By:  Ratliff, West                                     S.B. No. 178
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to codification of certain state agency practices and
 1-2     duties currently prescribed by the General Appropriations Act.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subsection (a), Section 101.027, Civil Practice
 1-5     and Remedies Code, is amended to read as follows:
 1-6           (a)  Each governmental unit other than a unit of state
 1-7     government may purchase insurance policies protecting the unit and
 1-8     the unit's employees against claims under this chapter.  A unit of
 1-9     state government may purchase such a policy only to the extent that
1-10     the unit is authorized or required to do so under other law.
1-11           SECTION 2.  Section 106.001, Civil Practice and Remedies
1-12     Code, is amended by adding Subsection (c) to read as follows:
1-13           (c)  This section does not prohibit the adoption of a program
1-14     designed to increase the participation of businesses owned and
1-15     controlled by women, minorities, or disadvantaged persons in public
1-16     contract awards.
1-17           SECTION 3.  Chapter 306, Government Code, is amended by
1-18     adding Section 306.007 to read as follows:
1-19           Sec. 306.007.  MINUTES AND REPORTS ELECTRONICALLY AVAILABLE
1-20     TO LEGISLATURE.  A state officer or board, commission, or other
1-21     agency in the executive branch of state government, and an agency
1-22     in the judicial branch of state government other than a court,
1-23     shall make reports required by law and minutes of meetings of the
1-24     agency's governing body available to members of the legislature and
 2-1     to agencies in the legislative branch of state government in an
 2-2     electronic format determined by the Texas Legislative Council.
 2-3           SECTION 4.  Subsection (c), Section 321.013, Government Code,
 2-4     is amended to read as follows:
 2-5           (c)  The State Auditor shall recommend [determine] the audit
 2-6     plan for the state for each fiscal year to the committee.  In
 2-7     devising the plan, the State Auditor shall consider recommendations
 2-8     concerning coordination of agency functions made jointly by
 2-9     representatives [the committee composed] of the Legislative Budget
2-10     Board, Sunset Advisory Commission, and State Auditor's Office.  The
2-11     State Auditor shall also consider the extent to which a department
2-12     has received a significant increase in appropriations, including a
2-13     significant increase in federal or other money passed through to
2-14     the department, and shall review procurement activities for
2-15     compliance with Section 2161.123.  The plan shall provide for
2-16     auditing of federal programs at least once in each fiscal biennium
2-17     and shall ensure that audit requirements of all bond covenants and
2-18     other credit or financial agreements are satisfied.  The committee
2-19     shall review and approve the plan.
2-20           SECTION 5.  Subsection (c), Section 321.014, Government Code,
2-21     is amended to read as follows:
2-22           (c)  The State Auditor shall submit each report to the
2-23     committee prior to publication.  The State Auditor shall file a
2-24     copy of each report prepared under this section with:
2-25                 (1)  the governor;
2-26                 (2)  the lieutenant governor;
 3-1                 (3)  the speaker of the house of representatives;
 3-2                 (4)  the secretary of state;
 3-3                 (5)  the Legislative Reference Library;
 3-4                 (6)  each member of [the chairman of] the governing
 3-5     body and the administrative head of each entity that is the subject
 3-6     of the report; and
 3-7                 (7)  members of the legislature on a committee with
 3-8     oversight responsibility for the entity or program that is the
 3-9     subject of the report.
3-10           SECTION 6.  Section 325.011, Government Code, is amended to
3-11     read as follows:
3-12           Sec. 325.011.  Criteria for Review.  The commission and its
3-13     staff shall consider the following criteria in determining whether
3-14     a public need exists for the continuation of a state agency or its
3-15     advisory committees or for the performance of the functions of the
3-16     agency or its advisory committees:
3-17                 (1)  the efficiency with which the agency or advisory
3-18     committee operates;
3-19                 (2)  an identification of the objectives intended for
3-20     the agency or advisory committee and the problem or need that the
3-21     agency or advisory committee was intended to address, the extent to
3-22     which the objectives have been achieved, and any activities of the
3-23     agency in addition to those granted by statute and the authority
3-24     for these activities;
3-25                 (3)  an assessment of less restrictive or alternative
3-26     methods of performing any regulation that the agency performs that
 4-1     could adequately protect the public;
 4-2                 (4)  the extent to which the advisory committee is
 4-3     needed and is used;
 4-4                 (5)  the extent to which the jurisdiction of the agency
 4-5     and the programs administered by the agency overlap or duplicate
 4-6     those of other agencies and the extent to which the programs
 4-7     administered by the agency can be consolidated with the programs of
 4-8     other state agencies;
 4-9                 (6)  whether the agency has recommended to the
4-10     legislature statutory changes calculated to be of benefit to the
4-11     public rather than to an occupation, business, or institution that
4-12     the agency regulates;
4-13                 (7)  the promptness and effectiveness with which the
4-14     agency disposes of complaints concerning persons affected by the
4-15     agency;
4-16                 (8)  the extent to which the agency has encouraged
4-17     participation by the public in making its rules and decisions as
4-18     opposed to participation solely by those it regulates and the
4-19     extent to which the public participation has resulted in rules
4-20     compatible with the objectives of the agency;
4-21                 (9)  the extent to which the agency has complied with
4-22     applicable requirements of:
4-23                       (A)  an agency of the United States or of this
4-24     state regarding equality of employment opportunity and the rights
4-25     and privacy of individuals; and
4-26                       (B)  state law and applicable rules of any state
 5-1     agency regarding purchasing goals and programs for historically
 5-2     underutilized businesses;
 5-3                 (10)  the extent to which changes are necessary in the
 5-4     enabling statutes of the agency so that the agency can adequately
 5-5     comply with the criteria listed in this section;
 5-6                 (11)  the extent to which the agency issues and
 5-7     enforces rules relating to potential conflicts of interest of its
 5-8     employees;
 5-9                 (12)  the extent to which the agency complies with
5-10     Chapter 552, and with Chapter 551; and
5-11                 (13)  the effect of federal intervention or loss of
5-12     federal funds if the agency is abolished.
5-13           SECTION 7.  Subchapter F, Chapter 403, Government Code, is
5-14     amended by adding Section 403.097 to read as follows:
5-15           Sec. 403.097.  FUNDS EXPENDED IN PROPORTION TO METHOD OF
5-16     FINANCING.  (a)  The comptroller may prescribe rules to ensure
5-17     that, when it is necessary to preserve cash balances in the funds
5-18     and accounts in the state treasury, appropriations are drawn from
5-19     the treasury in proportion to the methods of financing specified in
5-20     the Acts authorizing the appropriations.
5-21           (b)  The rules may include procedures relating to the deposit
5-22     of receipts and the issuance of warrants.
5-23           (c)  This section does not affect other powers of the
5-24     comptroller under this subchapter, Subchapter H of Chapter 404, or
5-25     other law.
5-26           (d)  This section does not apply if the method of financing
 6-1     specified for an agency or an institution of higher education in
 6-2     the Act authorizing appropriations includes interest earned or to
 6-3     be earned on local funds of the agency or institution.
 6-4           SECTION 8.  Subsection (b), Section 403.245, Government Code,
 6-5     is amended to read as follows:
 6-6           (b)  The replenishment of a petty cash account is an
 6-7     expenditure from the corresponding fund and shall be drawn from the
 6-8     appropriation from which the expenditure would otherwise have been
 6-9     made.
6-10           SECTION 9.  Section 771.008, Government Code, is amended by
6-11     adding Subsection (d) to read as follows:
6-12           (d)  This subsection applies only if the services or
6-13     resources are provided under a written contract or agreement.  The
6-14     receiving agency shall reimburse the providing agency within 30
6-15     days after the date by which the services or resources are provided
6-16     and an invoice is received.  If the receiving agency does not
6-17     accept the services or resources or finds an error in the invoice,
6-18     it shall notify the providing agency of the fact in writing as soon
6-19     as possible within the 30-day period and make payment within 10
6-20     days after the date the agencies agree the problems are corrected
6-21     or the error resolved.  If the agencies cannot agree on the amount
6-22     of the reimbursement, the comptroller shall determine the
6-23     appropriate amount.  If the receiving agency does not, within the
6-24     30-day period, reimburse the providing agency or give the providing
6-25     agency written notice of a problem or error, the comptroller on
6-26     request of the providing agency may transfer from amounts
 7-1     appropriated to the receiving agency the appropriate amount in
 7-2     accordance with this section.
 7-3           SECTION 10.  Subdivision (7), Section 811.001, Government
 7-4     Code, is amended to read as follows:
 7-5                 (7)  "Compensation" means the base salary of a person;
 7-6     amounts that would otherwise qualify as compensation but are not
 7-7     received directly by a person pursuant to a good faith, voluntary,
 7-8     written salary reduction agreement in order to finance payments to
 7-9     a deferred compensation or tax sheltered annuity program
7-10     specifically authorized by state law or to finance benefit options
7-11     under a cafeteria plan qualifying under Section 125 of the Internal
7-12     Revenue Code of 1986 (26 U.S.C. Section 125); longevity and
7-13     hazardous duty pay;  nonmonetary compensation, the value of which
7-14     is determined by the retirement system; amounts by which a person's
7-15     salary is reduced under a salary reduction agreement authorized by
7-16     Chapter 610; and the benefit replacement pay a person earns under
7-17     Subchapter H, Chapter 659, as added by Chapter 417, Acts of the
7-18     74th Legislature, 1995, except for the benefit replacement pay a
7-19     person earns as a result of a payment made under Subchapter B, C,
7-20     or D, Chapter 661.  The term excludes overtime pay and a cleaning
7-21     or clothing allowance.
7-22           SECTION 11.  (a)  Subchapter B, Chapter 2001, Government
7-23     Code, is amended by adding Section 2001.039 to read as follows:
7-24           Sec. 2001.039.  AGENCY REVIEW OF EXISTING RULES.  (a)  A
7-25     state agency shall review and consider for readoption each of its
7-26     rules in accordance with this section.
 8-1           (b)  A state agency shall review a rule not later than the
 8-2     fourth anniversary of the date on which the rule takes effect and
 8-3     every four years after that date.  The adoption of an amendment to
 8-4     an existing rule does not affect the dates on which the rule must
 8-5     be reviewed except that the effective date of an amendment is
 8-6     considered to be the effective date of the rule if the agency
 8-7     formally conducts a review of the rule in accordance with this
 8-8     section as part of the process of adopting the amendment.
 8-9           (c)  The state agency shall readopt, readopt with amendments,
8-10     or repeal a rule as the result of reviewing the rule under this
8-11     section.
8-12           (d)  The procedures of this subchapter relating to the
8-13     original adoption of a rule apply to the review of a rule and to
8-14     the resulting repeal, readoption, or readoption with amendments of
8-15     the rule, except as provided by this subsection.  Publishing the
8-16     Texas Administrative Code citation to a rule under review satisfies
8-17     the requirements of this subchapter relating to publishing the text
8-18     of the rule unless the agency readopts the rule with amendments as
8-19     a result of the review.
8-20           (e)  A state agency's review of a rule must include an
8-21     assessment of whether the reasons for initially adopting the rule
8-22     continue to exist.
8-23           (b)  The duties prescribed by this subsection apply only to
8-24     state agency rules that are in effect on September 1, 1999, and
8-25     that have not already been reviewed in accordance with Section 167,
8-26     Article IX, Chapter 1452, Acts of the 75th Legislature, Regular
 9-1     Session, 1997 (General Appropriations Act).  A state agency shall
 9-2     review each of those rules in accordance with Section 2001.039,
 9-3     Government Code, as added by this Act, and in accordance with this
 9-4     subsection not later than August 31, 2003.  Not later than August
 9-5     31, 2000, each state agency shall develop and send to the secretary
 9-6     of state for publication in the Texas Register a plan under which
 9-7     the agency will review its existing rules.  The plan must state for
 9-8     each of those rules the date by which the state agency will begin
 9-9     the review required by Section 2001.039, Government Code, as added
9-10     by this Act.
9-11           (c)  For purposes of subsequent reviews under Section
9-12     2001.039, Government Code, as added by this Act, the effective date
9-13     of an existing rule initially reviewed under Subsection (b) of this
9-14     section or under Section 167, Article IX, Chapter 1452, Acts of the
9-15     75th Legislature, Regular Session, 1997 (General Appropriations
9-16     Act), is considered to be the date on which the state agency begins
9-17     the review of the rule by publishing in the Texas Register the
9-18     notice for the review required under Section 2001.024, Government
9-19     Code, through either Subsection (d), Section 2001.039 or Section
9-20     167.
9-21           SECTION 12.  Subchapter D, Chapter 2052, Government Code, is
9-22     amended by adding Section 2052.304 to read as follows:
9-23           Sec. 2052.304.  USE OF CERTAIN PRINTING STOCK.  (a)  A state
9-24     officer or board, court, commission, or other agency in the
9-25     executive or judicial branch of state government may not publish a
9-26     report or other printed materials on enamel-coated, cast-coated, or
 10-1    dull-coated printing stock unless the agency imposes a fee for
 10-2    receipt of the printed materials.
 10-3          (b)  This section does not apply to a publication that
 10-4    promotes tourism or economic development.
 10-5          SECTION 13.  Subdivision (6), Section 2054.003, Government
 10-6    Code, is amended to read as follows:
 10-7                (6)  "Information resources" means the procedures,
 10-8    equipment, and software that are employed, designed, built,
 10-9    operated, and maintained to collect, record, process, store,
10-10    retrieve, display, and transmit information, and associated
10-11    personnel including consultants and contractors.
10-12          SECTION 14.  Subchapter F, Chapter 2054, Government Code, is
10-13    amended by adding Sections 2054.121 and 2054.122 to read as
10-14    follows:
10-15          Sec. 2054.121.  COORDINATION AMONG INSTITUTIONS OF HIGHER
10-16    EDUCATION.  An institution of higher education shall coordinate its
10-17    use of information technologies with other such institutions to
10-18    more effectively provide education, research, and community
10-19    service.
10-20          Sec. 2054.122.  COORDINATED TECHNOLOGY TRAINING.  A state
10-21    agency each calendar quarter shall coordinate agency training for
10-22    the use of information resources technologies with training offered
10-23    or coordinated by the department.  The agency shall use training
10-24    offered or coordinated by the department if it meets agency
10-25    requirements and is cost-competitive.
10-26          SECTION 15.  Subchapter C, Chapter 2101, Government Code, is
 11-1    amended by adding Section 2101.0377 to read as follows:
 11-2          Sec. 2101.0377.  REPORTING ACCOUNTING IRREGULARITIES TO STATE
 11-3    AUDITOR.  On determining that a state agency, as defined by Section
 11-4    658.001, or an institution of higher education, as defined by
 11-5    Section 61.003, Education Code, has inaccurately reported the
 11-6    expenditure of appropriated funds or engaged in recurring
 11-7    accounting irregularities, the comptroller shall report the agency
 11-8    or institution to the state auditor for appropriate action,
 11-9    including a comprehensive financial audit.
11-10          SECTION 16.  Subchapter B, Chapter 2155, Government Code, is
11-11    amended by adding Section 2155.084 to read as follows:
11-12          Sec. 2155.084.  PURCHASES FROM FEDERAL GOVERNMENT.  (a)  The
11-13    commission or the governing body of an institution of higher
11-14    education may negotiate purchases of goods of any kind needed by a
11-15    state agency or the institution of higher education with the
11-16    appropriate agency of the federal government.  The governing body
11-17    of an institution of higher education may act under this section
11-18    either directly or through the commission or another state agency.
11-19          (b)  The price of goods that are purchased from the federal
11-20    government may not exceed the fair market value of the goods.
11-21          (c)  In negotiating purchases of goods from the federal
11-22    government under this section or under Subchapter G, Chapter 2175,
11-23    the commission or the governing body of the institution of higher
11-24    education may waive the requirement of a bidder's bond and
11-25    performance bond that otherwise would be required.
11-26          SECTION 17.  Subsection (a), Section 2155.132, Government
 12-1    Code, is amended to read as follows:
 12-2          (a)  A state agency is delegated the authority to purchase
 12-3    goods and services if the purchase does not exceed $15,000.  If the
 12-4    commission determines that a state agency has not followed the
 12-5    commission's rules or the laws related to the delegated purchases,
 12-6    the commission shall report its determination to the members of the
 12-7    state agency's governing body and to the governor, lieutenant
 12-8    governor, speaker of the house of representatives, and Legislative
 12-9    Budget Board.
12-10          SECTION 18.  Section 2155.268, Government Code, is amended to
12-11    read as follows:
12-12          Sec. 2155.268.  USE OF STATE AGENCY BIDDERS LIST.  (a)  A
12-13    state agency may not maintain and use its own bidders list [only if
12-14    the commission determines by rule that the agency has specialized
12-15    needs that can best be met through maintaining and using its own
12-16    specialized bidders list].  The prohibition of this subsection does
12-17    not apply to the Texas Department of Transportation or to an
12-18    institution of higher education as defined by Section 61.003,
12-19    Education Code, but an institution of higher education should use
12-20    the master bidders list when possible.
12-21          (b)  [The commission by rule may prescribe the categories of
12-22    purchases or other acquisitions for which a state agency's
12-23    specialized bidders list may be used.]
12-24          [(c)]  A state agency may supplement the bidders list with
12-25    its own list of historically underutilized businesses if it
12-26    determines that the supplementation will increase the number of
 13-1    historically underutilized businesses that submit bids.
 13-2          (c) [(d)]  A state agency may purchase goods and services
 13-3    from a vendor who is not on the bidders list if the purchase price
 13-4    does not exceed $5,000.
 13-5          SECTION 19.  Subchapter H, Chapter 2155, Government Code, is
 13-6    amended by adding Section 2155.4441 to read as follows:
 13-7          Sec. 2155.4441.  PREFERENCE UNDER SERVICE CONTRACTS.  A state
 13-8    agency that contracts for services shall require the contractor, in
 13-9    performing the contract, to purchase products and materials
13-10    produced in this state when they are available at a price and time
13-11    comparable to products and materials produced outside this state.
13-12          SECTION 20.  Subchapter A, Chapter 2158, Government Code, is
13-13    amended by adding Section 2158.0031 to read as follows:
13-14          Sec. 2158.0031.  PURCHASE PREFERENCE FOR AMERICAN VEHICLES.
13-15    A state agency authorized to purchase passenger vehicles or other
13-16    ground transportation vehicles for general use shall purchase
13-17    economical, fuel-efficient vehicles assembled in the United States
13-18    unless such a purchase would have a significant detrimental effect
13-19    on the use to which the vehicles will be put.
13-20          SECTION 21.  Subdivision (2), Section 2161.001, Government
13-21    Code, is amended to read as follows:
13-22                (2)  "Historically underutilized business" means an
13-23    entity with its principal place of business in Texas and which is:
13-24                      (A)  a corporation formed for the purpose of
13-25    making a profit in which 51 percent or more of all classes of the
13-26    shares of stock or other equitable securities are owned by one or
 14-1    more socially disadvantaged persons who have a proportionate
 14-2    interest and actively participate in the corporation's control,
 14-3    operation, and management;
 14-4                      (B)  a sole proprietorship created for the
 14-5    purpose of making a profit that is completely owned, operated, and
 14-6    controlled by a socially disadvantaged person;
 14-7                      (C)  a partnership formed for the purpose of
 14-8    making a profit in which 51 percent or more of the assets and
 14-9    interest in the partnership are owned by one or more socially
14-10    disadvantaged persons who have a proportionate interest and
14-11    actively participate in the partnership's control, operation, and
14-12    management;
14-13                      (D)  a joint venture in which each entity in the
14-14    venture is a historically underutilized business, as determined
14-15    under another paragraph of this subdivision; or
14-16                      (E)  a supplier contract between a historically
14-17    underutilized business as determined under another paragraph of
14-18    this subdivision and a prime contractor under which the
14-19    historically underutilized business is directly involved in the
14-20    manufacture or distribution of the goods or otherwise warehouses
14-21    and ships the goods.
14-22          SECTION 22.  Section 2161.002, Government Code, is amended by
14-23    adding Subsection (c) to read as follows:
14-24          (c)  In adopting rules to administer this chapter, the
14-25    commission shall adopt rules that are based on the results of the
14-26    disparity study prepared by the comptroller under Section 65(c),
 15-1    Chapter 684, Acts of the 73rd Legislature, Regular Session, 1993.
 15-2    If other similar disparity studies are prepared on behalf of state
 15-3    government, the commission shall revise the rules in response to
 15-4    the findings of the latest disparity study.  All state agencies and
 15-5    institutions of higher education shall adopt the commission rules.
 15-6    Each state agency and institution of higher education shall make a
 15-7    good faith effort to increase purchases and contract awards to
 15-8    historically underutilized businesses based on the rules adopted by
 15-9    the commission.
15-10          SECTION 23.  Section 2161.122, Government Code, is amended by
15-11    adding a new Subsection (c) and redesignating Subsections (c) and
15-12    (d) as Subsections (d) and (e) to read as follows:
15-13          (c)  State agencies shall report to the commission in
15-14    accordance with Section 2161.125 the following information on
15-15    historically underutilized businesses with regard to the
15-16    expenditure of both treasury and nontreasury funds:
15-17                (1)  the total dollar amount of purchases and payments
15-18    made under contracts awarded to historically underutilized
15-19    businesses;
15-20                (2)  the number of contracts awarded to historically
15-21    underutilized and all other businesses; and
15-22                (3)  the number of bids, proposals, or other applicable
15-23    expressions of interest made by historically underutilized
15-24    businesses with regard to contracting opportunities with the
15-25    agency.
15-26          (d)  A state agency participating in a group purchasing
 16-1    program described under Section 2155.139(b) shall send to the
 16-2    commission in the agency's report under Section 2161.121 a separate
 16-3    list of purchases from historically underutilized businesses that
 16-4    are made through the group purchasing program, including the dollar
 16-5    amount of each purchase allocated to the reporting agency.
 16-6          (e) [(d)]  A state agency's report is a record of the
 16-7    agency's purchases for which the agency selected the vendor.  If
 16-8    the vendor was selected by the commission as part of its state
 16-9    contract program, the commission shall include the purchase in the
16-10    commission's report of its own purchases unless the commission made
16-11    a sole source purchase for the  agency under Section 2155.067.  The
16-12    state agency for which the purchase was made shall report the
16-13    selection of the vendor on its report as if the agency selected the
16-14    vendor when the agency drew specifications for goods or services
16-15    that are proprietary to one vendor.
16-16          SECTION 24.  Section 2161.123, Government Code, is amended by
16-17    adding Subsections (d), (e), (f), and (g) to read as follows:
16-18          (d)  The state auditor shall report to the commission a state
16-19    agency that is not complying with this section or is not making a
16-20    good faith effort to implement the plan adopted under this section.
16-21    In determining whether a state agency is making a good faith effort
16-22    to implement the plan, the state auditor shall consider at a
16-23    minimum whether the agency has:
16-24                (1)  adopted rules under Section 2161.002;
16-25                (2)  used the commission's directory under Section
16-26    2161.064 and other resources to identify historically underutilized
 17-1    businesses that are able and available to contract with the agency;
 17-2                (3)  made good faith, timely efforts to contact
 17-3    identified historically underutilized businesses regarding
 17-4    contracting opportunities; and
 17-5                (4)  conducted its procurement program in accordance
 17-6    with the good faith effort methodology set out in commission rules.
 17-7          (e)  In conducting an audit of an agency's compliance with
 17-8    this section or an agency's making of a good faith effort to
 17-9    implement the plan adopted under this section, the state auditor
17-10    shall not consider the success or failure of the agency to contract
17-11    with historically underutilized businesses in any specific
17-12    quantity.  The state auditor's review shall be restricted to the
17-13    agency's procedural compliance with Subsection (d).
17-14          (f)  If the state auditor reports to the commission that a
17-15    state agency is not complying with this section or is not making a
17-16    good faith effort to implement the plan adopted under this section,
17-17    the commission shall assist the agency in complying with or in
17-18    making a good faith effort to implement the plan.
17-19          (g)  If the state auditor reports to the commission under
17-20    Subsection (d) that a state agency is not complying with this
17-21    section or is not making a good faith effort to implement the plan
17-22    adopted under this section and the commission determines that one
17-23    year after the date of the state auditor's report to the commission
17-24    the agency is still either not complying with this section or not
17-25    making a good faith effort to implement the plan adopted under this
17-26    section, the commission may revoke the purchasing authority of the
 18-1    agency.  If the commission revokes an agency's delegated purchasing
 18-2    authority under this section, the comptroller may consider that
 18-3    fact in the event the commission needs a transfer of the agency's
 18-4    appropriated funds to cover the costs to the commission of assuming
 18-5    the agency's purchasing functions.  The amount transferred from the
 18-6    agency's funds to the commission shall be an amount determined by
 18-7    the Legislative Budget Board.
 18-8          SECTION 25.  Subsection (c), Section 2165.104, Government
 18-9    Code, is amended to read as follows:
18-10          (c)  To the extent possible without sacrificing critical
18-11    public or client services, the commission may not allocate usable
18-12    office space, as defined by the commission, to a state agency under
18-13    Article I, [or] II, V, VI, VII, or VIII of the General
18-14    Appropriations Act or to the Texas Higher Education Coordinating
18-15    Board, the Texas Education Agency, the State Board for Educator
18-16    Certification, the Telecommunications Infrastructure Fund Board, or
18-17    the Office of Court Administration of the Texas Judicial System in
18-18    an amount that exceeds an average of 153 square feet per agency
18-19    employee for each agency site.  To the extent that any of those
18-20    agencies allocates its own usable office space, as defined by the
18-21    commission, the agency shall allocate the space to achieve the
18-22    required ratio.  This subsection does not apply to:
18-23                (1)  an agency site at which fewer than 16 employees
18-24    are located;
18-25                (2)  warehouse space;
18-26                (3)  laboratory space;
 19-1                (4)  storage space exceeding 1,000 gross square feet;
 19-2                (5)  library space;
 19-3                (6)  space for hearing rooms used to conduct hearings
 19-4    required under the administrative procedure law, Chapter 2001; or
 19-5                (7)  another type of space specified by commission
 19-6    rule, if the commission determines that it is not practical to
 19-7    apply this subsection to that space.
 19-8          SECTION 26.  Subchapter A, Chapter 2170, Government Code, is
 19-9    amended by adding Sections 2170.009 and 2170.010 to read as
19-10    follows:
19-11          Sec. 2170.009.  PAY TELEPHONES AUTHORIZED.  (a)  A pay
19-12    telephone may be located in the Capitol Complex only with the
19-13    approval of the commission.  The commission shall collect the
19-14    revenue from the installation and operation of the pay telephone
19-15    and deposit it to the credit of the general revenue fund.
19-16          (b)  In a state-owned or state-leased building or on
19-17    state-owned land to which Subsection (a) does not apply, a pay
19-18    telephone may be installed only with the approval of the governing
19-19    body of the state entity that has charge and control of the
19-20    building or land.  The entity shall collect the revenue from the
19-21    installation and operation of the pay telephone and deposit it to
19-22    the credit of the general revenue fund unless the disposition of
19-23    the revenue is governed by other law.
19-24          (c)  The commission or other state entity shall account for
19-25    the revenue collected under this section in the entity's annual
19-26    report.
 20-1          Sec. 2170.010.  UNLISTED TELEPHONE NUMBERS PROHIBITED.  A
 20-2    state agency and its officers and employees may not buy, rent, or
 20-3    pay toll charges for a telephone for which the telephone number is
 20-4    not listed or available from directory assistance to the general
 20-5    public unless the unlisted telephone number is used:
 20-6                (1)  to provide access to computers, telephone system
 20-7    control centers, long-distance networks, elevator control systems,
 20-8    and other tone-controlled devices for which restricted access to
 20-9    the telephone number is justified for security or other purposes;
20-10                (2)  in narcotics undercover operations; or
20-11                (3)  in the detection of illegal sales of securities.
20-12          SECTION 27.  Section 2170.051, Government Code, is amended to
20-13    read as follows:
20-14          Sec. 2170.051.  MANAGEMENT AND USE OF SYSTEM.  (a)  The
20-15    commission shall manage the operation of a system of
20-16    telecommunications services for all state agencies.  Each agency
20-17    shall identify its particular requirements for telecommunications
20-18    services and the site at which the services are to be provided.
20-19          (b)  The commission shall fulfill the telecommunications
20-20    requirements of each state agency to the extent possible and to the
20-21    extent that money is appropriated or available for that purpose.
20-22          (c)  A state agency shall use the consolidated
20-23    telecommunications system to the fullest extent possible.  A state
20-24    agency may not acquire telecommunications services unless the
20-25    telecommunications planning group determines that the agency's
20-26    requirement for telecommunications services cannot be met at a
 21-1    comparable cost by the consolidated telecommunications system.
 21-2          (d)  A state agency may not enter into or renew a contract
 21-3    with a carrier or other provider of telecommunications services
 21-4    without obtaining a waiver from the telecommunications planning
 21-5    group certifying that the requested telecommunications services
 21-6    cannot be provided at a comparable cost on the consolidated
 21-7    telecommunications system.  The telecommunications planning group
 21-8    shall evaluate requests for waivers based on cost-effectiveness to
 21-9    the state government as a whole.  A waiver may be granted only for
21-10    a specific period and will automatically expire on the stated
21-11    expiration date unless an extension is approved by the
21-12    telecommunications planning group.  A contract for
21-13    telecommunications services obtained under waiver may not extend
21-14    beyond the expiration date of the waiver.  If the
21-15    telecommunications planning group becomes aware of any state agency
21-16    receiving telecommunications services without a waiver, the
21-17    telecommunications planning group shall notify the agency and the
21-18    comptroller.  The state agency shall have 60 days after
21-19    notification by the telecommunications planning group in which to
21-20    submit a waiver request to the telecommunications planning group
21-21    documenting the agency's reasoning for bypassing the consolidated
21-22    telecommunications system and otherwise providing all information
21-23    required by the waiver application form.
21-24          SECTION 28.  Subsection (b), Section 2170.057, Government
21-25    Code, is amended to read as follows:
21-26          (b)  The comptroller shall establish in the state treasury a
 22-1    revolving fund account for the administration of this chapter.  The
 22-2    account shall be used as a depository for money received from
 22-3    entities served.  Receipts attributable to the centralized capitol
 22-4    complex telephone system shall be deposited into the account but
 22-5    separately identified within the account.
 22-6          SECTION 29.  Section 2201.002, Government Code, is amended by
 22-7    adding Subsection (c) to read as follows:
 22-8          (c)  The fund may not be used to pay salaries.
 22-9          SECTION 30.  Chapter 2203, Government Code, is amended by
22-10    adding Sections 2203.004 and 2203.005 to read as follows:
22-11          Sec. 2203.004.  REQUIREMENT TO USE STATE PROPERTY FOR STATE
22-12    PURPOSES.  State property may be used only for state purposes.  A
22-13    person may not entrust state property to a state officer or
22-14    employee or to any other person if the property is not to be used
22-15    for state purposes.
22-16          Sec. 2203.005.  VENDING MACHINES AUTHORIZED.  (a)  In a
22-17    state-owned or state-leased building or on state-owned or
22-18    state-leased property that is not served by a vendor operating
22-19    under the supervision of the Texas Commission for the Blind, a
22-20    vending machine may be located in the building or on the property
22-21    only with the approval of the governing body of the state agency
22-22    that has charge and control of the building or property.  The
22-23    approval must be recorded in the minutes of a meeting of the
22-24    governing body.
22-25          (b)  The state agency shall file with the General Services
22-26    Commission a copy of all contracts between the state agency and the
 23-1    vendor related to the vending machine and a written description of
 23-2    the location of the vending machine.
 23-3          (c)  All rentals, commissions, or other net revenue the state
 23-4    agency receives in connection with the vending machine shall be
 23-5    accounted for as state money and deposited to the credit of the
 23-6    general revenue fund unless the disposition of the revenue is
 23-7    governed by other law.  The state agency shall account for the
 23-8    revenue received under this section in the agency's annual report.
 23-9          (d)  In a state-owned or state-leased building or on
23-10    state-owned or state-leased property that is served by a vendor
23-11    operating under the supervision of the Texas Commission for the
23-12    Blind, a vending machine may be located and operated in the
23-13    building or on the property only under a joint contract with the
23-14    owners of the vending machine and the vendor operating under the
23-15    supervision of the Texas Commission for the Blind.
23-16          SECTION 31.  Subchapter A, Chapter 2204, Government Code, is
23-17    amended by adding Sections 2204.002 and 2204.003 to read as
23-18    follows:
23-19          Sec. 2204.002.  RESTRICTION ON ACQUISITION OF REAL PROPERTY.
23-20    A state agency, as defined by Section 658.001, may not accept a
23-21    gift or devise of real property or spend appropriated money to
23-22    purchase real property without statutory authority or other
23-23    legislative authorization.
23-24          Sec. 2204.003.  GIFTS OF REAL PROPERTY TO INSTITUTIONS OF
23-25    HIGHER EDUCATION.  An institution of higher education, as defined
23-26    by Section 61.003, Education Code, may accept a gift or devise of
 24-1    real property from a private entity to establish scholarships or
 24-2    professorships or to be held in trust for other educational
 24-3    purposes only if done consistently with rules and regulations
 24-4    adopted by the Texas Higher Education Coordinating Board pursuant
 24-5    to its power to adopt such rules and regulations under Chapter 61,
 24-6    Education Code.
 24-7          SECTION 32.  Section 2251.030, Government Code, is amended to
 24-8    read as follows:
 24-9          Sec. 2251.030.  PROMPT OR EARLY PAYMENT DISCOUNT.  (a)  The
24-10    intent of the legislature is that a governmental entity should take
24-11    advantage of an offer for an early payment discount.  A state
24-12    agency shall when possible negotiate a prompt payment discount with
24-13    a vendor.
24-14          (b)  A governmental entity may not take an early payment
24-15    discount a vendor offers unless the governmental entity makes a
24-16    full payment within the discount period.
24-17          (c)  If a governmental entity takes an early payment discount
24-18    later, the unpaid balance accrues interest beginning on the date
24-19    the discount offer expires.
24-20          (d)  A state agency, when paying for goods and services
24-21    purchased under an agreement that includes a prompt or early
24-22    payment discount, shall submit the necessary payment documents or
24-23    information to the comptroller sufficiently in advance of the
24-24    prompt or early payment deadline to allow the comptroller or the
24-25    agency to pay the vendor in time to obtain the discount.
24-26          SECTION 33.  Section 2252.901, Government Code, is amended to
 25-1    read as follows:
 25-2          Sec. 2252.901.  CONTRACTS WITH FORMER OR RETIRED AGENCY
 25-3    EMPLOYEES.  (a)  A state agency may not enter into an employment
 25-4    contract, a professional services contract under Chapter 2254, or a
 25-5    consulting services contract under Chapter 2254 with a former or
 25-6    retired employee of the agency before the first anniversary of the
 25-7    last date on which the individual was employed by the agency, if
 25-8    appropriated money will be used to make payments under the
 25-9    contract.  This section does not prohibit an agency from entering
25-10    into a professional services contract with a corporation, firm, or
25-11    other business entity that employs a former or retired employee of
25-12    the agency within one year of the employee's leaving the agency,
25-13    provided that the former or retired employee does not perform
25-14    services on projects for the corporation, firm, or other business
25-15    entity that the employee worked on while employed by the agency.
25-16          (b)  A state agency that contracts at any time with a retired
25-17    agency employee to perform services substantially similar to the
25-18    services the retiree performed for the agency during the last 12
25-19    months of service before retirement may not make payments under the
25-20    contract from any source of revenue at an annualized rate that
25-21    exceeds the lesser of:
25-22                (1)  the rate of compensation the retiree received from
25-23    the state during the last 12 months of service before retirement;
25-24    or
25-25                (2)  $60,000.
25-26          (c) [(b)]  The contract payment limitation provided by
 26-1    Subsection (b) [(a)] does not apply during the first six months a
 26-2    retiree performs services under a contract after retirement, except
 26-3    that if a retiree performs services under the contract for more
 26-4    than six months, the limitation applies to the entire term of the
 26-5    contract.
 26-6          (d) [(c)]  In this section:
 26-7                (1)  "Employment contract" includes a personal services
 26-8    contract regardless of whether the performance of the contract
 26-9    involves the traditional relationship of employer and employee.
26-10    The term does not apply to an at-will employment relationship that
26-11    involves the traditional relationship of employer and employee.
26-12                (2)  "Retired agency employee" means a person:
26-13                      (A)  whose last state service before retirement
26-14    was for the state agency with which the retiree contracts to
26-15    perform services; and
26-16                      (B)  who is a retiree of:
26-17                            (i)  the employee class of membership of
26-18    the Employees Retirement System of Texas; or
26-19                            (ii)  the Teacher Retirement System of
26-20    Texas, the majority of whose service was credited in that system in
26-21    a position with a state agency.
26-22                (3) [(2)]  "State agency" includes a "public senior
26-23    college or university," as that term is defined by Section 61.003,
26-24    Education Code.
26-25          SECTION 34.  Subchapter A, Chapter 2254, Government Code, is
26-26    amended by adding Section 2254.0031 to read as follows:
 27-1          Sec. 2254.0031.  INDEMNIFICATION.  A state governmental
 27-2    entity may require a contractor selected under this subchapter to
 27-3    indemnify or hold harmless the state from claims and liabilities
 27-4    resulting from the negligent acts or omissions of the contractor or
 27-5    persons employed by the contractor.  A state governmental entity
 27-6    may not require a contractor to indemnify or hold harmless the
 27-7    state for claims or liabilities resulting from the negligent acts
 27-8    or omissions of the state governmental entity or its employees.
 27-9          SECTION 35.  Subchapter B, Chapter 205, Labor Code, is
27-10    amended by adding Section 205.019 to read as follows:
27-11          Sec. 205.019.  REIMBURSEMENT FROM NON-TREASURY FUNDS.  (a)  A
27-12    branch, department, or other instrumentality of this state that
27-13    reimburses the commission with funds that are held outside the
27-14    state treasury shall reimburse the commission by writing a check to
27-15    the commission for deposit into the appropriate unemployment
27-16    compensation account.  A deposit under this section shall be made
27-17    not later than the 30th day after the date the instrumentality
27-18    receives the commission's statement of amounts due.
27-19          (b)  The commission shall send a copy of each statement of
27-20    amounts due from a branch, department, or other instrumentality of
27-21    this state that reimburses the commission with funds that are held
27-22    outside the state treasury to the comptroller and the state
27-23    auditor.
27-24          (c)  A branch, department, or other instrumentality affected
27-25    by this section may allocate appropriate funds to a revolving
27-26    account on its books to receive contributions from funds other than
 28-1    general revenue funds, based on an assessment it determines to be
 28-2    appropriate for the purpose of reimbursing the appropriate
 28-3    unemployment compensation account for benefits paid.
 28-4          (d)  The state auditor shall review affected entities for
 28-5    compliance with this section.
 28-6          SECTION 36.  The chapter heading to Chapter 506, Labor Code,
 28-7    is amended to read as follows:
 28-8      CHAPTER 506.  MISCELLANEOUS PROVISIONS APPLICABLE TO GOVERNMENT
 28-9                 EMPLOYEES [PAYMENT OF CERTAIN JUDGMENTS]
28-10          SECTION 37.  Chapter 506, Labor Code, is amended by adding
28-11    Section 506.002 to read as follows:
28-12          Sec. 506.002.  REIMBURSEMENT FROM NON-TREASURY FUNDS.
28-13    (a)  An agency or other instrumentality of state government that,
28-14    with funds that are held outside the state treasury, reimburses the
28-15    general revenue fund for workers' compensation payments made out of
28-16    the general revenue fund to former or current employees of the
28-17    agency or other instrumentality shall reimburse the general revenue
28-18    fund by writing a check to the comptroller:
28-19                (1)  for deposit into the appropriate account in the
28-20    general revenue fund; and
28-21                (2)  not later than 30 days after receiving the
28-22    statement of amounts due.
28-23          (b)  The workers' compensation division of the office of the
28-24    attorney general shall send to the comptroller and the state
28-25    auditor a copy of each statement of amounts due from an agency or
28-26    other instrumentality of state government that, with funds that are
 29-1    held outside the state treasury, reimburses the general revenue
 29-2    fund for workers' compensation payments made out of the general
 29-3    revenue fund.
 29-4          (c)  An agency or other instrumentality of state government
 29-5    affected by this section may allocate appropriate funds to a
 29-6    revolving account on its books to receive contributions from funds
 29-7    other than general revenue funds, based on an assessment it
 29-8    determines to be appropriate for the purpose of reimbursing the
 29-9    general revenue fund for the workers' compensation payments made to
29-10    its current or former employees.
29-11          (d)  The state auditor shall review affected entities for
29-12    compliance with this section.
29-13          SECTION 38.  Subchapter D, Chapter 11, Natural Resources
29-14    Code, is amended by adding Section 11.0791 to read as follows:
29-15          Sec. 11.0791.  OTHER PROVISIONS REGARDING ACCESS TO STATE
29-16    LANDS.  When a state governmental entity sells state land, the
29-17    entity shall require that the state have the right of ingress and
29-18    egress to remaining state land in the immediate area by an easement
29-19    to a public thoroughfare.
29-20          SECTION 39.  Subchapter D, Chapter 11, Natural Resources
29-21    Code, is amended by adding Section 11.083 to read as follows:
29-22          Sec. 11.083.  RETENTION OF MINERAL RIGHTS.  The state shall
29-23    retain the mineral rights to state land that is sold unless it is
29-24    impractical to do so.
29-25          SECTION 40.  Section 31.401, Natural Resources Code, is
29-26    amended to read as follows:
 30-1          Sec. 31.401.  NATURAL GAS ACQUISITION CONTRACTS.  (a)  The
 30-2    land office shall review and must approve any contract entered into
 30-3    by a state agency for the acquisition of an annual average of 100
 30-4    MCF per day or more of natural gas used to meet its [in the
 30-5    production of] energy requirements.
 30-6          (b)  Before approving a contract described by Subsection (a)
 30-7    of this section, the land office shall ensure that the agency, to
 30-8    meet its energy requirements, is using, to the greatest extent
 30-9    practical, natural gas produced from land leased from:
30-10                (1)  the school land board;
30-11                (2)  a board for lease other than the Board for Lease
30-12    of University Lands; or
30-13                (3)  the surface owner of Relinquishment Act land.
30-14          (c)  If the land office is able to substitute a contract
30-15    using in-kind royalty gas from state-owned lands or using other gas
30-16    for a contract under which a state agency acquires or proposes to
30-17    acquire its natural gas supplies, the commissioner shall inform the
30-18    comptroller each month of the amount of savings attributable to the
30-19    substitution.
30-20          (d)  In this section, "state agency" has the meaning assigned
30-21    by Subchapter A, Chapter 572, Government Code.
30-22          SECTION 41.  Subsection (d), Section 403.273, Government
30-23    Code, is repealed.
30-24          SECTION 42.  Subsection (c), Section 2165.104, Government
30-25    Code, as amended by this Act, does not apply to the Texas Higher
30-26    Education Coordinating Board or the State Board for Educator
 31-1    Certification until the expiration of all leases under which the
 31-2    board occupies office space on the effective date of this Act.
 31-3          SECTION 43.  This Act does not affect the authority of an
 31-4    institution of higher education to collect, account for, and
 31-5    control local funds and institutional funds in the manner
 31-6    authorized by Subchapter A, Chapter 51, Education Code.
 31-7          SECTION 44.  This section provides, for information purposes
 31-8    only, a derivation table for the provisions of the General
 31-9    Appropriations Act that are codified in general law by other
31-10    sections of this Act.  The first column identifies the codified
31-11    law; all references are to the Government Code unless otherwise
31-12    noted.  The second column identifies for each codified law the
31-13    applicable source provision in Article IX of the General
31-14    Appropriations Act for the fiscal biennium ending August 31, 1999
31-15    (Chapter 1452, Acts of the 75th Legislature, Regular Session,
31-16    1997).
31-17               Codified Law                       Source Provision
31-18    Sec.  101.027(a), Civil Practice         Sec. 61
31-19     and Remedies Code
31-20    Sec.  106.001(c), Civil Practice         Sec. 124.11
31-21     and Remedies Code
31-22    Sec.  306.007                            Sec. 40.2
31-23    Sec.  321.013(c)                         Sec. 176, 124.8 (part)
31-24    Sec.  321.014(c)                         Sec. 91
31-25    Sec.  325.011(9)(b)                      Sec. 124.10
31-26    Sec.  403.097                            Sec. 32.2
 32-1    Sec.  403.245(b)                         Sec. 126
 32-2    Sec.  771.008(d)                         Sec. 78
 32-3    Sec.  811.001(7)                         Sec. 181, last sent.
 32-4    Sec.  2001.039                           Sec. 167
 32-5    Sec.  2052.304                           Sec. 40.3
 32-6    Sec.  2054.003(6)                        Sec. 43.1.a
 32-7    Sec.  2054.121                           Sec. 43.5
 32-8    Sec.  2054.122                           Sec. 156
 32-9    Sec.  2101.0377                          Sec. 70
32-10    Sec.  2155.084                           Sec. 135, 1st 2 par.
32-11    Sec.  2155.132(a)                        Sec. 90
32-12    Sec.  2155.268                           Sec. 56
32-13    Sec.  2155.4441                          Sec. 53
32-14    Sec.  2158.0031                          Sec. 20.3, 1st sent.
32-15    Sec.  2161.002(c)                        Sec. 124.5
32-16    Sec.  2161.122(c)                        Sec. 124.6, 124.7
32-17    Sec.  2161.123(d)-(g)                    Sec. 124.8, 124.9
32-18    Sec.  2165.104(c)                        Sec. 154, except last sent.
32-19    Sec.  2170.009                           Sec. 111 (most)
32-20    Sec.  2170.010                           Sec. 141
32-21    Secs. 2170.051(c), (d)                   Sec. 140
32-22    Sec.  2170.057(b)                        Sec. 139, 2nd par.
32-23    Sec.  2201.002(c)                        Sec. 150.2
32-24    Sec.  2203.004                           Sec. 149
32-25    Sec.  2203.005                           Sec. 110 (most)
32-26    Sec.  2204.002                           Sec. 135, 3rd par., 1st
 33-1                                              sent.
 33-2    Sec.  2204.003                           Sec. 135, 3rd par., 2nd
 33-3                                              sent.
 33-4    Sec.  2251.030                           Sec. 79
 33-5    Sec.  2252.901                           Sec. 52
 33-6    Sec.  2254.0031                          Sec. 51
 33-7    Sec.  205.019, Labor Code                Sec. 80 (part)
 33-8    Sec.  506.002, Labor Code                Sec. 81 (part)
 33-9    Sec.  11.0791, Natural Resources Code    Sec. 148, 1st par.
33-10    Sec.  11.083, Natural Resources Code     Sec. 147
33-11    Sec.  31.401, Natural Resources Code     Sec. 144 (part)
33-12          SECTION 45.  This Act takes effect September 1, 1999.
33-13          SECTION 46.  The importance of this legislation and the
33-14    crowded condition of the calendars in both houses create an
33-15    emergency and an imperative public necessity that the
33-16    constitutional rule requiring bills to be read on three several
33-17    days in each house be suspended, and this rule is hereby suspended.