By Ratliff                                             S.B. No. 178
         76R3204 JRD-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to codification of certain state agency practices and
 1-3     duties currently prescribed by the General Appropriations Act.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 101.027(a), Civil Practice and Remedies
 1-6     Code, is amended to read as follows:
 1-7           (a)  Each governmental unit other than a unit of state
 1-8     government may purchase insurance policies protecting the unit and
 1-9     the unit's employees against claims under this chapter.  A unit of
1-10     state government may purchase such a policy only to the extent that
1-11     the unit is authorized or required to do so under other law.
1-12           SECTION 2.  Chapter 306, Government Code, is amended by
1-13     adding Section 306.007 to read as follows:
1-14           Sec. 306.007.  MINUTES AND REPORTS ELECTRONICALLY AVAILABLE
1-15     TO LEGISLATURE.  A state officer or board, commission, or other
1-16     agency in the executive branch of state government, and an agency
1-17     in the judicial branch of state government other than a court,
1-18     shall make reports required by law and minutes of meetings of the
1-19     agency's governing body available to members of the legislature and
1-20     to agencies in the legislative branch of state government in an
1-21     electronic format determined by the Texas Legislative Council.
1-22           SECTION 3.  Section 321.013(c), Government Code, is amended
1-23     to read as follows:
1-24           (c)  The State Auditor shall recommend [determine] the audit
 2-1     plan for the state for each fiscal year to the committee.  In
 2-2     devising the plan, the State Auditor shall consider recommendations
 2-3     concerning coordination of agency functions made jointly by
 2-4     representatives [the committee composed] of the Legislative Budget
 2-5     Board, Sunset Advisory Commission, and State Auditor's Office.  The
 2-6     State Auditor shall also consider the extent to which a department
 2-7     has received a significant increase in appropriations, including a
 2-8     significant increase in federal or other money passed through to
 2-9     the department.  The plan shall provide for auditing of federal
2-10     programs at least once in each fiscal biennium and shall ensure
2-11     that audit requirements of all bond covenants and other credit or
2-12     financial agreements are satisfied.  The committee shall review and
2-13     approve the plan.
2-14           SECTION 4.  Section 321.014(c), Government Code, is amended
2-15     to read as follows:
2-16           (c)  The State Auditor shall submit each report to the
2-17     committee prior to publication.  The State Auditor shall file a
2-18     copy of each report prepared under this section with:
2-19                 (1)  the governor;
2-20                 (2)  the lieutenant governor;
2-21                 (3)  the speaker of the house of representatives;
2-22                 (4)  the secretary of state;
2-23                 (5)  the Legislative Reference Library;
2-24                 (6)  each member of [the chairman of] the governing
2-25     body and the administrative head of each entity that is the subject
2-26     of the report; and
2-27                 (7)  members of the legislature on a committee with
 3-1     oversight responsibility for the entity or program that is the
 3-2     subject of the report.
 3-3           SECTION 5.  Subchapter F, Chapter 403, Government Code, is
 3-4     amended by adding Section  403.097 to read as follows:
 3-5           Sec. 403.097.  FUNDS EXPENDED IN PROPORTION TO METHOD OF
 3-6     FINANCING.  (a)  The comptroller may prescribe rules to ensure
 3-7     that, when it is necessary to preserve cash balances in the funds
 3-8     and accounts in the state treasury, appropriations are drawn from
 3-9     the treasury in proportion to the methods of financing specified in
3-10     the acts authorizing the appropriations.
3-11           (b)  The rules may include procedures relating to the deposit
3-12     of receipts and the issuance of warrants.
3-13           (c)  This section does not affect other powers of the
3-14     comptroller under this subchapter, Subchapter H of Chapter 404, or
3-15     other law.
3-16           SECTION 6.  Section 403.245(b), Government Code, is amended
3-17     to read as follows:
3-18           (b)  The replenishment of a petty cash account is an
3-19     expenditure from the corresponding fund and shall be drawn from the
3-20     appropriation from which the expenditure would otherwise have been
3-21     made.
3-22           SECTION 7.  Section 771.008, Government Code, is amended by
3-23     adding Subsection (d) to read as follows:
3-24           (d)  This subsection applies only if the services or
3-25     resources are provided under a written contract or agreement.  The
3-26     receiving agency shall reimburse the providing agency within 30
3-27     days after the date by which the services or resources are provided
 4-1     and an invoice is received.  If the receiving agency does not
 4-2     accept the services or resources or finds an error in the invoice,
 4-3     it shall notify the providing agency of the fact in writing as soon
 4-4     as possible within the 30-day period and make payment within 10
 4-5     days after the date the agencies agree the problems are corrected
 4-6     or the error resolved.  If the agencies cannot agree on the amount
 4-7     of the reimbursement, the comptroller shall determine the
 4-8     appropriate amount.  If the receiving agency does not, within the
 4-9     30-day period, reimburse the providing agency or give the providing
4-10     agency written notice of a problem or error, the comptroller on
4-11     request of the providing agency may transfer from amounts
4-12     appropriated to the receiving agency the appropriate amount in
4-13     accordance with this section.
4-14           SECTION 8.  Section 811.001(7), Government Code, is amended
4-15     to read as follows:
4-16                 (7)  "Compensation" means the base salary of a person;
4-17     amounts that would otherwise qualify as compensation but are not
4-18     received directly by a person pursuant to a good faith, voluntary,
4-19     written salary reduction agreement in order to finance payments to
4-20     a deferred compensation or tax sheltered annuity program
4-21     specifically authorized by state law or to finance benefit options
4-22     under a cafeteria plan qualifying under Section 125 of the Internal
4-23     Revenue Code of 1986 (26 U.S.C. Section 125); longevity and
4-24     hazardous duty pay;  nonmonetary compensation, the value of which
4-25     is determined by the retirement system; amounts by which a person's
4-26     salary is reduced under a salary reduction agreement authorized by
4-27     Chapter 610; and the benefit replacement pay a person earns under
 5-1     Subchapter H, Chapter 659, as added by Chapter 417, Acts of the
 5-2     74th Legislature, 1995, except for the benefit replacement pay a
 5-3     person earns as a result of a payment made under Subchapter B, C,
 5-4     or D, Chapter 661.  The term excludes overtime pay and a cleaning
 5-5     or clothing allowance.
 5-6           SECTION 9.  (a)  Subchapter B, Chapter 2001, Government Code,
 5-7     is amended by adding Section 2001.039 to read as follows:
 5-8           Sec. 2001.039.  AGENCY REVIEW OF EXISTING RULES.  (a)  A
 5-9     state agency shall review and consider for readoption each of its
5-10     rules in accordance with this section.
5-11           (b)  A state agency shall review a rule not later than the
5-12     fourth anniversary of the date on which the rule takes effect and
5-13     every four years after that date.  The adoption of an amendment to
5-14     an existing rule does not affect the dates on which the rule must
5-15     be reviewed except that the effective date of an amendment is
5-16     considered to be the effective date of the rule if the agency
5-17     formally conducts a review of the rule in accordance with this
5-18     section as part of the process of adopting the amendment.
5-19           (c)  The state agency shall readopt, readopt with amendments,
5-20     or repeal a rule as the result of reviewing the rule under this
5-21     section.
5-22           (d)  The procedures of this subchapter relating to the
5-23     original adoption of a rule apply to the review of a rule and to
5-24     the resulting repeal, readoption, or readoption with amendments of
5-25     the rule, except as provided by this subsection. Publishing the
5-26     Texas Administrative Code citation to a rule under review satisfies
5-27     the requirements of this subchapter relating to publishing the text
 6-1     of the rule unless the agency readopts the rule with amendments as
 6-2     a result of the review.
 6-3           (e)  A state agency's review of a rule must include an
 6-4     assessment of whether the reasons for initially adopting the rule
 6-5     continue to exist.
 6-6           (b)  The duties prescribed by this subsection apply only to
 6-7     state agency rules that are in effect on September 1, 1999, and
 6-8     that have not already been reviewed in accordance with Section 167,
 6-9     Article IX, Chapter 1452, Acts of the 75th Legislature, Regular
6-10     Session, 1997 (General Appropriations Act).  A state agency shall
6-11     review each of those rules in accordance with Section 2001.039,
6-12     Government Code, as added by this Act, and in accordance with this
6-13     subsection not later than August 31, 2003.  Not later than August
6-14     31, 2000, each state agency shall develop and send to the secretary
6-15     of state for publication in the Texas Register a plan under which
6-16     the agency will review its existing rules. The plan must state for
6-17     each of those rules the date by which the agency will begin the
6-18     review required by Section 2001.039, Government Code, as added by
6-19     this Act.
6-20           (c)  For purposes of subsequent reviews under Section
6-21     2001.039, Government Code, as added by this Act, the effective date
6-22     of an existing rule initially reviewed under Subsection (b) of this
6-23     section or under Section 167, Article IX, Chapter 1452, Acts of the
6-24     75th Legislature, Regular Session, 1997 (General Appropriations
6-25     Act), is considered to be the date on which the agency begins the
6-26     review of the rule by publishing in the Texas Register the notice
6-27     for the review required under Section 2001.024, Government Code,
 7-1     through either Section 2001.039(d) or Section 167.
 7-2           SECTION 10.  Subchapter D, Chapter 2052, Government Code, is
 7-3     amended by adding Section 2052.304 to read as follows:
 7-4                       Sec. 2052.304.  USE OF CERTAIN PRINTING STOCK.  A
 7-5     state officer or board, court, commission, or other agency in the
 7-6     executive or judicial branch of state government may not publish a
 7-7     report or other printed materials on enamel-coated, cast-coated, or
 7-8     dull-coated printing stock unless the agency imposes a fee for
 7-9     receipt of the printed materials.
7-10           SECTION 11.  Section 2054.003(6), Government Code, is amended
7-11     to read as follows:
7-12                 (6)  "Information resources" means the procedures,
7-13     equipment, and software that are employed, designed, built,
7-14     operated, and maintained to collect, record, process, store,
7-15     retrieve, display, and transmit information, and associated
7-16     personnel including consultants and contractors.
7-17           SECTION 12.  Subchapter F, Chapter 2054, Government Code, is
7-18     amended by adding Sections 2054.121 and 2054.122 to read as
7-19     follows:
7-20           Sec. 2054.121.  COORDINATION AMONG INSTITUTIONS OF HIGHER
7-21     EDUCATION.  An institution of higher education shall coordinate its
7-22     use of information technologies with other such institutions to
7-23     more effectively provide education, research, and community
7-24     service.
7-25           Sec. 2054.122.  COORDINATED TECHNOLOGY TRAINING.  A state
7-26     agency each calendar quarter shall coordinate agency training for
7-27     the use of information resources technologies with training offered
 8-1     or coordinated by the department.  The agency shall use training
 8-2     offered or coordinated by the department if it meets agency
 8-3     requirements and is cost-competitive.
 8-4           SECTION 13.  Subchapter C, Chapter 2101, Government Code, is
 8-5     amended by adding Section 2101.0377 to read as follows:
 8-6           Sec. 2101.0377.  REPORTING ACCOUNTING IRREGULARITIES TO STATE
 8-7     AUDITOR.  On determining that a state agency, as defined by Section
 8-8     658.001, or an institution of higher education, as defined by
 8-9     Section 61.003, Education Code, has inaccurately reported the
8-10     expenditure of appropriated funds or engaged in recurring
8-11     accounting irregularities, the comptroller shall report the agency
8-12     or institution to the state auditor for appropriate action,
8-13     including a comprehensive financial audit.
8-14           SECTION 14.  Subchapter B, Chapter 2155, Government Code, is
8-15     amended by adding Section 2155.084 to read as follows:
8-16           Sec. 2155.084.  PURCHASES FROM FEDERAL GOVERNMENT.  (a)  The
8-17     commission or the governing body of an institution of higher
8-18     education may negotiate purchases of goods of any kind needed by a
8-19     state agency or the institution of higher education with the
8-20     appropriate agency of the federal government. The governing body of
8-21     an institution of higher education may act under this section
8-22     either directly or through the commission or another state agency.
8-23           (b)  The price of goods that are purchased from the federal
8-24     government may not exceed the fair market value of the goods.
8-25           (c)  In negotiating purchases of goods from the federal
8-26     government under this section or under Subchapter G, Chapter 2175,
8-27     the commission or the governing body of the institution of higher
 9-1     education may waive the requirement of a bidder's bond and
 9-2     performance bond that otherwise would be required.
 9-3           SECTION 15.  Section 2155.132(a), Government Code, is amended
 9-4     to read as follows:
 9-5           (a)  A state agency is delegated the authority to purchase
 9-6     goods and services if the purchase does not exceed $15,000. If the
 9-7     commission determines that a state agency has not followed the
 9-8     commission's rules or the laws related to the delegated purchases,
 9-9     the commission shall report its determination to the members of the
9-10     state agency's governing body and to the governor, lieutenant
9-11     governor, speaker of the house of representatives, and Legislative
9-12     Budget Board.
9-13           SECTION 16.  Section 2155.268, Government Code, is amended to
9-14     read as follows:
9-15           Sec. 2155.268.  USE OF STATE AGENCY BIDDERS LIST.  (a)  A
9-16     state agency may not maintain and use its own bidders list [only if
9-17     the commission determines by rule that the agency has specialized
9-18     needs that can best be met through maintaining and using its own
9-19     specialized bidders list].  The prohibition of this subsection does
9-20     not apply to the Texas Department of Transportation or to an
9-21     institution of higher education as defined by Section 61.003,
9-22     Education Code, but an institution of higher education should use
9-23     the master bidders list when possible.
9-24           (b)  [The commission by rule may prescribe the categories of
9-25     purchases or other acquisitions for which a state agency's
9-26     specialized bidders list may be used.]
9-27           [(c)]  A state agency may supplement the bidders list with
 10-1    its own list of historically underutilized businesses if it
 10-2    determines that the supplementation will increase the number of
 10-3    historically underutilized businesses that submit bids.
 10-4          (c) [(d)]  A state agency may purchase goods and services
 10-5    from a vendor who is not on the bidders list if the purchase price
 10-6    does not exceed $5,000.
 10-7          SECTION 17.  Subchapter H, Chapter 2155, Government Code, is
 10-8    amended by  adding Section 2155.4441 to read as follows:
 10-9          Sec. 2155.4441.  PREFERENCE UNDER SERVICE CONTRACTS.  A state
10-10    agency that contracts for services shall require the contractor, in
10-11    performing the contract, to purchase products and materials
10-12    produced in this state when they are available at a price and time
10-13    comparable to products and materials produced outside this state.
10-14          SECTION 18.  Subchapter A, Chapter 2158, Government Code, is
10-15    amended by adding Section 2158.0031 to read as follows:
10-16          Sec. 2158.0031.  PURCHASE PREFERENCE FOR AMERICAN VEHICLES.
10-17    A state agency authorized to purchase passenger vehicles or other
10-18    ground transportation vehicles for general use shall purchase
10-19    economical, fuel-efficient vehicles assembled in the United States
10-20    unless such a purchase would have a significant detrimental effect
10-21    on the use to which the vehicles will be put.
10-22          SECTION 19.  Section 2165.104(c), Government Code, is amended
10-23    to read as follows:
10-24          (c)  To the extent possible without sacrificing critical
10-25    public or client services, the commission may not allocate usable
10-26    office space, as defined by the commission, to a state agency under
10-27    Article I, [or] II, V, VI, VII, or VIII of the General
 11-1    Appropriations Act or to the Texas Higher Education Coordinating
 11-2    Board, the Texas Education Agency, the State Board for Educator
 11-3    Certification, the Telecommunications Infrastructure Fund Board, or
 11-4    the Office of Court Administration of the Texas Judicial System in
 11-5    an amount that exceeds an average of 153 square feet per agency
 11-6    employee for each agency site.  To the extent that any of those
 11-7    agencies allocates its own usable office space, as defined by the
 11-8    commission, the agency shall allocate the space to achieve the
 11-9    required ratio.  This subsection does not apply to:
11-10                (1)  an agency site at which fewer than 16 employees
11-11    are located;
11-12                (2)  warehouse space;
11-13                (3)  laboratory space;
11-14                (4)  storage space exceeding 1,000 gross square feet;
11-15                (5)  library space;
11-16                (6)  space for hearing rooms used to conduct hearings
11-17    required under the administrative procedure law, Chapter 2001; or
11-18                (7)  another type of space specified by commission
11-19    rule, if the commission determines that it is not practical to
11-20    apply this subsection to that space.
11-21          SECTION 20.  Subchapter A, Chapter 2170, Government Code, is
11-22    amended by adding Sections 2170.009 and 2170.010 to read as
11-23    follows:
11-24          Sec. 2170.009.  PAY TELEPHONES AUTHORIZED.  (a)  A pay
11-25    telephone may be located in the Capitol Complex only with the
11-26    approval of the commission.  The commission shall collect the
11-27    revenue from the installation and operation of the pay telephone
 12-1    and deposit it to the credit of the general revenue fund.
 12-2          (b)  In a state-owned or state-leased building or on
 12-3    state-owned land to which Subsection (a) does not apply, a pay
 12-4    telephone may be installed only with the approval of the governing
 12-5    body of the state entity that has charge and control of the
 12-6    building or land.  The entity shall collect the revenue from the
 12-7    installation and operation of the pay telephone and deposit it to
 12-8    the credit of the general revenue fund unless the disposition of
 12-9    the revenue is governed by other law.
12-10          (c)  The commission or other state entity shall account for
12-11    the revenue collected under this section in the entity's annual
12-12    report.
12-13          Sec. 2170.010.  UNLISTED TELEPHONE NUMBERS PROHIBITED.  A
12-14    state agency and its officers and employees may not buy, rent, or
12-15    pay toll charges for a telephone for which the telephone number is
12-16    not listed or available from directory assistance to the general
12-17    public unless the unlisted telephone number is used:
12-18                (1)  to provide access to computers, telephone system
12-19    control centers, long-distance networks, elevator control systems,
12-20    and other tone-controlled devices for which restricted access to
12-21    the telephone number is justified for security or other purposes;
12-22                (2)  in narcotics undercover operations; or
12-23                (3)  in the detection of illegal sales of securities.
12-24          SECTION 21.  Section 2170.051, Government Code, is amended to
12-25    read as follows:
12-26          Sec. 2170.051.  MANAGEMENT AND USE OF SYSTEM.  (a)  The
12-27    commission shall manage the operation of a system of
 13-1    telecommunications services for all state agencies.  Each agency
 13-2    shall identify its particular requirements for telecommunications
 13-3    services and the site at which the services are to be provided.
 13-4          (b)  The commission shall fulfill the telecommunications
 13-5    requirements of each state agency to the extent possible and to the
 13-6    extent that money is appropriated or available for that purpose.
 13-7          (c)  A state agency shall use the consolidated
 13-8    telecommunications system to the fullest extent possible.  A state
 13-9    agency may not acquire telecommunications services unless the
13-10    commission determines that the agency's requirement for
13-11    telecommunications services cannot be met at a comparable cost by
13-12    the consolidated telecommunications system.
13-13          (d)  A state agency may not enter into or renew a contract
13-14    with a carrier or other provider of telecommunications services
13-15    without obtaining a waiver from the commission certifying that the
13-16    requested telecommunications services cannot be provided at a
13-17    comparable cost on the consolidated telecommunications system.  The
13-18    commission shall evaluate requests for waivers based on
13-19    cost-effectiveness to the state government as a whole.  A waiver
13-20    may be granted only for a specific period and will automatically
13-21    expire on the stated expiration date unless an extension is
13-22    approved by the commission.  A contract for telecommunications
13-23    services obtained under waiver may not extend beyond the expiration
13-24    date of the waiver.
13-25          SECTION 22.  Section 2170.057(b), Government Code, is amended
13-26    to read as follows:
13-27          (b)  The comptroller shall establish in the state treasury a
 14-1    revolving fund account for the administration of this chapter.  The
 14-2    account shall be used as a depository for money received from
 14-3    entities served.  Receipts attributable to the centralized capitol
 14-4    complex telephone system shall be deposited into the account but
 14-5    separately identified within the account.
 14-6          SECTION 23.  Section 2201.002, Government Code, is amended by
 14-7    adding Subsection (c) to read as follows:
 14-8          (c)  The fund may not be used to pay salaries.
 14-9          SECTION 24.  Chapter 2203, Government Code, is amended by
14-10    adding Sections 2203.004 and 2203.005 to read as follows:
14-11          Sec. 2203.004.  REQUIREMENT TO USE STATE PROPERTY FOR STATE
14-12    PURPOSES.  State property may be used only for state purposes.  A
14-13    person may not entrust state property to a state officer or
14-14    employee or to any other person if the property is not to be used
14-15    for state purposes.
14-16          Sec. 2203.005.  VENDING MACHINES AUTHORIZED.  (a)  In a
14-17    state-owned or state-leased building or on state-owned or
14-18    state-leased property that is not served by a vendor operating
14-19    under the supervision of the Texas Commission for the Blind, a
14-20    vending machine may be located in the building or on the property
14-21    only with the approval of the governing body of the state agency
14-22    that has charge and control of the building or property.  The
14-23    approval must be recorded in the minutes of a meeting of the
14-24    governing body.
14-25          (b)  The state agency shall file with the General Services
14-26    Commission a copy of all contracts between the state agency and the
14-27    vendor related to the vending machine and a written description of
 15-1    the location of the vending machine.
 15-2          (c)  All rentals, commissions, or other net revenue the state
 15-3    agency receives in connection with the vending machine shall be
 15-4    accounted for as state money and deposited to the credit of the
 15-5    general revenue fund unless the disposition of the revenue is
 15-6    governed by other law.  The state agency shall account for the
 15-7    revenue received under this section in the agency's annual report.
 15-8          (d)  In a state-owned or state-leased building or on
 15-9    state-owned or state-leased property that is served by a vendor
15-10    operating under the supervision of the Texas Commission for the
15-11    Blind, a vending machine may be located and operated in the
15-12    building or on the property only under a joint contract with the
15-13    owners of the vending machine and the vendor operating under the
15-14    supervision of the Texas Commission for the Blind.
15-15          SECTION 25.  Subchapter A, Chapter 2204, Government Code, is
15-16    amended by adding Sections 2204.002 and 2204.003 to read as
15-17    follows:
15-18          Sec. 2204.002.  RESTRICTION ON ACQUISITION OF REAL PROPERTY.
15-19    A state agency, as defined by Section 658.001, may not accept a
15-20    gift or devise of real property or spend appropriated money to
15-21    purchase real property without legislative authorization.
15-22          Sec. 2204.003.  GIFTS OF REAL PROPERTY TO INSTITUTIONS OF
15-23    HIGHER EDUCATION.  An institution of higher education, as defined
15-24    by Section 61.003, Education Code, may accept a gift or devise of
15-25    real property from a private entity to establish scholarships or
15-26    professorships or to be held in trust for other educational
15-27    purposes only if the administrative head or the presiding officer
 16-1    of the governing body of the institution certifies to the
 16-2    Legislative Budget Board that an appropriation of educational and
 16-3    general funds will not be required in the future to operate,
 16-4    maintain, repair, or construct a building on the property.
 16-5          SECTION 26.  Section 2251.030, Government Code, is amended to
 16-6    read as follows:
 16-7          Sec. 2251.030.  PROMPT OR EARLY PAYMENT DISCOUNT.  (a)  The
 16-8    intent of the legislature is that a governmental entity should take
 16-9    advantage of an offer for an early payment discount. A state agency
16-10    shall when possible negotiate a prompt payment discount with a
16-11    vendor.
16-12          (b)  A governmental entity may not take an early payment
16-13    discount a vendor offers unless the governmental entity makes a
16-14    full payment within the discount period.
16-15          (c)  If a governmental entity takes an early payment discount
16-16    later, the unpaid balance accrues interest beginning on the date
16-17    the discount offer expires.
16-18          (d)  A state agency, when paying for goods and services
16-19    purchased under an agreement that includes a prompt or early
16-20    payment discount, shall submit the necessary payment documents or
16-21    information to the comptroller sufficiently in advance of the
16-22    prompt or early payment deadline to allow the comptroller or the
16-23    agency to pay the vendor in time to obtain the discount.
16-24          SECTION 27.  Section 2252.901, Government Code, is amended to
16-25    read as follows:
16-26          Sec. 2252.901.  CONTRACTS WITH FORMER OR RETIRED AGENCY
16-27    EMPLOYEES.  (a)  A state agency may not enter into an employment
 17-1    contract, a professional services contract under Chapter 2254, or a
 17-2    consulting services contract under Chapter 2254 with a former or
 17-3    retired employee of the agency before the first anniversary of the
 17-4    last date on which the individual was employed by the agency, if
 17-5    appropriated money will be used to make payments under the
 17-6    contract.
 17-7          (b)  A state agency that contracts at any time with a retired
 17-8    agency employee to perform services substantially similar to the
 17-9    services the retiree performed for the agency during the last 12
17-10    months of service before retirement may not make payments under the
17-11    contract from any source of revenue at an annualized rate that
17-12    exceeds the lesser of:
17-13                (1)  the rate of compensation the retiree received from
17-14    the state during the last 12 months of service before retirement;
17-15    or
17-16                (2)  $60,000.
17-17          (c) [(b)]  The contract payment limitation provided by
17-18    Subsection (b) [(a)] does not apply during the first six months a
17-19    retiree performs services under a contract after retirement, except
17-20    that if a retiree performs services under the contract for more
17-21    than six months, the limitation applies to the entire term of the
17-22    contract.
17-23          (d) [(c)]  In this section:
17-24                (1)  "Employment contract" includes a personal services
17-25    contract regardless of whether the performance of the contract
17-26    involves the traditional relationship of employer and employee. The
17-27    term does not apply to an at-will employment relationship that
 18-1    involves the traditional relationship of employer and employee.
 18-2                (2)  "Retired agency employee" means a person:
 18-3                      (A)  whose last state service before retirement
 18-4    was for the state agency with which the retiree contracts to
 18-5    perform services; and
 18-6                      (B)  who is a retiree of:
 18-7                            (i)  the employee class of membership of
 18-8    the Employees Retirement System of Texas; or
 18-9                            (ii)  the Teacher Retirement System of
18-10    Texas, the majority of whose service was credited in that system in
18-11    a position with a state agency.
18-12                (3) [(2)]  "State agency" includes a "public senior
18-13    college or university," as that term is defined by Section 61.003,
18-14    Education Code.
18-15          SECTION 28.  Subchapter A, Chapter 2254, Government Code, is
18-16    amended by adding Section 2254.0031 to read as follows:
18-17          Sec. 2254.0031.  INDEMNIFICATION.  A state governmental
18-18    entity may require a contractor selected under this subchapter to
18-19    indemnify or hold harmless the state from claims and liabilities
18-20    resulting from the negligent acts or omissions of the contractor or
18-21    persons employed by the contractor.  A state governmental entity
18-22    may not require a contractor to indemnify or hold harmless the
18-23    state for claims or liabilities resulting from the negligent acts
18-24    or omissions of the state governmental entity or its employees.
18-25          SECTION 29.  Subchapter B, Chapter 205, Labor Code, is
18-26    amended by adding Section 205.019 to read as follows:
18-27          Sec. 205.019.  REIMBURSEMENT FROM NON-TREASURY FUNDS.  (a)  A
 19-1    branch, department, or other instrumentality of this state that
 19-2    reimburses the commission with funds that are held outside the
 19-3    state treasury shall reimburse the commission by writing a check to
 19-4    the commission for deposit into the appropriate unemployment
 19-5    compensation account.  A deposit under this section shall be made
 19-6    not later than the 30th day after the date the instrumentality
 19-7    receives the commission's statement of amounts due.
 19-8          (b)  The commission shall send a copy of each statement of
 19-9    amounts due from a branch, department, or other instrumentality of
19-10    this state that reimburses the commission with funds that are held
19-11    outside the state treasury to the comptroller and the state
19-12    auditor.
19-13          (c)  The state auditor shall review affected entities for
19-14    compliance with this section.
19-15          SECTION 30.  The chapter heading to Chapter 506, Labor Code,
19-16    is amended to read as follows:
19-17      CHAPTER 506.  MISCELLANEOUS PROVISIONS APPLICABLE TO GOVERNMENT
19-18                 EMPLOYEES [PAYMENT OF CERTAIN JUDGMENTS]
19-19          SECTION 31.  Chapter 506, Labor Code, is amended by adding
19-20    Section 506.002 to read as follows:
19-21          Sec. 506.002.  REIMBURSEMENT FROM NON-TREASURY FUNDS.  (a)
19-22    An agency or other instrumentality of state government that, with
19-23    funds that are held outside the state treasury, reimburses the
19-24    general revenue fund for workers' compensation payments made out of
19-25    the general revenue fund to former or current employees of the
19-26    agency or other instrumentality shall reimburse the general revenue
19-27    fund by writing a check to the comptroller:
 20-1                (1)  for deposit into the appropriate account in the
 20-2    general revenue fund; and
 20-3                (2)  not later than 30 days after receiving the
 20-4    statement of amounts due.
 20-5          (b)  The workers' compensation division of the office of the
 20-6    attorney general shall send to the comptroller and the state
 20-7    auditor a copy of each statement of amounts due from an agency or
 20-8    other instrumentality of state government that, with funds that are
 20-9    held outside the state treasury, reimburses the general revenue
20-10    fund for workers' compensation payments made out of the general
20-11    revenue fund.
20-12          (c)  The state auditor shall review affected entities for
20-13    compliance with this section.
20-14          SECTION 32.  Subchapter D, Chapter 11, Natural Resources
20-15    Code, is amended by adding Section 11.0791 to read as follows:
20-16          Sec. 11.0791.  OTHER PROVISIONS REGARDING ACCESS TO STATE
20-17    LANDS.  When a state governmental entity sells state land, the
20-18    entity shall require that the state have the right of ingress and
20-19    egress to remaining state land in the immediate area by an easement
20-20    to a public thoroughfare.
20-21          SECTION 33.  Subchapter D, Chapter 11, Natural Resources
20-22    Code, is amended by adding Section 11.083 to read as follows:
20-23          Sec. 11.083.  RETENTION OF MINERAL RIGHTS.  The state shall
20-24    retain the mineral rights to state land that is sold unless it is
20-25    impractical to do so.
20-26          SECTION 34.  Section 31.401, Natural Resources Code, is
20-27    amended to read as follows:
 21-1          Sec. 31.401.  NATURAL GAS ACQUISITION CONTRACTS.  (a)  The
 21-2    land office shall review and must approve any contract entered into
 21-3    by a state agency for the acquisition of an annual average of 100
 21-4    MCF per day or more of natural gas used to meet its [in the
 21-5    production of] energy requirements.
 21-6          (b)  Before approving a contract described by Subsection (a)
 21-7    of this section, the land office shall ensure that the agency, to
 21-8    meet its energy requirements, is using, to the greatest extent
 21-9    practical, natural gas produced from land leased from:
21-10                (1)  the school land board;
21-11                (2)  a board for lease other than the Board for Lease
21-12    of University Lands; or
21-13                (3)  the surface owner of Relinquishment Act land.
21-14          (c)  If the land office is able to substitute a contract
21-15    using in-kind royalty gas from state-owned lands or using other gas
21-16    for a contract under which a state agency acquires or proposes to
21-17    acquire its natural gas supplies, the commissioner shall inform the
21-18    comptroller each month of the amount of savings attributable to the
21-19    substitution.
21-20          (d)  In this section, "state agency" has the meaning assigned
21-21    by Subchapter A, Chapter 572, Government Code.
21-22          SECTION 35.  Section 403.273(d), Government Code, is
21-23    repealed.
21-24          SECTION 36.  Section 2165.104(c), Government Code, as amended
21-25    by this Act, does not apply to the Texas Higher Education
21-26    Coordinating Board or the State Board for Educator Certification
21-27    until the expiration of all leases under which the board occupies
 22-1    office space on the effective date of this Act.
 22-2          SECTION 37.  This section provides, for information purposes
 22-3    only, a derivation table for the provisions of the General
 22-4    Appropriations Act that are codified in general law by other
 22-5    sections of this Act.  The first column identifies the codified
 22-6    law; all references are to the Government Code unless otherwise
 22-7    noted.  The second column identifies for each codified law the
 22-8    applicable source provision of the General Appropriations Act for
 22-9    the fiscal biennium ending August 31, 1999 (Chapter 1452, Acts of
22-10    the 75th Legislature, Regular Session, 1997).
22-11                Codified Law                       Source Provision
22-12    Sec.  101.027(a), Civil Practice         Sec. 61
22-13      and Remedies Code
22-14    Sec.  306.007                            Sec. 40.2
22-15    Sec.  321.013(c)                         Sec. 176
22-16    Sec.  321.014(c)                         Sec. 91
22-17    Sec.  403.097                            Sec. 32.2
22-18    Sec.  403.245(b)                         Sec. 126
22-19    Sec.  771.008(d)                         Sec. 78
22-20    Sec.  811.001(7)                         Sec. 181, last sent. 
22-21    Sec.  2001.039                           Sec. 167
22-22    Sec.  2052.304                           Sec. 40.3
22-23    Sec.  2054.003(6)                        Sec. 43.1.a
22-24    Sec.  2054.121                           Sec. 43.5
22-25    Sec.  2054.122                           Sec. 156
22-26    Sec.  2101.0377                          Sec. 70
22-27    Sec.  2155.084                           Sec. 135, 1st 2 par. 
 23-1    Sec.  2155.132(a)                        Sec. 90
 23-2    Sec.  2155.268                           Sec. 56
 23-3    Sec.  2155.4441                          Sec. 53
 23-4    Sec.  2158.0031                          Sec. 20.3, 1st sent. 
 23-5    Sec.  2165.104(c)                        Sec. 154, except last sent. 
 23-6    Sec.  2170.009                           Sec. 111 (most)
 23-7    Sec.  2170.010                           Sec. 141
 23-8    Secs. 2170.051(c), (d)                   Sec. 140
 23-9    Sec.  2170.057(b)                        Sec. 139, 2nd par. 
23-10    Sec.  2201.002(c)                        Sec. 150.2
23-11    Sec.  2203.004                           Sec. 149
23-12    Sec.  2203.005                           Sec. 110 (most)
23-13    Sec.  2204.002                           Sec. 135, 3rd par., 1st
23-14                                              sent. 
23-15    Sec.  2204.003                           Sec. 135, 3rd par., 2nd
23-16                                              sent. 
23-17    Sec.  2251.030                           Sec. 79
23-18    Sec.  2252.901                           Sec. 52
23-19    Sec.  2254.0031                          Sec. 51
23-20    Sec.  205.019, Labor Code                Sec. 80 (part)
23-21    Sec.  506.002, Labor Code                Sec. 81 (part)
23-22    Sec.  11.0791, Natural Resources Code    Sec. 148, 1st par. 
23-23    Sec.  11.083, Natural Resources Code     Sec. 147
23-24    Sec.  31.401, Natural Resources Code     Sec. 144 (part)
23-25          SECTION 38.  This Act takes effect September 1, 1999.
23-26          SECTION 39.  The importance of this legislation and the
23-27    crowded condition of the calendars in both houses create an
 24-1    emergency and an imperative public necessity that the
 24-2    constitutional rule requiring bills to be read on three several
 24-3    days in each house be suspended, and this rule is hereby suspended.