1-1 By: Ratliff S.B. No. 176
1-2 (In the Senate - Filed January 19, 1999; January 28, 1999,
1-3 read first time and referred to Committee on Finance;
1-4 March 8, 1999, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 11, Nays 0; March 8, 1999,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 176 By: Ratliff
A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to codification of certain reporting and accounting
1-10 requirements in the General Appropriations Act that are applicable
1-11 to state agencies.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 324.008, Government Code, is amended by
1-14 adding Subsection (d) to read as follows:
1-15 (d) The governing body of a state agency, as defined by
1-16 Sections 2151.002(2)(A) and (C), shall deliver to the library
1-17 immediately after transcription a certified copy of the minutes of
1-18 any meeting of the governing body. Any changes or corrections to
1-19 the minutes shall also be delivered to the library.
1-20 SECTION 2. Subchapter B, Chapter 403, Government Code, is
1-21 amended by adding Section 403.0131 to read as follows:
1-22 Sec. 403.0131. APPROPRIATION CERTIFICATION SUMMARY. As soon
1-23 as practical after the comptroller certifies the appropriations
1-24 made by the legislature in a regular or special session, the
1-25 comptroller shall prepare a summary table that details the basis
1-26 for the certification of all major funds. The table must be
1-27 similar in format and detail to the summary tables of the major
1-28 fund estimates published in the comptroller's biennial revenue
1-29 estimate and must include the biennial appropriations from all
1-30 major funds. The comptroller shall deliver a copy of each table
1-31 prepared under this section to the governor, the lieutenant
1-32 governor, the speaker of the house of representatives, each member
1-33 of the legislature, and the Legislative Budget Board.
1-34 SECTION 3. Section 403.021, Government Code, is amended to
1-35 read as follows:
1-36 Sec. 403.021. ENCUMBRANCE REPORTS. (a) In this section,
1-37 "state agency" has the meaning assigned by Section 403.013.
1-38 (b) A state agency that expends appropriated funds shall
1-39 report into the uniform statewide accounting system all payables
1-40 and binding [estimated] encumbrances by appropriation account for
1-41 the first three quarters of the current appropriation year within
1-42 30 days after the close of each quarter. A state agency shall
1-43 report payables and binding encumbrances for all appropriation
1-44 years annually [and submit a binding encumbrance report] to the
1-45 comptroller, the state auditor, and the Legislative Budget Board
1-46 [Office] no later than October 30 of each year.
1-47 (c) [(b)] Payables and binding encumbrances must be reported
1-48 for all appropriations in the format that the comptroller
1-49 prescribes.
1-50 (d) [(c)] On November [October] 1 of each fiscal year, the
1-51 comptroller shall lapse all unencumbered nonconstruction
1-52 appropriation balances for all prior appropriation years based on
1-53 the payables and binding encumbrances reported.
1-54 (e) [(d)] If a state [an] agency submits a valid claim
1-55 against a prior year's appropriation 30 days or more after the
1-56 reporting due date, the comptroller shall reinstate the agency's
1-57 appropriations to the extent of the claim.
1-58 (f) [(e)] If a state agency submits a claim that is legally
1-59 payable against an appropriation for an earlier year and the
1-60 balance of the appropriation is insufficient to pay the claim, then
1-61 the comptroller may reopen the appropriation to pay the claim. A
1-62 claim is legally payable from an appropriation only if the
1-63 appropriation was encumbered to pay the claim before the expiration
1-64 of the appropriation.
2-1 (g) Each state agency shall reconcile all expenditures,
2-2 binding encumbrances, payables, and accrued expenditures, as
2-3 reported in the uniform statewide accounting system, with the state
2-4 agency's strategic planning and budget structure, as reported in
2-5 the automated budget and evaluation system. Each state agency
2-6 shall report in the automated budget and evaluation system a method
2-7 of financing as provided in the General Appropriations Act. The
2-8 Legislative Budget Board, after consultation with the comptroller,
2-9 shall determine a schedule for the reconciliation required by this
2-10 subsection.
2-11 (h) The comptroller may adopt rules to administer this
2-12 section.
2-13 SECTION 4. Section 751.024, Government Code, is amended to
2-14 read as follows:
2-15 Sec. 751.024. REPORTS CONCERNING GRANT FUNDS [TO LEGISLATIVE
2-16 BUDGET BOARD]. (a) Each agency and each institution of higher
2-17 education shall report to the office, the Legislative Budget Board,
2-18 and the budget division of the governor's office:
2-19 (1) each application or request made to the United
2-20 States government for grant funds;
2-21 (2) the award or designation, by the United States
2-22 government, of any funds for expenditure by a state agency; and
2-23 (3) waivers of grant requirements.
2-24 (b) In consultation with the director, the Legislative
2-25 Budget Board may prescribe [develop] reporting procedures and time
2-26 schedules necessary to implement Subsection (a).
2-27 [(c) In prescribing a report form under Subsection (b), the
2-28 Legislative Budget Board shall consult with the director.]
2-29 SECTION 5. Section 2101.011, Government Code, is amended to
2-30 read as follows:
2-31 Sec. 2101.011. FINANCIAL INFORMATION REQUIRED OF STATE
2-32 AGENCIES. (a) In this section:
2-33 (1) "Appropriated money" means money appropriated by
2-34 the legislature under the General Appropriations Act or other law.
2-35 (2) "Appropriation item" includes an item listed in
2-36 the General Appropriations Act under an informational listing of
2-37 appropriated funds.
2-38 (b) Not later than the 90th day of each fiscal year, the
2-39 executive head of each state agency shall submit an annual
2-40 financial report regarding the agency's use of appropriated money
2-41 during the preceding fiscal year [A state agency as defined by
2-42 Section 403.013 shall submit the financial information requested by
2-43 the comptroller and such other information requested by the
2-44 legislature in the General Appropriations Act, including
2-45 information about state funds held outside the state treasury,] to:
2-46 (1) the governor;
2-47 (2) the comptroller;
2-48 (3) the Legislative Reference Library;
2-49 (4) the state auditor; and
2-50 (5) the Legislative Budget Board.
2-51 (c) The annual report must include:
2-52 (1) a detailed statement of all assets, liabilities,
2-53 and fund balances, including:
2-54 (A) cash on hand and on deposit in banks and
2-55 accounts in the state treasury;
2-56 (B) the value of consumable supplies and
2-57 postage;
2-58 (C) the value of the state agency's inventory of
2-59 movable equipment and other fixed assets;
2-60 (D) all other assets;
2-61 (E) a list of investments, bonds, notes, and
2-62 other securities owned by any special funds under the jurisdiction
2-63 of the state agency, including the amount and value of the
2-64 securities;
2-65 (F) all money due the state agency from any
2-66 source;
2-67 (G) all outstanding commitments of the agency,
2-68 including amounts due for services or goods received by the agency;
2-69 (H) a summary by source of all revenue collected
3-1 or accruing through the state agency; and
3-2 (I) a summary of all appropriations,
3-3 expenditures, bona fide encumbrances, and other disbursements by
3-4 the state agency;
3-5 (2) a list of all bonded employees, including the name
3-6 of the surety company, the name and title of the employee, and the
3-7 amount of the surety bond;
3-8 (3) an analysis of space occupied by the state agency,
3-9 including:
3-10 (A) the total number of square feet of space
3-11 rented by the agency;
3-12 (B) the total number of square feet of occupied
3-13 space in state-owned buildings;
3-14 (C) the name and address of each building in
3-15 which the state agency occupies space and the number of square feet
3-16 in each building devoted to a particular use;
3-17 (D) the cost per square foot of all rented
3-18 space;
3-19 (E) the annual and monthly cost of all rented
3-20 space;
3-21 (F) the lessor of all rented space;
3-22 (G) a statement of the state agency's progress
3-23 toward achieving the objective provided by Section 2165.104, if the
3-24 agency is subject to that section; and
3-25 (H) other information helpful to describe the
3-26 state agency's use of space;
3-27 (4) an itemized statement of all fees paid by the
3-28 state agency for professional and consulting services provided
3-29 under Chapter 2254, including the name of each person receiving
3-30 fees and the reason for the provision of the services;
3-31 (5) an itemized statement of all legal services paid
3-32 by the state agency, other than services provided by an employee of
3-33 the agency or the attorney general, that includes the name of each
3-34 person receiving fees and the reason for the provision of the
3-35 services;
3-36 (6) a copy of the report, relating to the state
3-37 agency's use and cost of operating aircraft that is state-owned or
3-38 under rental or long-term lease, prepared by the agency in
3-39 accordance with Section 2205.041;
3-40 (7) a list of any purchases made under Section
3-41 2155.132(a), including each product purchased, the purchase amount,
3-42 and the name of each vendor;
3-43 (8) for each fiscal year ending in an even-numbered
3-44 calendar year, a copy of the Master File Report Verification Form
3-45 certified by the General Land Office, if applicable to the state
3-46 agency, to confirm that the agency is in compliance with Subchapter
3-47 E, Chapter 31, Natural Resources Code, or, if the agency's
3-48 inventory record is not accurate and complete, a statement that the
3-49 appropriate forms will be submitted to the General Land Office not
3-50 later than the 15th day after the date of the annual report;
3-51 (9) a copy of the report, relating to the state
3-52 agency's use of historically underutilized businesses, prepared by
3-53 the agency in accordance with Section 2161.124;
3-54 (10) a report of any transfer of appropriated money
3-55 between appropriation items that shows the sum of all transfers
3-56 affecting a particular item;
3-57 (11) a list of each passenger vehicle the state agency
3-58 purchased, including the make and model, purchase price, assigned
3-59 type of use, and fuel efficiency as expressed by the manufacturer's
3-60 fuel efficiency rating;
3-61 (12) a schedule, applicable to state agencies
3-62 determined by the Legislative Budget Board, detailing total
3-63 expenditures by or on behalf of a state agency for employee
3-64 benefits, such as social security, health insurance, and retirement
3-65 contributions, benefit replacement pay, and workers' and
3-66 unemployment compensation payments; bond debt service; and payments
3-67 for general governmental services as determined by the comptroller,
3-68 including services of the comptroller, the attorney general, the
3-69 General Services Commission, the Department of Information
4-1 Resources, and the state auditor; and
4-2 (13) any other financial information requested by the
4-3 comptroller.
4-4 (d) [(b) A state agency shall submit the information to the
4-5 listed officials by the date or dates provided in the General
4-6 Appropriations Act.]
4-7 [(c)] The comptroller may require the reporting of the
4-8 financial information for any entity that the comptroller
4-9 determines is a component unit of a statewide reporting entity in
4-10 accordance with generally accepted accounting principles as
4-11 prescribed or modified by the Governmental Accounting Standards
4-12 Board or its successors.
4-13 SECTION 6. Chapter 2102, Government Code, is amended by
4-14 adding Section 2102.0091 to read as follows:
4-15 Sec. 2102.0091. REPORTS OF PERIODIC AUDITS. (a) A state
4-16 agency shall file with the budget division of the governor's
4-17 office, the state auditor, and the Legislative Budget Board a copy
4-18 of each report submitted to the state agency's governing body or
4-19 its designee by the agency's internal auditor.
4-20 (b) Each report shall be filed not later than the 30th day
4-21 after the date the report is submitted to the state agency's
4-22 governing body or its designee.
4-23 (c) In addition to the requirements of Subsection (a), a
4-24 state agency shall file with the budget division of the governor's
4-25 office, the state auditor, and the Legislative Budget Board any
4-26 action plan or other response issued by the state agency's
4-27 governing body in response to the report of the state agency's
4-28 internal auditor.
4-29 SECTION 7. Section 2152.064, Government Code, is amended by
4-30 amending Subsection (b) and adding Subsections (d) and (e) to read
4-31 as follows:
4-32 (b) During January and July of each year, a state agency
4-33 shall file with the Legislative Budget Board [presiding officer of
4-34 each house of the legislature and the presiding officers of the
4-35 house appropriations committee and the senate finance committee] a
4-36 report that identifies each nonresident bidder to whom the agency
4-37 awarded a contract that has a value of $25,000 or more for the
4-38 purchase of supplies, materials, services, or equipment during the
4-39 six calendar months preceding the month in which the report is
4-40 filed, if the agency awarded such a contract during the reporting
4-41 period. For contracts with a value of $250,000 or more, the agency
4-42 shall include an explanation for the need to use a nonresident
4-43 bidder.
4-44 (d) In addition to the information required by Subsection
4-45 (b), a state agency shall include in the report a listing of the
4-46 total value of all purchases from nonresident bidders of supplies,
4-47 materials, services, and equipment during the six calendar months
4-48 preceding the month in which the report is filed. If the total
4-49 amount reported is greater than $1 million or greater than 25
4-50 percent of the total value of all purchases, the state agency shall
4-51 include an explanation for the need to use nonresident bidders.
4-52 (e) The Legislative Budget Board shall prepare a report
4-53 summarizing the information received under this section for each
4-54 reporting period. The board shall file a copy of each summary
4-55 report with the lieutenant governor, the speaker of the house of
4-56 representatives, and the presiding officer of the committee in each
4-57 house of the legislature that has jurisdiction over appropriations.
4-58 SECTION 8. Section 2166.152, Government Code, is amended by
4-59 adding Subsection (e) to read as follows:
4-60 (e) Money appropriated by the legislature may not be used
4-61 for a capital construction project for which a project analysis
4-62 described by this section is required until the analysis is filed
4-63 with the Legislative Budget Board, the budget division of the
4-64 governor's office, and the comptroller.
4-65 SECTION 9. Section 2205.039, Government Code, is amended by
4-66 amending Subsection (b) and adding Subsection (c) to read as
4-67 follows:
4-68 (b) The travel log form must request the following
4-69 information about a state-operated aircraft each time the aircraft
5-1 is flown:
5-2 (1) a mission statement, which may appear as a
5-3 selection to be identified from general categories appearing on the
5-4 form;
5-5 (2) the name, state agency represented, destination,
5-6 and signature of each person who is a passenger or crew member of
5-7 the aircraft; [and]
5-8 (3) the date of each flight;
5-9 (4) a detailed and specific description of the
5-10 official business purpose of each flight; and
5-11 (5) other information determined by the Legislative
5-12 Budget Board and the board to be necessary to monitor the proper
5-13 use of the aircraft.
5-14 (c) A state agency other than the board shall send travel
5-15 logs to the board each month in which the agency operates an
5-16 aircraft.
5-17 SECTION 10. Section 2205.041, Government Code, is amended to
5-18 read as follows:
5-19 Sec. 2205.041. AIRCRAFT USE FORM. (a) The Legislative
5-20 Budget Board, in cooperation with the board, shall prescribe:
5-21 (1) an annual aircraft use form for gathering
5-22 information about the use of state-operated aircraft; and
5-23 (2) procedures for each state agency that operates an
5-24 aircraft for sending the form to the board and the Legislative
5-25 Budget Board.
5-26 (b) The aircraft use form must request the following
5-27 information about each aircraft a state agency operates:
5-28 (1) a description of the aircraft;
5-29 (2) the date purchased or leased and the purchase
5-30 price or lease cost;
5-31 (3) the number of annual hours flown;
5-32 (4) the annual operating costs;
5-33 (5) the number of flights and the destinations;
5-34 (6) the travel logs prepared under Section 2205.039;
5-35 and
5-36 (7) any other information the Legislative Budget Board
5-37 requires to document the proper or cost-efficient use of the
5-38 aircraft.
5-39 SECTION 11. Chapter 109, Civil Practice and Remedies Code,
5-40 is amended by adding Section 109.0015 to read as follows:
5-41 Sec. 109.0015. NOTICE OF CERTAIN LAWSUITS.
5-42 (a) Notwithstanding Section 109.001, in this section, "state
5-43 agency" has the meaning assigned by Section 2151.002, Government
5-44 Code, except that the term also includes a public junior college.
5-45 (b) A state agency shall notify the governor and the
5-46 Legislative Budget Board of the filing of each lawsuit against the
5-47 state that alleges a claim because of acts or omissions of the
5-48 agency or an officer or employee of the agency and for which the
5-49 state may be liable for payment of a judgment. The notification
5-50 must be made:
5-51 (1) not later than the 30th day after the date the
5-52 suit is filed; and
5-53 (2) in a form prescribed by the Legislative Budget
5-54 Board.
5-55 SECTION 12. This section provides, for information purposes
5-56 only, a derivation table for provisions of the General
5-57 Appropriations Act that are codified in general law by other
5-58 sections of this Act. The first column identifies the codified
5-59 law; all references are to the Government Code unless otherwise
5-60 expressly noted. The second column identifies for each codified
5-61 law the applicable source provision of Article IX of the General
5-62 Appropriations Act for the fiscal biennium ending August 31, 1999
5-63 (Chapter 1452, Acts of the 75th Legislature, Regular Session,
5-64 1997).
5-65 Codified Law Source Provision
5-66 Sec. 324.008(d) Sec. 89
5-67 Sec. 403.0131 Sec. 87
5-68 Sec. 403.021 Sec. 86, last par.
5-69 Sec. 751.024 Sec. 106.4
6-1 Sec. 2101.011 (generally) Sec. 86 (almost all)
6-2 Sec. 2101.011(c)(3)(G) Sec. 154, last sent.
6-3 Sec. 2101.011(c)(11) Sec. 20.3, last sent.
6-4 Sec. 2102.0091 Sec. 95
6-5 Sec. 2152.064(b) Secs. 93.1, 94 (part)
6-6 Secs. 2152.064(d), (e) Secs. 93.2, 93.3
6-7 Sec. 2166.152(e) Sec. 47 (part)
6-8 Secs. 2205.039(b), (c) Sec. 86.6 (part)
6-9 Sec. 2205.041 Sec. 86.6 (part)
6-10 Sec. 109.0015, Civil Practice and
6-11 Remedies Code Sec. 100
6-12 SECTION 13. This Act takes effect September 1, 1999.
6-13 SECTION 14. The importance of this legislation and the
6-14 crowded condition of the calendars in both houses create an
6-15 emergency and an imperative public necessity that the
6-16 constitutional rule requiring bills to be read on three several
6-17 days in each house be suspended, and this rule is hereby suspended.
6-18 * * * * *