1-1     By:  Truan                                            S.B. No. 1505
 1-2           (In the Senate - Filed March 12, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on State Affairs;
 1-4     April 19, 1999, reported favorably, as amended, by the following
 1-5     vote:  Yeas 9, Nays 0; April 19, 1999, sent to printer.)
 1-6     COMMITTEE AMENDMENT NO. 1                                By:  Lucio
 1-7     Amend S.B. No. 1505 by adding a new Subsection (e) to Section
 1-8     771.004, on line 9 of page 2 of the bill, to read as follows:
 1-9           (e)  A contract between an agency of this state and an agency
1-10     of another state or the federal government is subject to the
1-11     approval of the governor.  The governor may authorize an agency of
1-12     this state or an employee of the governor's office to approve
1-13     contracts or grants between an agency of this state and an agency
1-14     of another state or the federal government.  The governor may
1-15     specify limitations on the authorization to approve contracts or
1-16     grants based on amount, subject matter, or other factors.
1-17                            A BILL TO BE ENTITLED
1-18                                   AN ACT
1-19     relating to interagency agreements between agencies of this state
1-20     and agencies of the federal government and other states.
1-21           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-22           SECTION 1.  Section 771.002, Government Code, is amended by
1-23     adding Subdivision (4) to read as follows:
1-24                 (4)  "State or federal agency" means an agency of:
1-25                       (A)  this state;
1-26                       (B)  another state; or
1-27                       (C)  the federal government.
1-28           SECTION 2.  Sections 771.003, 771.004, 771.006, 771.007,
1-29     771.008, and 771.010, Government Code, are amended to read as
1-30     follows:
1-31           Sec. 771.003.  AUTHORITY TO CONTRACT; EXCEPTIONS.  (a)  An [A
1-32     state] agency of this state may [agree or] contract with a
1-33     [another] state or federal agency for the provision of necessary
1-34     and authorized services and resources.
1-35           (b)  An [A state] agency of this state may not construct a
1-36     highway, road, building, or other structure for a state or federal
1-37     [another] agency under this chapter, except that the Texas
1-38     Department of Transportation may enter into an interagency
1-39     agreement with a state college, university, or public junior
1-40     college for the maintenance, improvement, relocation, or extension
1-41     of existing on-campus streets, parking lots, and access-ways.
1-42           (c)  An [A state] agency of this state may not provide
1-43     services or resources to another agency of this state that are
1-44     required by Article XVI, Section 21, of the Texas Constitution to
1-45     be provided under a contract awarded to the lowest responsible
1-46     bidder.
1-47           Sec. 771.004.  CONTRACT REQUIREMENTS;  EXCEPTIONS.
1-48     (a)  Before an [a state] agency of this state may provide or
1-49     receive a service or resource under this chapter, the agency must
1-50     have entered into a written [agreement or] contract that has been
1-51     approved by the administrator of each agency that is a party to the
1-52     [agreement or] contract.
1-53           (b)  The [agreement or] contract must specify:
1-54                 (1)  the kind and amount of services or resources to be
1-55     provided;
1-56                 (2)  the basis for computing reimbursable costs; and
1-57                 (3)  the maximum cost during the period of the
1-58     agreement or contract.
1-59           (c)  A written [agreement or] contract is not required
1-60     between agencies of this state:
1-61                 (1)  in an emergency for the defense or safety of the
1-62     civil population or in the planning and preparation for those
1-63     emergencies;
 2-1                 (2)  in cooperative efforts, proposed by the governor,
 2-2     for the economic development of the state; or
 2-3                 (3)  in a situation in which the amount involved is
 2-4     less than $50,000.
 2-5           (d)  In an interagency exchange that is exempt from the
 2-6     requirements of a written [agreement or] contract, the agencies
 2-7     involved shall document the exchange through informal letters of
 2-8     agreement or memoranda.
 2-9           Sec. 771.006.  PURCHASES AND SUBCONTRACTS OF SERVICES AND
2-10     RESOURCES.  A contract under this chapter may authorize an agency
2-11     of this state providing services and resources to subcontract and
2-12     purchase the services and resources.
2-13           Sec. 771.007.  REIMBURSEMENT AND ADVANCEMENT OF COSTS.
2-14     (a)  An [A state] agency of this state that receives services or
2-15     resources under this chapter shall reimburse each state or federal
2-16     agency providing the services or resources the actual cost of
2-17     providing the services or resources, or the nearest practicable
2-18     estimate of that cost.  Reimbursement is not required if the
2-19     services or resources are provided:
2-20                 (1)  for national defense or disaster relief; or
2-21                 (2)  in cooperative efforts, proposed by the governor,
2-22     to promote the economic development of the state.
2-23           (b)  An [A state] agency of this state that receives services
2-24     or resources under this chapter may advance federal funds to a
2-25     state or federal agency providing the services or resources if the
2-26     agency receiving the services or resources determines that the
2-27     advance would facilitate the implementation of a federally funded
2-28     program.
2-29           (c)  An [A state] agency of this state that receives services
2-30     or resources under this chapter may advance funds to the state or
2-31     federal agency providing the services or resources if an advance is
2-32     necessary to enable the providing agency to provide the services or
2-33     resources.  If an advance is made under this section, the agencies
2-34     shall ensure after the services or resources are provided that the
2-35     providing agency has received only sufficient funds to reimburse
2-36     its total costs.  An advance of funds is a reimbursement for the
2-37     purpose of Section 771.008.
2-38           Sec. 771.008.  REIMBURSEMENT PROCEDURES.  (a)  An agency of
2-39     this state shall reimburse another [an] agency of this state for
2-40     the services or resources provided with a voucher payable to the
2-41     providing agency or electronically as prescribed by the uniform
2-42     statewide accounting system.  The voucher or electronic transfer
2-43     must be drawn on the appropriation item or account of the receiving
2-44     agency from which the agency would ordinarily make expenditures for
2-45     similar services or resources.  A receiving agency may authorize a
2-46     providing agency to gain access to the receiving agency's
2-47     appropriation items or accounts for reimbursements under this
2-48     chapter.
2-49           (b)  A reimbursement received by an agency of this state for
2-50     services or resources provided under this chapter shall be credited
2-51     to the appropriation items or accounts from which the agency's
2-52     expenditures for the services or resources were made.
2-53           (c)  A payment for an intraagency transaction is accounted
2-54     for in the same manner as an interagency transaction or an
2-55     interdivisional transfer of money on the records of the agency,
2-56     subject to the applicable provisions of the General Appropriations
2-57     Act.
2-58           (d)  An agency of this state that receives services or
2-59     resources from an agency of another state or the federal government
2-60     shall reimburse each agency providing the services or resources as
2-61     provided by the terms of the contract.
2-62           Sec. 771.010.  EXCEEDING AUTHORITY PROHIBITED.  An [A state]
2-63     agency of this state may not enter into an agreement or contract
2-64     that requires or permits the agency to exceed its duties and
2-65     responsibilities or the limitations of its appropriated funds.
2-66           SECTION 3.  This Act takes effect September 1, 1999.
2-67           SECTION 4.  The importance of this legislation and the
2-68     crowded condition of the calendars in both houses create an
2-69     emergency and an imperative public necessity that the
 3-1     constitutional rule requiring bills to be read on three several
 3-2     days in each house be suspended, and this rule is hereby suspended.
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