By McCall                                             H.B. No. 3211
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to state fiscal matters, including the printing and
 1-3     cancellation of certain warrants, consulting services, payroll
 1-4     deductions for savings bond purchases, advance payments, the
 1-5     collection of debts to the state, the collection of delinquent
 1-6     taxes, and the methods used by state agencies to make and receive
 1-7     payments.
 1-8           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-9           SECTION 1.  Section 57.48, Education Code, is amended to read
1-10     as follows:
1-11           Sec. 57.48.  PAYMENTS BY THE COMPTROLLER [WARRANTS NOT TO BE
1-12     ISSUED] TO DEFAULTING PERSONS PROHIBITED [PARTIES].  (a)  Except as
1-13     provided by Subsection (g), the [The] corporation shall report to
1-14     the comptroller [of public accounts] the name of any person who is
1-15     in default on a loan guaranteed under this chapter.  The report
1-16     must contain the information and be submitted in the manner and
1-17     with the frequency required by rules of the comptroller.
1-18           (b)  Except as provided by this section, the [The]
1-19     comptroller, as a ministerial duty, [of public accounts] may not
1-20     issue a warrant or initiate an electronic funds transfer to a [any]
1-21     person who has been reported properly under Subsection (a) [by the
1-22     corporation to be in default on a loan guaranteed under this
1-23     chapter].
1-24           (c)  The comptroller may not issue a warrant or initiate an
 2-1     electronic funds transfer to the assignee of a person who has been
 2-2     reported properly under Subsection (a) [is in default only] if the
 2-3     assignment became effective after [before] the person defaulted.
 2-4           (d)  If this section prohibits the comptroller from issuing a
 2-5     warrant or initiating an electronic funds transfer to a person, the
 2-6     comptroller may not issue a warrant or initiate an electronic funds
 2-7     transfer to:
 2-8                 (1)  the person's estate;
 2-9                 (2)  the distributees of the person's estate; or
2-10                 (3)  the person's surviving spouse.
2-11           (e)  This [(d)  When this] section does not prohibit
2-12     [prohibits] the comptroller from issuing a warrant or initiating an
2-13     electronic funds transfer to a person reported properly under
2-14     Subsection (a) or to the assignee of the person if the corporation
2-15     subsequently and properly reports to [,] the comptroller that:
2-16                 (1)  the person is complying with an installment
2-17     payment agreement or similar agreement to eliminate the default,
2-18     unless the corporation subsequently and properly reports to the
2-19     comptroller that the person no longer is complying with the
2-20     agreement;
2-21                 (2)  the default is being eliminated by deductions of
2-22     money from the person's compensation under the garnishment
2-23     provisions of 20 U.S.C. Section 1095a, unless the corporation
2-24     subsequently and properly reports to the comptroller that the
2-25     default is no longer being eliminated by the deductions;
2-26                 (3)  the default has been eliminated; or
2-27                 (4)  the report of default was prohibited by Subsection
 3-1     (g) or was otherwise erroneous [is also prohibited from using an
 3-2     electronic funds transfer system to pay the person].
 3-3           (f) [(e)]  This section does not prohibit the comptroller
 3-4     from issuing a warrant or initiating an electronic funds transfer
 3-5     to pay [the compensation of]:
 3-6                 (1)  the compensation of a state officer or employee;
 3-7     or
 3-8                 (2)  the remuneration of an individual if the
 3-9     remuneration [whose compensation] is being paid by a private person
3-10     through a state agency.
3-11           (g)  The corporation may not report a person under Subsection
3-12     (a) unless the corporation first provides the person with an
3-13     opportunity to exercise any due process or other constitutional or
3-14     statutory protection that must be accommodated before the
3-15     corporation may begin a collection action or procedure.  The
3-16     comptroller may not investigate or determine whether the
3-17     corporation has complied with this prohibition [(f)(1)  This
3-18     subsection applies when a payment is made to a person other than
3-19     through the comptroller's issuance of a warrant or the
3-20     comptroller's use of an electronic funds transfer system.]
3-21                 [(2)  A state agency may not use funds inside or
3-22     outside the state treasury to pay a person if the person is in
3-23     default on a loan guaranteed under this chapter.]
3-24                 [(3)  This subsection does not prohibit a state agency
3-25     from paying the assignee of a person who is in default on a loan
3-26     guaranteed under this chapter if the assignment became effective
3-27     before the person defaulted.]
 4-1                 [(4)  This subsection does not prohibit a state agency
 4-2     from paying the compensation of:]
 4-3                       [(A)  a state officer or employee; or]
 4-4                       [(B)  an individual whose compensation is being
 4-5     paid by a private person through the agency.]
 4-6                 [(5)  The comptroller may not reimburse a state agency
 4-7     for a payment that is made in violation of this subsection].
 4-8           (h)  This section does not prohibit the comptroller from
 4-9     issuing a warrant or initiating an electronic funds transfer if:
4-10                 (1)  the warrant or transfer would result in a payment
4-11     being made in whole or in part with money paid to the state by the
4-12     United States; and
4-13                 (2)  the state agency that administers the money
4-14     certifies to the comptroller that federal law:
4-15                       (A)  requires the payment to be made; or
4-16                       (B)  conditions the state's receipt of the money
4-17     on the payment being made.
4-18           (i)  The comptroller may adopt rules and establish procedures
4-19     to administer this section.
4-20           (j) [(g)]  In this section:
4-21                 (1)  "Compensation" means base salary or [includes]
4-22     wages, [salaries,] longevity pay, hazardous duty pay, benefit
4-23     replacement pay, or an emolument [and emoluments that are] provided
4-24     in lieu of base salary or wages [or salaries].  [The term does not
4-25     include expense reimbursements.]
4-26                 (2)  "State agency" means a board, commission, council,
4-27     committee, department, office, agency, or other governmental entity
 5-1     in the executive, legislative, or judicial branch of state
 5-2     government.  The term includes an institution of higher education
 5-3     as defined by Section 61.003, other than a public junior or
 5-4     community college [Education Code].
 5-5                 (3)  "State officer or employee" means an officer or
 5-6     employee of a state agency.
 5-7           SECTION 2.  Subchapter C, Chapter 57, Education Code, is
 5-8     amended by adding Section 57.482 to read as follows:
 5-9           Sec. 57.482.  PAYMENTS BY A STATE AGENCY TO DEFAULTING
5-10     PERSONS PROHIBITED.  (a)  A state agency, as a ministerial duty,
5-11     may not use funds inside or outside the state treasury to pay a
5-12     person or the person's assignee if Section 57.48 prohibits the
5-13     comptroller from issuing a warrant or initiating an electronic
5-14     funds transfer to the person or assignee.
5-15           (b)  A state agency that is prohibited by Subsection (a) from
5-16     making a payment to a person also is prohibited from paying any
5-17     part of that payment to:
5-18                 (1)  the person's estate;
5-19                 (2)  the distributees of the person's estate; or
5-20                 (3)  the person's surviving spouse.
5-21           (c)  The comptroller may not reimburse a state agency for a
5-22     payment that the comptroller determines was made in violation of
5-23     this section.
5-24           (d)  This section applies to a payment only if the
5-25     comptroller is not responsible under Section 404.046, 404.069, or
5-26     2103.003, Government Code, for issuing a warrant or initiating an
5-27     electronic funds transfer to make the payment.
 6-1           (e)  In this section, "state agency" has the meaning assigned
 6-2     by Section 57.48.
 6-3           SECTION 3.  Section 62.021(a), Education Code, is amended to
 6-4     read as follows:
 6-5           (a)  Each fiscal year, an eligible institution is entitled to
 6-6     receive an amount allocated in accordance with this section from
 6-7     funds appropriated by Section 17(a), Article VII, Texas [Section
 6-8     17(a), of the] Constitution [of Texas].  The comptroller [of public
 6-9     accounts] shall distribute funds allocated under this subsection
6-10     only on presentation of a claim and issuance of a warrant in
6-11     accordance with Section 403.071, Government Code.  The comptroller
6-12     may not issue a warrant from any funds allocated under this
6-13     subsection before the delivery of goods or services described in
6-14     Section 17, Article VII, Texas Constitution, except for the payment
6-15     of principal or interest on bonds or notes or for a payment for a
6-16     book or other published library material as authorized by Section
6-17     2155.386, Government Code.  The allocation of funds under this
6-18     subsection is made in accordance with an equitable formula
6-19     consisting of the following elements:  space deficit, facilities
6-20     condition, institutional complexity, separate allocations for
6-21     medical units and the Texas State Technical College System, and an
6-22     additional allocation for Texas Southern University for compliance
6-23     with the Texas Desegregation Plan.  The amounts allocated by the
6-24     formula are as follows:
6-25     $ 5,572,558    East Texas State University including East Texas
6-26                    State University at Texarkana;
6-27     $ 9,468,548    Lamar University including Lamar University at
 7-1                    Orange and Lamar University at Port Arthur;
 7-2     $ 2,862,203    Midwestern State University;
 7-3     $20,217,740    University of North Texas;
 7-4     $10,174,500    The University of Texas--Pan American and The
 7-5                    University of Texas at Brownsville;
 7-6     $ 6,468,273    Stephen F. Austin State University;
 7-7     $ 3,640,000    University of North Texas Health Science Center at
 7-8                    Fort Worth;
 7-9     $23,181,556    Texas State University System Administration and the
7-10                    following component institutions:  Angelo State
7-11                    University; Sam Houston State University; Southwest
7-12                    Texas State University; Sul Ross State University
7-13                    including Uvalde Center;
7-14     $ 8,199,288    Texas Southern University (includes allocation of
7-15                    $1,000,000 for compliance with Texas Desegregation
7-16                    Plan);
7-17     $16,887,085    Texas Tech University;
7-18     $ 7,735,000    Texas Tech University Health Sciences Center;
7-19     $ 6,849,160    Texas Woman's University;
7-20     $37,726,969    University of Houston System Administration and the
7-21                    following component institutions: University of
7-22                    Houston; University of Houston--Victoria; University
7-23                    of Houston--Clear Lake; University of
7-24                    Houston--Downtown;
7-25     $12,167,120    Texas A & M University--Corpus Christi; Texas A & M
7-26                    International University; Texas A & M
7-27                    University--Kingsville; West Texas A & M University;
 8-1                    and
 8-2     $ 3,850,000    Texas State Technical College System Administration
 8-3                    and the following component campuses, but not its
 8-4                    extension centers or programs: Texas State Technical
 8-5                    College-Amarillo; Texas State Technical
 8-6                    College-Harlingen; Texas State Technical
 8-7                    College-Sweetwater; Texas State Technical
 8-8                    College--Waco.
 8-9           SECTION 4.  Section 231.007, Family Code, is amended to read
8-10     as follows:
8-11           Sec. 231.007.  DEBTS TO STATE.  (a)  A person obligated to
8-12     pay child support in a case in which the Title IV-D agency is
8-13     providing services under this chapter who does not pay the required
8-14     [child] support is indebted [in debt] to the state for the purposes
8-15     of Section 403.055, Government Code, if the Title IV-D agency has
8-16     reported the person to the comptroller under that section properly.
8-17           (b)  The amount of a person's indebtedness [debt of a person
8-18     in debt] to the state under [as provided by] Subsection (a) is
8-19     equal to the sum of:
8-20                 (1)  the amount of the required child support that has
8-21     [is past due and] not been paid; and
8-22                 (2)  any interest, fees, court costs, or other amounts
8-23     owed by the person because the person has not paid [as a result of
8-24     the person's failure to pay] the [child] support.
8-25           (c)  The Title IV-D agency is the sole [an] assignee of all
8-26     payments, including payments of compensation, by the state to a
8-27     person indebted [in debt] to the state under Subsection (a) [as
 9-1     provided by this section.  The assignment takes effect before the
 9-2     date the person's debt to the state arose].
 9-3           (d)  On request of the Title IV-D agency:
 9-4                 (1)  the comptroller shall make payable and deliver to
 9-5     the agency any payments for which the agency is the assignee under
 9-6     Subsection (c), if the comptroller is responsible for issuing
 9-7     warrants or initiating electronic funds transfers to make those
 9-8     payments; and
 9-9                 (2)  a state agency shall make payable and deliver to
9-10     the Title IV-D agency any payments for which the Title IV-D agency
9-11     is the assignee under Subsection (c) if the comptroller is not
9-12     responsible for issuing warrants or initiating electronic funds
9-13     transfers to make those payments.
9-14           (e) [(d)]  A person indebted [in debt] to the state under
9-15     Subsection (a) [as provided by this section] may eliminate the
9-16     [person's] debt by:
9-17                 (1)  paying the entire amount of the debt; or
9-18                 (2)  resolving the debt in a manner acceptable to the
9-19     Title IV-D agency.
9-20           (f) [(e)]  The comptroller or a state agency may rely on a
9-21     representation by the Title IV-D agency that:
9-22                 (1)  a person is indebted [in debt] to the state under
9-23     Subsection (a) [as provided by this section]; or
9-24                 (2)  a person who was indebted [in debt] to the state
9-25     under Subsection (a) has eliminated the [person's] debt [as
9-26     provided by this section].
9-27           (g)  Except as provided by Subsection (h) [(f)  In this
 10-1    section], the payment of workers' compensation benefits to a person
 10-2    indebted [in debt] to the state under Subsection (a) is the same
 10-3    for the purposes of this section as any other payment made to the
 10-4    person by the state.  Notwithstanding Section 408.203, Labor Code,
 10-5    an order or writ to withhold income from workers' compensation
 10-6    benefits is not required before the benefits are withheld or
 10-7    assigned under this section.
 10-8          (h) [(g)]  The amount of weekly workers' compensation
 10-9    benefits that may be withheld or assigned under this section may
10-10    not exceed the percentage of the person's benefits that would apply
10-11    if the benefits equalled the person's monthly net resources as
10-12    provided by Chapter 154, except that in no event may more than 50
10-13    percent of the person's weekly compensation benefits be withheld or
10-14    assigned.  The comptroller or a state agency may rely on a
10-15    representation by the Title IV-D agency that a withholding or
10-16    assignment under this section would not violate this subsection.
10-17          (i) [(h)]  Notwithstanding Section 403.055 [Sections
10-18    403.055(c) and (e)(4)], Government Code, the comptroller may not
10-19    issue a warrant or initiate an electronic funds transfer to pay:
10-20                (1)  the compensation of a state officer or employee
10-21    who is indebted [in debt] to the state under Subsection (a); or
10-22                (2)  the remuneration of an individual who is being
10-23    paid by a private person through a state agency, if the individual
10-24    is indebted to the state under Subsection (a) [as provided by this
10-25    section].
10-26          (j)  Notwithstanding Section 2107.008, Government Code, a
10-27    state agency may not pay:
 11-1                (1)  compensation to a state officer or employee who is
 11-2    indebted to the state under Subsection (a); or
 11-3                (2)  remuneration to an individual who is being paid by
 11-4    a private person through the agency if the individual is indebted
 11-5    to the state under Subsection (a).
 11-6          (k) [(i)]  In this section, "compensation," "state agency,"
 11-7    and "state officer or employee" have ["compensation" has] the
 11-8    meanings [meaning] assigned by Section 403.055[(f)(1)], Government
 11-9    Code[, and includes the payment of workers' compensation benefits].
11-10          SECTION 5.  Section 403.011, Government Code, is amended to
11-11    read as follows:
11-12          Sec. 403.011.  GENERAL POWERS.  The comptroller shall:
11-13                (1)  obtain a seal with "Comptroller's Office, State of
11-14    Texas" engraved around the margin and a five-pointed star in the
11-15    center, to be used as the seal of the office to authenticate
11-16    official acts, except warrants drawn on the state treasury;
11-17                (2)  adopt regulations the comptroller considers
11-18    essential to the speedy and proper assessment and collection of
11-19    state revenues;
11-20                (3)  supervise, as the sole accounting officer of the
11-21    state, the state's fiscal concerns and manage those concerns as
11-22    required by law;
11-23                (4)  require all accounts presented to the comptroller
11-24    for settlement not otherwise provided for by law to be made on
11-25    forms that the comptroller prescribes;
11-26                (5)  prescribe and furnish the form or electronic
11-27    format to be used in the collection of public revenue;
 12-1                (6)  prescribe the mode and manner of keeping and
 12-2    stating of accounts of persons collecting state revenue;
 12-3                (7)  prescribe forms or electronic formats of the same
 12-4    class, kind, and purpose so that they are uniform in size,
 12-5    arrangement, matter, and form;
 12-6                (8)  require each person receiving money or managing or
 12-7    having disposition of state property of which an account is kept in
 12-8    the comptroller's office periodically to render statements of the
 12-9    money or property to the comptroller;
12-10                (9)  require each person who has received and not
12-11    accounted for state money to settle the person's account;
12-12                (10)  keep and settle all accounts in which the state
12-13    is interested;
12-14                (11)  examine and settle the account of each person
12-15    indebted to the state, verify the amount or balance, and direct and
12-16    supervise the collection of the money;
12-17                (12)  audit claims against the state the payment of
12-18    which is provided for by law, unless the audit is otherwise
12-19    specially provided for;
12-20                (13)  determine the method for auditing claims against
12-21    the state in a cost-effective manner, including [but not limited
12-22    to] the use of stratified and statistical sampling techniques in
12-23    conjunction with automated edits;
12-24                (14)  maintain the necessary records and data for each
12-25    approved claim against the state so that an adequate audit can be
12-26    performed and the comptroller can submit a report to each house of
12-27    the legislature, upon request, stating the name and amount of each
 13-1    approved claim;
 13-2                (15)  keep and state each account between the state and
 13-3    the United States;
 13-4                (16)  keep journals through which all entries are made
 13-5    in the ledger;
 13-6                (17)  draw warrants on the treasury for payment of all
 13-7    money required by law to be paid from the treasury on warrants
 13-8    drawn by the comptroller;
 13-9                (18)  suggest plans for the improvement and management
13-10    of the general revenue; and
13-11                (19)  preserve the books, records, papers, and other
13-12    property of the comptroller's office and deliver them in good
13-13    condition to the successor to that office.
13-14          SECTION 6.  Section 403.023, Government Code, is amended to
13-15    read as follows:
13-16          Sec. 403.023.  CREDIT, CHARGE, AND DEBIT CARDS.  (a)  The
13-17    comptroller may adopt rules relating to the acceptance of credit,
13-18    charge, and debit cards for the payment of fees, taxes, and other
13-19    charges assessed by state agencies.  The rules may:
13-20                (1)  authorize a state agency to accept credit, charge,
13-21    or debit cards for a payment if the comptroller determines the best
13-22    interests of the state would be promoted;
13-23                (2)  authorize or require a person that uses a credit,
13-24    charge, or debit card [user] to pay a processing fee to the state
13-25    agency that accepts the [credit] card for a payment; and
13-26                (3)  authorize a particular state agency to accept
13-27    credit, charge, or debit cards for a payment without providing the
 14-1    same authorization to other state agencies.
 14-2          (b)  The comptroller may adopt rules relating to the use of
 14-3    credit or charge cards by state agencies to pay for purchases.  The
 14-4    rules may:
 14-5                (1)  authorize a state agency to use credit or charge
 14-6    cards if the comptroller determines the best interests of the state
 14-7    would be promoted;
 14-8                (2)  authorize a state agency to use credit or charge
 14-9    cards to pay for purchases without providing the same authorization
14-10    to other state agencies;
14-11                (3)  authorize a state agency to use credit or charge
14-12    cards to pay for purchases that otherwise may be paid out of the
14-13    agency's petty cash accounts under Subchapter K; and
14-14                (4)  authorize the General Services Commission to
14-15    contract with one or more credit or charge card issuers on behalf
14-16    of state agencies.
14-17          (c)  The comptroller may not adopt rules about a particular
14-18    state agency's acceptance of credit or charge cards for a payment
14-19    if the rules [that] would affect a contract that the [state] agency
14-20    has entered into that is in effect on September 1, 1993.  The
14-21    comptroller may not adopt rules about a particular state agency's
14-22    acceptance of charge or debit cards for a payment if the rules
14-23    would affect a contract that the agency has entered into that is in
14-24    effect on September 1, 1999.
14-25          (d)  The comptroller may not adopt rules about a particular
14-26    state agency's acceptance or use of credit, charge, or debit cards
14-27    if another law specifically authorizes, requires, prohibits, or
 15-1    otherwise regulates the acceptance or use.
 15-2          (e)  In this section, "state agency" means:
 15-3                (1)  a board, commission, department, or other agency
 15-4    in the executive branch of state government that is created by the
 15-5    constitution or a statute of this state, including an institution
 15-6    of higher education as defined by Section 61.003, Education Code,
 15-7    other than a public junior college;
 15-8                (2)  the legislature or a legislative agency; or
 15-9                (3)  the supreme court, the court of criminal appeals,
15-10    a court of appeals, or a state judicial agency.
15-11          SECTION 7.  Subchapter B, Chapter 403, Government Code, is
15-12    amended by adding Section 403.0271 to read as follows:
15-13          Sec. 403.0271.  AUTHORIZATIONS TO DEBIT STATE ACCOUNTS.  (a)
15-14    The comptroller may authorize a person to debit a state account in
15-15    or outside of the state treasury for the purpose of receiving
15-16    payment for goods or services provided to a state agency.
15-17          (b)  The comptroller may:
15-18                (1)  authorize certain persons to debit an account
15-19    without authorizing others to do so;
15-20                (2)  authorize a debit for goods or services provided
15-21    to certain state agencies without authorizing a debit for goods or
15-22    services provided to other state agencies;
15-23                (3)  authorize a debit for certain types of goods or
15-24    services without authorizing a debit for other types of goods or
15-25    services; and
15-26                (4)  otherwise limit the circumstances under which a
15-27    debit is permitted.
 16-1          (c)  Each state agency whose funds are paid through debits
 16-2    authorized under Subsection (a) shall:
 16-3                (1)  reconcile the debits with the actual amount due
 16-4    for goods or services provided; and
 16-5                (2)  recover any amount debited that exceeds the amount
 16-6    due.
 16-7          (d)  The comptroller by rule shall specify the frequency with
 16-8    which a reconciliation under Subsection (c)(1) must be conducted by
 16-9    a state agency.  The comptroller by rule may require the agency to
16-10    submit the reconciliation to the comptroller for review and
16-11    approval.  The comptroller may audit the agency to ensure the
16-12    accuracy of the reconciliation.
16-13          (e)  The comptroller may adopt rules and establish procedures
16-14    to administer this section.
16-15          (f)  In this section, "state agency" means:
16-16                (1)  a board, commission, department, or other agency
16-17    in the executive branch of state government that is created by the
16-18    constitution or a statute of this state, including an institution
16-19    of higher education as defined by Section 61.003, Education Code,
16-20    other than a public junior or community college;
16-21                (2)  the legislature or a legislative agency; or
16-22                (3)  the supreme court, the court of criminal appeals,
16-23    a court of appeals, or a state judicial agency.
16-24          SECTION 8.  Section 403.055, Government Code, is amended to
16-25    read as follows:
16-26          Sec. 403.055.  PAYMENTS [ISSUANCE] TO DEBTORS OR DELINQUENTS
16-27    PROHIBITED.  (a)  Except as provided by this section, the [The]
 17-1    comptroller, as a ministerial duty, may not issue a warrant or
 17-2    initiate an electronic funds transfer to a person who has been
 17-3    reported properly under Subsection (f) [if the person is indebted
 17-4    or owes delinquent taxes to the state, or owes delinquent taxes
 17-5    under a tax that the comptroller administers or collects, until the
 17-6    debt or taxes are paid].
 17-7          (b)  The comptroller may not issue a warrant or initiate an
 17-8    electronic funds transfer to the assignee of a person who has been
 17-9    reported properly under Subsection (f) [is indebted or owes
17-10    delinquent taxes to the state only] if the assignment became
17-11    effective after [before] the person became indebted to the state or
17-12    incurred a tax delinquency [delinquent in the payment of taxes to
17-13    the state].
17-14          (c)  When this section prohibits the comptroller from issuing
17-15    a warrant or initiating an electronic funds transfer to a person,
17-16    the comptroller may not issue a warrant or initiate an electronic
17-17    funds transfer to:
17-18                (1)  the person's estate;
17-19                (2)  the distributees of the person's estate; or
17-20                (3)  the person's surviving spouse.
17-21          (d) [(c)]  This section does not prohibit the comptroller
17-22    from issuing a warrant or initiating an electronic funds transfer
17-23    to pay [the compensation of]:
17-24                (1)  the compensation of a state officer or employee;
17-25    or
17-26                (2)  the remuneration of an individual if the
17-27    remuneration [whose compensation] is being paid by a private person
 18-1    through a state agency.
 18-2          (e)  This [(d)  When this] section does not prohibit
 18-3    [prohibits] the comptroller from issuing a warrant or initiating [,
 18-4    the comptroller is also prohibited from using] an electronic funds
 18-5    transfer to a person reported properly under Subsection (f) or to
 18-6    the person's assignee if the state agency responsible for
 18-7    collecting the person's debt or tax delinquency subsequently and
 18-8    properly reports to the comptroller that:
 18-9                (1)  the person is complying with an installment
18-10    payment agreement or similar agreement to pay or eliminate the debt
18-11    or delinquency, unless the agency subsequently and properly reports
18-12    to the comptroller that the person no longer is complying with the
18-13    agreement;
18-14                (2)  the person's debt or delinquency has been paid or
18-15    otherwise eliminated; or
18-16                (3)  the report of indebtedness or delinquency was
18-17    prohibited by Subsection (g) or was otherwise erroneous [system].
18-18          (f)  Except as provided by Subsection (g), a state agency
18-19    shall report to the comptroller each person who is indebted to the
18-20    state or has a tax delinquency.  The report must contain the
18-21    information and be submitted in the manner and with the frequency
18-22    required by the comptroller.
18-23          (g)  A state agency may not report a person under Subsection
18-24    (f) unless the agency first provides the person with an opportunity
18-25    to exercise any due process or other constitutional or statutory
18-26    protection that must be accommodated before the agency or the state
18-27    may begin a collection action or procedure.  The comptroller may
 19-1    not investigate or determine whether a state agency has complied
 19-2    with this prohibition.
 19-3          (h)  This section does not apply:
 19-4                (1)  to the extent Section 57.48, Education Code,
 19-5    applies; or
 19-6                (2)  to the extent this section conflicts with Section
 19-7    231.007, Family Code.
 19-8          (i)  This section does not prohibit the comptroller from
 19-9    issuing a warrant or initiating an electronic funds transfer if:
19-10                (1)  the warrant or transfer would result in a payment
19-11    being made in whole or in part with money paid to the state by the
19-12    United States; and
19-13                (2)  the state agency that administers the money
19-14    certifies to the comptroller that federal law:
19-15                      (A)  requires the payment to be made; or
19-16                      (B)  conditions the state's receipt of the money
19-17    on the payment being made.
19-18          (j)  The comptroller may adopt rules and establish procedures
19-19    to administer this section.
19-20          (k) [(e)(1)  This subsection applies when a payment is made
19-21    to a person other than through the comptroller's issuance of a
19-22    warrant or the comptroller's use of an electronic funds transfer
19-23    system.]
19-24                [(2)  A state agency may not use funds inside or
19-25    outside the state treasury to pay a person if the person is
19-26    indebted or owes delinquent taxes to the state or owes delinquent
19-27    taxes under a tax that the comptroller administers or collects
 20-1    until the debt or taxes are paid.]
 20-2                [(3)  This subsection does not prohibit a state agency
 20-3    from paying the assignee of a person who is indebted or owes
 20-4    delinquent taxes to the state if the assignment became effective
 20-5    before the person became indebted to the state or delinquent in the
 20-6    payment of taxes to the state.]
 20-7                [(4)  This subsection does not prohibit a state agency
 20-8    from paying the compensation of:]
 20-9                      [(A)  a state officer or employee; or]
20-10                      [(B)  an individual whose compensation is being
20-11    paid by a private person through the agency.]
20-12                [(5)  The comptroller may not reimburse a state agency
20-13    for a payment that is made in violation of this subsection.]
20-14          [(f)]  In this section:
20-15                (1)  "Compensation" means base salary or [includes]
20-16    wages, [salaries,] longevity pay, hazardous duty pay, benefit
20-17    replacement pay, or an emolument [and emoluments that are] provided
20-18    in lieu of base salary or wages [or salaries].  [The term does not
20-19    include expense reimbursements.]
20-20                (2)  "State agency" means a board, commission, council,
20-21    committee, department, office, agency, or other governmental entity
20-22    in the executive, legislative, or judicial branch of state
20-23    government.  The term includes an institution of higher education
20-24    as defined by Section 61.003, Education Code, other than a public
20-25    junior or community college.
20-26                (3)  "State officer or employee" means an officer or
20-27    employee of a state agency.
 21-1                (4)  "Tax delinquency" means a delinquency in payment
 21-2    of:
 21-3                      (A)  a tax to the state; or
 21-4                      (B)  a tax that the comptroller administers or
 21-5    collects.
 21-6          [(g)  If a person owes delinquent taxes under a tax that the
 21-7    comptroller administers or collects, the comptroller may subtract
 21-8    the delinquent amount from the total amount due the person from the
 21-9    state, except from amounts due that are deemed to be current wages,
21-10    and issue a warrant for the difference.  The delinquent person is
21-11    entitled to written notice of at least 20 days before the date of
21-12    the offset.  The notice must conform to the notice requirements
21-13    under Sections 111.018(b)(1) through (3), Tax Code.  The
21-14    comptroller may promulgate rules for the administration of this
21-15    section.]
21-16          SECTION 9.  Subchapter D, Chapter 403, Government Code, is
21-17    amended by adding Section 403.0551 to read as follows:
21-18          Sec. 403.0551.  DEDUCTIONS FOR REPAYMENT OF CERTAIN DEBTS OR
21-19    TAX DELINQUENCIES.  (a) Except as provided by Subsections (b) and
21-20    (d), the comptroller may deduct the amount of a person's
21-21    indebtedness to the state or tax delinquency from any amount the
21-22    state owes the person or the person's successor.  The comptroller
21-23    shall issue a warrant or initiate an electronic funds transfer to
21-24    the person or successor for any remaining amount.
21-25          (b)  Subsection (a) applies to a person or the person's
21-26    successor only if:
21-27                (1)  the comptroller has provided notice to the person
 22-1    or successor that complies with Subsection (c);
 22-2                (2)  Section 57.48, Education Code, or Section 403.055
 22-3    prohibits the comptroller from issuing a warrant or initiating an
 22-4    electronic funds transfer to the person or successor; and
 22-5                (3)  the comptroller is responsible under Section
 22-6    404.046, 404.069, or 2103.003 for paying the amount owed by the
 22-7    state to the person or successor through the issuance of a warrant
 22-8    or initiation of an electronic funds transfer.
 22-9          (c)  The comptroller shall provide notice to a person or the
22-10    person's successor before deducting the amount of the person's
22-11    indebtedness to the state or tax delinquency under Subsection (a).
22-12    The notice must:
22-13                (1)  be given in a manner reasonably calculated to give
22-14    actual notice to the person or successor;
22-15                (2)  state the:
22-16                      (A)  amount of the indebtedness or the amount of
22-17    the tax, penalties, interest, and costs due, as applicable; and
22-18                      (B)  name of the indebted or delinquent person;
22-19                (3)  specify the deadline for paying the amount due;
22-20    and
22-21                (4)  inform the person or successor that unless the
22-22    amount due is paid before the deadline, the comptroller will deduct
22-23    the amount of the indebtedness or delinquency from the amount the
22-24    state owes the person or successor.
22-25          (d)  This section does not authorize the comptroller to
22-26    deduct the amount of a state employee's indebtedness to a state
22-27    agency from any amount of compensation owed by the agency to the
 23-1    employee, the employee's successor, or the assignee of the employee
 23-2    or successor.  In this subsection, "compensation," "indebtedness,"
 23-3    "state agency," "state employee," and "successor" have the meanings
 23-4    assigned by Section 666.001.
 23-5          (e)  The comptroller shall credit the appropriate fund or
 23-6    account for any amount deducted under this section if the
 23-7    comptroller is the custodian or trustee of that fund or account.
 23-8    The comptroller shall remit any amount deducted under this section
 23-9    to the custodian or trustee of the appropriate fund or account if
23-10    the comptroller is not its custodian or trustee.
23-11          (f)  The comptroller may determine the order that a person's
23-12    multiple types of indebtedness to the state or tax delinquencies
23-13    are deducted from the amount the state owes the person or the
23-14    person's successor.
23-15          (g)  The assignee of a person or the person's successor is
23-16    considered to be a successor of the person for the purposes of this
23-17    section, except that a deduction under this section from the amount
23-18    owed to the assignee of a person or the person's successor may not
23-19    be made if the assignment became effective before the person became
23-20    indebted to the state or incurred the tax delinquency.
23-21          (h)  The comptroller may adopt rules and establish procedures
23-22    to administer this section.
23-23          (i)  Except as provided by Subsection (d), in this section,
23-24    "successor" means a person's estate and the distributees of that
23-25    estate.
23-26          SECTION 10.  Subchapter D, Chapter 403, Government Code, is
23-27    amended by adding Section 403.0552 to read as follows:
 24-1          Sec. 403.0552.  PREPARATION AND RETENTION OF CERTAIN
 24-2    WARRANTS.  (a)  The comptroller may prepare and retain a warrant
 24-3    that Section 57.48, Education Code, Section 231.007, Family Code,
 24-4    or Section 403.055 prohibits the comptroller from issuing.
 24-5          (b)  The comptroller may prepare a warrant to make a payment
 24-6    that Section 57.48, Education Code, Section 231.007, Family Code,
 24-7    or Section 403.055 prohibits the comptroller from initiating by
 24-8    electronic funds transfer.
 24-9          (c)  If the comptroller prepares a warrant under Subsection
24-10    (a) or (b), the comptroller shall:
24-11                (1)  make the warrant payable to the person to whom the
24-12    warrant may not be issued or an electronic funds transfer may not
24-13    be initiated; and
24-14                (2)  retain the warrant until the earliest of:
24-15                      (A)  the first day the warrant may no longer be
24-16    paid by the comptroller under Section 404.046 or other applicable
24-17    law;
24-18                      (B)  the date the comptroller deducts the amount
24-19    of the person's indebtedness to the state or tax delinquency from
24-20    the amount of the warrant under Section 403.0551, Chapter 666, or
24-21    other applicable law; or
24-22                      (C)  the first day the comptroller is no longer
24-23    prohibited from issuing the warrant or initiating an electronic
24-24    funds transfer to that person.
24-25          (d)  The comptroller may not cancel or destroy a warrant
24-26    prepared under Subsection (a) or (b) unless the comptroller
24-27    receives a request for the cancellation or destruction from the
 25-1    state agency that submitted the voucher requesting issuance of the
 25-2    warrant or initiation of the electronic funds transfer and:
 25-3                (1)  the agency informs the comptroller that the
 25-4    voucher was erroneous or was submitted erroneously;
 25-5                (2)  the agency is the only state agency responsible
 25-6    for collecting the indebtedness or tax delinquency of the payee of
 25-7    the warrant; or
 25-8                (3)  all state agencies that are responsible for
 25-9    collecting the indebtedness or tax delinquency of the payee of the
25-10    warrant consent to the cancellation or destruction.
25-11          (e)  For purposes of Subsection (d)(1), a voucher is not
25-12    erroneous and is not submitted erroneously merely because the
25-13    comptroller is prohibited by Section 57.48, Education Code, Section
25-14    231.007, Family Code, or Section 403.055 from issuing a warrant or
25-15    initiating an electronic funds transfer in accordance with the
25-16    voucher.
25-17          SECTION 11.  Section 403.060(a), Government Code, is amended
25-18    to read as follows:
25-19          (a)  The comptroller may delegate to a person [state agency]
25-20    the authority to print warrants [at the agency's location] and
25-21    deliver those warrants to the appropriate person.  However, before
25-22    a person [an agency] may print and deliver a warrant, the
25-23    comptroller must approve a voucher related to the warrant in
25-24    accordance with Section 403.071.
25-25          SECTION 12.  Section 404.046, Government Code, is amended to
25-26    read as follows:
25-27          Sec. 404.046.  PAYMENT FROM TREASURY.  The comptroller shall
 26-1    pay warrants the comptroller draws on the treasury that are
 26-2    authorized by law.  Except as provided by Section 403.0271, money
 26-3    [Money] may not be paid out of the treasury except on a warrant
 26-4    drawn or an electronic funds transfer initiated by [the warrants
 26-5    of] the comptroller.  A [, and a] warrant may not be paid by the
 26-6    comptroller unless presented for payment to a financial institution
 26-7    or the comptroller before two years after the close of the fiscal
 26-8    year in which the warrant was issued.  Claims for the payment of
 26-9    warrants presented after that time may be presented to the
26-10    legislature for appropriations from which the claims may be paid.
26-11          SECTION 13.  Section 404.069(a), Government Code, is amended
26-12    to read as follows:
26-13          (a)  All money and securities deposited with the comptroller
26-14    in trust for any legal purpose may be received by the comptroller
26-15    as provided by Section 403.052.  The money or securities shall be
26-16    held in trust by the comptroller in the same manner as the
26-17    departmental suspense account.  Except as provided by Section
26-18    403.0271, the money may be withdrawn only on a [Withdrawal shall be
26-19    by] warrant drawn or an electronic funds transfer initiated by the
26-20    comptroller.  The securities may be withdrawn only by [in the case
26-21    of money and] withdrawal authorization [in the case of securities.
26-22    Those instruments shall be issued by the comptroller as provided by
26-23    Sections 403.011 and 403.056].
26-24          SECTION 14.  Section 608.002(b), Government Code, is amended
26-25    to read as follows:
26-26          (b)  An authorization must:
26-27                (1)  be in writing or recorded by electronic means; and
 27-1                (2)  state:
 27-2                      (A)  the period for which the authorization is to
 27-3    be in effect; [and]
 27-4                      (B)  the amount to be deducted; and
 27-5                      (C)  the denomination of the savings bonds to be
 27-6    purchased.
 27-7          SECTION 15.  Section 608.003(b), Government Code, is amended
 27-8    to read as follows:
 27-9          (b)  If a withholding is made, the department administrator
27-10    or disbursing officer shall make a deduction when the payroll of a
27-11    state department or a political subdivision is presented to the
27-12    comptroller or disbursing officer, as appropriate, [for the
27-13    issuance of warrants] for payment.
27-14          SECTION 16.  Section 608.005, Government Code, is amended to
27-15    read as follows:
27-16          Sec. 608.005.  PAYMENT [ISSUANCE OF WARRANT] TO DEPARTMENT
27-17    ADMINISTRATOR OR DISBURSING OFFICER.  (a)  When the payroll of a
27-18    state department is presented to the comptroller for payment, the
27-19    comptroller shall pay [issue] to the department administrator [a
27-20    warrant for] the full amount deducted from the department's payroll
27-21    for the payroll period to purchase savings bonds on behalf of
27-22    department officers and employees.
27-23          (b)  When the payroll of a political subdivision is presented
27-24    to the disbursing officer for payment, the disbursing officer shall
27-25    pay [issue] to the disbursing officer [a warrant for] the full
27-26    amount deducted from the political subdivision's payroll for the
27-27    payroll period to purchase savings bonds on behalf of officers and
 28-1    employees of the political subdivision.
 28-2          SECTION 17.  Section 608.007, Government Code, is amended to
 28-3    read as follows:
 28-4          Sec. 608.007.  TRUST ACCOUNT.  (a)  A department
 28-5    administrator shall deposit money received [a warrant issued] under
 28-6    Section 608.005(a) with the comptroller to be held in trust by the
 28-7    comptroller until disbursed by the department administrator to
 28-8    purchase savings bonds for an individual designated in an
 28-9    authorization under Section 608.002 filed with the department
28-10    administrator.
28-11          (b)  A disbursing officer shall deposit money received [a
28-12    warrant issued] under Section 608.005(b) with the comptroller of
28-13    the political subdivision to be held in trust by the comptroller
28-14    until disbursed by the disbursing officer to purchase savings bonds
28-15    for an individual designated in an authorization under Section
28-16    608.002 filed with the disbursing officer.
28-17          (c)  Money [A warrant] held in trust under this section shall
28-18    be deposited in an account designated as the savings bond payroll
28-19    savings account.  [The comptroller shall pay out money deposited in
28-20    the account on proper warrants drawn by the department
28-21    administrator or disbursing officer, as appropriate.]
28-22          SECTION 18.  Section 608.010(b), Government Code, is amended
28-23    to read as follows:
28-24          (b)  On termination as provided by Subsection (a), any money
28-25    that has been deducted from an officer's or employee's compensation
28-26    but has not been used to purchase savings bonds shall be remitted
28-27    immediately [by proper warrant] to the individual from whose
 29-1    compensation the money has been deducted.
 29-2          SECTION 19.  Subtitle B, Title 6, Government Code, is amended
 29-3    by adding Chapter 666 to read as follows:
 29-4             CHAPTER 666.  PAYROLL DEDUCTION TO RECOUP EXCESS
 29-5             COMPENSATION PAID TO A STATE OFFICER OR EMPLOYEE
 29-6          Sec. 666.001.  DEFINITIONS.  In this chapter:
 29-7                (1)  "Compensation" includes:
 29-8                      (A)  base salary or wages;
 29-9                      (B)  longevity or hazardous duty pay;
29-10                      (C)  benefit replacement pay;
29-11                      (D)  a payment for the balance of vacation and
29-12    sick leave under Subchapter B, Chapter 661;
29-13                      (E)  a payment for the accrued balance of
29-14    vacation time under Subchapter C, Chapter 661; and
29-15                      (F)  an emolument provided in lieu of base salary
29-16    or wages.
29-17                (2)  "Indebtedness" means the amount of compensation
29-18    paid to a state employee that exceeds the amount the employee is
29-19    eligible to receive under law.
29-20                (3)  "State agency" means a board, commission, council,
29-21    committee, department, office, agency, or other governmental entity
29-22    in the executive, legislative, or judicial branch of state
29-23    government.  The term includes:
29-24                      (A)  the Texas Guaranteed Student Loan
29-25    Corporation; and
29-26                      (B)  an institution of higher education as
29-27    defined by Section 61.003, Education Code, other than a public
 30-1    junior or community college.
 30-2                (4)  "State employee" means an officer or employee of a
 30-3    state agency.
 30-4                (5)  "Successor" means:
 30-5                      (A)  the estate of a deceased state employee;
 30-6                      (B)  the surviving spouse of a deceased state
 30-7    employee; or
 30-8                      (C)  the distributees of the estate of a deceased
 30-9    state employee.
30-10          Sec. 666.002.  DEDUCTION AUTHORIZATION.  (a)  A state agency
30-11    may deduct the amount of a state employee's indebtedness to the
30-12    agency from any amount of compensation the agency owes the employee
30-13    or the employee's successor if:
30-14                (1)  the agency provides a notice to the employee or
30-15    successor that complies with Section 666.003;
30-16                (2)  the agency provides the employee or successor with
30-17    an opportunity to exercise any due process or other constitutional
30-18    or statutory protection that must be accommodated before the agency
30-19    may begin a collection action or procedure;
30-20                (3)  the agency determines that the deduction would not
30-21    violate any applicable law or rule of this state or the United
30-22    States; and
30-23                (4)  the comptroller is not responsible under Section
30-24    404.046, 404.069, or 2103.003 for paying the amount owed by the
30-25    agency to the employee or successor through the issuance of a
30-26    warrant or initiation of an electronic funds transfer.
30-27          (b)  The comptroller may deduct the amount of a state
 31-1    employee's indebtedness to a state agency from any amount of
 31-2    compensation the agency owes the employee or the employee's
 31-3    successor if:
 31-4                (1)  the agency provides a notice to the employee or
 31-5    successor that complies with Section 666.003;
 31-6                (2)  the agency requests the comptroller to make the
 31-7    deduction in accordance with Section 666.005; and
 31-8                (3)  the comptroller is responsible under Section
 31-9    404.046, 404.069, or 2103.003 for paying the amount owed by the
31-10    agency to the employee or the successor through the issuance of a
31-11    warrant or initiation of an electronic funds transfer.
31-12          Sec. 666.003.  NOTICE.  (a)  A state agency shall provide
31-13    notice to a state employee or the employee's successor before the
31-14    agency:
31-15                (1)  deducts the amount of the employee's indebtedness
31-16    to the agency under Section 666.002(a); or
31-17                (2)  requests the comptroller to make a deduction under
31-18    Section 666.002(b).
31-19          (b)  The notice must:
31-20                (1)  be given in a manner reasonably calculated to give
31-21    actual notice to the employee or successor;
31-22                (2)  state the:
31-23                      (A)  amount of the indebtedness; and
31-24                      (B)  name of the indebted employee;
31-25                (3)  specify the date by which the indebtedness must be
31-26    paid; and
31-27                (4)  inform the employee or successor that unless the
 32-1    indebtedness is paid on or before the date specified, the amount of
 32-2    the indebtedness may be deducted from any amount of compensation
 32-3    the agency owes the employee or successor.
 32-4          Sec. 666.004.  PAYMENT OF AMOUNT REMAINING.  Any amount that
 32-5    remains owed after a deduction under Section 666.002 shall be paid
 32-6    to the state employee or successor.
 32-7          Sec. 666.005.  DEDUCTION REQUESTS TO THE COMPTROLLER.  (a)  A
 32-8    state agency may not request the comptroller to make a deduction
 32-9    from compensation owed to a state employee or  successor under
32-10    Section 666.002(b) before the agency:
32-11                (1)  provides the employee or successor the opportunity
32-12    to exercise any due process or other constitutional or statutory
32-13    protection that must be accommodated before a collection action or
32-14    procedure may begin; and
32-15                (2)  determines that the deduction would not violate
32-16    any applicable law or rule of this state or the United States.
32-17          (b)  The comptroller may not investigate or determine whether
32-18    the agency has complied with Subsection (a)(1).  The comptroller
32-19    may rely on a determination made under Subsection (a)(2).
32-20          (c)  A state agency's request to the comptroller to make a
32-21    deduction under Section 666.002(b) must comply with the
32-22    comptroller's requirements for format, content, and frequency.
32-23          Sec. 666.006.  ASSIGNEES.  The assignee of a state employee
32-24    or the employee's successor is considered to be a successor for the
32-25    purposes of this chapter, except that a  deduction under this
32-26    chapter from the compensation owed to the assignee of a state
32-27    employee or the employee's successor may not be made if the
 33-1    assignment became effective after the employee incurred the
 33-2    indebtedness.
 33-3          Sec. 666.007.  ADMINISTRATION.  The comptroller may adopt
 33-4    rules and establish procedures to administer this chapter.
 33-5          SECTION 20.  Section 2103.003, Government Code, is amended to
 33-6    read as follows:
 33-7          Sec. 2103.003.  STATE AGENCY SPENDING OF APPROPRIATED FUNDS.
 33-8    A state agency may spend appropriated funds only by:
 33-9                (1)  a warrant drawn by:
33-10                      (A)  the comptroller; or
33-11                      (B)  a person that [state agency to which] the
33-12    comptroller has delegated authority to print warrants under Section
33-13    403.060; [or]
33-14                (2)  an electronic funds transfer initiated by the
33-15    comptroller; or
33-16                (3)  a debit to a state account by a person authorized
33-17    under Section 403.0271.
33-18          SECTION 21.  Chapter 2107, Government Code, is amended by
33-19    adding Section 2107.008 to read as follows:
33-20          Sec. 2107.008.  PAYMENTS TO DEBTORS OR DELINQUENTS
33-21    PROHIBITED.  (a)  Except as provided by this section, a state
33-22    agency, as a ministerial duty, may not use funds in or outside of
33-23    the state treasury to pay a person if:
33-24                (1)  Section 403.055 prohibits the comptroller from
33-25    issuing a warrant or initiating an electronic funds transfer to the
33-26    person; or
33-27                (2)  the person is indebted to the state or has a tax
 34-1    delinquency, the agency is responsible for collecting that
 34-2    indebtedness or delinquency, and Section 403.055 does not prohibit
 34-3    the comptroller from issuing a warrant or initiating an electronic
 34-4    funds transfer to the person.
 34-5          (b)  A state agency may not pay the assignee of a person that
 34-6    the agency may not pay under Subsection (a)(1) if Section 403.055
 34-7    prohibits the comptroller from issuing a warrant or initiating an
 34-8    electronic funds transfer to the assignee.  The agency may not pay
 34-9    the assignee of a person that the agency may not pay under
34-10    Subsection (a)(2) if the assignment became effective after the
34-11    person became indebted to the state or incurred a tax delinquency.
34-12          (c)  A state agency that Subsection (a) prohibits from making
34-13    a payment to a person also is prohibited from paying any part of
34-14    that payment to:
34-15                (1)  the person's estate;
34-16                (2)  the distributees of the person's estate; or
34-17                (3)  the person's surviving spouse.
34-18          (d)  This section does not prohibit a state agency from
34-19    paying a person subject to Subsection (a)(2) or the person's
34-20    assignee if the agency determines that the person is complying with
34-21    an installment payment agreement or similar agreement between the
34-22    agency and that person to pay or eliminate the debt or delinquency.
34-23          (e)  The comptroller may not reimburse a state agency for a
34-24    payment that the comptroller determines was made in violation of
34-25    this section.
34-26          (f)  Subsection (a)(2) does not prohibit a state agency from
34-27    paying:
 35-1                (1)  the compensation of a state officer or employee;
 35-2    or
 35-3                (2)  the remuneration of an individual if the
 35-4    remuneration is being paid by a private person through the agency.
 35-5          (g)  Subsection (a)(2) does not prohibit a state agency from
 35-6    making a payment if:
 35-7                (1)  the payment would be made in whole or in part with
 35-8    money paid to the state by the United States; and
 35-9                (2)  the agency determines that federal law:
35-10                      (A)  requires the payment to be made; or
35-11                      (B)  conditions the state's receipt of the money
35-12    on the payment being made.
35-13          (h)  A state agency may not refuse to make a payment under
35-14    Subsection (a)(2) before the agency has provided the person with an
35-15    opportunity to exercise any due process or other constitutional or
35-16    statutory protection that must be accommodated before the agency or
35-17    the state may begin a collection action or procedure.
35-18          (i)  This section does not apply to the extent that Section
35-19    57.482, Education Code, applies.
35-20          (j)  This section applies to a payment only if the
35-21    comptroller is not responsible under Section 404.046, 404.069, or
35-22    2103.003 for issuing a warrant or initiating an electronic funds
35-23    transfer to make the payment.
35-24          (k)  Notwithstanding Section 2107.001, in this section
35-25    "compensation," "state agency," "state officer or employee," and
35-26    "tax delinquency" have the meanings assigned by Section 403.055.
35-27          SECTION 22.  Section 2254.030, Government Code, is amended to
 36-1    read as follows:
 36-2          Sec. 2254.030.  PUBLICATION IN TEXAS REGISTER AFTER ENTERING
 36-3    INTO MAJOR CONSULTING SERVICES CONTRACT.  Not later than the 20th
 36-4    [10th] day after the date of entering into a major consulting
 36-5    services contract, the contracting state agency shall file with the
 36-6    secretary of state for publication in the Texas Register:
 36-7                (1)  a description of the activities that the
 36-8    consultant will conduct;
 36-9                (2)  the name and business address of the consultant;
36-10                (3)  the total value and the beginning and ending dates
36-11    of the contract; and
36-12                (4)  the dates on which documents, films, recordings,
36-13    or reports that the consultant is required to present to the agency
36-14    are due.
36-15          SECTION 23.  Sections 2254.031(a) and (c), Government Code,
36-16    are amended to read as follows:
36-17          (a)  A state agency that intends to renew a major consulting
36-18    services contract shall:
36-19                (1)  file with the secretary of state for publication
36-20    in the Texas Register the information required by Section 2254.030
36-21    not later than the 20th [10th] day after the date the contract is
36-22    renewed if the renewal contract is not a major consulting services
36-23    contract; or
36-24                (2)  comply with Sections 2254.028 and 2254.029 if the
36-25    renewal contract is a major consulting services contract.
36-26          (c)  A state agency that intends to amend or extend a major
36-27    consulting services contract shall:
 37-1                (1)  not later than the 20th [10th] day after the date
 37-2    the contract is amended or extended, file the information required
 37-3    by Section 2254.030 with the secretary of state for publication in
 37-4    the Texas Register if the contract after the amendment or extension
 37-5    is not a major consulting services contract; or
 37-6                (2)  comply with Sections 2254.028 and 2254.029 if the
 37-7    contract after the amendment or extension is a major consulting
 37-8    services contract.
 37-9          SECTION 24.  Section 2254.034(c), Government Code, is amended
37-10    to read as follows:
37-11          (c)  If a contract is void under this section:
37-12                (1)  the comptroller may not draw a warrant or transmit
37-13    money to satisfy an obligation under the contract; and
37-14                (2)  a state agency may not make any payment under the
37-15    contract with state or federal money or money held in or outside
37-16    the state treasury [until the agency has complied with Sections
37-17    2254.029 through 2254.031].
37-18          SECTION 25.  Section 31.038, Human Resources Code, is amended
37-19    to read as follows:
37-20          Sec. 31.038.  CANCELLATION OF UNCASHED WARRANTS.  The [On
37-21    authorization by the] department[, the comptroller] may cancel a
37-22    financial assistance warrant [warrants] that has [have] not been
37-23    cashed within a reasonable period of time after issuance.  The
37-24    cancellation must be performed in the manner required by rules of
37-25    the comptroller.
37-26          SECTION 26.  (a)  Sections 481.0841, 608.004, and 608.012,
37-27    Government Code, are repealed.
 38-1          (b)  Section 5.101(f), Tax Code, is repealed.
 38-2          SECTION 27.  (a)  The comptroller may adopt rules and take
 38-3    other actions before January 1, 2000, that the comptroller
 38-4    considers necessary or appropriate to prepare for Sections 1, 2, 4,
 38-5    8-10, 19, and 21 of this Act to take effect.  This subsection does
 38-6    not authorize the comptroller to adopt any rule or take any action
 38-7    that Sections 1, 2, 4, 8-10, 19, and 21 of this Act would not
 38-8    authorize the comptroller to adopt or take if those sections took
 38-9    effect immediately.
38-10          (b)  A state agency may take before January 1, 2000, the
38-11    actions that the agency considers necessary or appropriate to
38-12    prepare for Sections 1, 2, 4, 8-10, 19, and 21 of this Act to take
38-13    effect.  This subsection does not authorize a state agency to take
38-14    any action that Sections 1, 2, 4, 8-10, 19, and 21 of this Act
38-15    would not authorize the agency to take if those sections took
38-16    effect immediately.  In this subsection, "state agency" does not
38-17    include the comptroller.
38-18          SECTION 28.  The repeal of Section 608.004, Government Code,
38-19    by Section 26(a) of this Act is intended only to repeal a redundant
38-20    law.  The repeal does not imply that on and after the effective
38-21    date of Section 26 of this Act:
38-22                (1)  the amount an officer or employee authorizes to be
38-23    deducted from the officer's or employee's compensation for the
38-24    purchase of savings bonds may not actually be withheld and deducted
38-25    as authorized by Section 608.003, Government Code; or
38-26                (2)  the amount of an officer's or employee's
38-27    compensation remaining after all authorized deductions have been
 39-1    made may not be paid to the officer or employee.
 39-2          SECTION 29.  The changes in law made by Sections 22 and 23 of
 39-3    this Act apply only to a major consulting services contract that is
 39-4    entered into, renewed, amended, or extended on and after the
 39-5    effective date of those sections.  A major consulting services
 39-6    contract that is entered into, renewed, amended, or extended before
 39-7    that date is governed by the law in effect on the date the contract
 39-8    is entered into, renewed, amended, or extended, and the former law
 39-9    is continued in effect for that purpose.
39-10          SECTION 30.  The comptroller may adopt rules and take other
39-11    actions before September 1, 1999, that the comptroller considers
39-12    necessary or appropriate to prepare for Sections 6, 22, 23, and 29
39-13    of this Act to take effect.  This section does not authorize the
39-14    comptroller to adopt any rule or take any action that Sections 6,
39-15    22, 23, and 29 of this Act would not authorize the comptroller to
39-16    adopt or take if those sections took effect immediately.
39-17          SECTION 31.  This Act takes effect immediately except that:
39-18                (1)  Sections 6, 22, 23, and 29 take effect September
39-19    1, 1999; and
39-20                (2)  Sections 1, 2, 4, 8-10, 19, and 21 take effect
39-21    January 1, 2000.
39-22          SECTION 32.  The importance of this legislation and the
39-23    crowded condition of the calendars in both houses create an
39-24    emergency and an imperative public necessity that the
39-25    constitutional rule requiring bills to be read on three several
39-26    days in each house be suspended, and this rule is hereby suspended,
39-27    and that this Act take effect and be in force according to its
 40-1    terms, and it is so enacted.