By:  Ratliff                                           S.B. No. 176
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to codification of certain reporting and accounting
 1-2     requirements in the General Appropriations Act that are applicable
 1-3     to state agencies.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 324.008, Government Code, is  amended by
 1-6     adding Subsection (d) to read as follows:
 1-7           (d)  The governing body of a state agency, as defined by
 1-8     Sections 2151.002(2)(A) and (C), shall deliver to  the library
 1-9     immediately after transcription a certified copy of the minutes of
1-10     any meeting of the governing body.  Any changes or corrections to
1-11     the minutes shall also be delivered to the library.
1-12           SECTION 2.  Subchapter B, Chapter 403, Government Code, is
1-13     amended by adding Section 403.0131 to read as follows:
1-14           Sec. 403.0131.  APPROPRIATION CERTIFICATION SUMMARY.  As soon
1-15     as practical after the comptroller certifies the appropriations
1-16     made by the legislature in a regular or special session, the
1-17     comptroller shall prepare a summary table that details the basis
1-18     for the certification of  all  major  funds.  The table must be
1-19     similar in format and detail to the summary tables of the major
1-20     fund estimates published in the comptroller's biennial revenue
1-21     estimate and must include the biennial appropriations from all
1-22     major funds.  The comptroller shall deliver a copy of each table
1-23     prepared under this section to the governor, the lieutenant
1-24     governor, the speaker of the house of representatives, each member
 2-1     of the legislature, and the Legislative Budget Board.
 2-2           SECTION 3.  Section 403.021, Government Code, is amended to
 2-3     read as follows:
 2-4           Sec. 403.021.  ENCUMBRANCE REPORTS.  (a)  In this section,
 2-5     "state agency" has the meaning assigned by Section 403.013.
 2-6           (b)  A state agency that expends appropriated funds shall
 2-7     report into the uniform statewide accounting system all payables
 2-8     and binding [estimated] encumbrances by appropriation account for
 2-9     the first three quarters of the current appropriation year within
2-10     30 days after the close of each quarter.  A state agency shall
2-11     report payables and binding encumbrances for all appropriation
2-12     years annually [and submit a binding encumbrance report] to the
2-13     comptroller, the state auditor, and the Legislative Budget Board
2-14     [Office] no later than October 30 of each year.
2-15           (c) [(b)]  Payables and binding encumbrances must be reported
2-16     for all appropriations in the format that the comptroller
2-17     prescribes.
2-18           (d) [(c)]  On November [October] 1 of each fiscal year, the
2-19     comptroller shall lapse all unencumbered nonconstruction
2-20     appropriation balances for all prior appropriation years based on
2-21     the payables and binding encumbrances reported.
2-22           (e) [(d)]  If a state [an] agency submits a valid claim
2-23     against a prior year's appropriation 30 days or more after the
2-24     reporting due date, the comptroller shall reinstate the agency's
2-25     appropriations to the extent of the claim.
2-26           (f) [(e)]  If a state agency submits a claim that is legally
 3-1     payable against an appropriation for an earlier year and the
 3-2     balance of the appropriation is insufficient to pay the claim, then
 3-3     the comptroller may reopen the appropriation to pay the claim.  A
 3-4     claim is legally payable from an appropriation only if the
 3-5     appropriation was encumbered to pay the claim before the expiration
 3-6     of the appropriation.
 3-7           (g)  Each state agency shall reconcile all expenditures,
 3-8     binding encumbrances, payables, and accrued expenditures, as
 3-9     reported in the uniform statewide accounting system, with the state
3-10     agency's strategic planning and budget structure, as reported in
3-11     the automated budget and evaluation system.  Each state agency
3-12     shall report in the automated budget and evaluation system a method
3-13     of financing as provided in the General Appropriations Act.  The
3-14     Legislative Budget Board, after consultation with the comptroller,
3-15     shall determine a schedule for the reconciliation required by this
3-16     subsection.
3-17           (h)  The comptroller may adopt rules to administer this
3-18     section.
3-19           SECTION 4.  Section 751.024, Government Code, is amended to
3-20     read as follows:
3-21           Sec. 751.024.  REPORTS CONCERNING GRANT FUNDS [TO LEGISLATIVE
3-22     BUDGET BOARD].  (a)  Each agency and each institution of higher
3-23     education shall report to the office, the Legislative Budget Board,
3-24     and the budget division of the governor's office:
3-25                 (1)  each application or request made to the United
3-26     States government for grant funds;
 4-1                 (2)  the award or designation, by the United States
 4-2     government, of any funds for expenditure by a state agency; and
 4-3                 (3)  waivers of grant requirements.
 4-4           (b)  In consultation with the director, the Legislative
 4-5     Budget Board may prescribe [develop] reporting procedures and time
 4-6     schedules necessary to implement Subsection (a).
 4-7           [(c)  In prescribing a report form under Subsection (b), the
 4-8     Legislative Budget Board shall consult with the director.]
 4-9           SECTION 5.  Section 2101.011, Government Code, is amended to
4-10     read as follows:
4-11           Sec. 2101.011.  FINANCIAL INFORMATION REQUIRED OF STATE
4-12     AGENCIES.  (a)  In this section:
4-13                 (1)  "Appropriated money" means money appropriated by
4-14     the legislature under the General Appropriations Act or other law.
4-15                 (2)  "Appropriation item" includes an item listed in
4-16     the General Appropriations Act under an informational listing of
4-17     appropriated funds.
4-18           (b)  Not later than the 90th day of each fiscal year, the
4-19     executive head of each state agency shall submit an annual
4-20     financial report regarding the agency's use of appropriated money
4-21     during the preceding fiscal year [A state agency as defined by
4-22     Section 403.013 shall submit the financial information requested by
4-23     the comptroller and such other information requested by the
4-24     legislature in the General Appropriations Act, including
4-25     information about state funds held outside the state treasury,] to:
4-26                 (1)  the governor;
 5-1                 (2)  the comptroller;
 5-2                 (3)  the Legislative Reference Library;
 5-3                 (4)  the state auditor; and
 5-4                 (5)  the Legislative Budget Board.
 5-5           (c)  The annual report must include:
 5-6                 (1)  a detailed statement of all assets, liabilities,
 5-7     and fund balances, including:
 5-8                       (A)  cash on hand and on deposit in banks and
 5-9     accounts in the state treasury;
5-10                       (B)  the value of consumable supplies and
5-11     postage;
5-12                       (C)  the value of the state agency's inventory of
5-13     movable equipment and other fixed assets;
5-14                       (D)  all other assets;
5-15                       (E)  a list of investments, bonds, notes, and
5-16     other securities owned by any special funds under the jurisdiction
5-17     of the state agency, including the amount and value of the
5-18     securities;
5-19                       (F)  all money due the state agency from any
5-20     source;
5-21                       (G)  all outstanding commitments of the agency,
5-22     including amounts due for services or goods received by the agency;
5-23                       (H)  a summary by source of all revenue collected
5-24     or accruing through the state agency; and
5-25                       (I)  a summary of all appropriations,
5-26     expenditures, bona fide encumbrances, and other disbursements by
 6-1     the state agency;
 6-2                 (2)  a list of all bonded employees, including the name
 6-3     of the surety company, the name and title of the employee, and the
 6-4     amount of the surety bond;
 6-5                 (3)  an analysis of space occupied by the state agency,
 6-6     including:
 6-7                       (A)  the total number of square feet of space
 6-8     rented by the agency;
 6-9                       (B)  the total number of square feet of occupied
6-10     space in state-owned buildings;
6-11                       (C)  the name and address of each building in
6-12     which the state agency occupies space and the number of square feet
6-13     in each building devoted to a particular use;
6-14                       (D)  the cost per square foot of all rented
6-15     space;
6-16                       (E)  the annual and monthly cost of all rented
6-17     space;
6-18                       (F)  the lessor of all rented space;
6-19                       (G)  a statement of the state agency's progress
6-20     toward achieving the objective provided by Section 2165.104, if the
6-21     agency is subject to that section; and
6-22                       (H)  other information helpful to describe the
6-23     state agency's use of space;
6-24                 (4)  an itemized statement of all fees paid by the
6-25     state agency for professional and consulting services provided
6-26     under Chapter 2254, including the name of each person receiving
 7-1     fees and the reason for the provision of the services;
 7-2                 (5)  an itemized statement of all legal services paid
 7-3     by the state agency, other than services provided by an employee of
 7-4     the agency or the attorney general, that includes the name of each
 7-5     person receiving fees and the reason for the provision of the
 7-6     services;
 7-7                 (6)  a  copy of the report, relating to the state
 7-8     agency's use and cost of operating aircraft that is state-owned or
 7-9     under rental or long-term lease, prepared by the agency in
7-10     accordance with Section 2205.041;
7-11                 (7)  a list of any purchases made under Section
7-12     2155.132(a), including each product purchased, the purchase amount,
7-13     and the name of each vendor;
7-14                 (8)  for each fiscal year ending in an even-numbered
7-15     calendar year, a copy of the Master File Report Verification Form
7-16     certified by the General Land Office, if applicable to the state
7-17     agency, to confirm that the agency is in compliance with Subchapter
7-18     E, Chapter 31, Natural  Resources Code, or, if the agency's
7-19     inventory record is not accurate and complete, a statement that the
7-20     appropriate forms will be submitted to the General Land Office not
7-21     later than the 15th day after the date of the annual report;
7-22                 (9)  a copy of the report, relating to the state
7-23     agency's use of historically underutilized businesses, prepared by
7-24     the agency in accordance with Section 2161.124;
7-25                 (10)  a report of any transfer of appropriated money
7-26     between appropriation items that shows the sum of all transfers
 8-1     affecting a particular item;
 8-2                 (11)  a list of each passenger vehicle the state agency
 8-3     purchased, including the make and model, purchase price, assigned
 8-4     type of use, and fuel efficiency as expressed by the manufacturer's
 8-5     fuel efficiency rating;
 8-6                 (12)  a schedule, applicable to state agencies
 8-7     determined by the Legislative Budget Board, detailing total
 8-8     expenditures by or on behalf of a state agency for employee
 8-9     benefits, such as social security, health insurance, and retirement
8-10     contributions, benefit replacement pay, and workers' and
8-11     unemployment compensation payments; bond debt service; and payments
8-12     for general governmental services as determined by the comptroller,
8-13     including services of the comptroller, the attorney general, the
8-14     General Services Commission, the Department of Information
8-15     Resources, and the state auditor; and
8-16                 (13)  any other financial information requested by the
8-17     comptroller.
8-18           (d) [(b)  A state agency shall submit the information to the
8-19     listed officials by the date or dates provided in the General
8-20     Appropriations Act.]
8-21           [(c)]  The comptroller may require the reporting of the
8-22     financial information for any entity that the comptroller
8-23     determines is a component unit of a statewide reporting entity in
8-24     accordance with generally accepted accounting principles as
8-25     prescribed or modified by the Governmental Accounting Standards
8-26     Board or its successors.
 9-1           SECTION 6.  Chapter 2102, Government Code, is amended by
 9-2     adding Section 2102.0091 to read as follows:
 9-3           Sec. 2102.0091.  REPORTS OF PERIODIC AUDITS.  (a)  A state
 9-4     agency shall file with the budget division of the governor's
 9-5     office, the state auditor, and the Legislative Budget Board a copy
 9-6     of each report submitted to the state agency's governing body or
 9-7     its designee by the  agency's internal auditor.
 9-8           (b)  Each report shall be filed not later than the 30th day
 9-9     after the date the report is submitted to the state agency's
9-10     governing body or its designee.
9-11           (c)  In addition to the requirements of Subsection (a), a
9-12     state agency shall file with the budget division of the  governor's
9-13     office, the state auditor, and the Legislative Budget Board any
9-14     action plan or other response issued by the state agency's
9-15     governing body in response to the report of the state agency's
9-16     internal auditor.
9-17           SECTION 7.  Section 2152.064, Government Code, is amended by
9-18     amending Subsection (b) and adding Subsections (d) and (e) to read
9-19     as follows:
9-20           (b)  During January and July of each year, a state agency
9-21     shall file with the Legislative Budget Board [presiding officer of
9-22     each house of the legislature and the presiding officers of the
9-23     house appropriations committee and the senate finance committee] a
9-24     report that identifies each nonresident bidder to whom the agency
9-25     awarded a contract that has a value of $25,000 or more for the
9-26     purchase of supplies, materials, services, or equipment during the
 10-1    six calendar months preceding the month in which the report is
 10-2    filed, if the agency awarded such a contract during the reporting
 10-3    period.  For contracts with a value of $250,000 or more, the agency
 10-4    shall include an explanation for the need to use a nonresident
 10-5    bidder.
 10-6          (d)  In addition to the information required by Subsection
 10-7    (b), a state agency shall include in the report a listing of the
 10-8    total value of all purchases from nonresident bidders of supplies,
 10-9    materials, services, and equipment during the six calendar months
10-10    preceding the month in which the report is filed.  If the total
10-11    amount reported is greater than $1 million or greater than 25
10-12    percent of the total value of all purchases, the state agency shall
10-13    include an explanation for the need to use nonresident bidders.
10-14          (e)  The Legislative Budget Board shall prepare a report
10-15    summarizing the information received under this section for each
10-16    reporting period.  The board shall file a copy of each summary
10-17    report with the lieutenant governor, the speaker of the house of
10-18    representatives, and the presiding officer of the committee in each
10-19    house of the legislature that has jurisdiction over appropriations.
10-20          SECTION 8.  Section 2166.152, Government Code, is amended by
10-21    adding Subsection (e) to read as follows:
10-22          (e)  Money appropriated by the legislature may not be used
10-23    for a capital construction project for which a project analysis
10-24    described by this section is required until the analysis is filed
10-25    with the Legislative Budget Board, the budget division of the
10-26    governor's office, and the comptroller.
 11-1          SECTION 9.  Section 2205.039, Government Code, is amended by
 11-2    amending Subsection (b) and adding Subsection (c) to read as
 11-3    follows:
 11-4          (b)  The travel log form must request the following
 11-5    information about a state-operated aircraft each time the aircraft
 11-6    is flown:
 11-7                (1)  a mission statement, which may appear as a
 11-8    selection to be identified from general categories appearing on the
 11-9    form;
11-10                (2)  the name, state agency represented, destination,
11-11    and signature of each person who is a passenger or crew member of
11-12    the aircraft; [and]
11-13                (3)  the date of each flight;
11-14                (4)  a detailed and specific description of the
11-15    official business purpose of each flight; and
11-16                (5)  other information determined by the Legislative
11-17    Budget Board and the board to be necessary to monitor the proper
11-18    use of the aircraft.
11-19          (c)  A state agency other than the board shall send travel
11-20    logs to the board each month in which the agency operates an
11-21    aircraft.
11-22          SECTION 10.  Section 2205.041, Government Code, is amended to
11-23    read as follows:
11-24          Sec. 2205.041.  AIRCRAFT USE FORM. (a)  The Legislative
11-25    Budget Board, in cooperation with the board, shall prescribe:
11-26                (1)  an annual aircraft use form for gathering
 12-1    information about the use of state-operated aircraft; and
 12-2                (2)  procedures for each state agency that operates an
 12-3    aircraft for sending the form to the board and the Legislative
 12-4    Budget Board.
 12-5          (b)  The aircraft use form must request the following
 12-6    information about each aircraft a state agency operates:
 12-7                (1)  a description of the aircraft;
 12-8                (2)  the date purchased or leased and the purchase
 12-9    price or lease cost;
12-10                (3)  the number of annual hours flown;
12-11                (4)  the annual operating costs;
12-12                (5)  the number of flights and the destinations;
12-13                (6)  the travel logs prepared under Section 2205.039;
12-14    and
12-15                (7)  any other information the Legislative Budget Board
12-16    requires to document the proper or cost-efficient use of the
12-17    aircraft.
12-18          SECTION 11.  Chapter 109, Civil Practice and Remedies Code,
12-19    is amended by adding Section 109.0015 to read as follows:
12-20          Sec. 109.0015.  NOTICE OF CERTAIN LAWSUITS.
12-21    (a)  Notwithstanding Section 109.001, in this section, "state
12-22    agency" has the meaning assigned by Section 2151.002, Government
12-23    Code, except that the term also includes a public junior college.
12-24          (b)  A state agency shall notify the governor and the
12-25    Legislative Budget Board of the filing of each lawsuit against the
12-26    state that alleges a claim because of acts or omissions of the
 13-1    agency or an officer or employee of the agency and for which the
 13-2    state may be liable for payment of a judgment.  The notification
 13-3    must be made:
 13-4                (1)  not later than the 30th day after the date the
 13-5    suit is filed; and
 13-6                (2)  in a form prescribed by the Legislative Budget
 13-7    Board.
 13-8          SECTION 12.  This section provides, for information purposes
 13-9    only, a derivation table for provisions of the General
13-10    Appropriations Act that are codified in general law by other
13-11    sections of this Act.  The first column identifies the codified
13-12    law; all references are to the Government Code unless otherwise
13-13    expressly noted.  The second column identifies for each codified
13-14    law the applicable source provision of Article IX of the General
13-15    Appropriations Act for the fiscal biennium ending August 31, 1999
13-16    (Chapter 1452, Acts of the 75th Legislature, Regular Session,
13-17    1997).
13-18              Codified Law                 Source Provision
13-19    Sec.  324.008(d)                    Sec.  89
13-20    Sec.  403.0131                      Sec.  87
13-21    Sec.  403.021                       Sec.  86, last par.
13-22    Sec.  751.024                       Sec.  106.4
13-23    Sec.  2101.011 (generally)          Sec.  86 (almost all)
13-24    Sec.  2101.011(c)(3)(G)             Sec.  154, last sent.
13-25    Sec.  2101.011(c)(11)               Sec.  20.3, last sent.
13-26    Sec.  2102.0091                     Sec.  95
 14-1    Sec.  2152.064(b)                   Secs. 93.1, 94 (part)
 14-2    Secs. 2152.064(d), (e)              Secs. 93.2, 93.3
 14-3    Sec.  2166.152(e)                   Sec.  47 (part)
 14-4    Secs. 2205.039(b), (c)              Sec.  86.6 (part)
 14-5    Sec.  2205.041                      Sec.  86.6 (part)
 14-6    Sec.  109.0015, Civil Practice and
 14-7      Remedies Code                     Sec.  100
 14-8          SECTION 13.  This Act takes effect September 1, 1999.
 14-9          SECTION 14.  The importance of this legislation and the
14-10    crowded condition of the calendars in both houses create an
14-11    emergency and an imperative public necessity that the
14-12    constitutional rule requiring bills to be read on three several
14-13    days in each house be suspended, and this rule is hereby suspended.