrier or other provider of telecommunications services
19-12    without obtaining a waiver from the telecommunications planning
19-13    group certifying that the requested telecommunications services
19-14    cannot be provided at a comparable cost on the consolidated
19-15    telecommunications system.  The telecommunications planning group
19-16    shall evaluate requests for waivers based on cost-effectiveness to
19-17    the state government as a whole.  A waiver may be granted only for
19-18    a specific period and will automatically expire on the stated
19-19    expiration date unless an extension is approved by the
19-20    telecommunications planning group.  A contract for
19-21    telecommunications services obtained under waiver may not extend
19-22    beyond the expiration date of the waiver.  If the
19-23    telecommunications planning group becomes aware of any state agency
19-24    receiving telecommunications services without a waiver, the
19-25    telecommunications planning group shall notify the agency and the
19-26    comptroller.  The state agency shall have 60 days after
19-27    notification by the telecommunications planning group in which to
 20-1    submit a waiver request to the telecommunications planning group
 20-2    documenting the agency's reasoning for bypassing the consolidated
 20-3    telecommunications system and otherwise providing all information
 20-4    required by the waiver application form.
 20-5          SECTION 27.  Subsection (b), Section 2170.057, Government
 20-6    Code, is amended to read as follows:
 20-7          (b)  The comptroller shall establish in the state treasury a
 20-8    revolving fund account for the administration of this chapter.  The
 20-9    account shall be used as a depository for money received from
20-10    entities served.  Receipts attributable to the centralized capitol
20-11    complex telephone system shall be deposited into the account but
20-12    separately identified within the account.
20-13          SECTION 28.  Section 2201.002, Government Code, is amended by
20-14    adding Subsection (c) to read as follows:
20-15          (c)  The fund may not be used to pay salaries.
20-16          SECTION 29.  Chapter 2203, Government Code, is amended by
20-17    adding Sections 2203.004 and 2203.005 to read as follows:
20-18          Sec. 2203.004.  REQUIREMENT TO USE STATE PROPERTY FOR STATE
20-19    PURPOSES.  State property may be used only for state purposes.  A
20-20    person may not entrust state property to a state officer or
20-21    employee or to any other person if the property is not to be used
20-22    for state purposes.
20-23          Sec. 2203.005.  VENDING MACHINES AUTHORIZED.  (a)  In a
20-24    state-owned or state-leased building or on state-owned or
20-25    state-leased property that is not served by a vendor operating
20-26    under the supervision of the Texas Commission for the Blind, a
20-27    vending machine may be located in the building or on the property
 21-1    only with the approval of the governing body of the state agency
 21-2    that has charge and control of the building or property.  The
 21-3    approval must be recorded in the minutes of a meeting of the
 21-4    governing body.
 21-5          (b)  The state agency shall file with the General Services
 21-6    Commission a copy of all contracts between the state agency and the
 21-7    vendor related to the vending machine and a written description of
 21-8    the location of the vending machine.
 21-9          (c)  All rentals, commissions, or other net revenue the state
21-10    agency receives in connection with the vending machine shall be
21-11    accounted for as state money and deposited to the credit of the
21-12    general revenue fund unless the disposition of the revenue is
21-13    governed by other law.  The state agency shall account for the
21-14    revenue received under this section in the agency's annual report.
21-15          (d)  In a state-owned or state-leased building or on
21-16    state-owned or state-leased property that is served by a vendor
21-17    operating under the supervision of the Texas Commission for the
21-18    Blind, a vending machine may be located and operated in the
21-19    building or on the property only under a joint contract with the
21-20    owners of the vending machine and the vendor operating under the
21-21    supervision of the Texas Commission for the Blind.
21-22          SECTION 30.  Subchapter A, Chapter 2204, Government Code, is
21-23    amended by adding Sections 2204.002 and 2204.003 to read as
21-24    follows:
21-25          Sec. 2204.002.  RESTRICTION ON ACQUISITION OF REAL PROPERTY.
21-26    A state agency, as defined by Section 658.001, may not accept a
21-27    gift or devise of real property or spend appropriated money to
 22-1    purchase real property without statutory authority or other
 22-2    legislative authorization.
 22-3          Sec. 2204.003.  GIFTS OF REAL PROPERTY TO INSTITUTIONS OF
 22-4    HIGHER EDUCATION.  An institution of higher education, as defined
 22-5    by Section 61.003, Education Code, may accept a gift or devise of
 22-6    real property from a private entity to establish scholarships or
 22-7    professorships or to be held in trust for other educational
 22-8    purposes only if the administrative head or the presiding officer
 22-9    of the governing body of the institution certifies to the
22-10    Legislative Budget Board that an appropriation of educational and
22-11    general funds will not be required in the future to operate,
22-12    maintain, repair, or construct a building on the property.
22-13          SECTION 31.  Section 2251.030, Government Code, is amended to
22-14    read as follows:
22-15          Sec. 2251.030.  PROMPT OR EARLY PAYMENT DISCOUNT.  (a)  The
22-16    intent of the legislature is that a governmental entity should take
22-17    advantage of an offer for an early payment discount.  A state
22-18    agency shall when possible negotiate a prompt payment discount with
22-19    a vendor.
22-20          (b)  A governmental entity may not take an early payment
22-21    discount a vendor offers unless the governmental entity makes a
22-22    full payment within the discount period.
22-23          (c)  If a governmental entity takes an early payment discount
22-24    later, the unpaid balance accrues interest beginning on the date
22-25    the discount offer expires.
22-26          (d)  A state agency, when paying for goods and services
22-27    purchased under an agreement that includes a prompt or early
 23-1    payment discount, shall submit the necessary payment documents or
 23-2    information to the comptroller sufficiently in advance of the
 23-3    prompt or early payment deadline to allow the comptroller or the
 23-4    agency to pay the vendor in time to obtain the discount.
 23-5          SECTION 32.  Section 2252.901, Government Code, is amended to
 23-6    read as follows:
 23-7          Sec. 2252.901.  CONTRACTS WITH FORMER OR RETIRED AGENCY
 23-8    EMPLOYEES.  (a)  A state agency may not enter into an employment
 23-9    contract, a professional services contract under Chapter 2254, or a
23-10    consulting services contract under Chapter 2254 with a former or
23-11    retired employee of the agency before the first anniversary of the
23-12    last date on which the individual was employed by the agency, if
23-13    appropriated money will be used to make payments under the
23-14    contract.
23-15          (b)  A state agency that contracts at any time with a retired
23-16    agency employee to perform services substantially similar to the
23-17    services the retiree performed for the agency during the last 12
23-18    months of service before retirement may not make payments under the
23-19    contract from any source of revenue at an annualized rate that
23-20    exceeds the lesser of:
23-21                (1)  the rate of compensation the retiree received from
23-22    the state during the last 12 months of service before retirement;
23-23    or
23-24                (2)  $60,000.
23-25          (c) [(b)]  The contract payment limitation provided by
23-26    Subsection (b) [(a)] does not apply during the first six months a
23-27    retiree performs services under a contract after retirement, except
 24-1    that if a retiree performs services under the contract for more
 24-2    than six months, the limitation applies to the entire term of the
 24-3    contract.
 24-4          (d) [(c)]  In this section:
 24-5                (1)  "Employment contract" includes a personal services
 24-6    contract regardless of whether the performance of the contract
 24-7    involves the traditional relationship of employer and employee.
 24-8    The term does not apply to an at-will employment relationship that
 24-9    involves the traditional relationship of employer and employee.
24-10                (2)  "Retired agency employee" means a person:
24-11                      (A)  whose last state service before retirement
24-12    was for the state agency with which the retiree contracts to
24-13    perform services; and
24-14                      (B)  who is a retiree of:
24-15                            (i)  the employee class of membership of
24-16    the Employees Retirement System of Texas; or
24-17                            (ii)  the Teacher Retirement System of
24-18    Texas, the majority of whose service was credited in that system in
24-19    a position with a state agency.
24-20                (3) [(2)]  "State agency" includes a "public senior
24-21    college or university," as that term is defined by Section 61.003,
24-22    Education Code.
24-23          SECTION 33.  Subchapter A, Chapter 2254, Government Code, is
24-24    amended by adding Section 2254.0031 to read as follows:
24-25          Sec. 2254.0031.  INDEMNIFICATION.  A state governmental
24-26    entity may require a contractor selected under this subchapter to
24-27    indemnify or hold harmless the state from claims and liabilities
 25-1    resulting from the negligent acts or omissions of the contractor or
 25-2    persons employed by the contractor.  A state governmental entity
 25-3    may not require a contractor to indemnify or hold harmless the
 25-4    state for claims or liabilities resulting from the negligent acts
 25-5    or omissions of the state governmental entity or its employees.
 25-6          SECTION 34.  Subchapter B, Chapter 205, Labor Code, is
 25-7    amended by adding Section 205.019 to read as follows:
 25-8          Sec. 205.019.  REIMBURSEMENT FROM NON-TREASURY FUNDS.  (a)  A
 25-9    branch, department, or other instrumentality of this state that
25-10    reimburses the commission with funds that are held outside the
25-11    state treasury shall reimburse the commission by writing a check to
25-12    the commission for deposit into the appropriate unemployment
25-13    compensation account.  A deposit under this section shall be made
25-14    not later than the 30th day after the date the instrumentality
25-15    receives the commission's statement of amounts due.
25-16          (b)  The commission shall send a copy of each statement of
25-17    amounts due from a branch, department, or other instrumentality of
25-18    this state that reimburses the commission with funds that are held
25-19    outside the state treasury to the comptroller and the state
25-20    auditor.
25-21          (c)  A branch, department, or other instrumentality affected
25-22    by this section may allocate appropriate funds to a revolving
25-23    account on its books to receive contributions from funds other than
25-24    general revenue funds, based on an assessment it determines to be
25-25    appropriate for the purpose of reimbursing the appropriate
25-26    unemployment compensation account for benefits paid.
25-27          (d)  The state auditor shall review affected entities for
 26-1    compliance with this section.
 26-2          SECTION 35.  The chapter heading to Chapter 506, Labor Code,
 26-3    is amended to read as follows:
 26-4      CHAPTER 506.  MISCELLANEOUS PROVISIONS APPLICABLE TO GOVERNMENT
 26-5                 EMPLOYEES [PAYMENT OF CERTAIN JUDGMENTS]
 26-6          SECTION 36.  Chapter 506, Labor Code, is amended by adding
 26-7    Section 506.002 to read as follows:
 26-8          Sec. 506.002.  REIMBURSEMENT FROM NON-TREASURY FUNDS.
 26-9    (a)  An agency or other instrumentality of state government that,
26-10    with funds that are held outside the state treasury, reimburses the
26-11    general revenue fund for workers' compensation payments made out of
26-12    the general revenue fund to former or current employees of the
26-13    agency or other instrumentality shall reimburse the general revenue
26-14    fund by writing a check to the comptroller:
26-15                (1)  for deposit into the appropriate account in the
26-16    general revenue fund; and
26-17                (2)  not later than 30 days after receiving the
26-18    statement of amounts due.
26-19          (b)  The workers' compensation division of the office of the
26-20    attorney general shall send to the comptroller and the state
26-21    auditor a copy of each statement of amounts due from an agency or
26-22    other instrumentality of state government that, with funds that are
26-23    held outside the state treasury, reimburses the general revenue
26-24    fund for workers' compensation payments made out of the general
26-25    revenue fund.
26-26          (c)  An agency or other instrumentality of state government
26-27    affected by this section may allocate appropriate funds to a
 27-1    revolving account on its books to receive contributions from funds
 27-2    other than general revenue funds, based on an assessment it
 27-3    determines to be appropriate for the purpose of reimbursing the
 27-4    general revenue fund for the workers' compensation payments made to
 27-5    its current or former employees.
 27-6          (d)  The state auditor shall review affected entities for
 27-7    compliance with this section.
 27-8          SECTION 37.  Subchapter D, Chapter 11, Natural Resources
 27-9    Code, is amended by adding Section 11.0791 to read as follows:
27-10          Sec. 11.0791.  OTHER PROVISIONS REGARDING ACCESS TO STATE
27-11    LANDS.  When a state governmental entity sells state land, the
27-12    entity shall require that the state have the right of ingress and
27-13    egress to remaining state land in the immediate area by an easement
27-14    to a public thoroughfare.
27-15          SECTION 38.  Subchapter D, Chapter 11, Natural Resources
27-16    Code, is amended by adding Section 11.083 to read as follows:
27-17          Sec. 11.083.  RETENTION OF MINERAL RIGHTS.  The state shall
27-18    retain the mineral rights to state land that is sold unless it is
27-19    impractical to do so.
27-20          SECTION 39.  Section 31.401, Natural Resources Code, is
27-21    amended to read as follows:
27-22          Sec. 31.401.  NATURAL GAS ACQUISITION CONTRACTS.  (a)  The
27-23    land office shall review and must approve any contract entered into
27-24    by a state agency for the acquisition of an annual average of 100
27-25    MCF per day or more of natural gas used to meet its [in the
27-26    production of] energy requirements.
27-27          (b)  Before approving a contract described by Subsection (a)
 28-1    of this section, the land office shall ensure that the agency, to
 28-2    meet its energy requirements, is using, to the greatest extent
 28-3    practical, natural gas produced from land leased from:
 28-4                (1)  the school land board;
 28-5                (2)  a board for lease other than the Board for Lease
 28-6    of University Lands; or
 28-7                (3)  the surface owner of Relinquishment Act land.
 28-8          (c)  If the land office is able to substitute a contract
 28-9    using in-kind royalty gas from state-owned lands or using other gas
28-10    for a contract under which a state agency acquires or proposes to
28-11    acquire its natural gas supplies, the commissioner shall inform the
28-12    comptroller each month of the amount of savings attributable to the
28-13    substitution.
28-14          (d)  In this section, "state agency" has the meaning assigned
28-15    by Subchapter A, Chapter 572, Government Code.
28-16          SECTION 40.  Subsection (d), Section 403.273, Government
28-17    Code, is repealed.
28-18          SECTION 41.  Subsection (c), Section 2165.104, Government
28-19    Code, as amended by this Act, does not apply to the Texas Higher
28-20    Education Coordinating Board or the State Board for Educator
28-21    Certification until the expiration of all leases under which the
28-22    board occupies office space on the effective date of this Act.
28-23          SECTION 42.  This Act does not affect the authority of an
28-24    institution of higher education to collect, account for, and
28-25    control local funds and institutional funds in the manner
28-26    authorized by Subchapter A, Chapter 51, Education Code.
28-27          SECTION 43.  This section provides, for information purposes
 29-1    only, a derivation table for the provisions of the General
 29-2    Appropriations Act that are codified in general law by other
 29-3    sections of this Act.  The first column identifies the codified
 29-4    law; all references are to the Government Code unless otherwise
 29-5    noted.  The second column identifies for each codified law the
 29-6    applicable source provision in Article IX of the General
 29-7    Appropriations Act for the fiscal biennium ending August 31, 1999
 29-8    (Chapter 1452, Acts of the 75th Legislature, Regular Session,
 29-9    1997).
29-10               Codified Law                       Source Provision
29-11    Sec.  101.027(a), Civil Practice         Sec. 61
29-12     and Remedies Code
29-13    Sec.  106.001(c), Civil Practice         Sec. 124.11
29-14     and Remedies Code
29-15    Sec.  306.007                            Sec. 40.2
29-16    Sec.  321.013(c)                         Sec. 176, 124.8 (part)
29-17    Sec.  321.014(c)                         Sec. 91
29-18    Sec.  325.011(9)(b)                      Sec. 124.10
29-19    Sec.  403.097                            Sec. 32.2
29-20    Sec.  403.245(b)                         Sec. 126
29-21    Sec.  771.008(d)                         Sec. 78
29-22    Sec.  811.001(7)                         Sec. 181, last sent. 
29-23    Sec.  2001.039                           Sec. 167
29-24    Sec.  2052.304                           Sec. 40.3
29-25    Sec.  2054.003(6)                        Sec. 43.1.a
29-26    Sec.  2054.121                           Sec. 43.5
29-27    Sec.  2054.122                           Sec. 156
 30-1    Sec.  2101.0377                          Sec. 70
 30-2    Sec.  2155.084                           Sec. 135, 1st 2 par. 
 30-3    Sec.  2155.132(a)                        Sec. 90
 30-4    Sec.  2155.268                           Sec. 56
 30-5    Sec.  2155.4441                          Sec. 53
 30-6    Sec.  2158.0031                          Sec. 20.3, 1st sent. 
 30-7    Sec.  2161.002(c)                        Sec. 124.5
 30-8    Sec.  2161.122(c)                        Sec. 124.6, 124.7
 30-9    Sec.  2161.123(d)-(g)                    Sec. 124.8, 124.9
30-10    Sec.  2165.104(c)                        Sec. 154, except last sent. 
30-11    Sec.  2170.009                           Sec. 111 (most)
30-12    Sec.  2170.010                           Sec. 141
30-13    Secs. 2170.051(c), (d)                   Sec. 140
30-14    Sec.  2170.057(b)                        Sec. 139, 2nd par. 
30-15    Sec.  2201.002(c)                        Sec. 150.2
30-16    Sec.  2203.004                           Sec. 149
30-17    Sec.  2203.005                           Sec. 110 (most)
30-18    Sec.  2204.002                           Sec. 135, 3rd par., 1st
30-19                                              sent. 
30-20    Sec.  2204.003                           Sec. 135, 3rd par., 2nd
30-21                                              sent. 
30-22    Sec.  2251.030                           Sec. 79
30-23    Sec.  2252.901                           Sec. 52
30-24    Sec.  2254.0031                          Sec. 51
30-25    Sec.  205.019, Labor Code                Sec. 80 (part)
30-26    Sec.  506.002, Labor Code                Sec. 81 (part)
30-27    Sec.  11.0791, Natural Resources Code    Sec. 148, 1st par. 
 31-1    Sec.  11.083, Natural Resources Code     Sec. 147
 31-2    Sec.  31.401, Natural Resources Code     Sec. 144 (part)
 31-3          SECTION 44.  This Act takes effect September 1, 1999.
 31-4          SECTION 45.  The importance of this legislation and the
 31-5    crowded condition of the calendars in both houses create an
 31-6    emergency and an imperative public necessity that the
 31-7    constitutional rule requiring bills to be read on three several
 31-8    days in each house be suspended, and this rule is hereby suspended.