By Luna                                               H.B. No. 3560
         76R930 MCK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to interagency agreements between agencies of this state
 1-3     and agencies of the federal government and other states.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 771.002, Government Code, is amended by
 1-6     adding Subdivision (4) to read as follows:
 1-7                 (4)  "State or federal agency" means an agency of:
 1-8                       (A)  this state;
 1-9                       (B)  another state; or
1-10                       (C)  the federal government.
1-11           SECTION 2.  Sections 771.003, 771.004, 771.006, 771.007,
1-12     771.008, and 771.010, Government Code, are amended to read as
1-13     follows:
1-14           Sec. 771.003.  AUTHORITY TO CONTRACT; EXCEPTIONS.  (a)  An [A
1-15     state] agency of this state may [agree or] contract with a state or
1-16     federal [another state] agency for the provision of necessary and
1-17     authorized services and resources.
1-18           (b)  An [A state] agency of this state may not construct a
1-19     highway, road, building, or other structure for a state or federal
1-20     [another] agency under this chapter, except that the Texas
1-21     Department of Transportation may enter into an interagency
1-22     agreement with a state college, university, or public junior
1-23     college for the maintenance, improvement, relocation, or extension
1-24     of existing on-campus streets, parking lots, and access-ways.
 2-1           (c)  An [A state] agency of this state may not provide
 2-2     services or resources to another agency of this state that are
 2-3     required  by Article XVI, Section 21, of the Texas Constitution to
 2-4     be provided under a contract awarded to the lowest responsible
 2-5     bidder.
 2-6           Sec. 771.004.  CONTRACT REQUIREMENTS;  EXCEPTIONS.  (a)
 2-7     Before an [a state] agency of this state may provide or receive a
 2-8     service or resource under this chapter, the agency must have
 2-9     entered into a written [agreement or] contract that has been
2-10     approved by the administrator of each agency that is a party to the
2-11     [agreement or] contract.
2-12           (b)  The [agreement or] contract must specify:
2-13                 (1)  the kind and amount of services or resources to be
2-14     provided;
2-15                 (2)  the basis for computing reimbursable costs; and
2-16                 (3)  the maximum cost during the period of the
2-17     agreement or contract.
2-18           (c)  A written [agreement or] contract is not required
2-19     between agencies of this state:
2-20                 (1)  in an emergency for the defense or safety of the
2-21     civil population or in the planning and preparation for those
2-22     emergencies;
2-23                 (2)  in cooperative efforts, proposed by the governor,
2-24     for the economic development of the state; or
2-25                 (3)  in a situation in which the amount involved is
2-26     less than $50,000.
2-27           (d)  In an interagency exchange that is exempt from the
 3-1     requirements of a written [agreement or] contract, the agencies
 3-2     involved shall document the exchange through informal letters of
 3-3     agreement or memoranda.
 3-4           Sec. 771.006.  PURCHASES AND SUBCONTRACTS OF SERVICES AND
 3-5     RESOURCES.  A contract under this chapter may authorize an agency
 3-6     of this state providing services and resources to subcontract and
 3-7     purchase the services and resources.
 3-8           Sec. 771.007.  REIMBURSEMENT AND ADVANCEMENT OF COSTS.  (a)
 3-9     An [A state] agency of this state that receives services or
3-10     resources under this chapter shall reimburse each state or federal
3-11     agency providing the services or resources the actual cost of
3-12     providing the services or resources, or the nearest practicable
3-13     estimate of that cost.  Reimbursement is not required if the
3-14     services or resources are provided:
3-15                 (1)  for national defense or disaster relief; or
3-16                 (2)  in cooperative efforts, proposed by the governor,
3-17     to promote the economic development of the state.
3-18           (b)  An [A state] agency of this state that receives services
3-19     or resources under this chapter may advance federal funds to a
3-20     state or federal agency providing the services or resources if the
3-21     agency receiving the services or resources determines that the
3-22     advance would facilitate the implementation of a federally funded
3-23     program.
3-24           (c)  An [A state] agency of this state that receives services
3-25     or resources under this chapter may advance funds to the state or
3-26     federal agency providing the services or resources if an advance is
3-27     necessary to enable the providing agency to provide the services or
 4-1     resources.  If an advance is made under this section, the agencies
 4-2     shall ensure after the services or resources are provided that the
 4-3     providing agency has received only sufficient funds to reimburse
 4-4     its total costs.  An advance of funds is a reimbursement for the
 4-5     purpose of Section 771.008.
 4-6           Sec. 771.008.  REIMBURSEMENT PROCEDURES.  (a)  An agency of
 4-7     this state shall reimburse another [an] agency of this state for
 4-8     the services or resources provided with a voucher payable to the
 4-9     providing agency or electronically as prescribed by the uniform
4-10     statewide accounting system.  The voucher or electronic transfer
4-11     must be drawn on the appropriation item or account of the receiving
4-12     agency from which the agency would ordinarily make expenditures for
4-13     similar services or resources.  A receiving agency may authorize a
4-14     providing agency to gain access to the receiving agency's
4-15     appropriation items or accounts for reimbursements under this
4-16     chapter.
4-17           (b)  A reimbursement received by an agency of this state for
4-18     services or resources provided under this chapter shall be credited
4-19     to the appropriation items or accounts from which the agency's
4-20     expenditures for the services or resources were made.
4-21           (c)  A payment for an intraagency transaction is accounted
4-22     for in the same manner as an interagency transaction or an
4-23     interdivisional transfer of money on the records of the agency,
4-24     subject to the applicable provisions of the General Appropriations
4-25     Act.
4-26           (d)  An agency of this state that receives services or
4-27     resources from an agency of another state or the federal government
 5-1     shall reimburse each agency providing the services or resources as
 5-2     provided by the terms of the contract.
 5-3           Sec. 771.010.  EXCEEDING AUTHORITY PROHIBITED.  An [A state]
 5-4     agency of this state may not enter into an agreement or contract
 5-5     that requires or permits the agency to exceed its duties and
 5-6     responsibilities or the limitations of its appropriated funds.
 5-7           SECTION 3.  This Act takes effect September 1, 1999.
 5-8           SECTION 4.  The importance of this legislation and the
 5-9     crowded condition of the calendars in both houses create an
5-10     emergency and an imperative public necessity that the
5-11     constitutional rule requiring bills to be read on three several
5-12     days in each house be suspended, and this rule is hereby suspended.