1-1     By:  Ratliff                                           S.B. No. 178
 1-2           (In the Senate - Filed January 19, 1999; January 28, 1999,
 1-3     read first time and referred to Committee on Finance;
 1-4     March 8, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 11, Nays 0; March 8, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 178                  By:  Ratliff
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to codification of certain state agency practices and
1-11     duties currently prescribed by the General Appropriations Act.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subsection (a), Section 101.027, Civil Practice
1-14     and Remedies Code, is amended to read as follows:
1-15           (a)  Each governmental unit other than a unit of state
1-16     government may purchase insurance policies protecting the unit and
1-17     the unit's employees against claims under this chapter.  A unit of
1-18     state government may purchase such a policy only to the extent that
1-19     the unit is authorized or required to do so under other law.
1-20           SECTION 2.  Section 106.001, Civil Practice and Remedies
1-21     Code, is amended by adding Subsection (c) to read as follows:
1-22           (c)  This section does not prohibit the adoption of a program
1-23     designed to increase the participation of businesses owned and
1-24     controlled by women, minorities, or disadvantaged persons in public
1-25     contract awards.
1-26           SECTION 3.  Chapter 306, Government Code, is amended by
1-27     adding Section 306.007 to read as follows:
1-28           Sec. 306.007.  MINUTES AND REPORTS ELECTRONICALLY AVAILABLE
1-29     TO LEGISLATURE.  A state officer or board, commission, or other
1-30     agency in the executive branch of state government, and an agency
1-31     in the judicial branch of state government other than a court,
1-32     shall make reports required by law and minutes of meetings of the
1-33     agency's governing body available to members of the legislature and
1-34     to agencies in the legislative branch of state government in an
1-35     electronic format determined by the Texas Legislative Council.
1-36           SECTION 4.  Subsection (c), Section 321.013, Government Code,
1-37     is amended to read as follows:
1-38           (c)  The State Auditor shall recommend [determine] the audit
1-39     plan for the state for each fiscal year to the committee.  In
1-40     devising the plan, the State Auditor shall consider recommendations
1-41     concerning coordination of agency functions made jointly by
1-42     representatives [the committee composed] of the Legislative Budget
1-43     Board, Sunset Advisory Commission, and State Auditor's Office.  The
1-44     State Auditor shall also consider the extent to which a department
1-45     has received a significant increase in appropriations, including a
1-46     significant increase in federal or other money passed through to
1-47     the department, and shall review procurement activities for
1-48     compliance with Section 2161.123.  The plan shall provide for
1-49     auditing of federal programs at least once in each fiscal biennium
1-50     and shall ensure that audit requirements of all bond covenants and
1-51     other credit or financial agreements are satisfied.  The committee
1-52     shall review and approve the plan.
1-53           SECTION 5.  Subsection (c), Section 321.014, Government Code,
1-54     is amended to read as follows:
1-55           (c)  The State Auditor shall submit each report to the
1-56     committee prior to publication.  The State Auditor shall file a
1-57     copy of each report prepared under this section with:
1-58                 (1)  the governor;
1-59                 (2)  the lieutenant governor;
1-60                 (3)  the speaker of the house of representatives;
1-61                 (4)  the secretary of state;
1-62                 (5)  the Legislative Reference Library;
1-63                 (6)  each member of [the chairman of] the governing
1-64     body and the administrative head of each entity that is the subject
 2-1     of the report; and
 2-2                 (7)  members of the legislature on a committee with
 2-3     oversight responsibility for the entity or program that is the
 2-4     subject of the report.
 2-5           SECTION 6.  Section 325.011, Government Code, is amended to
 2-6     read as follows:
 2-7           Sec. 325.011.  Criteria for Review.  The commission and its
 2-8     staff shall consider the following criteria in determining whether
 2-9     a public need exists for the continuation of a state agency or its
2-10     advisory committees or for the performance of the functions of the
2-11     agency or its advisory committees:
2-12                 (1)  the efficiency with which the agency or advisory
2-13     committee operates;
2-14                 (2)  an identification of the objectives intended for
2-15     the agency or advisory committee and the problem or need that the
2-16     agency or advisory committee was intended to address, the extent to
2-17     which the objectives have been achieved, and any activities of the
2-18     agency in addition to those granted by statute and the authority
2-19     for these activities;
2-20                 (3)  an assessment of less restrictive or alternative
2-21     methods of performing any regulation that the agency performs that
2-22     could adequately protect the public;
2-23                 (4)  the extent to which the advisory committee is
2-24     needed and is used;
2-25                 (5)  the extent to which the jurisdiction of the agency
2-26     and the programs administered by the agency overlap or duplicate
2-27     those of other agencies and the extent to which the programs
2-28     administered by the agency can be consolidated with the programs of
2-29     other state agencies;
2-30                 (6)  whether the agency has recommended to the
2-31     legislature statutory changes calculated to be of benefit to the
2-32     public rather than to an occupation, business, or institution that
2-33     the agency regulates;
2-34                 (7)  the promptness and effectiveness with which the
2-35     agency disposes of complaints concerning persons affected by the
2-36     agency;
2-37                 (8)  the extent to which the agency has encouraged
2-38     participation by the public in making its rules and decisions as
2-39     opposed to participation solely by those it regulates and the
2-40     extent to which the public participation has resulted in rules
2-41     compatible with the objectives of the agency;
2-42                 (9)  the extent to which the agency has complied with
2-43     applicable requirements of:
2-44                       (A)  an agency of the United States or of this
2-45     state regarding equality of employment opportunity and the rights
2-46     and privacy of individuals; and
2-47                       (B)  state law and applicable rules of any state
2-48     agency regarding purchasing goals and programs for historically
2-49     underutilized businesses;
2-50                 (10)  the extent to which changes are necessary in the
2-51     enabling statutes of the agency so that the agency can adequately
2-52     comply with the criteria listed in this section;
2-53                 (11)  the extent to which the agency issues and
2-54     enforces rules relating to potential conflicts of interest of its
2-55     employees;
2-56                 (12)  the extent to which the agency complies with
2-57     Chapter 552, and with Chapter 551; and
2-58                 (13)  the effect of federal intervention or loss of
2-59     federal funds if the agency is abolished.
2-60           SECTION 7.  Subchapter F, Chapter 403, Government Code, is
2-61     amended by adding Section 403.097 to read as follows:
2-62           Sec. 403.097.  FUNDS EXPENDED IN PROPORTION TO METHOD OF
2-63     FINANCING.  (a)  The comptroller may prescribe rules to ensure
2-64     that, when it is necessary to preserve cash balances in the funds
2-65     and accounts in the state treasury, appropriations are drawn from
2-66     the treasury in proportion to the methods of financing specified in
2-67     the Acts authorizing the appropriations.
2-68           (b)  The rules may include procedures relating to the deposit
2-69     of receipts and the issuance of warrants.
 3-1           (c)  This section does not affect other powers of the
 3-2     comptroller under this subchapter, Subchapter H of Chapter 404, or
 3-3     other law.
 3-4           (d)  This section does not apply if the method of financing
 3-5     specified for an agency or an institution of higher education in
 3-6     the Act authorizing appropriations includes interest earned or to
 3-7     be earned on local funds of the agency or institution.
 3-8           SECTION 8.  Subsection (b), Section 403.245, Government Code,
 3-9     is amended to read as follows:
3-10           (b)  The replenishment of a petty cash account is an
3-11     expenditure from the corresponding fund and shall be drawn from the
3-12     appropriation from which the expenditure would otherwise have been
3-13     made.
3-14           SECTION 9.  Section 771.008, Government Code, is amended by
3-15     adding Subsection (d) to read as follows:
3-16           (d)  This subsection applies only if the services or
3-17     resources are provided under a written contract or agreement.  The
3-18     receiving agency shall reimburse the providing agency within 30
3-19     days after the date by which the services or resources are provided
3-20     and an invoice is received.  If the receiving agency does not
3-21     accept the services or resources or finds an error in the invoice,
3-22     it shall notify the providing agency of the fact in writing as soon
3-23     as possible within the 30-day period and make payment within 10
3-24     days after the date the agencies agree the problems are corrected
3-25     or the error resolved.  If the agencies cannot agree on the amount
3-26     of the reimbursement, the comptroller shall determine the
3-27     appropriate amount.  If the receiving agency does not, within the
3-28     30-day period, reimburse the providing agency or give the providing
3-29     agency written notice of a problem or error, the comptroller on
3-30     request of the providing agency may transfer from amounts
3-31     appropriated to the receiving agency the appropriate amount in
3-32     accordance with this section.
3-33           SECTION 10.  Subdivision (7), Section 811.001, Government
3-34     Code, is amended to read as follows:
3-35                 (7)  "Compensation" means the base salary of a person;
3-36     amounts that would otherwise qualify as compensation but are not
3-37     received directly by a person pursuant to a good faith, voluntary,
3-38     written salary reduction agreement in order to finance payments to
3-39     a deferred compensation or tax sheltered annuity program
3-40     specifically authorized by state law or to finance benefit options
3-41     under a cafeteria plan qualifying under Section 125 of the Internal
3-42     Revenue Code of 1986 (26 U.S.C. Section 125); longevity and
3-43     hazardous duty pay;  nonmonetary compensation, the value of which
3-44     is determined by the retirement system; amounts by which a person's
3-45     salary is reduced under a salary reduction agreement authorized by
3-46     Chapter 610; and the benefit replacement pay a person earns under
3-47     Subchapter H, Chapter 659, as added by Chapter 417, Acts of the
3-48     74th Legislature, 1995, except for the benefit replacement pay a
3-49     person earns as a result of a payment made under Subchapter B, C,
3-50     or D, Chapter 661.  The term excludes overtime pay and a cleaning
3-51     or clothing allowance.
3-52           SECTION 11.  (a)  Subchapter B, Chapter 2001, Government
3-53     Code, is amended by adding Section 2001.039 to read as follows:
3-54           Sec. 2001.039.  AGENCY REVIEW OF EXISTING RULES.  (a)  A
3-55     state agency shall review and consider for readoption each of its
3-56     rules in accordance with this section.
3-57           (b)  A state agency shall review a rule not later than the
3-58     fourth anniversary of the date on which the rule takes effect and
3-59     every four years after that date.  The adoption of an amendment to
3-60     an existing rule does not affect the dates on which the rule must
3-61     be reviewed except that the effective date of an amendment is
3-62     considered to be the effective date of the rule if the agency
3-63     formally conducts a review of the rule in accordance with this
3-64     section as part of the process of adopting the amendment.
3-65           (c)  The state agency shall readopt, readopt with amendments,
3-66     or repeal a rule as the result of reviewing the rule under this
3-67     section.
3-68           (d)  The procedures of this subchapter relating to the
3-69     original adoption of a rule apply to the review of a rule and to
 4-1     the resulting repeal, readoption, or readoption with amendments of
 4-2     the rule, except as provided by this subsection.  Publishing the
 4-3     Texas Administrative Code citation to a rule under review satisfies
 4-4     the requirements of this subchapter relating to publishing the text
 4-5     of the rule unless the agency readopts the rule with amendments as
 4-6     a result of the review.
 4-7           (e)  A state agency's review of a rule must include an
 4-8     assessment of whether the reasons for initially adopting the rule
 4-9     continue to exist.
4-10           (b)  The duties prescribed by this subsection apply only to
4-11     state agency rules that are in effect on September 1, 1999, and
4-12     that have not already been reviewed in accordance with Section 167,
4-13     Article IX, Chapter 1452, Acts of the 75th Legislature, Regular
4-14     Session, 1997 (General Appropriations Act).  A state agency shall
4-15     review each of those rules in accordance with Section 2001.039,
4-16     Government Code, as added by this Act, and in accordance with this
4-17     subsection not later than August 31, 2003.  Not later than August
4-18     31, 2000, each state agency shall develop and send to the secretary
4-19     of state for publication in the Texas Register a plan under which
4-20     the agency will review its existing rules.  The plan must state for
4-21     each of those rules the date by which the state agency will begin
4-22     the review required by Section 2001.039, Government Code, as added
4-23     by this Act.
4-24           (c)  For purposes of subsequent reviews under Section
4-25     2001.039, Government Code, as added by this Act, the effective date
4-26     of an existing rule initially reviewed under Subsection (b) of this
4-27     section or under Section 167, Article IX, Chapter 1452, Acts of the
4-28     75th Legislature, Regular Session, 1997 (General Appropriations
4-29     Act), is considered to be the date on which the state agency begins
4-30     the review of the rule by publishing in the Texas Register the
4-31     notice for the review required under Section 2001.024, Government
4-32     Code, through either Subsection (d), Section 2001.039 or Section
4-33     167.
4-34           SECTION 12.  Subchapter D, Chapter 2052, Government Code, is
4-35     amended by adding Section 2052.304 to read as follows:
4-36           Sec. 2052.304.  USE OF CERTAIN PRINTING STOCK.  (a)  A state
4-37     officer or board, court, commission, or other agency in the
4-38     executive or judicial branch of state government may not publish a
4-39     report or other printed materials on enamel-coated, cast-coated, or
4-40     dull-coated printing stock unless the agency imposes a fee for
4-41     receipt of the printed materials.
4-42           (b)  This section does not apply to a publication that
4-43     promotes tourism or economic development.
4-44           SECTION 13.  Subdivision (6), Section 2054.003, Government
4-45     Code, is amended to read as follows:
4-46                 (6)  "Information resources" means the procedures,
4-47     equipment, and software that are employed, designed, built,
4-48     operated, and maintained to collect, record, process, store,
4-49     retrieve, display, and transmit information, and associated
4-50     personnel including consultants and contractors.
4-51           SECTION 14.  Subchapter F, Chapter 2054, Government Code, is
4-52     amended by adding Sections 2054.121 and 2054.122 to read as
4-53     follows:
4-54           Sec. 2054.121.  COORDINATION AMONG INSTITUTIONS OF HIGHER
4-55     EDUCATION.  An institution of higher education shall coordinate its
4-56     use of information technologies with other such institutions to
4-57     more effectively provide education, research, and community
4-58     service.
4-59           Sec. 2054.122.  COORDINATED TECHNOLOGY TRAINING.  A state
4-60     agency each calendar quarter shall coordinate agency training for
4-61     the use of information resources technologies with training offered
4-62     or coordinated by the department.  The agency shall use training
4-63     offered or coordinated by the department if it meets agency
4-64     requirements and is cost-competitive.
4-65           SECTION 15.  Subchapter C, Chapter 2101, Government Code, is
4-66     amended by adding Section 2101.0377 to read as follows:
4-67           Sec. 2101.0377.  REPORTING ACCOUNTING IRREGULARITIES TO STATE
4-68     AUDITOR.  On determining that a state agency, as defined by Section
4-69     658.001, or an institution of higher education, as defined by
 5-1     Section 61.003, Education Code, has inaccurately reported the
 5-2     expenditure of appropriated funds or engaged in recurring
 5-3     accounting irregularities, the comptroller shall report the agency
 5-4     or institution to the state auditor for appropriate action,
 5-5     including a comprehensive financial audit.
 5-6           SECTION 16.  Subchapter B, Chapter 2155, Government Code, is
 5-7     amended by adding Section 2155.084 to read as follows:
 5-8           Sec. 2155.084.  PURCHASES FROM FEDERAL GOVERNMENT.  (a)  The
 5-9     commission or the governing body of an institution of higher
5-10     education may negotiate purchases of goods of any kind needed by a
5-11     state agency or the institution of higher education with the
5-12     appropriate agency of the federal government.  The governing body
5-13     of an institution of higher education may act under this section
5-14     either directly or through the commission or another state agency.
5-15           (b)  The price of goods that are purchased from the federal
5-16     government may not exceed the fair market value of the goods.
5-17           (c)  In negotiating purchases of goods from the federal
5-18     government under this section or under Subchapter G, Chapter 2175,
5-19     the commission or the governing body of the institution of higher
5-20     education may waive the requirement of a bidder's bond and
5-21     performance bond that otherwise would be required.
5-22           SECTION 17.  Subsection (a), Section 2155.132, Government
5-23     Code, is amended to read as follows:
5-24           (a)  A state agency is delegated the authority to purchase
5-25     goods and services if the purchase does not exceed $15,000.  If the
5-26     commission determines that a state agency has not followed the
5-27     commission's rules or the laws related to the delegated purchases,
5-28     the commission shall report its determination to the members of the
5-29     state agency's governing body and to the governor, lieutenant
5-30     governor, speaker of the house of representatives, and Legislative
5-31     Budget Board.
5-32           SECTION 18.  Section 2155.268, Government Code, is amended to
5-33     read as follows:
5-34           Sec. 2155.268.  USE OF STATE AGENCY BIDDERS LIST.  (a)  A
5-35     state agency may not maintain and use its own bidders list [only if
5-36     the commission determines by rule that the agency has specialized
5-37     needs that can best be met through maintaining and using its own
5-38     specialized bidders list].  The prohibition of this subsection does
5-39     not apply to the Texas Department of Transportation or to an
5-40     institution of higher education as defined by Section 61.003,
5-41     Education Code, but an institution of higher education should use
5-42     the master bidders list when possible.
5-43           (b)  [The commission by rule may prescribe the categories of
5-44     purchases or other acquisitions for which a state agency's
5-45     specialized bidders list may be used.]
5-46           [(c)]  A state agency may supplement the bidders list with
5-47     its own list of historically underutilized businesses if it
5-48     determines that the supplementation will increase the number of
5-49     historically underutilized businesses that submit bids.
5-50           (c) [(d)]  A state agency may purchase goods and services
5-51     from a vendor who is not on the bidders list if the purchase price
5-52     does not exceed $5,000.
5-53           SECTION 19.  Subchapter H, Chapter 2155, Government Code, is
5-54     amended by adding Section 2155.4441 to read as follows:
5-55           Sec. 2155.4441.  PREFERENCE UNDER SERVICE CONTRACTS.  A state
5-56     agency that contracts for services shall require the contractor, in
5-57     performing the contract, to purchase products and materials
5-58     produced in this state when they are available at a price and time
5-59     comparable to products and materials produced outside this state.
5-60           SECTION 20.  Subchapter A, Chapter 2158, Government Code, is
5-61     amended by adding Section 2158.0031 to read as follows:
5-62           Sec. 2158.0031.  PURCHASE PREFERENCE FOR AMERICAN VEHICLES.
5-63     A state agency authorized to purchase passenger vehicles or other
5-64     ground transportation vehicles for general use shall purchase
5-65     economical, fuel-efficient vehicles assembled in the United States
5-66     unless such a purchase would have a significant detrimental effect
5-67     on the use to which the vehicles will be put.
5-68           SECTION 21.  Section 2161.002, Government Code, is amended by
5-69     adding Subsection (c) to read as follows:
 6-1           (c)  In adopting rules to administer this chapter, the
 6-2     commission shall adopt rules that are based on the results of the
 6-3     disparity study prepared by the comptroller under Section 65(c),
 6-4     Chapter 684, Acts of the 73rd Legislature, Regular Session, 1993.
 6-5     If other similar disparity studies are prepared on behalf of state
 6-6     government, the commission shall revise the rules in response to
 6-7     the findings of the latest disparity study.  All state agencies and
 6-8     institutions of higher education shall adopt the commission rules.
 6-9     Each state agency and institution of higher education shall make a
6-10     good faith effort to increase purchases and contract awards to
6-11     historically underutilized businesses based on the rules adopted by
6-12     the commission.
6-13           SECTION 22.  Section 2161.122, Government Code, is amended by
6-14     adding a new Subsection (c) and redesignating Subsections (c) and
6-15     (d) as Subsections (d) and (e) to read as follows:
6-16           (c)  State agencies shall report to the commission in
6-17     accordance with Section 2161.125 the following information on
6-18     historically underutilized businesses with regard to the
6-19     expenditure of both treasury and nontreasury funds:
6-20                 (1)  the total dollar amount of purchases and payments
6-21     made under contracts awarded to historically underutilized
6-22     businesses;
6-23                 (2)  the number of contracts awarded to historically
6-24     underutilized and all other businesses; and
6-25                 (3)  the number of bids, proposals, or other applicable
6-26     expressions of interest made by historically underutilized
6-27     businesses with regard to contracting opportunities with the
6-28     agency.
6-29           (d)  A state agency participating in a group purchasing
6-30     program described under Section 2155.139(b) shall send to the
6-31     commission in the agency's report under Section 2161.121 a separate
6-32     list of purchases from historically underutilized businesses that
6-33     are made through the group purchasing program, including the dollar
6-34     amount of each purchase allocated to the reporting agency.
6-35           (e) [(d)]  A state agency's report is a record of the
6-36     agency's purchases for which the agency selected the vendor.  If
6-37     the vendor was selected by the commission as part of its state
6-38     contract program, the commission shall include the purchase in the
6-39     commission's report of its own purchases unless the commission made
6-40     a sole source purchase for the  agency under Section 2155.067.  The
6-41     state agency for which the purchase was made shall report the
6-42     selection of the vendor on its report as if the agency selected the
6-43     vendor when the agency drew specifications for goods or services
6-44     that are proprietary to one vendor.
6-45           SECTION 23.  Section 2161.123, Government Code, is amended by
6-46     adding Subsections (d), (e), (f), and (g) to read as follows:
6-47           (d)  The state auditor shall report to the commission a state
6-48     agency that is not complying with this section or is not making a
6-49     good faith effort to implement the plan adopted under this section.
6-50     In determining whether a state agency is making a good faith effort
6-51     to implement the plan, the state auditor shall consider at a
6-52     minimum whether the agency has:
6-53                 (1)  adopted rules under Section 2161.002;
6-54                 (2)  used the commission's directory under Section
6-55     2161.064 and other resources to identify historically underutilized
6-56     businesses that are able and available to contract with the agency;
6-57                 (3)  made good faith, timely efforts to contact
6-58     identified historically underutilized businesses regarding
6-59     contracting opportunities; and
6-60                 (4)  conducted its procurement program in accordance
6-61     with the good faith effort methodology set out in commission rules.
6-62           (e)  In conducting an audit of an agency's compliance with
6-63     this section or an agency's making of a good faith effort to
6-64     implement the plan adopted under this section, the state auditor
6-65     shall not consider the success or failure of the agency to contract
6-66     with historically underutilized businesses in any specific
6-67     quantity.  The state auditor's review shall be restricted to the
6-68     agency's procedural compliance with Subsection (d).
6-69           (f)  If the state auditor reports to the commission that a
 7-1     state agency is not complying with this section or is not making a
 7-2     good faith effort to implement the plan adopted under this section,
 7-3     the commission shall assist the agency in complying with or in
 7-4     making a good faith effort to implement the plan.
 7-5           (g)  If the state auditor reports to the commission under
 7-6     Subsection (d) that a state agency is not complying with this
 7-7     section or is not making a good faith effort to implement the plan
 7-8     adopted under this section and the commission determines that one
 7-9     year after the date of the state auditor's report to the commission
7-10     the agency is still either not complying with this section or not
7-11     making a good faith effort to implement the plan adopted under this
7-12     section, the commission may revoke the purchasing authority of the
7-13     agency.  If the commission revokes an agency's delegated purchasing
7-14     authority under this section, the comptroller may consider that
7-15     fact in the event the commission needs a transfer of the agency's
7-16     appropriated funds to cover the costs to the commission of assuming
7-17     the agency's purchasing functions.  The amount transferred from the
7-18     agency's funds to the commission shall be an amount determined by
7-19     the Legislative Budget Board.
7-20           SECTION 24.  Subsection (c), Section 2165.104, Government
7-21     Code, is amended to read as follows:
7-22           (c)  To the extent possible without sacrificing critical
7-23     public or client services, the commission may not allocate usable
7-24     office space, as defined by the commission, to a state agency under
7-25     Article I, [or] II, V, VI, VII, or VIII of the General
7-26     Appropriations Act or to the Texas Higher Education Coordinating
7-27     Board, the Texas Education Agency, the State Board for Educator
7-28     Certification, the Telecommunications Infrastructure Fund Board, or
7-29     the Office of Court Administration of the Texas Judicial System in
7-30     an amount that exceeds an average of 153 square feet per agency
7-31     employee for each agency site.  To the extent that any of those
7-32     agencies allocates its own usable office space, as defined by the
7-33     commission, the agency shall allocate the space to achieve the
7-34     required ratio.  This subsection does not apply to:
7-35                 (1)  an agency site at which fewer than 16 employees
7-36     are located;
7-37                 (2)  warehouse space;
7-38                 (3)  laboratory space;
7-39                 (4)  storage space exceeding 1,000 gross square feet;
7-40                 (5)  library space;
7-41                 (6)  space for hearing rooms used to conduct hearings
7-42     required under the administrative procedure law, Chapter 2001; or
7-43                 (7)  another type of space specified by commission
7-44     rule, if the commission determines that it is not practical to
7-45     apply this subsection to that space.
7-46           SECTION 25.  Subchapter A, Chapter 2170, Government Code, is
7-47     amended by adding Sections 2170.009 and 2170.010 to read as
7-48     follows:
7-49           Sec. 2170.009.  PAY TELEPHONES AUTHORIZED.  (a)  A pay
7-50     telephone may be located in the Capitol Complex only with the
7-51     approval of the commission.  The commission shall collect the
7-52     revenue from the installation and operation of the pay telephone
7-53     and deposit it to the credit of the general revenue fund.
7-54           (b)  In a state-owned or state-leased building or on
7-55     state-owned land to which Subsection (a) does not apply, a pay
7-56     telephone may be installed only with the approval of the governing
7-57     body of the state entity that has charge and control of the
7-58     building or land.  The entity shall collect the revenue from the
7-59     installation and operation of the pay telephone and deposit it to
7-60     the credit of the general revenue fund unless the disposition of
7-61     the revenue is governed by other law.
7-62           (c)  The commission or other state entity shall account for
7-63     the revenue collected under this section in the entity's annual
7-64     report.
7-65           Sec. 2170.010.  UNLISTED TELEPHONE NUMBERS PROHIBITED.  A
7-66     state agency and its officers and employees may not buy, rent, or
7-67     pay toll charges for a telephone for which the telephone number is
7-68     not listed or available from directory assistance to the general
7-69     public unless the unlisted telephone number is used:
 8-1                 (1)  to provide access to computers, telephone system
 8-2     control centers, long-distance networks, elevator control systems,
 8-3     and other tone-controlled devices for which restricted access to
 8-4     the telephone number is justified for security or other purposes;
 8-5                 (2)  in narcotics undercover operations; or
 8-6                 (3)  in the detection of illegal sales of securities.
 8-7           SECTION 26.  Section 2170.051, Government Code, is amended to
 8-8     read as follows:
 8-9           Sec. 2170.051.  MANAGEMENT AND USE OF SYSTEM.  (a)  The
8-10     commission shall manage the operation of a system of
8-11     telecommunications services for all state agencies.  Each agency
8-12     shall identify its particular requirements for telecommunications
8-13     services and the site at which the services are to be provided.
8-14           (b)  The commission shall fulfill the telecommunications
8-15     requirements of each state agency to the extent possible and to the
8-16     extent that money is appropriated or available for that purpose.
8-17           (c)  A state agency shall use the consolidated
8-18     telecommunications system to the fullest extent possible.  A state
8-19     agency may not acquire telecommunications services unless the
8-20     telecommunications planning group determines that the agency's
8-21     requirement for telecommunications services cannot be met at a
8-22     comparable cost by the consolidated telecommunications system.
8-23           (d)  A state agency may not enter into or renew a contract
8-24     with a carrier or other provider of telecommunications services
8-25     without obtaining a waiver from the telecommunications planning
8-26     group certifying that the requested telecommunications services
8-27     cannot be provided at a comparable cost on the consolidated
8-28     telecommunications system.  The telecommunications planning group
8-29     shall evaluate requests for waivers based on cost-effectiveness to
8-30     the state government as a whole.  A waiver may be granted only for
8-31     a specific period and will automatically expire on the stated
8-32     expiration date unless an extension is approved by the
8-33     telecommunications planning group.  A contract for
8-34     telecommunications services obtained under waiver may not extend
8-35     beyond the expiration date of the waiver.  If the
8-36     telecommunications planning group becomes aware of any state agency
8-37     receiving telecommunications services without a waiver, the
8-38     telecommunications planning group shall notify the agency and the
8-39     comptroller.  The state agency shall have 60 days after
8-40     notification by the telecommunications planning group in which to
8-41     submit a waiver request to the telecommunications planning group
8-42     documenting the agency's reasoning for bypassing the consolidated
8-43     telecommunications system and otherwise providing all information
8-44     required by the waiver application form.
8-45           SECTION 27.  Subsection (b), Section 2170.057, Government
8-46     Code, is amended to read as follows:
8-47           (b)  The comptroller shall establish in the state treasury a
8-48     revolving fund account for the administration of this chapter.  The
8-49     account shall be used as a depository for money received from
8-50     entities served.  Receipts attributable to the centralized capitol
8-51     complex telephone system shall be deposited into the account but
8-52     separately identified within the account.
8-53           SECTION 28.  Section 2201.002, Government Code, is amended by
8-54     adding Subsection (c) to read as follows:
8-55           (c)  The fund may not be used to pay salaries.
8-56           SECTION 29.  Chapter 2203, Government Code, is amended by
8-57     adding Sections 2203.004 and 2203.005 to read as follows:
8-58           Sec. 2203.004.  REQUIREMENT TO USE STATE PROPERTY FOR STATE
8-59     PURPOSES.  State property may be used only for state purposes.  A
8-60     person may not entrust state property to a state officer or
8-61     employee or to any other person if the property is not to be used
8-62     for state purposes.
8-63           Sec. 2203.005.  VENDING MACHINES AUTHORIZED.  (a)  In a
8-64     state-owned or state-leased building or on state-owned or
8-65     state-leased property that is not served by a vendor operating
8-66     under the supervision of the Texas Commission for the Blind, a
8-67     vending machine may be located in the building or on the property
8-68     only with the approval of the governing body of the state agency
8-69     that has charge and control of the building or property.  The
 9-1     approval must be recorded in the minutes of a meeting of the
 9-2     governing body.
 9-3           (b)  The state agency shall file with the General Services
 9-4     Commission a copy of all contracts between the state agency and the
 9-5     vendor related to the vending machine and a written description of
 9-6     the location of the vending machine.
 9-7           (c)  All rentals, commissions, or other net revenue the state
 9-8     agency receives in connection with the vending machine shall be
 9-9     accounted for as state money and deposited to the credit of the
9-10     general revenue fund unless the disposition of the revenue is
9-11     governed by other law.  The state agency shall account for the
9-12     revenue received under this section in the agency's annual report.
9-13           (d)  In a state-owned or state-leased building or on
9-14     state-owned or state-leased property that is served by a vendor
9-15     operating under the supervision of the Texas Commission for the
9-16     Blind, a vending machine may be located and operated in the
9-17     building or on the property only under a joint contract with the
9-18     owners of the vending machine and the vendor operating under the
9-19     supervision of the Texas Commission for the Blind.
9-20           SECTION 30.  Subchapter A, Chapter 2204, Government Code, is
9-21     amended by adding Sections 2204.002 and 2204.003 to read as
9-22     follows:
9-23           Sec. 2204.002.  RESTRICTION ON ACQUISITION OF REAL PROPERTY.
9-24     A state agency, as defined by Section 658.001, may not accept a
9-25     gift or devise of real property or spend appropriated money to
9-26     purchase real property without statutory authority or other
9-27     legislative authorization.
9-28           Sec. 2204.003.  GIFTS OF REAL PROPERTY TO INSTITUTIONS OF
9-29     HIGHER EDUCATION.  An institution of higher education, as defined
9-30     by Section 61.003, Education Code, may accept a gift or devise of
9-31     real property from a private entity to establish scholarships or
9-32     professorships or to be held in trust for other educational
9-33     purposes only if the administrative head or the presiding officer
9-34     of the governing body of the institution certifies to the
9-35     Legislative Budget Board that an appropriation of educational and
9-36     general funds will not be required in the future to operate,
9-37     maintain, repair, or construct a building on the property.
9-38           SECTION 31.  Section 2251.030, Government Code, is amended to
9-39     read as follows:
9-40           Sec. 2251.030.  PROMPT OR EARLY PAYMENT DISCOUNT.  (a)  The
9-41     intent of the legislature is that a governmental entity should take
9-42     advantage of an offer for an early payment discount.  A state
9-43     agency shall when possible negotiate a prompt payment discount with
9-44     a vendor.
9-45           (b)  A governmental entity may not take an early payment
9-46     discount a vendor offers unless the governmental entity makes a
9-47     full payment within the discount period.
9-48           (c)  If a governmental entity takes an early payment discount
9-49     later, the unpaid balance accrues interest beginning on the date
9-50     the discount offer expires.
9-51           (d)  A state agency, when paying for goods and services
9-52     purchased under an agreement that includes a prompt or early
9-53     payment discount, shall submit the necessary payment documents or
9-54     information to the comptroller sufficiently in advance of the
9-55     prompt or early payment deadline to allow the comptroller or the
9-56     agency to pay the vendor in time to obtain the discount.
9-57           SECTION 32.  Section 2252.901, Government Code, is amended to
9-58     read as follows:
9-59           Sec. 2252.901.  CONTRACTS WITH FORMER OR RETIRED AGENCY
9-60     EMPLOYEES.  (a)  A state agency may not enter into an employment
9-61     contract, a professional services contract under Chapter 2254, or a
9-62     consulting services contract under Chapter 2254 with a former or
9-63     retired employee of the agency before the first anniversary of the
9-64     last date on which the individual was employed by the agency, if
9-65     appropriated money will be used to make payments under the
9-66     contract.
9-67           (b)  A state agency that contracts at any time with a retired
9-68     agency employee to perform services substantially similar to the
9-69     services the retiree performed for the agency during the last 12
 10-1    months of service before retirement may not make payments under the
 10-2    contract from any source of revenue at an annualized rate that
 10-3    exceeds the lesser of:
 10-4                (1)  the rate of compensation the retiree received from
 10-5    the state during the last 12 months of service before retirement;
 10-6    or
 10-7                (2)  $60,000.
 10-8          (c) [(b)]  The contract payment limitation provided by
 10-9    Subsection (b) [(a)] does not apply during the first six months a
10-10    retiree performs services under a contract after retirement, except
10-11    that if a retiree performs services under the contract for more
10-12    than six months, the limitation applies to the entire term of the
10-13    contract.
10-14          (d) [(c)]  In this section:
10-15                (1)  "Employment contract" includes a personal services
10-16    contract regardless of whether the performance of the contract
10-17    involves the traditional relationship of employer and employee.
10-18    The term does not apply to an at-will employment relationship that
10-19    involves the traditional relationship of employer and employee.
10-20                (2)  "Retired agency employee" means a person:
10-21                      (A)  whose last state service before retirement
10-22    was for the state agency with which the retiree contracts to
10-23    perform services; and
10-24                      (B)  who is a retiree of:
10-25                            (i)  the employee class of membership of
10-26    the Employees Retirement System of Texas; or
10-27                            (ii)  the Teacher Retirement System of
10-28    Texas, the majority of whose service was credited in that system in
10-29    a position with a state agency.
10-30                (3) [(2)]  "State agency" includes a "public senior
10-31    college or university," as that term is defined by Section 61.003,
10-32    Education Code.
10-33          SECTION 33.  Subchapter A, Chapter 2254, Government Code, is
10-34    amended by adding Section 2254.0031 to read as follows:
10-35          Sec. 2254.0031.  INDEMNIFICATION.  A state governmental
10-36    entity may require a contractor selected under this subchapter to
10-37    indemnify or hold harmless the state from claims and liabilities
10-38    resulting from the negligent acts or omissions of the contractor or
10-39    persons employed by the contractor.  A state governmental entity
10-40    may not require a contractor to indemnify or hold harmless the
10-41    state for claims or liabilities resulting from the negligent acts
10-42    or omissions of the state governmental entity or its employees.
10-43          SECTION 34.  Subchapter B, Chapter 205, Labor Code, is
10-44    amended by adding Section 205.019 to read as follows:
10-45          Sec. 205.019.  REIMBURSEMENT FROM NON-TREASURY FUNDS.  (a)  A
10-46    branch, department, or other instrumentality of this state that
10-47    reimburses the commission with funds that are held outside the
10-48    state treasury shall reimburse the commission by writing a check to
10-49    the commission for deposit into the appropriate unemployment
10-50    compensation account.  A deposit under this section shall be made
10-51    not later than the 30th day after the date the instrumentality
10-52    receives the commission's statement of amounts due.
10-53          (b)  The commission shall send a copy of each statement of
10-54    amounts due from a branch, department, or other instrumentality of
10-55    this state that reimburses the commission with funds that are held
10-56    outside the state treasury to the comptroller and the state
10-57    auditor.
10-58          (c)  A branch, department, or other instrumentality affected
10-59    by this section may allocate appropriate funds to a revolving
10-60    account on its books to receive contributions from funds other than
10-61    general revenue funds, based on an assessment it determines to be
10-62    appropriate for the purpose of reimbursing the appropriate
10-63    unemployment compensation account for benefits paid.
10-64          (d)  The state auditor shall review affected entities for
10-65    compliance with this section.
10-66          SECTION 35.  The chapter heading to Chapter 506, Labor Code,
10-67    is amended to read as follows:
 11-1      CHAPTER 506.  MISCELLANEOUS PROVISIONS APPLICABLE TO GOVERNMENT
 11-2                 EMPLOYEES [PAYMENT OF CERTAIN JUDGMENTS]
 11-3          SECTION 36.  Chapter 506, Labor Code, is amended by adding
 11-4    Section 506.002 to read as follows:
 11-5          Sec. 506.002.  REIMBURSEMENT FROM NON-TREASURY FUNDS.
 11-6    (a)  An agency or other instrumentality of state government that,
 11-7    with funds that are held outside the state treasury, reimburses the
 11-8    general revenue fund for workers' compensation payments made out of
 11-9    the general revenue fund to former or current employees of the
11-10    agency or other instrumentality shall reimburse the general revenue
11-11    fund by writing a check to the comptroller:
11-12                (1)  for deposit into the appropriate account in the
11-13    general revenue fund; and
11-14                (2)  not later than 30 days after receiving the
11-15    statement of amounts due.
11-16          (b)  The workers' compensation division of the office of the
11-17    attorney general shall send to the comptroller and the state
11-18    auditor a copy of each statement of amounts due from an agency or
11-19    other instrumentality of state government that, with funds that are
11-20    held outside the state treasury, reimburses the general revenue
11-21    fund for workers' compensation payments made out of the general
11-22    revenue fund.
11-23          (c)  An agency or other instrumentality of state government
11-24    affected by this section may allocate appropriate funds to a
11-25    revolving account on its books to receive contributions from funds
11-26    other than general revenue funds, based on an assessment it
11-27    determines to be appropriate for the purpose of reimbursing the
11-28    general revenue fund for the workers' compensation payments made to
11-29    its current or former employees.
11-30          (d)  The state auditor shall review affected entities for
11-31    compliance with this section.
11-32          SECTION 37.  Subchapter D, Chapter 11, Natural Resources
11-33    Code, is amended by adding Section 11.0791 to read as follows:
11-34          Sec. 11.0791.  OTHER PROVISIONS REGARDING ACCESS TO STATE
11-35    LANDS.  When a state governmental entity sells state land, the
11-36    entity shall require that the state have the right of ingress and
11-37    egress to remaining state land in the immediate area by an easement
11-38    to a public thoroughfare.
11-39          SECTION 38.  Subchapter D, Chapter 11, Natural Resources
11-40    Code, is amended by adding Section 11.083 to read as follows:
11-41          Sec. 11.083.  RETENTION OF MINERAL RIGHTS.  The state shall
11-42    retain the mineral rights to state land that is sold unless it is
11-43    impractical to do so.
11-44          SECTION 39.  Section 31.401, Natural Resources Code, is
11-45    amended to read as follows:
11-46          Sec. 31.401.  NATURAL GAS ACQUISITION CONTRACTS.  (a)  The
11-47    land office shall review and must approve any contract entered into
11-48    by a state agency for the acquisition of an annual average of 100
11-49    MCF per day or more of natural gas used to meet its [in the
11-50    production of] energy requirements.
11-51          (b)  Before approving a contract described by Subsection (a)
11-52    of this section, the land office shall ensure that the agency, to
11-53    meet its energy requirements, is using, to the greatest extent
11-54    practical, natural gas produced from land leased from:
11-55                (1)  the school land board;
11-56                (2)  a board for lease other than the Board for Lease
11-57    of University Lands; or
11-58                (3)  the surface owner of Relinquishment Act land.
11-59          (c)  If the land office is able to substitute a contract
11-60    using in-kind royalty gas from state-owned lands or using other gas
11-61    for a contract under which a state agency acquires or proposes to
11-62    acquire its natural gas supplies, the commissioner shall inform the
11-63    comptroller each month of the amount of savings attributable to the
11-64    substitution.
11-65          (d)  In this section, "state agency" has the meaning assigned
11-66    by Subchapter A, Chapter 572, Government Code.
11-67          SECTION 40.  Subsection (d), Section 403.273, Government
11-68    Code, is repealed.
11-69          SECTION 41.  Subsection (c), Section 2165.104, Government
 12-1    Code, as amended by this Act, does not apply to the Texas Higher
 12-2    Education Coordinating Board or the State Board for Educator
 12-3    Certification until the expiration of all leases under which the
 12-4    board occupies office space on the effective date of this Act.
 12-5          SECTION 42.  This Act does not affect the authority of an
 12-6    institution of higher education to collect, account for, and
 12-7    control local funds and institutional funds in the manner
 12-8    authorized by Subchapter A, Chapter 51, Education Code.
 12-9          SECTION 43.  This section provides, for information purposes
12-10    only, a derivation table for the provisions of the General
12-11    Appropriations Act that are codified in general law by other
12-12    sections of this Act.  The first column identifies the codified
12-13    law; all references are to the Government Code unless otherwise
12-14    noted.  The second column identifies for each codified law the
12-15    applicable source provision in Article IX of the General
12-16    Appropriations Act for the fiscal biennium ending August 31, 1999
12-17    (Chapter 1452, Acts of the 75th Legislature, Regular Session,
12-18    1997).
12-19               Codified Law                       Source Provision
12-20    Sec.  101.027(a), Civil Practice         Sec. 61
12-21     and Remedies Code
12-22    Sec.  106.001(c), Civil Practice         Sec. 124.11
12-23     and Remedies Code
12-24    Sec.  306.007                            Sec. 40.2
12-25    Sec.  321.013(c)                         Sec. 176, 124.8 (part)
12-26    Sec.  321.014(c)                         Sec. 91
12-27    Sec.  325.011(9)(b)                      Sec. 124.10
12-28    Sec.  403.097                            Sec. 32.2
12-29    Sec.  403.245(b)                         Sec. 126
12-30    Sec.  771.008(d)                         Sec. 78
12-31    Sec.  811.001(7)                         Sec. 181, last sent.
12-32    Sec.  2001.039                           Sec. 167
12-33    Sec.  2052.304                           Sec. 40.3
12-34    Sec.  2054.003(6)                        Sec. 43.1.a
12-35    Sec.  2054.121                           Sec. 43.5
12-36    Sec.  2054.122                           Sec. 156
12-37    Sec.  2101.0377                          Sec. 70
12-38    Sec.  2155.084                           Sec. 135, 1st 2 par.
12-39    Sec.  2155.132(a)                        Sec. 90
12-40    Sec.  2155.268                           Sec. 56
12-41    Sec.  2155.4441                          Sec. 53
12-42    Sec.  2158.0031                          Sec. 20.3, 1st sent.
12-43    Sec.  2161.002(c)                        Sec. 124.5
12-44    Sec.  2161.122(c)                        Sec. 124.6, 124.7
12-45    Sec.  2161.123(d)-(g)                    Sec. 124.8, 124.9
12-46    Sec.  2165.104(c)                        Sec. 154, except last sent.
12-47    Sec.  2170.009                           Sec. 111 (most)
12-48    Sec.  2170.010                           Sec. 141
12-49    Secs. 2170.051(c), (d)                   Sec. 140
12-50    Sec.  2170.057(b)                        Sec. 139, 2nd par.
12-51    Sec.  2201.002(c)                        Sec. 150.2
12-52    Sec.  2203.004                           Sec. 149
12-53    Sec.  2203.005                           Sec. 110 (most)
12-54    Sec.  2204.002                           Sec. 135, 3rd par., 1st
12-55                                              sent.
12-56    Sec.  2204.003                           Sec. 135, 3rd par., 2nd
12-57                                              sent.
12-58    Sec.  2251.030                           Sec. 79
12-59    Sec.  2252.901                           Sec. 52
12-60    Sec.  2254.0031                          Sec. 51
12-61    Sec.  205.019, Labor Code                Sec. 80 (part)
12-62    Sec.  506.002, Labor Code                Sec. 81 (part)
12-63    Sec.  11.0791, Natural Resources Code    Sec. 148, 1st par.
12-64    Sec.  11.083, Natural Resources Code     Sec. 147
12-65    Sec.  31.401, Natural Resources Code     Sec. 144 (part)
12-66          SECTION 44.  This Act takes effect September 1, 1999.
12-67          SECTION 45.  The importance of this legislation and the
12-68    crowded condition of the calendars in both houses create an
12-69    emergency and an imperative public necessity that the
 13-1    constitutional rule requiring bills to be read on three several
 13-2    days in each house be suspended, and this rule is hereby suspended.
 13-3                                 * * * * *