By:  Truan                                            S.B. No. 1505
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to interagency agreements between agencies of this state
 1-2     and agencies of the federal government and other states.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 771.002, Government Code, is amended by
 1-5     adding Subdivision (4) to read as follows:
 1-6                 (4)  "State or federal agency" means an agency of:
 1-7                       (A)  this state;
 1-8                       (B)  another state; or
 1-9                       (C)  the federal government.
1-10           SECTION 2.  Sections 771.003, 771.004, 771.006, 771.007,
1-11     771.008, and 771.010, Government Code, are amended to read as
1-12     follows:
1-13           Sec. 771.003.  AUTHORITY TO CONTRACT; EXCEPTIONS.  (a)  An [A
1-14     state] agency of this state may [agree or] contract with a
1-15     [another] state or federal agency for the provision of necessary
1-16     and authorized services and resources.
1-17           (b)  An [A state] agency of this state may not construct a
1-18     highway, road, building, or other structure for a state or federal
1-19     [another] agency under this chapter, except that the Texas
1-20     Department of Transportation may enter into an interagency
1-21     agreement with a state college, university, or public junior
1-22     college for the maintenance, improvement, relocation, or extension
1-23     of existing on-campus streets, parking lots, and access-ways.
1-24           (c)  An [A state] agency of this state may not provide
 2-1     services or resources to another agency of this state that are
 2-2     required by Article XVI, Section 21, of the Texas Constitution to
 2-3     be provided under a contract awarded to the lowest responsible
 2-4     bidder.
 2-5           Sec. 771.004.  CONTRACT REQUIREMENTS;  EXCEPTIONS.
 2-6     (a)  Before an [a state] agency of this state may provide or
 2-7     receive a service or resource under this chapter, the agency must
 2-8     have entered into a written [agreement or] contract that has been
 2-9     approved by the administrator of each agency that is a party to the
2-10     [agreement or] contract.
2-11           (b)  The [agreement or] contract must specify:
2-12                 (1)  the kind and amount of services or resources to be
2-13     provided;
2-14                 (2)  the basis for computing reimbursable costs; and
2-15                 (3)  the maximum cost during the period of the
2-16     agreement or contract.
2-17           (c)  A written [agreement or] contract is not required
2-18     between agencies of this state:
2-19                 (1)  in an emergency for the defense or safety of the
2-20     civil population or in the planning and preparation for those
2-21     emergencies;
2-22                 (2)  in cooperative efforts, proposed by the governor,
2-23     for the economic development of the state; or
2-24                 (3)  in a situation in which the amount involved is
2-25     less than $50,000.
2-26           (d)  In an interagency exchange that is exempt from the
 3-1     requirements of a written [agreement or] contract, the agencies
 3-2     involved shall document the exchange through informal letters of
 3-3     agreement or memoranda.
 3-4           (e)  A contract between an agency of this state and an agency
 3-5     of another state or the federal government is subject to the
 3-6     approval of the governor.  The governor may authorize an agency of
 3-7     this state or an employee of the governor's office to approve
 3-8     contracts or grants between an agency of this state and an agency
 3-9     of another state or the federal government.  The governor may
3-10     specify limitations on the authorization to approve contracts or
3-11     grants based on amount, subject matter, or other factors.
3-12           Sec. 771.006.  PURCHASES AND SUBCONTRACTS OF SERVICES AND
3-13     RESOURCES.  A contract under this chapter may authorize an agency
3-14     of this state providing services and resources to subcontract and
3-15     purchase the services and resources.
3-16           Sec. 771.007.  REIMBURSEMENT AND ADVANCEMENT OF COSTS.
3-17     (a)  An [A state] agency of this state that receives services or
3-18     resources under this chapter shall reimburse each state or federal
3-19     agency providing the services or resources the actual cost of
3-20     providing the services or resources, or the nearest practicable
3-21     estimate of that cost.  Reimbursement is not required if the
3-22     services or resources are provided:
3-23                 (1)  for national defense or disaster relief; or
3-24                 (2)  in cooperative efforts, proposed by the governor,
3-25     to promote the economic development of the state.
3-26           (b)  An [A state] agency of this state that receives services
 4-1     or resources under this chapter may advance federal funds to a
 4-2     state or federal agency providing the services or resources if the
 4-3     agency receiving the services or resources determines that the
 4-4     advance would facilitate the implementation of a federally funded
 4-5     program.
 4-6           (c)  An [A state] agency of this state that receives services
 4-7     or resources under this chapter may advance funds to the state or
 4-8     federal agency providing the services or resources if an advance is
 4-9     necessary to enable the providing agency to provide the services or
4-10     resources.  If an advance is made under this section, the agencies
4-11     shall ensure after the services or resources are provided that the
4-12     providing agency has received only sufficient funds to reimburse
4-13     its total costs.  An advance of funds is a reimbursement for the
4-14     purpose of Section 771.008.
4-15           Sec. 771.008.  REIMBURSEMENT PROCEDURES.  (a)  An agency of
4-16     this state shall reimburse another [an] agency of this state for
4-17     the services or resources provided with a voucher payable to the
4-18     providing agency or electronically as prescribed by the uniform
4-19     statewide accounting system.  The voucher or electronic transfer
4-20     must be drawn on the appropriation item or account of the receiving
4-21     agency from which the agency would ordinarily make expenditures for
4-22     similar services or resources.  A receiving agency may authorize a
4-23     providing agency to gain access to the receiving agency's
4-24     appropriation items or accounts for reimbursements under this
4-25     chapter.
4-26           (b)  A reimbursement received by an agency of this state for
 5-1     services or resources provided under this chapter shall be credited
 5-2     to the appropriation items or accounts from which the agency's
 5-3     expenditures for the services or resources were made.
 5-4           (c)  A payment for an intraagency transaction is accounted
 5-5     for in the same manner as an interagency transaction or an
 5-6     interdivisional transfer of money on the records of the agency,
 5-7     subject to the applicable provisions of the General Appropriations
 5-8     Act.
 5-9           (d)  An agency of this state that receives services or
5-10     resources from an agency of another state or the federal government
5-11     shall reimburse each agency providing the services or resources as
5-12     provided by the terms of the contract.
5-13           Sec. 771.010.  EXCEEDING AUTHORITY PROHIBITED.  An [A state]
5-14     agency of this state may not enter into an agreement or contract
5-15     that requires or permits the agency to exceed its duties and
5-16     responsibilities or the limitations of its appropriated funds.
5-17           SECTION 3.  This Act takes effect September 1, 1999.
5-18           SECTION 4.  The importance of this legislation and the
5-19     crowded condition of the calendars in both houses create an
5-20     emergency and an imperative public necessity that the
5-21     constitutional rule requiring bills to be read on three several
5-22     days in each house be suspended, and this rule is hereby suspended.