By Ratliff                                             S.B. No. 176
         76R3495 GCH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to codification of certain reporting and accounting
 1-3     requirements in the General Appropriations Act that are applicable
 1-4     to state agencies.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 324.008, Government Code, is  amended by
 1-7     adding Subsection (d) to read as follows:
 1-8           (d)  The governing body of a state agency, as defined by
 1-9     Sections 2151.002(2)(A) and (C), shall deliver to  the library
1-10     immediately after transcription a certified copy of the minutes of
1-11     any meeting of the governing body.  Any changes or corrections to
1-12     the minutes shall also be delivered to the library.
1-13           SECTION 2.  Subchapter B, Chapter 403, Government Code, is
1-14     amended by adding Section 403.0131 to read as follows:
1-15           Sec. 403.0131.  APPROPRIATION CERTIFICATION SUMMARY.  As soon
1-16     as practical after the comptroller certifies the appropriations
1-17     made by the legislature in a regular or special session, the
1-18     comptroller shall prepare a summary table that details the basis
1-19     for the certification of  all  major  funds.  The table must be
1-20     similar in format and detail to the summary tables of the major
1-21     fund estimates published in the comptroller's biennial revenue
1-22     estimate and must include the biennial appropriations from all
1-23     major funds.  The comptroller shall deliver a copy of each table
1-24     prepared under this section to the governor, the lieutenant
 2-1     governor, the speaker of the house of representatives, the
 2-2     presiding officer of the committee in each house of the legislature
 2-3     that has jurisdiction over appropriations, and the Legislative
 2-4     Budget Board.
 2-5           SECTION 3.  Section 403.021, Government Code, is amended to
 2-6     read as follows:
 2-7           Sec. 403.021.  ENCUMBRANCE REPORTS.  (a)  In this section,
 2-8     "state agency" has the meaning assigned by Section 403.013.
 2-9           (b)  A state agency that expends appropriated funds shall
2-10     report into the uniform statewide accounting system all payables
2-11     and binding [estimated] encumbrances by appropriation account for
2-12     the first three quarters of the current appropriation year within
2-13     30 days after the close of each quarter.  A state agency shall
2-14     report payables and binding encumbrances for all appropriation
2-15     years annually [and submit a binding encumbrance report] to the
2-16     comptroller, the state auditor, and the Legislative Budget Board
2-17     [Office] no later than October 30 of each year.
2-18           (c) [(b)]  Payables and binding encumbrances must be reported
2-19     for all appropriations in the format that the comptroller
2-20     prescribes.
2-21           (d) [(c)]  On November [October] 1 of each fiscal year, the
2-22     comptroller shall lapse all unencumbered nonconstruction
2-23     appropriation balances for all prior appropriation years based on
2-24     the payables and binding encumbrances reported.
2-25           (e) [(d)]  If a state [an] agency submits a valid claim
2-26     against a prior year's appropriation 30 days or more after the
2-27     reporting due date, the comptroller shall reinstate the agency's
 3-1     appropriations to the extent of the claim.
 3-2           (f) [(e)]  If a state agency submits a claim that is legally
 3-3     payable against an appropriation for an earlier year and the
 3-4     balance of the appropriation is insufficient to pay the claim, then
 3-5     the comptroller may reopen the appropriation to pay the claim.  A
 3-6     claim is legally payable from an appropriation only if the
 3-7     appropriation was encumbered to pay the claim before the expiration
 3-8     of the appropriation.
 3-9           (g)  Each state agency shall reconcile all expenditures,
3-10     binding encumbrances, payables, and accrued expenditures, as
3-11     reported in the uniform statewide accounting system, with the state
3-12     agency's strategic planning and budget structure, as reported in
3-13     the automated budget and evaluation system.  Each state agency
3-14     shall report in the automated budget and evaluation system a method
3-15     of financing as provided in the General Appropriations Act.  The
3-16     Legislative Budget Board, after consultation with the comptroller,
3-17     shall determine a schedule for the reconciliation required by this
3-18     subsection.
3-19           (h)  The comptroller may adopt rules to administer this
3-20     section.
3-21           SECTION 4.  Section 751.024, Government Code, is amended to
3-22     read as follows:
3-23           Sec. 751.024.  REPORTS CONCERNING GRANT FUNDS [TO LEGISLATIVE
3-24     BUDGET BOARD].  (a)  Each agency and each institution of higher
3-25     education shall report to the office, the Legislative Budget Board,
3-26     and the budget division of the governor's office:
3-27                 (1)  each application or request made to the United
 4-1     States government for grant funds;
 4-2                 (2)  the award or designation, by the United States
 4-3     government, of any funds for expenditure by a state agency; and
 4-4                 (3)  waivers of grant requirements.
 4-5           (b)  In consultation with the director, the Legislative
 4-6     Budget Board may prescribe [develop] reporting procedures and time
 4-7     schedules necessary to implement Subsection (a).
 4-8           [(c)  In prescribing a report form under Subsection (b), the
 4-9     Legislative Budget Board shall consult with the director.]
4-10           SECTION 5.  Section 2101.011, Government Code, is amended to
4-11     read as follows:
4-12           Sec. 2101.011.  FINANCIAL INFORMATION REQUIRED OF STATE
4-13     AGENCIES.  (a)  In this section:
4-14                 (1)  "Appropriated money" means money appropriated by
4-15     the legislature under the General Appropriations Act or other law.
4-16                 (2)  "Appropriation item" includes an item listed in
4-17     the General Appropriations Act under an informational listing of
4-18     appropriated funds.
4-19           (b)  Not later than the 90th day of each fiscal year, the
4-20     executive head of each state agency shall submit an annual
4-21     financial report regarding the agency's use of appropriated money
4-22     during the preceding fiscal year [A state agency as defined by
4-23     Section 403.013 shall submit the financial information requested by
4-24     the comptroller and such other information requested by the
4-25     legislature in the General Appropriations Act, including
4-26     information about state funds held outside the state treasury,] to:
4-27                 (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
5-27     the state agency;
 6-1                 (2)  a list of all bonded employees, including the name
 6-2     of the surety company, the name and title of the employee, and the
 6-3     amount of the surety bond;
 6-4                 (3)  an analysis of space occupied by the state agency,
 6-5     including:
 6-6                       (A)  the total number of square feet of space
 6-7     rented by the agency;
 6-8                       (B)  the total number of square feet of occupied
 6-9     space in state-owned buildings;
6-10                       (C)  the name and address of each building in
6-11     which the state agency occupies space and the number of square feet
6-12     in each building devoted to a particular use;
6-13                       (D)  the cost per square foot of all rented
6-14     space;
6-15                       (E)  the annual and monthly cost of all rented
6-16     space;
6-17                       (F)  the lessor of all rented space;
6-18                       (G)  a statement of the state agency's progress
6-19     toward achieving the objective provided by Section 2165.104, if the
6-20     agency is subject to that section; and
6-21                       (H)  other information helpful to describe the
6-22     state agency's use of space;
6-23                 (4)  an itemized statement of all fees paid by the
6-24     state agency for professional and consulting services provided
6-25     under Chapter 2254, including the name of each person receiving
6-26     fees and the reason for the provision of the services;
6-27                 (5)  an itemized statement of all legal services paid
 7-1     by the state agency, other than services provided by an employee of
 7-2     the agency or the attorney general, that includes the name of each
 7-3     person receiving fees and the reason for the provision of the
 7-4     services;
 7-5                 (6)  a  copy of the report, relating to the state
 7-6     agency's use and cost of operating aircraft that is state-owned or
 7-7     under rental or long-term lease, prepared by the agency in
 7-8     accordance with Section 2205.041;
 7-9                 (7)  a list of any purchases made under Section
7-10     2155.132(a), including each product purchased, the purchase amount,
7-11     and the name of each vendor;
7-12                 (8)  for each fiscal year ending in an even-numbered
7-13     calendar year, a copy of the Master File Report Verification Form
7-14     certified by the General Land Office, if applicable to the state
7-15     agency, to confirm that the agency is in compliance with Subchapter
7-16     E, Chapter 31, Natural  Resources Code, or, if the agency's
7-17     inventory record is not accurate and complete, a statement that the
7-18     appropriate forms will be submitted to the General Land Office not
7-19     later than the 15th day after the date of the annual report;
7-20                 (9)  a copy of the report, relating to the state
7-21     agency's use of historically underutilized businesses, prepared by
7-22     the agency in accordance with Section 2161.124;
7-23                 (10)  a report of any transfer of appropriated money
7-24     between appropriation items that shows the sum of all transfers
7-25     affecting a particular item;
7-26                 (11)  a list of each passenger vehicle the state agency
7-27     purchased, including the make and model, purchase price, assigned
 8-1     type of use, and fuel efficiency as expressed by the manufacturer's
 8-2     fuel efficiency rating;
 8-3                 (12)  a schedule, applicable to state agencies
 8-4     determined by the Legislative Budget Board, detailing total
 8-5     expenditures by or on behalf of a state agency for employee
 8-6     benefits, such as social security, health insurance, and retirement
 8-7     contributions, benefit replacement pay, and workers' and
 8-8     unemployment compensation payments; bond debt service; and payments
 8-9     for general governmental services as determined by the comptroller,
8-10     including services of the comptroller, the attorney general, the
8-11     General Services Commission, the Department of Information
8-12     Resources, and the state auditor; and
8-13                 (13)  any other financial information requested by the
8-14     comptroller.
8-15           (d) [(b)  A state agency shall submit the information to the
8-16     listed officials by the date or dates provided in the General
8-17     Appropriations Act.]
8-18           [(c)]  The comptroller may require the reporting of the
8-19     financial information for any entity that the comptroller
8-20     determines is a component unit of a statewide reporting entity in
8-21     accordance with generally accepted accounting principles as
8-22     prescribed or modified by the Governmental Accounting Standards
8-23     Board or its successors.
8-24           SECTION 6.  Chapter 2102, Government Code, is amended by
8-25     adding Section 2102.0091 to read as follows:
8-26           Sec. 2102.0091.  REPORTS OF PERIODIC AUDITS.  (a)  A state
8-27     agency shall file with the budget division of the governor's
 9-1     office, the state auditor, and the Legislative Budget Board a copy
 9-2     of each report submitted to the state agency's governing body or
 9-3     its designee by the  agency's internal auditor.
 9-4           (b)  Each report shall be filed not later than the 30th day
 9-5     after the date the report is submitted to the state agency's
 9-6     governing body or its designee.
 9-7           (c)  In addition to the requirements of Subsection (a), a
 9-8     state agency shall file with the budget division of the  governor's
 9-9     office, the state auditor, and the Legislative Budget Board any
9-10     action plan or other response issued by the state agency's
9-11     governing body in response to the report of the state agency's
9-12     internal auditor.
9-13           SECTION 7.  Section 2152.064, Government Code, is amended by
9-14     amending Subsection (b) and adding Subsections (d) and (e) to read
9-15     as follows:
9-16           (b)  During January and July of each year, a state agency
9-17     shall file with the Legislative Budget Board [presiding officer of
9-18     each house of the legislature and the presiding officers of the
9-19     house appropriations committee and the senate finance committee] a
9-20     report that identifies each nonresident bidder to whom the agency
9-21     awarded a contract that has a value of $25,000 or more for the
9-22     purchase of supplies, materials, services, or equipment during the
9-23     six calendar months preceding the month in which the report is
9-24     filed, if the agency awarded such a contract during the reporting
9-25     period.  For contracts with a value of $250,000 or more, the agency
9-26     shall include an explanation for the need to use a nonresident
9-27     bidder.
 10-1          (d)  In addition to the information required by Subsection
 10-2    (b), a state agency shall include in the report a listing of the
 10-3    total value of all purchases from nonresident bidders of supplies,
 10-4    materials, services, and equipment during the six calendar months
 10-5    preceding the month in which the report is filed.  If the total
 10-6    amount reported is greater than $1 million or greater than 25
 10-7    percent of the total value of all purchases, the state agency shall
 10-8    include an explanation for the need to use nonresident bidders.
 10-9          (e)  The Legislative Budget Board shall prepare a report
10-10    summarizing the information received under this section for each
10-11    reporting period.  The board shall file a copy of each summary
10-12    report with the lieutenant governor, the speaker of the house of
10-13    representatives, and the presiding officer of the committee in each
10-14    house of the legislature that has jurisdiction over appropriations.
10-15          SECTION 8.  Section 2166.152, Government Code, is amended by
10-16    adding Subsection (e) to read as follows:
10-17          (e)  Money appropriated by the legislature may not be used
10-18    for a capital construction project for which a project analysis
10-19    described by this section is required until the analysis is filed
10-20    with the Legislative Budget Board, the budget division of the
10-21    governor's office, and the comptroller.
10-22          SECTION 9.  Section 2205.039, Government Code, is amended by
10-23    amending Subsection (b) and adding Subsection (c) to read as
10-24    follows:
10-25          (b)  The travel log form must request the following
10-26    information about a state-operated aircraft each time the aircraft
10-27    is flown:
 11-1                (1)  a mission statement, which may appear as a
 11-2    selection to be identified from general categories appearing on the
 11-3    form;
 11-4                (2)  the name, state agency represented, destination,
 11-5    and signature of each person who is a passenger or crew member of
 11-6    the aircraft; [and]
 11-7                (3)  the date of each flight;
 11-8                (4)  a detailed and specific description of the
 11-9    official business purpose of each flight; and
11-10                (5)  other information determined by the Legislative
11-11    Budget Board and the board to be necessary to monitor the proper
11-12    use of the aircraft.
11-13          (c)  A state agency other than the board shall send travel
11-14    logs to the board each month in which the agency operates an
11-15    aircraft.
11-16          SECTION 10.  Section 2205.041, Government Code, is amended to
11-17    read as follows:
11-18          Sec. 2205.041.  AIRCRAFT USE FORM.  (a)  The Legislative
11-19    Budget Board, in cooperation with the board, shall prescribe:
11-20                (1)  an annual aircraft use form for gathering
11-21    information about the use of state-operated aircraft; and
11-22                (2)  procedures for each state agency that operates an
11-23    aircraft for sending the form to the board and the Legislative
11-24    Budget Board.
11-25          (b)  The aircraft use form must request the following
11-26    information about each aircraft a state agency operates:
11-27                (1)  a description of the aircraft;
 12-1                (2)  the date purchased or leased and the purchase
 12-2    price or lease cost;
 12-3                (3)  the number of annual hours flown;
 12-4                (4)  the annual operating costs;
 12-5                (5)  the number of flights and the destinations;
 12-6                (6)  the travel logs prepared under Section 2205.039;
 12-7    and
 12-8                (7)  any other information the Legislative Budget Board
 12-9    requires to document the proper or cost-efficient use of the
12-10    aircraft.
12-11          SECTION 11.  Chapter 109, Civil Practice and Remedies Code,
12-12    is amended by adding Section 109.0015 to read as follows:
12-13          Sec. 109.0015.  NOTICE OF CERTAIN LAWSUITS.
12-14    (a)  Notwithstanding Section 109.001, in this section, "state
12-15    agency" has the meaning assigned by Section 2151.002, except that
12-16    the term also includes a public junior college.
12-17          (b)  A state agency shall notify the governor and the
12-18    Legislative Budget Board of the filing of each lawsuit against the
12-19    state that alleges a claim because of acts or omissions of the
12-20    agency or an officer or employee of the agency and for which the
12-21    state may be liable for payment of a judgment.  The notification
12-22    must be made:
12-23                (1)  not later than the 30th day after the date the
12-24    suit is filed; and
12-25                (2)  in a form prescribed by the Legislative Budget
12-26    Board.
12-27          SECTION 12.  This section provides, for information purposes
 13-1    only, a derivation table for provisions of the General
 13-2    Appropriations Act that are codified in general law by other
 13-3    sections of this Act.  The first column identifies the codified
 13-4    law; all references are to the Government Code unless otherwise
 13-5    expressly noted.  The second column identifies for each codified
 13-6    law the applicable source provision of the General Appropriations
 13-7    Act for the fiscal biennium ending August 31, 1999 (Chapter 1452,
 13-8    Acts of the 75th Legislature, Regular Session, 1997).
 13-9              Codified Law                 Source Provision
13-10    Sec.  324.008(d)                    Sec.  89
13-11    Sec.  403.0131                      Sec.  87
13-12    Sec.  403.021                       Sec.  86, last par. 
13-13    Sec.  751.024                       Sec.  106.4
13-14    Sec.  2101.011 (generally)          Sec.  86 (almost all)
13-15    Sec.  2101.011(c)(3)(G)             Sec.  154, last sent. 
13-16    Sec.  2101.011(c)(11)               Sec.  20.3, last sent. 
13-17    Sec.  2102.0091                     Sec.  95
13-18    Sec.  2152.064(b)                   Secs. 93.1, 94 (part)
13-19    Secs. 2152.064(d), (e)              Secs. 93.2, 93.3
13-20    Sec.  2166.152(e)                   Sec.  47 (part)
13-21    Secs. 2205.039(b), (c)              Sec.  86.6 (part)
13-22    Sec.  2205.041                      Sec.  86.6 (part)
13-23    Sec.  109.0015, Civil Practice and
13-24      Remedies Code                     Sec.  100
13-25          SECTION 13.  This Act takes effect September 1, 1999.
13-26          SECTION 14.  The importance of this legislation and the
13-27    crowded condition of the calendars in both houses create an
 14-1    emergency and an imperative public necessity that the
 14-2    constitutional rule requiring bills to be read on three several
 14-3    days in each house be suspended, and this rule is hereby suspended.