By McCall                                             H.B. No. 3211
         76R5425 JJT-F                           
                                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 those
4-17     funds 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     paying a person also is prohibited from paying:
5-17                 (1)  the person's estate;
5-18                 (2)  the distributees of the person's estate; or
5-19                 (3)  the person's surviving spouse.
5-20           (c)  The comptroller may not reimburse a state agency for a
5-21     payment that the comptroller determines was made in violation of
5-22     this section.
5-23           (d)  This section applies to a payment only if the
5-24     comptroller is not responsible under Section 404.046, 404.069, or
5-25     2103.003, Government Code, for issuing a warrant or initiating an
5-26     electronic funds transfer to make the payment.
5-27           (e)  In this section, "state agency" has the meaning assigned
 6-1     by Section 57.48.
 6-2           SECTION 3.  Section 62.021(a), Education Code, is amended to
 6-3     read as follows:
 6-4           (a)  Each fiscal year, an eligible institution is entitled to
 6-5     receive an amount allocated in accordance with this section from
 6-6     funds appropriated by Section 17(a), Article VII, Texas [Section
 6-7     17(a), of the] Constitution [of Texas].  The comptroller [of public
 6-8     accounts] shall distribute funds allocated under this subsection
 6-9     only on presentation of a claim and issuance of a warrant in
6-10     accordance with Section 403.071, Government Code.  The comptroller
6-11     may not issue a warrant from any funds allocated under this
6-12     subsection before the delivery of goods or services described in
6-13     Section 17, Article VII, Texas Constitution, except for the payment
6-14     of principal or interest on bonds or notes or for a payment for a
6-15     book or other published library material as authorized by Section
6-16     2155.386, Government Code.  The allocation of funds under this
6-17     subsection is made in accordance with an equitable formula
6-18     consisting of the following elements:  space deficit, facilities
6-19     condition, institutional complexity, separate allocations for
6-20     medical units and the Texas State Technical College System, and an
6-21     additional allocation for Texas Southern University for compliance
6-22     with the Texas Desegregation Plan.  The amounts allocated by the
6-23     formula are as follows:
6-24     $ 5,572,558    East Texas State University including East Texas
6-25                    State University at Texarkana;
6-26     $ 9,468,548    Lamar University including Lamar University at
6-27                    Orange and Lamar University at Port Arthur;
 7-1     $ 2,862,203    Midwestern State University;
 7-2     $20,217,740    University of North Texas;
 7-3     $10,174,500    The University of Texas--Pan American and The
 7-4                    University of Texas at Brownsville;
 7-5     $ 6,468,273    Stephen F. Austin State University;
 7-6     $ 3,640,000    University of North Texas Health Science Center at
 7-7                    Fort Worth;
 7-8     $23,181,556    Texas State University System Administration and the
 7-9                    following component institutions:  Angelo State
7-10                    University; Sam Houston State University; Southwest
7-11                    Texas State University; Sul Ross State University
7-12                    including Uvalde Center;
7-13     $ 8,199,288    Texas Southern University (includes allocation of
7-14                    $1,000,000 for compliance with Texas Desegregation
7-15                    Plan);
7-16     $16,887,085    Texas Tech University;
7-17     $ 7,735,000    Texas Tech University Health Sciences Center;
7-18     $ 6,849,160    Texas Woman's University;
7-19     $37,726,969    University of Houston System Administration and the
7-20                    following component institutions: University of
7-21                    Houston; University of Houston--Victoria; University
7-22                    of Houston--Clear Lake; University of
7-23                    Houston--Downtown;
7-24     $12,167,120    Texas A & M University--Corpus Christi; Texas A & M
7-25                    International University; Texas A & M
7-26                    University--Kingsville; West Texas A & M University;
7-27                    and
 8-1     $ 3,850,000    Texas State Technical College System Administration
 8-2                    and the following component campuses, but not its
 8-3                    extension centers or programs: Texas State Technical
 8-4                    College-Amarillo; Texas State Technical
 8-5                    College-Harlingen; Texas State Technical
 8-6                    College-Sweetwater; Texas State Technical
 8-7                    College--Waco.
 8-8           SECTION 4.  Section 231.007, Family Code, is amended to read
 8-9     as follows:
8-10           Sec. 231.007.  DEBTS TO STATE.  (a)  A person obligated to
8-11     pay child support in a case in which the Title IV-D agency is
8-12     providing services under this chapter who does not pay the required
8-13     [child] support is indebted [in debt] to the state for the purposes
8-14     of Section 403.055, Government Code, if the Title IV-D agency has
8-15     reported the person to the comptroller under that section properly.
8-16           (b)  The amount of a person's indebtedness [debt of a person
8-17     in debt] to the state under [as provided by] Subsection (a) is
8-18     equal to the sum of:
8-19                 (1)  the amount of the required child support that has
8-20     [is past due and] not been paid; and
8-21                 (2)  any interest, fees, court costs, or other amounts
8-22     owed by the person because the person has not paid [as a result of
8-23     the person's failure to pay] the [child] support.
8-24           (c)  The Title IV-D agency is the sole [an] assignee of all
8-25     payments, including payments of compensation, by the state to a
8-26     person indebted [in debt] to the state under Subsection (a) [as
8-27     provided by this section.  The assignment takes effect before the
 9-1     date the person's debt to the state arose].
 9-2           (d)  On request of the Title IV-D agency:
 9-3                 (1)  the comptroller shall make payable and deliver to
 9-4     the agency any payments for which the agency is the assignee under
 9-5     Subsection (c), if the comptroller is responsible for issuing
 9-6     warrants or initiating electronic funds transfers to make those
 9-7     payments; and
 9-8                 (2)  a state agency shall make payable and deliver to
 9-9     the Title IV-D agency any payments for which the Title IV-D agency
9-10     is the assignee under Subsection (c) if the comptroller is not
9-11     responsible for issuing warrants or initiating electronic funds
9-12     transfers to make those payments.
9-13           (e) [(d)]  A person indebted [in debt] to the state under
9-14     Subsection (a) [as provided by this section] may eliminate the
9-15     [person's] debt by:
9-16                 (1)  paying the entire amount of the debt; or
9-17                 (2)  resolving the debt in a manner acceptable to the
9-18     Title IV-D agency.
9-19           (f) [(e)]  The comptroller or a state agency may rely on a
9-20     representation by the Title IV-D agency that:
9-21                 (1)  a person is indebted [in debt] to the state under
9-22     Subsection (a) [as provided by this section]; or
9-23                 (2)  a person who was indebted [in debt] to the state
9-24     under Subsection (a) has eliminated the [person's] debt [as
9-25     provided by this section].
9-26           (g)  Except as provided by Subsection (h) [(f)  In this
9-27     section], the payment of workers' compensation benefits to a person
 10-1    indebted [in debt] to the state under Subsection (a) is the same
 10-2    for the purposes of this section as any other payment made to the
 10-3    person by the state.  Notwithstanding Section 408.203, Labor Code,
 10-4    an order or writ to withhold income from workers' compensation
 10-5    benefits is not required before the benefits are withheld or
 10-6    assigned under this section.
 10-7          (h) [(g)]  The amount of weekly workers' compensation
 10-8    benefits that may be withheld or assigned under this section may
 10-9    not exceed the percentage of the person's benefits that would apply
10-10    if the benefits equalled the person's monthly net resources as
10-11    provided by Chapter 154, except that in no event may more than 50
10-12    percent of the person's weekly compensation benefits be withheld or
10-13    assigned.  The comptroller or a state agency may rely on a
10-14    representation by the Title IV-D agency that a withholding or
10-15    assignment under this section would not violate this subsection.
10-16          (i) [(h)]  Notwithstanding Section 403.055 [Sections
10-17    403.055(c) and (e)(4)], Government Code, the comptroller may not
10-18    issue a warrant or initiate an electronic funds transfer to pay:
10-19                (1)  compensation to a state officer or employee who is
10-20    indebted [in debt] to the state under Subsection (a); or
10-21                (2)  remuneration to an individual who is being paid by
10-22    a private person through a state agency, if the individual is
10-23    indebted to the state under Subsection (a) [as provided by this
10-24    section].
10-25          (j)  Notwithstanding Section 2107.008, Government Code, a
10-26    state agency may not pay:
10-27                (1)  compensation to a state officer or employee who is
 11-1    indebted to the state under Subsection (a); or
 11-2                (2)  remuneration to an individual who is being paid by
 11-3    a private person through the agency if the individual is indebted
 11-4    to the state under Subsection (a).
 11-5          (k) [(i)]  In this section, "compensation," "state agency,"
 11-6    and "state officer or employee" have ["compensation" has] the
 11-7    meanings [meaning] assigned by Section 403.055[(f)(1)], Government
 11-8    Code[, and includes the payment of workers' compensation benefits].
 11-9          SECTION 5.  Section 403.011, Government Code, is amended to
11-10    read as follows:
11-11          Sec. 403.011.  GENERAL POWERS.  The comptroller shall:
11-12                (1)  obtain a seal with "Comptroller's Office, State of
11-13    Texas" engraved around the margin and a five-pointed star in the
11-14    center, to be used as the seal of the office to authenticate
11-15    official acts, except warrants drawn on the state treasury;
11-16                (2)  adopt regulations the comptroller considers
11-17    essential to the speedy and proper assessment and collection of
11-18    state revenues;
11-19                (3)  supervise, as the sole accounting officer of the
11-20    state, the state's fiscal concerns and manage those concerns as
11-21    required by law;
11-22                (4)  require all accounts presented to the comptroller
11-23    for settlement not otherwise provided for by law to be made on
11-24    forms that the comptroller prescribes;
11-25                (5)  prescribe and furnish the form or electronic
11-26    format to be used in the collection of public revenue;
11-27                (6)  prescribe the mode and manner of keeping and
 12-1    stating of accounts of persons collecting state revenue;
 12-2                (7)  prescribe forms or electronic formats of the same
 12-3    class, kind, and purpose so that they are uniform in size,
 12-4    arrangement, matter, and form;
 12-5                (8)  require each person receiving money or managing or
 12-6    having disposition of state property of which an account is kept in
 12-7    the comptroller's office periodically to render statements of the
 12-8    money or property to the comptroller;
 12-9                (9)  require each person who has received and not
12-10    accounted for state money to settle the person's account;
12-11                (10)  keep and settle all accounts in which the state
12-12    is interested;
12-13                (11)  examine and settle the account of each person
12-14    indebted to the state, verify the amount or balance, and direct and
12-15    supervise the collection of the money;
12-16                (12)  audit claims against the state the payment of
12-17    which is provided for by law, unless the audit is otherwise
12-18    specially provided for;
12-19                (13)  determine the method for auditing claims against
12-20    the state in a cost-effective manner, including [but not limited
12-21    to] the use of stratified and statistical sampling techniques in
12-22    conjunction with automated edits;
12-23                (14)  maintain the necessary records and data for each
12-24    approved claim against the state so that an adequate audit can be
12-25    performed and the comptroller can submit a report to each house of
12-26    the legislature, upon request, stating the name and amount of each
12-27    approved claim;
 13-1                (15)  keep and state each account between the state and
 13-2    the United States;
 13-3                (16)  keep journals through which all entries are made
 13-4    in the ledger;
 13-5                (17)  draw warrants on the treasury for payment of all
 13-6    money required by law to be paid from the treasury on warrants
 13-7    drawn by the comptroller;
 13-8                (18)  suggest plans for the improvement and management
 13-9    of the general revenue; and
13-10                (19)  preserve the books, records, papers, and other
13-11    property of the comptroller's office and deliver them in good
13-12    condition to the successor to that office.
13-13          SECTION 6.  Section 403.023, Government Code, is amended to
13-14    read as follows:
13-15          Sec. 403.023.  CREDIT AND DEBIT CARDS.  (a)  The comptroller
13-16    may adopt rules relating to the acceptance of credit and debit
13-17    cards for the payment of fees, taxes, and other charges assessed by
13-18    state agencies.  The rules may:
13-19                (1)  authorize a state agency to accept credit or debit
13-20    cards for a payment if the comptroller determines the best
13-21    interests of the state would be promoted;
13-22                (2)  authorize or require a person that uses a credit
13-23    or debit card [user] to pay a processing fee to the state agency
13-24    that accepts the [credit] card for a payment; and
13-25                (3)  authorize a particular state agency to accept
13-26    credit or debit cards for a payment without providing the same
13-27    authorization to other state agencies.
 14-1          (b)  The comptroller may adopt rules relating to the use of
 14-2    credit cards by state agencies to pay for purchases.  The rules
 14-3    may:
 14-4                (1)  authorize a state agency to use credit cards if
 14-5    the comptroller determines the best interests of the state would be
 14-6    promoted;
 14-7                (2)  authorize a state agency to use credit cards to
 14-8    pay for purchases without providing the same authorization to other
 14-9    state agencies;
14-10                (3)  authorize a state agency to use credit cards to
14-11    pay for purchases that otherwise may be paid out of the agency's
14-12    petty cash accounts under Subchapter K; and
14-13                (4)  authorize the General Services Commission to
14-14    contract with one or more credit card issuers on behalf of state
14-15    agencies.
14-16          (c)  The comptroller may not adopt rules about a particular
14-17    state agency's acceptance of credit cards for a payment if the
14-18    rules [that] would affect a contract that the [state] agency has
14-19    entered into that is in effect on September 1, 1993.  The
14-20    comptroller may not adopt rules about a particular state agency's
14-21    acceptance of debit cards for a payment if the rules would affect a
14-22    contract that the agency has entered into that is in effect on
14-23    September 1, 1999.
14-24          (d)  The comptroller may not adopt rules about a particular
14-25    state agency's acceptance or use of credit or debit cards if
14-26    another law specifically authorizes, requires, prohibits, or
14-27    otherwise regulates the acceptance or use.
 15-1          (e)  In this section, "state agency" means:
 15-2                (1)  a board, commission, department, or other agency
 15-3    in the executive branch of state government that is created by the
 15-4    constitution or a statute of this state, including an institution
 15-5    of higher education as defined by Section 61.003, Education Code,
 15-6    other than a public junior college;
 15-7                (2)  the legislature or a legislative agency; or
 15-8                (3)  the supreme court, the court of criminal appeals,
 15-9    a court of appeals, or a state judicial agency.
15-10          SECTION 7.  Subchapter B, Chapter 403, Government Code, is
15-11    amended by adding Section 403.0271 to read as follows:
15-12          Sec. 403.0271.  AUTHORIZATIONS TO DEBIT STATE ACCOUNTS.  (a)
15-13    The comptroller may authorize a person to debit a state account in
15-14    or outside of the state treasury for the purpose of receiving
15-15    payment for goods or services provided to a state agency.
15-16          (b)  The comptroller may:
15-17                (1)  authorize certain persons to debit an account
15-18    without authorizing others to do so;
15-19                (2)  authorize a debit for goods or services provided
15-20    to certain state agencies without authorizing a debit for goods or
15-21    services provided to other state agencies;
15-22                (3)  authorize a debit for certain types of goods or
15-23    services without authorizing a debit for other types of goods or
15-24    services; and
15-25                (4)  otherwise limit the circumstances under which a
15-26    debit is permitted.
15-27          (c)  Each state agency whose funds are paid through debits
 16-1    authorized under Subsection (a) shall:
 16-2                (1)  reconcile the debits with the actual amount due
 16-3    for goods or services provided; and
 16-4                (2)  recover any amount debited that exceeds the amount
 16-5    due.
 16-6          (d)  The comptroller by rule shall specify the frequency with
 16-7    which a reconciliation under Subsection (c)(1) must be conducted by
 16-8    a state agency.  The comptroller by rule may require the agency to
 16-9    submit the reconciliation to the comptroller for review and
16-10    approval.  The comptroller may audit the agency to ensure the
16-11    accuracy of the reconciliation.
16-12          (e)  The comptroller may adopt rules and establish procedures
16-13    to administer this section.
16-14          (f)  In this section, "state agency" means:
16-15                (1)  a board, commission, department, or other agency
16-16    in the executive branch of state government that is created by the
16-17    constitution or a statute of this state, including an institution
16-18    of higher education as defined by Section 61.003, Education Code,
16-19    other than a public junior or community college;
16-20                (2)  the legislature or a legislative agency; or
16-21                (3)  the supreme court, the court of criminal appeals,
16-22    a court of appeals, or a state judicial agency.
16-23          SECTION 8.  Section 403.055, Government Code, is amended to
16-24    read as follows:
16-25          Sec. 403.055.  PAYMENTS [ISSUANCE] TO DEBTORS OR DELINQUENTS
16-26    PROHIBITED.  (a)  Except as provided by this section, the [The]
16-27    comptroller, as a ministerial duty, may not issue a warrant or
 17-1    initiate an electronic funds transfer to a person who has been
 17-2    reported properly under Subsection (f) [if the person is indebted
 17-3    or owes delinquent taxes to the state, or owes delinquent taxes
 17-4    under a tax that the comptroller administers or collects, until the
 17-5    debt or taxes are paid].
 17-6          (b)  The comptroller may not issue a warrant or initiate an
 17-7    electronic funds transfer to the assignee of a person who has been
 17-8    reported properly under Subsection (f) [is indebted or owes
 17-9    delinquent taxes to the state only] if the assignment became
17-10    effective after [before] the person became indebted to the state or
17-11    incurred a tax delinquency [delinquent in the payment of taxes to
17-12    the state].
17-13          (c)  When this section prohibits the comptroller from issuing
17-14    a warrant or initiating an electronic funds transfer to a person,
17-15    the comptroller may not issue a warrant or initiate an electronic
17-16    funds transfer to:
17-17                (1)  the person's estate;
17-18                (2)  the distributees of the person's estate; or
17-19                (3)  the person's surviving spouse.
17-20          (d) [(c)]  This section does not prohibit the comptroller
17-21    from issuing a warrant or initiating an electronic funds transfer
17-22    to pay [the compensation of]:
17-23                (1)  compensation to a state officer or employee; or
17-24                (2)  remuneration to an individual if the remuneration
17-25    [whose compensation] is being paid by a private person through a
17-26    state agency.
17-27          (e)  This [(d)  When this] section does not prohibit
 18-1    [prohibits] the comptroller from issuing a warrant or initiating [,
 18-2    the comptroller is also prohibited from using] an electronic funds
 18-3    transfer to a person reported properly under Subsection (f) or to
 18-4    the person's assignee if the state agency responsible for
 18-5    collecting the person's debt or tax delinquency subsequently and
 18-6    properly reports to the comptroller that:
 18-7                (1)  the person is complying with an installment
 18-8    payment agreement or similar agreement to pay or eliminate the debt
 18-9    or delinquency, unless the agency subsequently and properly reports
18-10    to the comptroller that the person no longer is complying with the
18-11    agreement;
18-12                (2)  the person's debt or delinquency has been paid or
18-13    otherwise eliminated; or
18-14                (3)  the report of indebtedness or delinquency was
18-15    prohibited by Subsection (g) or was otherwise erroneous [system].
18-16          (f)  Except as provided by Subsection (g), a state agency
18-17    shall report to the comptroller each person who is indebted to the
18-18    state or has a tax delinquency.  The report must contain the
18-19    information and be submitted in the manner and with the frequency
18-20    required by the comptroller.
18-21          (g)  A state agency may not report a person under Subsection
18-22    (f) unless the agency first provides the person with an opportunity
18-23    to exercise any due process or other constitutional or statutory
18-24    protection that must be accommodated before the agency or the state
18-25    may begin a collection action or procedure.  The comptroller may
18-26    not investigate or determine whether a state agency has complied
18-27    with this prohibition.
 19-1          (h)  This section does not apply:
 19-2                (1)  to the extent Section 57.48, Education Code,
 19-3    applies; or
 19-4                (2)  to the extent this section conflicts with Section
 19-5    231.007, Family Code.
 19-6          (i)  This section does not prohibit the comptroller from
 19-7    issuing a warrant or initiating an electronic funds transfer if:
 19-8                (1)  the warrant or transfer would result in a payment
 19-9    being made in whole or in part with money paid to the state by the
19-10    United States; and
19-11                (2)  the state agency that administers the money
19-12    certifies to the comptroller that federal law:
19-13                      (A)  requires the payment to be made; or
19-14                      (B)  conditions the state's receipt of those
19-15    funds on the payment being made.
19-16          (j)  The comptroller may adopt rules and establish procedures
19-17    to administer this section.
19-18          (k) [(e)(1)  This subsection applies when a payment is made
19-19    to a person other than through the comptroller's issuance of a
19-20    warrant or the comptroller's use of an electronic funds transfer
19-21    system.]
19-22                [(2)  A state agency may not use funds inside or
19-23    outside the state treasury to pay a person if the person is
19-24    indebted or owes delinquent taxes to the state or owes delinquent
19-25    taxes under a tax that the comptroller administers or collects
19-26    until the debt or taxes are paid.]
19-27                [(3)  This subsection does not prohibit a state agency
 20-1    from paying the assignee of a person who is indebted or owes
 20-2    delinquent taxes to the state if the assignment became effective
 20-3    before the person became indebted to the state or delinquent in the
 20-4    payment of taxes to the state.]
 20-5                [(4)  This subsection does not prohibit a state agency
 20-6    from paying the compensation of:]
 20-7                      [(A)  a state officer or employee; or]
 20-8                      [(B)  an individual whose compensation is being
 20-9    paid by a private person through the agency.]
20-10                [(5)  The comptroller may not reimburse a state agency
20-11    for a payment that is made in violation of this subsection.]
20-12          [(f)]  In this section:
20-13                (1)  "Compensation" means base salary or [includes]
20-14    wages, [salaries,] longevity pay, hazardous duty pay, benefit
20-15    replacement pay, or an emolument [and emoluments that are] provided
20-16    in lieu of base salary or wages [or salaries].  [The term does not
20-17    include expense reimbursements.]
20-18                (2)  "State agency" means a board, commission, council,
20-19    committee, department, office, agency, or other governmental entity
20-20    in the executive, legislative, or judicial branch of state
20-21    government.  The term includes an institution of higher education
20-22    as defined by Section 61.003, Education Code, other than a public
20-23    junior or community college.
20-24                (3)  "State officer or employee" means an officer or
20-25    employee of a state agency.
20-26                (4)  "Tax delinquency" means a delinquency in payment
20-27    of:
 21-1                      (A)  a tax to the state; or
 21-2                      (B)  a tax that the comptroller administers or
 21-3    collects.
 21-4          [(g)  If a person owes delinquent taxes under a tax that the
 21-5    comptroller administers or collects, the comptroller may subtract
 21-6    the delinquent amount from the total amount due the person from the
 21-7    state, except from amounts due that are deemed to be current wages,
 21-8    and issue a warrant for the difference.  The delinquent person is
 21-9    entitled to written notice of at least 20 days before the date of
21-10    the offset.  The notice must conform to the notice requirements
21-11    under Sections 111.018(b)(1) through (3), Tax Code.  The
21-12    comptroller may promulgate rules for the administration of this
21-13    section.]
21-14          SECTION 9.  Subchapter D, Chapter 403, Government Code, is
21-15    amended by adding Section 403.0551 to read as follows:
21-16          Sec. 403.0551.  DEDUCTIONS FOR REPAYMENT OF CERTAIN DEBTS OR
21-17    TAX DELINQUENCIES.  (a) Except as provided by Subsections (b) and
21-18    (d), the comptroller may deduct the amount of a person's
21-19    indebtedness to the state or tax delinquency from any amount the
21-20    state owes the person or the person's successor.  The comptroller
21-21    shall issue a warrant or initiate an electronic funds transfer to
21-22    the person or successor for any remaining amount.
21-23          (b)  Subsection (a) applies to a person or the person's
21-24    successor only if:
21-25                (1)  the comptroller has provided notice to the person
21-26    or successor that complies with Subsection (c);
21-27                (2)  Section 57.48, Education Code, or Section 403.055
 22-1    prohibits the comptroller from issuing a warrant or initiating an
 22-2    electronic funds transfer to the person or successor; and
 22-3                (3)  the comptroller is responsible under Section
 22-4    404.046, 404.069, or 2103.003 for paying the amount owed by the
 22-5    state to the person or successor through the issuance of a warrant
 22-6    or initiation of an electronic funds transfer.
 22-7          (c)  The comptroller shall provide notice to a person or the
 22-8    person's successor before deducting the amount of the person's
 22-9    indebtedness to the state or tax delinquency under Subsection (a).
22-10    The notice must:
22-11                (1)  be given in a manner reasonably calculated to give
22-12    actual notice to the person or successor;
22-13                (2)  state the:
22-14                      (A)  amount of the indebtedness or the amount of
22-15    the tax, penalties, interest, and costs due, as applicable; and
22-16                      (B)  name of the indebted or delinquent person;
22-17                (3)  specify the deadline for paying the amount due;
22-18    and
22-19                (4)  inform the person or successor that unless the
22-20    amount due is paid before the deadline, the comptroller will deduct
22-21    the amount of the indebtedness or delinquency from the amount the
22-22    state owes the person or successor.
22-23          (d)  This section does not authorize the comptroller to
22-24    deduct the amount of a state employee's indebtedness to a state
22-25    agency from any amount of compensation owed by the agency to the
22-26    employee, the employee's successor, or the assignee of the employee
22-27    or successor.  In this subsection, "compensation," "indebtedness,"
 23-1    "state agency," "state employee," and "successor" have the meanings
 23-2    assigned by Section 666.001.
 23-3          (e)  The comptroller shall credit the appropriate fund or
 23-4    account for any amount deducted under this section if the
 23-5    comptroller is the custodian or trustee of that fund or account.
 23-6    The comptroller shall remit any amount deducted under this section
 23-7    to the custodian or trustee of the appropriate fund or account if
 23-8    the comptroller is not its custodian or trustee.
 23-9          (f)  The comptroller may determine the order that a person's
23-10    multiple types of indebtedness to the state or tax delinquencies
23-11    are deducted from the amount the state owes the person or the
23-12    person's successor.
23-13          (g)  The assignee of a person or the person's successor is
23-14    considered to be a successor of the person for the purposes of this
23-15    section, except that a deduction under this section from the amount
23-16    owed to the assignee of a person or the person's successor may not
23-17    be made if the assignment became effective before the person became
23-18    indebted to the state or incurred the tax delinquency.
23-19          (h)  The comptroller may adopt rules and establish procedures
23-20    to administer this section.
23-21          (i)  Except as provided by Subsection (d), in this section,
23-22    "successor" means a person's estate and the distributees of that
23-23    estate.
23-24          SECTION 10.  Subchapter D, Chapter 403, Government Code, is
23-25    amended by adding Section 403.0552 to read as follows:
23-26          Sec. 403.0552.  PREPARATION AND RETENTION OF CERTAIN
23-27    WARRANTS.  (a)  The comptroller may prepare and retain a warrant
 24-1    that Section 57.48, Education Code, Section 231.007, Family Code,
 24-2    or Section 403.055 prohibits the comptroller from issuing.
 24-3          (b)  The comptroller may prepare a warrant to make a payment
 24-4    that Section 57.48, Education Code, Section 231.007, Family Code,
 24-5    or Section 403.055 prohibits the comptroller from initiating by
 24-6    electronic funds transfer.
 24-7          (c)  If the comptroller prepares a warrant under Subsection
 24-8    (a) or (b), the comptroller shall:
 24-9                (1)  make the warrant payable to the person to whom the
24-10    warrant may not be issued or an electronic funds transfer may not
24-11    be initiated; and
24-12                (2)  retain the warrant until the earliest of:
24-13                      (A)  the first day the warrant may no longer be
24-14    paid by the comptroller under Section 404.046 or other applicable
24-15    law;
24-16                      (B)  the date the comptroller deducts the amount
24-17    of the person's indebtedness to the state or tax delinquency from
24-18    the amount of the warrant under Section 403.0551, Chapter 666, or
24-19    other applicable law; or
24-20                      (C)  the first day the comptroller is no longer
24-21    prohibited from issuing the warrant or initiating an electronic
24-22    funds transfer to that person.
24-23          (d)  The comptroller may not cancel or destroy a warrant
24-24    prepared under Subsection (a) or (b) unless the comptroller
24-25    receives a request for the cancellation or destruction from the
24-26    state agency that submitted the voucher requesting issuance of the
24-27    warrant or initiation of the electronic funds transfer and:
 25-1                (1)  the agency informs the comptroller that the
 25-2    voucher was erroneous or was submitted erroneously;
 25-3                (2)  the agency is the only state agency responsible
 25-4    for collecting the indebtedness or tax delinquency of the payee of
 25-5    the warrant; or
 25-6                (3)  all state agencies that are responsible for
 25-7    collecting the indebtedness or tax delinquency of the payee of the
 25-8    warrant consent to the cancellation or destruction.
 25-9          (e)  For purposes of Subsection (d)(1), a voucher is not
25-10    erroneous and is not submitted erroneously merely because the
25-11    comptroller is prohibited by Section 57.48, Education Code, Section
25-12    231.007, Family Code, or Section 403.055 from issuing a warrant or
25-13    initiating an electronic funds transfer in accordance with the
25-14    voucher.
25-15          SECTION 11.  Section 403.060(a), Government Code, is amended
25-16    to read as follows:
25-17          (a)  The comptroller may delegate to a person [state agency]
25-18    the authority to print warrants [at the agency's location] and
25-19    deliver those warrants to the appropriate person.  However, before
25-20    a person [an agency] may print and deliver a warrant, the
25-21    comptroller must approve a voucher related to the warrant in
25-22    accordance with Section 403.071.
25-23          SECTION 12.  Section 404.046, Government Code, is amended to
25-24    read as follows:
25-25          Sec. 404.046.  PAYMENT FROM TREASURY.  The comptroller shall
25-26    pay warrants the comptroller draws on the treasury that are
25-27    authorized by law.  Except as provided by Section 403.0271, money
 26-1    [Money] may not be paid out of the treasury except on a warrant
 26-2    drawn or an electronic funds transfer initiated by [the warrants
 26-3    of] the comptroller.  A [, and a] warrant may not be paid by the
 26-4    comptroller unless presented for payment to a financial institution
 26-5    or the comptroller before two years after the close of the fiscal
 26-6    year in which the warrant was issued.  Claims for the payment of
 26-7    warrants presented after that time may be presented to the
 26-8    legislature for appropriations from which the claims may be paid.
 26-9          SECTION 13.  Section 404.069(a), Government Code, is amended
26-10    to read as follows:
26-11          (a)  All money and securities deposited with the comptroller
26-12    in trust for any legal purpose may be received by the comptroller
26-13    as provided by Section 403.052.  The money or securities shall be
26-14    held in trust by the comptroller in the same manner as the
26-15    departmental suspense account.  Except as provided by Section
26-16    403.0271, the money may be withdrawn only on a [Withdrawal shall be
26-17    by] warrant drawn or an electronic funds transfer initiated by the
26-18    comptroller.  The securities may be withdrawn only by [in the case
26-19    of money and] withdrawal authorization [in the case of securities.
26-20    Those instruments shall be issued by the comptroller as provided by
26-21    Sections 403.011 and 403.056].
26-22          SECTION 14.  Section 608.002(b), Government Code, is amended
26-23    to read as follows:
26-24          (b)  An authorization must:
26-25                (1)  be in writing or recorded by electronic means; and
26-26                (2)  state:
26-27                      (A)  the period for which the authorization is to
 27-1    be in effect; [and]
 27-2                      (B)  the amount to be deducted; and
 27-3                      (C)  the denomination of the savings bonds to be
 27-4    purchased.
 27-5          SECTION 15.  Section 608.003(b), Government Code, is amended
 27-6    to read as follows:
 27-7          (b)  If a withholding is made, the department administrator
 27-8    or disbursing officer shall make a deduction when the payroll of a
 27-9    state department or a political subdivision is presented to the
27-10    comptroller or disbursing officer, as appropriate, [for the
27-11    issuance of warrants] for payment.
27-12          SECTION 16.  Section 608.005, Government Code, is amended to
27-13    read as follows:
27-14          Sec. 608.005.  PAYMENT [ISSUANCE OF WARRANT] TO DEPARTMENT
27-15    ADMINISTRATOR OR DISBURSING OFFICER.  (a)  When the payroll of a
27-16    state department is presented to the comptroller for payment, the
27-17    comptroller shall pay [issue] to the department administrator [a
27-18    warrant for] the full amount deducted from the department's payroll
27-19    for the payroll period to purchase savings bonds on behalf of
27-20    department officers and employees.
27-21          (b)  When the payroll of a political subdivision is presented
27-22    to the disbursing officer for payment, the disbursing officer shall
27-23    pay [issue] to the disbursing officer [a warrant for] the full
27-24    amount deducted from the political subdivision's payroll for the
27-25    payroll period to purchase savings bonds on behalf of officers and
27-26    employees of the political subdivision.
27-27          SECTION 17.  Section 608.007, Government Code, is amended to
 28-1    read as follows:
 28-2          Sec. 608.007.  TRUST ACCOUNT.  (a)  A department
 28-3    administrator shall deposit money received [a warrant issued] under
 28-4    Section 608.005(a) with the comptroller to be held in trust by the
 28-5    comptroller until disbursed by the department administrator to
 28-6    purchase savings bonds for an individual designated in an
 28-7    authorization under Section 608.002 filed with the department
 28-8    administrator.
 28-9          (b)  A disbursing officer shall deposit money received [a
28-10    warrant issued] under Section 608.005(b) with the comptroller of
28-11    the political subdivision to be held in trust by the comptroller
28-12    until disbursed by the disbursing officer to purchase savings bonds
28-13    for an individual designated in an authorization under Section
28-14    608.002 filed with the disbursing officer.
28-15          (c)  Money [A warrant] held in trust under this section shall
28-16    be deposited in an account designated as the savings bond payroll
28-17    savings account.  [The comptroller shall pay out money deposited in
28-18    the account on proper warrants drawn by the department
28-19    administrator or disbursing officer, as appropriate.]
28-20          SECTION 18.  Section 608.010(b), Government Code, is amended
28-21    to read as follows:
28-22          (b)  On termination as provided by Subsection (a), any money
28-23    that has been deducted from an officer's or employee's compensation
28-24    but has not been used to purchase savings bonds shall be remitted
28-25    immediately [by proper warrant] to the individual from whose
28-26    compensation the money has been deducted.
28-27          SECTION 19.  Subtitle B, Title 6, Government Code, is amended
 29-1    by adding Chapter 666 to read as follows:
 29-2             CHAPTER 666.  PAYROLL DEDUCTION TO RECOUP EXCESS
 29-3             COMPENSATION PAID TO A STATE OFFICER OR EMPLOYEE
 29-4          Sec. 666.001.  DEFINITIONS.  In this chapter:
 29-5                (1)  "Compensation" includes:
 29-6                      (A)  base salary or wages;
 29-7                      (B)  longevity or hazardous duty pay;
 29-8                      (C)  benefit replacement pay;
 29-9                      (D)  a payment for the balance of vacation and
29-10    sick leave under Subchapter B, Chapter 661;
29-11                      (E)  a payment for the accrued balance of
29-12    vacation time under Subchapter C, Chapter 661; and
29-13                      (F)  an emolument provided in lieu of base salary
29-14    or wages.
29-15                (2)  "Indebtedness" means the amount of compensation
29-16    paid to a state employee that exceeds the amount the employee is
29-17    eligible to receive under law.
29-18                (3)  "State agency" means a board, commission, council,
29-19    committee, department, office, agency, or other governmental entity
29-20    in the executive, legislative, or judicial branch of state
29-21    government.  The term includes:
29-22                      (A)  the Texas Guaranteed Student Loan
29-23    Corporation; and
29-24                      (B)  an institution of higher education as
29-25    defined by Section 61.003, Education Code, other than a public
29-26    junior or community college.
29-27                (4)  "State employee" means an officer or employee of a
 30-1    state agency.
 30-2                (5)  "Successor" means:
 30-3                      (A)  the estate of a deceased state employee;
 30-4                      (B)  the surviving spouse of a deceased state
 30-5    employee; or
 30-6                      (C)  the distributees of the estate of a deceased
 30-7    state employee.
 30-8          Sec. 666.002.  DEDUCTION AUTHORIZATION.  (a)  A state agency
 30-9    may deduct the amount of a state employee's indebtedness to the
30-10    agency from any amount of compensation the agency owes the employee
30-11    or the employee's successor if:
30-12                (1)  the agency provides a notice to the employee or
30-13    successor that complies with Section 666.003;
30-14                (2)  the agency provides the employee or successor with
30-15    an opportunity to exercise any due process or other constitutional
30-16    or statutory protection that must be accommodated before the agency
30-17    may begin a collection action or procedure;
30-18                (3)  the agency determines that the deduction would not
30-19    violate any applicable law or rule of this state or the United
30-20    States; and
30-21                (4)  the comptroller is not responsible under Section
30-22    404.046, 404.069, or 2103.003 for paying the amount owed by the
30-23    agency to the employee or successor through the issuance of a
30-24    warrant or initiation of an electronic funds transfer.
30-25          (b)  The comptroller may deduct the amount of a state
30-26    employee's indebtedness to a state agency from any amount of
30-27    compensation the agency owes the employee or the employee's
 31-1    successor if:
 31-2                (1)  the agency provides a notice to the employee or
 31-3    successor that complies with Section 666.003;
 31-4                (2)  the agency requests the comptroller to make the
 31-5    deduction in accordance with Section 666.005; and
 31-6                (3)  the comptroller is responsible under Section
 31-7    404.046, 404.069, or 2103.003 for paying the amount owed by the
 31-8    agency to the employee or the successor through the issuance of a
 31-9    warrant or initiation of an electronic funds transfer.
31-10          Sec. 666.003.  NOTICE.  (a)  A state agency shall provide
31-11    notice to a state employee or the employee's successor before the
31-12    agency:
31-13                (1)  deducts the amount of the employee's indebtedness
31-14    to the agency under Section 666.002(a); or
31-15                (2)  requests the comptroller to make a deduction under
31-16    Section 666.002(b).
31-17          (b)  The notice must:
31-18                (1)  be given in a manner reasonably calculated to give
31-19    actual notice to the employee or successor;
31-20                (2)  state the:
31-21                      (A)  amount of the indebtedness; and
31-22                      (B)  name of the indebted employee;
31-23                (3)  specify the date by which the indebtedness must be
31-24    paid; and
31-25                (4)  inform the employee or successor that unless the
31-26    indebtedness is paid on or before the date specified, the amount of
31-27    the indebtedness may be deducted from any amount of compensation
 32-1    the agency owes the employee or successor.
 32-2          Sec. 666.004.  PAYMENT OF AMOUNT REMAINING.  Any amount that
 32-3    remains owed after a deduction under Section 666.002 shall be paid
 32-4    to the state employee or successor.
 32-5          Sec. 666.005.  DEDUCTION REQUESTS TO THE COMPTROLLER.  (a)  A
 32-6    state agency may not request the comptroller to make a deduction
 32-7    from compensation owed to a state employee or  successor under
 32-8    Section 666.002(b) before the agency:
 32-9                (1)  provides the employee or successor the opportunity
32-10    to exercise any due process or other constitutional or statutory
32-11    protection that must be accommodated before a collection action or
32-12    procedure may begin; and
32-13                (2)  determines that the deduction would not violate
32-14    any applicable law or rule of this state or the United States.
32-15          (b)  The comptroller may not investigate or determine whether
32-16    the agency has complied with Subsection (a)(1).  The comptroller
32-17    may rely on a determination made under Subsection (a)(2).
32-18          (c)  A state agency's request to the comptroller to make a
32-19    deduction under Section 666.002(b) must comply with the
32-20    comptroller's requirements for format, content, and frequency.
32-21          Sec. 666.006.  ASSIGNEES.  The assignee of a state employee
32-22    or the employee's successor is considered to be a successor for the
32-23    purposes of this chapter, except that a  deduction under this
32-24    chapter from the compensation owed to the assignee of a state
32-25    employee or the employee's successor may not be made if the
32-26    assignment became effective after the employee incurred the
32-27    indebtedness.
 33-1          Sec. 666.007.  ADMINISTRATION.  The comptroller may adopt
 33-2    rules and establish procedures to administer this chapter.
 33-3          SECTION 20.  Section 2103.003, Government Code, is amended to
 33-4    read as follows:
 33-5          Sec. 2103.003.  STATE AGENCY SPENDING OF APPROPRIATED FUNDS.
 33-6    A state agency may spend appropriated funds only by:
 33-7                (1)  a warrant drawn by:
 33-8                      (A)  the comptroller; or
 33-9                      (B)  a state agency to which the comptroller has
33-10    delegated authority to print warrants under Section 403.060; [or]
33-11                (2)  an electronic funds transfer initiated by the
33-12    comptroller; or
33-13                (3)  a debit to a state account by a person authorized
33-14    under Section 403.0271.
33-15          SECTION 21.  Chapter 2107, Government Code, is amended by
33-16    adding Section 2107.008 to read as follows:
33-17          Sec. 2107.008.  PAYMENTS TO DEBTORS OR DELINQUENTS
33-18    PROHIBITED.  (a)  Except as provided by this section, a state
33-19    agency, as a ministerial duty, may not use funds in or outside of
33-20    the state treasury to pay a person if:
33-21                (1)  Section 403.055 prohibits the comptroller from
33-22    issuing a warrant or initiating an electronic funds transfer to the
33-23    person; or
33-24                (2)  the person is indebted to the state or has a tax
33-25    delinquency, the agency is responsible for collecting that
33-26    indebtedness or delinquency, and Section 403.055 does not prohibit
33-27    the comptroller from issuing a warrant or initiating an electronic
 34-1    funds transfer to the person.
 34-2          (b)  A state agency may not pay the assignee of a person that
 34-3    the agency may not pay under Subsection (a)(1) if Section 403.055
 34-4    prohibits the comptroller from issuing a warrant or initiating an
 34-5    electronic funds transfer to the assignee.  The agency may not pay
 34-6    the assignee of a person that the agency may not pay under
 34-7    Subsection (a)(2) if the assignment became effective after the
 34-8    person became indebted to the state or incurred a tax delinquency.
 34-9          (c)  A state agency that is prohibited by Subsection (a) may
34-10    not pay:
34-11                (1)  the person's estate;
34-12                (2)  the distributees of the person's estate; or
34-13                (3)  the person's surviving spouse.
34-14          (d)  This section does not prohibit a state agency from
34-15    paying a person subject to Subsection (a)(2) or the person's
34-16    assignee if the agency determines that the person is complying with
34-17    an installment payment agreement or similar agreement between the
34-18    agency and that person to pay or eliminate the debt or delinquency.
34-19          (e)  The comptroller may not reimburse a state agency for a
34-20    payment that the comptroller determines was made in violation of
34-21    this section.
34-22          (f)  Subsection (a)(2) does not prohibit a state agency from
34-23    paying:
34-24                (1)  compensation to a state officer or employee; or
34-25                (2)  remuneration to an individual if the remuneration
34-26    is being paid by a private person through the agency.
34-27          (g)  Subsection (a)(2) does not prohibit a state agency from
 35-1    making a payment if:
 35-2                (1)  the payment would be made in whole or in part with
 35-3    money paid to the state by the United States; and
 35-4                (2)  the agency determines that federal law:
 35-5                      (A)  requires the payment to be made; or
 35-6                      (B)  conditions the state's receipt of the money
 35-7    on the payment being made.
 35-8          (h)  A state agency may not refuse to make a payment under
 35-9    Subsection (a)(2) before the agency has provided the person with an
35-10    opportunity to exercise any due process or other constitutional or
35-11    statutory protection that must be accommodated before the agency or
35-12    the state may begin a collection action or procedure.
35-13          (i)  This section does not apply to the extent that Section
35-14    57.482, Education Code, applies.
35-15          (j)  This section applies to a payment only if the
35-16    comptroller is not responsible under Section 404.046, 404.069, or
35-17    2103.003 for issuing a warrant or initiating an electronic funds
35-18    transfer to make the payment.
35-19          (k)  Notwithstanding Section 2107.001, in this section
35-20    "compensation," "state agency," "state officer or employee," and
35-21    "tax delinquency" have the meanings assigned by Section 403.055.
35-22          SECTION 22.  Section 2254.030, Government Code, is amended to
35-23    read as follows:
35-24          Sec. 2254.030.  PUBLICATION IN TEXAS REGISTER AFTER ENTERING
35-25    INTO MAJOR CONSULTING SERVICES CONTRACT.  Not later than the 20th
35-26    [10th] day after the date of entering into a major consulting
35-27    services contract, the contracting state agency shall file with the
 36-1    secretary of state for publication in the Texas Register:
 36-2                (1)  a description of the activities that the
 36-3    consultant will conduct;
 36-4                (2)  the name and business address of the consultant;
 36-5                (3)  the total value and the beginning and ending dates
 36-6    of the contract; and
 36-7                (4)  the dates on which documents, films, recordings,
 36-8    or reports that the consultant is required to present to the agency
 36-9    are due.
36-10          SECTION 23.  Sections 2254.031(a) and (c), Government Code,
36-11    are amended to read as follows:
36-12          (a)  A state agency that intends to renew a major consulting
36-13    services contract shall:
36-14                (1)  file with the secretary of state for publication
36-15    in the Texas Register the information required by Section 2254.030
36-16    not later than the 20th [10th] day after the date the contract is
36-17    renewed if the renewal contract is not a major consulting services
36-18    contract; or
36-19                (2)  comply with Sections 2254.028 and 2254.029 if the
36-20    renewal contract is a major consulting services contract.
36-21          (c)  A state agency that intends to amend or extend a major
36-22    consulting services contract shall:
36-23                (1)  not later than the 20th [10th] day after the date
36-24    the contract is amended or extended, file the information required
36-25    by Section 2254.030 with the secretary of state for publication in
36-26    the Texas Register if the contract after the amendment or extension
36-27    is not a major consulting services contract; or
 37-1                (2)  comply with Sections 2254.028 and 2254.029 if the
 37-2    contract after the amendment or extension is a major consulting
 37-3    services contract.
 37-4          SECTION 24.  Section 2254.034(c), Government Code, is amended
 37-5    to read as follows:
 37-6          (c)  If a contract is void under this section:
 37-7                (1)  the comptroller may not draw a warrant or transmit
 37-8    money to satisfy an obligation under the contract; and
 37-9                (2)  a state agency may not make any payment under the
37-10    contract with state or federal money or money held in or outside
37-11    the state treasury [until the agency has complied with Sections
37-12    2254.029 through 2254.031].
37-13          SECTION 25.  Section 31.038, Human Resources Code, is amended
37-14    to read as follows:
37-15          Sec. 31.038.  CANCELLATION OF UNCASHED WARRANTS.  The [On
37-16    authorization by the] department[, the comptroller] may cancel a
37-17    financial assistance warrant [warrants] that has [have] not been
37-18    cashed within a reasonable period of time after issuance.  The
37-19    cancellation must be performed in the manner required by rules of
37-20    the comptroller.
37-21          SECTION 26.  (a)  Sections 481.0841, 608.004, and 608.012,
37-22    Government Code, are repealed.
37-23          (b)  Section 5.101(f), Tax Code, is repealed.
37-24          SECTION 27.  (a)  The comptroller may adopt rules and take
37-25    other actions before January 1, 2000, that the comptroller
37-26    considers necessary or appropriate to prepare for Sections 1, 2, 4,
37-27    8-10, 19, and 21 of this Act to take effect.  This subsection does
 38-1    not authorize the comptroller to adopt any rule or take any action
 38-2    that Sections 1, 2, 4, 8-10, 19, and 21 of this Act would not
 38-3    authorize the comptroller to adopt or take if those sections took
 38-4    effect immediately.
 38-5          (b)  A state agency may take before January 1, 2000, the
 38-6    actions that the agency considers necessary or appropriate to
 38-7    prepare for Sections 1, 2, 4, 8-10, 19, and 21 of this Act to take
 38-8    effect.  This subsection does not authorize a state agency to take
 38-9    any action that Sections 1, 2, 4, 8-10, 19, and 21 of this Act
38-10    would not authorize the agency to take if those sections took
38-11    effect immediately.  In this subsection, "state agency" does not
38-12    include the comptroller.
38-13          SECTION 28.  The repeal of Section 608.004, Government Code,
38-14    by Section 26(a) of this Act is intended only to repeal a redundant
38-15    law.  The repeal does not imply that on and after the effective
38-16    date of Section 26 of this Act:
38-17                (1)  the amount an officer or employee authorizes to be
38-18    deducted from the officer's or employee's compensation for the
38-19    purchase of savings bonds may not actually be withheld and deducted
38-20    as authorized by Section 608.003, Government Code; or
38-21                (2)  the amount of an officer's or employee's
38-22    compensation remaining after all authorized deductions have been
38-23    made may not be paid to the officer or employee.
38-24          SECTION 29.  The changes in law made by Sections 22 and 23 of
38-25    this Act apply only to a major consulting services contract that is
38-26    entered into, renewed, amended, or extended on and after the
38-27    effective date of those sections.  A major consulting services
 39-1    contract that is entered into, renewed, amended, or extended before
 39-2    that date is governed by the law in effect on the date the contract
 39-3    is entered into, renewed, amended, or extended, and the former law
 39-4    is continued in effect for that purpose.
 39-5          SECTION 30.  The comptroller may adopt rules and take other
 39-6    actions before September 1, 1999, that the comptroller considers
 39-7    necessary or appropriate to prepare for Sections 6, 22, 23, and 29
 39-8    of this Act to take effect.  This section does not authorize the
 39-9    comptroller to adopt any rule or take any action that Sections 6,
39-10    22, 23, and 29 of this Act would not authorize the comptroller to
39-11    adopt or take if those sections took effect immediately.
39-12          SECTION 31.  This Act takes effect immediately except that:
39-13                (1)  Sections 6, 22, 23, and 29 take effect September
39-14    1, 1999; and
39-15                (2)  Sections 1, 2, 4, 8-10, 19, and 21 take effect
39-16    January 1, 2000.
39-17          SECTION 32.  The importance of this legislation and the
39-18    crowded condition of the calendars in both houses create an
39-19    emergency and an imperative public necessity that the
39-20    constitutional rule requiring bills to be read on three several
39-21    days in each house be suspended, and this rule is hereby suspended,
39-22    and that this Act take effect and be in force according to its
39-23    terms, and it is so enacted.
39-24                         COMMITTEE AMENDMENT NO. 1
39-25          Amend H.B. No. 3211 as follows:
39-26          (1)  On page 4, lines 16 and 17, strike "those funds" and
39-27    substitute "the money".
 40-1          (2)  On page 5, strike line 16 and substitute "making a
 40-2    payment to a person also is prohibited from paying any part of that
 40-3    payment to:".
 40-4          (3)  On page 10, line 19, strike "compensation to" and
 40-5    substitute "the compensation of".
 40-6          (4)  On page 10, line 21, strike "remuneration to" and
 40-7    substitute "the remuneration of".
 40-8          (5)  On page 17, line 23, strike "compensation to" and
 40-9    substitute "the compensation of".
40-10          (6)  On page 17, line 24, strike "remuneration to" and
40-11    substitute "the remuneration of".
40-12          (7)  On page 19, lines 14 and 15, strike "those funds" and
40-13    substitute "the money".
40-14          (8)  On page 33, line 9, strike "state agency to which" and
40-15    substitute "person that [state agency to which]".
40-16          (9)  On page 34, strike lines 9 and 10 and substitute:
40-17          (c)  A state agency that Subsection (a) prohibits from making
40-18    a payment to a person also is prohibited from paying any part of
40-19    that payment to:
40-20          (10)  On page 34, line 24, strike "compensation to" and
40-21    substitute "the compensation of".
40-22          (11)  On page 34, line 25, strike "remuneration to" and
40-23    substitute "the remuneration of".
40-24    76R11325 JJT-F                                             Craddick