1-1                                   AN ACT
 1-2     relating to state fiscal matters; making an appropriation.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 1.01(4), Chapter 793, Acts of the 73rd
 1-5     Legislature, Regular Session, 1993 (Article 4413(47f), Vernon's
 1-6     Texas Civil Statutes), is amended to read as follows:
 1-7                 (4)  "State agency" in this chapter means a department,
 1-8     commission, board, office, council, or other agency in the
 1-9     executive or judicial branch of state government that is created by
1-10     the constitution, a statute of this state, or executive order
1-11     dealing with or involved in energy-related research and
1-12     development, including but not limited to:
1-13                       (A) [(1)]  the Railroad Commission of Texas;
1-14                       (B) [(2)]  the Public Utility Commission of
1-15     Texas;
1-16                       (C) [(3)]  the General Land Office;
1-17                       (D) [(4)]  the state energy conservation office[,
1-18     a division of the General Services Commission];
1-19                       (E) [(5)]  the Texas Higher Education
1-20     Coordinating Board;
1-21                       (F) [(6)]  the Texas Science and Technology
1-22     Council; and
1-23                       (G) [(7)]  Texas river authorities.
1-24           SECTION 2. Chapter 43, Business & Commerce Code, is amended
 2-1     by adding Section 43.020 to read as follows:
 2-2           Sec. 43.020. CERTAIN REQUIREMENTS CONSIDERED TO BE
 2-3     RECOMMENDATIONS.  Any requirement of the Department of Information
 2-4     Resources or the Texas State Library and Archives Commission under
 2-5     this chapter that generally applies to one or more state agencies
 2-6     using electronic records or electronic signatures is considered to
 2-7     be a recommendation to the comptroller concerning the electronic
 2-8     records or electronic signatures used by the comptroller.  The
 2-9     comptroller may adopt or decline to adopt the recommendation.
2-10           SECTION 3. Section 42.2522(e), Education  Code, is amended to
2-11     read as follows:        
2-12           (e)  The commissioner shall notify school districts as soon
2-13     as practicable as to the availability of funds under this section.
2-14     For purposes of computing a rollback tax rate under Section 26.08,
2-15     Tax Code, a district shall adjust the district's tax rate limit [in
2-16     the manner provided by comptroller rule] to reflect assistance
2-17     received under this section.
2-18           SECTION 4.  Section 51.0031(d), Education Code, is amended to
2-19     read as follows:
2-20           (d)  As used in this section, "prudent person standard" is
2-21     the standard of care described in Article VII, Section 11b, of the
2-22     Texas Constitution, and means that standard of judgment and care
2-23     that prudent investors, exercising reasonable care, skill, and
2-24     caution, would acquire or retain in light of the purposes, terms,
2-25     distribution requirements, and other circumstances of the fund then
2-26     prevailing, taking into consideration the investment of all the
2-27     assets of the fund rather than a single investment [persons of
 3-1     ordinary prudence, discretion, and intelligence exercise in the
 3-2     management of their affairs in regard to the investments of their
 3-3     funds considering probable income as well as probable safety of
 3-4     their capital].
 3-5           SECTION 5. Section 57.48, Education Code, is amended by
 3-6     amending Subsections (c), (d), (i), and (j) and adding Subsection
 3-7     (k) to read as follows:
 3-8           (c)  Except as provided by this section, the [The]
 3-9     comptroller may not issue a warrant or initiate an electronic funds
3-10     transfer to the assignee of a person who has been reported properly
3-11     under Subsection (a)  if the assignment became effective after the
3-12     person defaulted.
3-13           (d)  If this section prohibits the comptroller from issuing a
3-14     warrant or initiating an electronic funds transfer to a person, the
3-15     comptroller may [not] issue a warrant or initiate an electronic
3-16     funds transfer only as provided by this section to:
3-17                 (1)  the person's estate;
3-18                 (2)  the distributees of the person's estate; or
3-19                 (3)  the person's surviving spouse.
3-20           (i)  This section does not prohibit the comptroller from
3-21     issuing a warrant or initiating an electronic funds transfer to a
3-22     person reported properly under Subsection (a) or to the person's
3-23     assignee, the person's estate, the distributees of the person's
3-24     estate, or the person's surviving spouse if the corporation
3-25     consents to issuance of the warrant or initiation of the transfer.
3-26           (j)  The comptroller may adopt rules and establish procedures
3-27     to administer this section.
 4-1           (k) [(j)]  In this section:
 4-2                 (1)  "Compensation" means base salary or wages,
 4-3     longevity pay, hazardous duty pay, benefit replacement pay, or an
 4-4     emolument provided in lieu of base salary or wages.
 4-5                 (2)  "State agency" means a board, commission, council,
 4-6     committee, department, office, agency, or other governmental entity
 4-7     in the executive, legislative, or judicial branch of state
 4-8     government.  The term includes an institution of higher education
 4-9     as defined by Section 61.003, other than a public junior or
4-10     community college.
4-11                 (3)  "State officer or employee" means an officer or
4-12     employee of a state agency.
4-13           SECTION 6. Sections 231.007(i) and (j), Family Code, are
4-14     amended to read as follows:
4-15           (i)  [Notwithstanding] Section 403.055(d) [403.055],
4-16     Government Code, does not authorize the comptroller to [may not]
4-17     issue a warrant or initiate an electronic funds transfer to pay[:]
4-18                 [(1)]  the compensation or remuneration of an
4-19     individual [of a state officer or employee] who is indebted to the
4-20     state under Subsection (a)[; or]
4-21                 [(2)  the remuneration of an individual who is being
4-22     paid by a private person through a state agency, if the individual
4-23     is indebted to the state under Subsection (a)].
4-24           (j)  [Notwithstanding] Section 2107.008(h) [2107.008],
4-25     Government Code, does not authorize a state agency to [may not] pay
4-26     the[:]
4-27                 [(1)]  compensation or remuneration of an individual
 5-1     [to a state officer or employee] who is indebted to the state under
 5-2     Subsection (a)[; or]
 5-3                 [(2)  remuneration to an individual who is being paid
 5-4     by a private person through the agency if the individual is
 5-5     indebted to the state under Subsection (a)].
 5-6           SECTION 7. Section 15.407, Finance Code, is amended to read
 5-7     as follows:
 5-8           Sec. 15.407.  OFFICIAL COMMITTEES.  The chairman may appoint
 5-9     individuals who are not commission members to serve on official
5-10     committees that are charged with evaluating industry methods or
5-11     problems and presenting formal recommendations to the commission
5-12     for possible action.  The individuals appointed are entitled to
5-13     reimbursement for reasonable and necessary expenses incidental to
5-14     travel incurred in connection with the performance of official
5-15     duties.
5-16           SECTION 8.  Subchapter C, Chapter 311, Government Code, is
5-17     amended by adding Section 311.034 to read as follows:
5-18           Sec. 311.034.  WAIVER OF SOVEREIGN IMMUNITY. In order to
5-19     preserve the legislature's interest in managing state fiscal
5-20     matters through the appropriations process, a statute shall not be
5-21     construed as a waiver of sovereign immunity unless the waiver is
5-22     effected by clear and unambiguous language.  In a statute, the use
5-23     of "person," as defined by Section 311.005 to include governmental
5-24     entities, does not indicate legislative intent to waive sovereign
5-25     immunity unless the context of the statute indicates no other
5-26     reasonable construction.
5-27           SECTION 9. Section 403.013(b), Government Code, is amended to
 6-1     read as follows:
 6-2           (b)  On the first Monday of November of each year, and at
 6-3     other times the governor requires, the comptroller shall exhibit to
 6-4     the governor, in addition to the reports required by the
 6-5     constitution, an exact and complete statement showing:
 6-6                 (1)  the funds and revenues of the state; and
 6-7                 (2)  public expenditures during the preceding year or
 6-8     during another period required by the governor[; and]
 6-9                 [(3)  a detailed estimate of the expenditures to be
6-10     paid from the treasury during the next year, including a statement
6-11     of:]
6-12                       [(A)  the object of the expenditures;]
6-13                       [(B)  which expenditures are provided for by
6-14     general or special appropriation and which are required to be
6-15     provided for by law; and]
6-16                       [(C)  the means from which the expenditures are
6-17     to be defrayed].
6-18           SECTION 10. Section 403.013, Government Code, is amended by
6-19     adding Subsection (f) to read as follows:
6-20           (f)  The Texas growth fund and Texas growth fund II, created
6-21     as provided by Section 70, Article XVI, Texas Constitution, shall
6-22     provide the financial information listed in Subchapter B, Chapter
6-23     2101, to the comptroller once each year, not later than the date
6-24     established by the comptroller.
6-25           SECTION 11. Section 403.027, Government Code, is reenacted
6-26     and amended to read as follows:
6-27           Sec. 403.027.  DIGITAL SIGNATURES. (a)  The comptroller may
 7-1     establish a procedure for a person to use [provide] a digital
 7-2     signature to authenticate a [for any] document, a communication, or
 7-3     data submitted to the comptroller if:
 7-4                 (1)  the comptroller determines the procedure will
 7-5     provide a degree of security and authenticity at least equal to
 7-6     that provided by a manual signature; and
 7-7                 (2)  the digital signature:
 7-8                       (A)  is unique to the person using it;
 7-9                       (B)  is capable of independent verification;
7-10                       (C)  is under the sole control of the person
7-11     using it; and
7-12                       (D)  is transmitted in a manner that makes it
7-13     infeasible to change the signature, document, communication, or
7-14     data without invalidating the signature.
7-15           (b)  A digital signature provided according to a procedure
7-16     established under Subsection (a) [this section] has the same legal
7-17     force and effect for all purposes as a manual signature.
7-18           (c)  The electronic approval of a voucher is governed by:
7-19                 (1)  this [This] section [does not apply to the
7-20     electronic submission] and [approval of vouchers under] Chapter
7-21     2103 if the comptroller has established a procedure for the person
7-22     approving the voucher to provide a digital signature concerning the
7-23     voucher; or
7-24                 (2)  Chapter 2103 if the comptroller has not
7-25     established the procedure.
7-26           (d)  This section prevails over Chapter 2103 to the extent of
7-27     conflict if both this section and that chapter apply under
 8-1     Subsection (c)(1).
 8-2           (e)  Except as provided by this subsection, Section 2054.060
 8-3     applies to a digital signature used to authenticate any document,
 8-4     communication, or data submitted to the comptroller if the
 8-5     comptroller has not established a procedure under Subsection (a)
 8-6     concerning the signature.  Section 2054.060 does not apply to the
 8-7     electronic approval of a voucher under Chapter 2103.
 8-8           (f)  The use of a digital signature under this section is
 8-9     subject to criminal laws pertaining to fraud and computer crimes,
8-10     including Chapters 32 and 33, Penal Code.
8-11           (g)  In this section, "digital signature" has the meaning
8-12     assigned by Section 2.108(d), Business & Commerce Code.
8-13           SECTION 12. Subchapter B, Chapter 403, Government Code, is
8-14     amended by adding Section 403.0301 to read as follows:
8-15           Sec. 403.0301.  INTELLECTUAL PROPERTY. (a)  The comptroller
8-16     may:
8-17                 (1)  apply for, register, secure, hold, and protect
8-18     under the laws of the United States or any state or nation:
8-19                       (A)  a patent for the invention, discovery, or
8-20     improvement of any process, machine, manufacture, or composition of
8-21     matter;
8-22                       (B)  a copyright for an original work of
8-23     authorship fixed in any tangible medium of expression, known or
8-24     later developed, from which it can be perceived, reproduced, or
8-25     otherwise communicated, either directly or with the aid of a
8-26     machine or device;
8-27                       (C)  a trademark, service mark, collective mark,
 9-1     or certification mark for a word, name, symbol, device, or slogan
 9-2     that the comptroller uses to identify and distinguish the
 9-3     comptroller's goods and services from other goods and services; or
 9-4                       (D)  other evidence of protection or exclusivity
 9-5     issued for intellectual property;
 9-6                 (2)  contract with a person for the sale, lease,
 9-7     marketing, or other distribution of the comptroller's intellectual
 9-8     property;
 9-9                 (3)  obtain under a contract described in Subdivision
9-10     (2) a royalty, license right, or other appropriate means of
9-11     securing reasonable compensation for the development or purchase of
9-12     the comptroller's intellectual property; and
9-13                 (4)  waive or reduce the amount of compensation secured
9-14     by contract under Subdivision (3) if the comptroller determines
9-15     that the waiver or reduction will:
9-16                       (A)  further a goal or mission of the
9-17     comptroller; and
9-18                       (B)  result in a net benefit to the state.
9-19           (b)  Intellectual property is excepted from required
9-20     disclosure under Chapter 552:
9-21                 (1)  beginning on the date the comptroller decides to
9-22     seek a patent, trademark, service mark, collective mark,
9-23     certification mark, or other evidence of protection of exclusivity
9-24     concerning the property; and
9-25                 (2)  ending on the date the comptroller receives a
9-26     decision about the comptroller's application for a patent,
9-27     trademark, service mark, collective mark, certification mark, or
 10-1    other evidence of protection of exclusivity concerning the
 10-2    property.
 10-3          (c)  Except as provided by Section 2054.115(c), money paid to
 10-4    the comptroller under this section shall be deposited to the credit
 10-5    of the general revenue fund.
 10-6          (d)  Notwithstanding any other law of this state, the
 10-7    comptroller may award to an employee of the comptroller who
 10-8    conceives, creates, discovers, invents, or develops intellectual
 10-9    property an appropriate amount of equity interest or participation
10-10    in the research, development, licensing, or exploitation of that
10-11    property.
10-12          (e)  The comptroller shall establish intellectual property
10-13    policies for the comptroller's office that include minimum
10-14    standards for:
10-15                (1)  the public disclosure or availability of products,
10-16    technology, and scientific information, including inventions,
10-17    discoveries, trade secrets, and computer software;
10-18                (2)  review by the comptroller's office of products,
10-19    technology, and scientific information, including consideration of
10-20    ownership and appropriate legal protection;
10-21                (3)  the licensing of products, technology, and
10-22    scientific information;
10-23                (4)  the identification of ownership and licensing
10-24    responsibilities for each class of intellectual property; and
10-25                (5)  royalty participation by inventors and the
10-26    comptroller's office.
10-27          SECTION 13. Section 403.055, Government Code, is amended by
 11-1    amending Subsections (b), (c), and (k) and adding Subsection (l) to
 11-2    read as follows:
 11-3          (b)  Except as provided by this section, the [The]
 11-4    comptroller may not issue a warrant or initiate an electronic funds
 11-5    transfer to the assignee of a person who has been reported properly
 11-6    under Subsection (f) if the assignment became effective after the
 11-7    person became indebted to the state or incurred a tax delinquency.
 11-8          (c)  If [When] this section prohibits the comptroller from
 11-9    issuing a warrant or initiating an electronic funds transfer to a
11-10    person, the comptroller may [not] issue a warrant or initiate an
11-11    electronic funds transfer only as provided by this section to:
11-12                (1)  the person's estate;
11-13                (2)  the distributees of the person's estate; or
11-14                (3)  the person's surviving spouse.
11-15          (k)  This section does not prohibit the comptroller from
11-16    issuing a warrant or initiating an electronic funds transfer to a
11-17    person, the person's assignee, the person's estate, the
11-18    distributees of the person's estate, or the person's surviving
11-19    spouse if each state agency that properly reported the person under
11-20    Subsection (f) consents to issuance of the warrant or initiation of
11-21    the transfer.
11-22          (l)  In this section:
11-23                (1)  "Compensation" means base salary or wages,
11-24    longevity pay, hazardous duty pay, benefit replacement pay, or an
11-25    emolument provided in lieu of base salary or wages.
11-26                (2)  "State agency" means a board, commission, council,
11-27    committee, department, office, agency, or other governmental entity
 12-1    in the executive, legislative, or judicial branch of state
 12-2    government.  The term includes an institution of higher education
 12-3    as defined by Section 61.003, Education Code, other than a public
 12-4    junior or community college.
 12-5                (3)  "State officer or employee" means an officer or
 12-6    employee of a state agency.
 12-7                (4)  "Tax delinquency" means a delinquency in payment
 12-8    of:
 12-9                      (A)  a tax to the state; or
12-10                      (B)  a tax that the comptroller administers or
12-11    collects.
12-12          SECTION 14. (a)  Section 403.0552(b), Government Code, is
12-13    amended to read as follows:
12-14          (b)  Except as provided by this subsection, the [The]
12-15    comptroller may prepare a warrant to make a payment that Section
12-16    57.48, Education Code, Section 231.007, Family Code, or Section
12-17    403.055 prohibits the comptroller from initiating by electronic
12-18    funds transfer.  The comptroller shall prepare the warrant if the
12-19    payment is overdue under Section 2251.021.
12-20          (b)  Section 403.0552(c), Government Code, is amended to read
12-21    as follows:
12-22          (c)  If the comptroller prepares a warrant under Subsection
12-23    (a)  or (b), the comptroller shall:
12-24                (1)  make the warrant payable to the person to whom the
12-25    warrant may not be issued or an electronic funds transfer may not
12-26    be initiated; and
12-27                (2)  retain the warrant until the earliest of:
 13-1                      (A)  the first day the warrant may no longer be
 13-2    paid by the comptroller under Section 404.046 or other applicable
 13-3    law;
 13-4                      (B)  the date the comptroller deducts the amount
 13-5    of the person's indebtedness to the state or tax delinquency from
 13-6    the amount of the warrant under Section 403.0551[, Chapter 666,] or
 13-7    other applicable law;  [or]
 13-8                      (C)  the date the comptroller recovers the amount
 13-9    of the person's indebtedness to the state under Chapter 666; or
13-10                      (D)  the first day the comptroller is no longer
13-11    prohibited from issuing the warrant or initiating an electronic
13-12    funds transfer to that person.
13-13          SECTION 15. Section 403.0915, Government Code, is amended to
13-14    read as follows:
13-15          Sec. 403.0915.  DORMANT FUND OR ACCOUNT.  At any time the
13-16    comptroller, with notification to the state auditor, may transfer
13-17    to the general revenue fund a balance in a dormant fund or account
13-18    if the source of the fund or account is unknown or the purpose for
13-19    which it was collected is moot.  The legislature at any time after
13-20    the transfer may appropriate the balance as a refund if the source
13-21    and purpose of the fund or account become known and active.  [The
13-22    comptroller shall report any dormant funds or accounts to the Funds
13-23    Review Advisory Committee.]
13-24          SECTION 16. Section 403.273, Government Code, is amended to
13-25    read as follows:
13-26          Sec. 403.273.  Property Manager; Property Inventory. (a)  The
13-27    head of each state agency is responsible for the custody and care
 14-1    of [state] property in the agency's possession.
 14-2          (b)  The head of each state agency shall designate a property
 14-3    manager and inform the comptroller of the designation.  Subject to
 14-4    comptroller approval, more than one property manager may be
 14-5    designated [appointed by the agency head].
 14-6          (c)  The property manager of a state agency shall maintain
 14-7    the records required and be the custodian of all property possessed
 14-8    by the agency.
 14-9          (d) [(e)]  When a state [an] agency's property is entrusted
14-10    to a person other than the agency's property manager, [the property
14-11    manager shall require a written receipt from] the person to whom
14-12    [receiving custody of] the property is entrusted shall provide a
14-13    written receipt to the manager.  A state [When the property of one]
14-14    agency may lend its property [is lent] to another state agency only
14-15    if[,] the head of the agency lending the property provides written
14-16    authorization for the lending.  The [must be authorized in writing
14-17    by the head of the agency that is lending the property.  A written
14-18    receipt must be executed by the] head of the agency to which [that
14-19    is receiving] the property is lent must execute a written receipt.
14-20          (e)  A [(f)  On the date prescribed by the comptroller, a]
14-21    state agency shall conduct an annual [make a complete] physical
14-22    inventory of all property in its possession.  The comptroller may
14-23    specify the date on which the inventory must be conducted
14-24    [completed once each year].
14-25          (f)  Not later than [(g)  Within 45 days after] the
14-26    [inventory] date prescribed by the comptroller, the head of a
14-27    [each] state agency shall submit [forward] to the comptroller:
 15-1                (1)  a signed statement describing the methods [method]
 15-2    used to conduct [verify] the agency's annual physical inventory
 15-3    under Subsection (e);
 15-4                (2)  [and] a copy of the results of the inventory; and
 15-5                (3)  any other information concerning the inventory
 15-6    that the comptroller requires.
 15-7          (g)  At all times, the [(h)  The] property records of a
 15-8    [prepared by each] state agency must accurately reflect the
 15-9    property [currently] possessed by the agency.  [The agency must use
15-10    the methods prescribed by the comptroller to delete property from
15-11    the agency's property records.]  Property [that has become surplus
15-12    or obsolete and no longer serviceable] may be deleted from the
15-13    agency's records only in accordance with rules adopted [upon
15-14    authorization] by the comptroller[.  Property that is missing or
15-15    that is disposed of directly by the agency shall be deleted from
15-16    the comptroller's records on approval by the state auditor].
15-17          (h)  The state auditor shall periodically examine property
15-18    records or inventory as necessary to determine if controls are
15-19    adequate to safeguard state property.
15-20          SECTION 17. Section 403.274, Government Code, is amended to
15-21    read as follows:
15-22          Sec. 403.274.  CHANGE OF AGENCY HEAD OR PROPERTY MANAGER.
15-23    When the head or property manager of a state [an] agency changes,
15-24    the outgoing [new] head of the agency or property manager [of the
15-25    agency] shall complete the form required by the comptroller about
15-26    property in the agency's possession.  The outgoing head of the
15-27    agency or property manager shall deliver the form to the incoming
 16-1    [execute a receipt for all agency property accounted for to the
 16-2    outgoing agency] head of the agency or property manager.  After
 16-3    verifying the information on and signing the form, the incoming
 16-4    head of the agency or property manager shall submit a [A] copy of
 16-5    the form [receipt shall be delivered] to the comptroller[, the
 16-6    state auditor, and the outgoing agency head or property manager].
 16-7          SECTION 18. Section 403.276, Government Code, is amended to
 16-8    read as follows:
 16-9          Sec. 403.276.  REPORTING TO COMPTROLLER [STATE AUDITOR] AND
16-10    ATTORNEY GENERAL. (a)  If the [a] head or property manager of a
16-11    state [an] agency has reasonable cause to believe that any [state]
16-12    property in the agency's possession has been lost, destroyed, or
16-13    damaged through the negligence [or fault] of any state official or
16-14    employee, the head of the agency or property manager [head
16-15    responsible] shall [immediately] report the loss, destruction, or
16-16    damage to the comptroller [state auditor] and [to] the attorney
16-17    general not later than the date established by the comptroller.  If
16-18    the head or property manager of a state agency has reasonable cause
16-19    to believe that any property in the agency's possession has been
16-20    stolen, the head of the agency or property manager shall report the
16-21    theft to the comptroller, the attorney general, and the appropriate
16-22    law enforcement agency not later than the date established by the
16-23    comptroller.
16-24          (b)  The attorney general may [shall] investigate a report
16-25    received under Subsection (a) [of loss, destruction, or damage to
16-26    state property].
16-27          (c)  If an [the] investigation by the attorney general under
 17-1    Subsection (b) reveals [discloses] that a property loss has been
 17-2    sustained [by the state] through the negligence [fault] of a state
 17-3    official or employee, the attorney general shall make written
 17-4    demand on the [state] official or employee for reimbursement of [to
 17-5    the state for] the loss [sustained].
 17-6          (d)  If the demand made by the attorney general under
 17-7    Subsection (c) [for reimbursement for property loss, destruction,
 17-8    or damage] is refused or disregarded [by the state official or
 17-9    employee on whom such demand is made], the attorney general may
17-10    take legal action to recover the value of the [state] property as
17-11    the attorney general deems necessary.
17-12          (e)  Venue for all suits instituted under this section
17-13    against a state official or employee is in a court of appropriate
17-14    jurisdiction of Travis County.
17-15          SECTION 19.  Chapter 403, Government Code, is amended by
17-16    adding Subchapter P to read as follows:
17-17     SUBCHAPTER P.  PRODUCT DEVELOPMENT AND SMALL BUSINESS INCUBATORS
17-18          Sec. 403.401.  DEFINITIONS. In this subchapter:
17-19                (1)  "Board" means the Product Development and Small
17-20    Business Incubator Board.
17-21                (2)  "Comptroller" includes the designee of the
17-22    comptroller.
17-23                (3)  "Financing" means a loan, loan guarantee, or
17-24    equity investment from the product fund to a person for use in the
17-25    development and production of a product in this state, or a grant,
17-26    loan, or loan guarantee from the small business fund to a person
17-27    for use in the development of a small business in this state.
 18-1                (4)  "Office" means the office of the comptroller.
 18-2                (5)  "Product" includes an invention, device,
 18-3    technique, or process, without regard to whether a patent has been
 18-4    or could be granted, that has advanced beyond the theoretical stage
 18-5    and has or is readily capable of having a commercial application.
 18-6    The term does not include pure research.
 18-7                (6)  "Product fund" means the Texas product development
 18-8    fund.
 18-9                (7)  "Program" means the product development program or
18-10    the small business incubator program.
18-11                (8)  "Small business fund" means the Texas small
18-12    business incubator fund.
18-13          Sec. 403.402.  PRODUCT DEVELOPMENT AND SMALL BUSINESS
18-14    INCUBATOR BOARD. (a)  The Product Development and Small Business
18-15    Incubator Board is created in the office.
18-16          (b)  The board shall administer the programs, the product
18-17    fund, and the small business fund.
18-18          Sec. 403.403.  MEMBERS OF THE BOARD; APPOINTMENT; TERMS OF
18-19    OFFICE. (a)  The board consists of the comptroller and eight
18-20    persons appointed by the governor.
18-21          (b)  In appointing members of the board, the governor shall
18-22    appoint:
18-23                (1)  two persons having significant business leadership
18-24    experience in technology, particularly experience with the transfer
18-25    of research results into commercial applications;
18-26                (2)  two persons employed by institutions of higher
18-27    education of this state who have experience in technological
 19-1    research and its commercial applications;
 19-2                (3)  two persons experienced and knowledgeable in
 19-3    structuring and providing financing for technological products or
 19-4    businesses; and
 19-5                (4)  two persons who reside in a county of this state
 19-6    with above state average unemployment and below state average per
 19-7    capita income and who have experience and knowledge in
 19-8    technology-related business growth.
 19-9          (c)  Appointed members of the board serve two-year staggered
19-10    terms with the terms of four members expiring February 1 of each
19-11    odd-numbered year and the terms of four members expiring February 1
19-12    of each even-numbered year.
19-13          (d)  The comptroller is the presiding officer of the board.
19-14          (e)  The board shall appoint a secretary of the board whose
19-15    duties may be prescribed by law and by the board.
19-16          (f)  Appointed members of the board serve without pay but are
19-17    entitled to reimbursement for their actual expenses incurred in
19-18    attending meetings of the board or in performing other work of the
19-19    board if that work is approved by the comptroller.
19-20          Sec. 403.404.  REMOVAL OF BOARD MEMBER. (a)  It is a ground
19-21    for removal from the board if an appointed member:
19-22                (1)  cannot because of illness or disability discharge
19-23    the member's duties for a substantial part of the term for which
19-24    the member is appointed; or
19-25                (2)  is absent from more than half of the regularly
19-26    scheduled board meetings that the member is eligible to attend
19-27    during a calendar year unless the absence is excused by majority
 20-1    vote of the board.
 20-2          (b)  The validity of an action of the board is not affected
 20-3    by the fact that the action was taken when a ground for removal of
 20-4    a board member existed.
 20-5          Sec. 403.405.  TRAINING OF BOARD MEMBERS. (a)  Before an
 20-6    appointed member of the board may assume the member's duties, the
 20-7    member must complete at least one course of the training program
 20-8    established under this section.
 20-9          (b)  A training program established under this section shall
20-10    provide information to the member regarding:
20-11                (1)  the enabling legislation that created the board;
20-12                (2)  the programs operated by the board;
20-13                (3)  the role and functions of the board;
20-14                (4)  the rules of the board, with an emphasis on the
20-15    rules that relate to disciplinary and investigatory authority;
20-16                (5)  the current budget for the board;
20-17                (6)  the results of the most recent formal audit of the
20-18    board;
20-19                (7)  the requirements of the:
20-20                      (A)  open meetings law, Chapter 551;
20-21                      (B)  open records law, Chapter 552; and
20-22                      (C)  administrative procedure law, Chapter 2001;
20-23                (8)  the requirements of the conflict of interest laws
20-24    and other laws relating to public officials; and
20-25                (9)  any applicable ethics policies adopted by the
20-26    board or the Texas Ethics Commission.
20-27          Sec. 403.406.  MEETINGS. (a)  The board shall hold regular
 21-1    meetings in Austin and other meetings at places and times scheduled
 21-2    by the board in formal sessions and called by the comptroller.
 21-3          (b)  The board shall develop and implement policies that
 21-4    provide the public with a reasonable opportunity to appear before
 21-5    the board and to speak on any issue under the jurisdiction of the
 21-6    board.
 21-7          (c)  The board shall make minutes of all meetings available
 21-8    in the board's office for public inspection.
 21-9          Sec. 403.407.  APPLICABILITY OF OPEN MEETINGS LAW AND
21-10    ADMINISTRATIVE PROCEDURE LAW. The board is subject to the open
21-11    meetings law, Chapter 551, and the administrative procedure law,
21-12    Chapter 2001.
21-13          Sec. 403.408.  STAFF. (a)  The employees of the comptroller
21-14    selected by the comptroller for that purpose serve as the staff of
21-15    the board.
21-16          (b)  The comptroller shall select and supervise the staff of
21-17    the board and perform other duties delegated to the comptroller by
21-18    the board.
21-19          (c)  The comptroller shall provide to members of the board
21-20    and to board staff, as often as necessary, information regarding
21-21    their qualifications for office or employment under this subchapter
21-22    and their responsibilities under applicable laws relating to
21-23    standards of conduct for state officers or employees.
21-24          (d)  The board shall develop and implement policies that
21-25    clearly separate the policy-making responsibilities of the board
21-26    and the management responsibilities of the comptroller and the
21-27    office.
 22-1          Sec. 403.409.  PROGRAM AND FACILITY ACCESSIBILITY. (a)  The
 22-2    board shall comply with federal and state laws related to program
 22-3    and facility accessibility.
 22-4          (b)  The board shall prepare and maintain a written plan that
 22-5    describes how a person who does not speak English can be provided
 22-6    reasonable access to the board's programs and services.
 22-7          Sec. 403.410.  POWERS OF THE BOARD; BONDS. (a)  The board has
 22-8    the powers necessary and reasonable to carry out this subchapter
 22-9    and may adopt rules, policies, and procedures necessary or
22-10    reasonable to implement this subchapter.
22-11          (b)  The board may issue general obligation bonds, up to the
22-12    amounts authorized and as provided by Section 71, Article XVI,
22-13    Texas Constitution, to fund the program.
22-14          (c)  Not more than an amount equal to five percent of the
22-15    total amount of bonds issued may be used to pay administrative fees
22-16    involved in selling the bonds.
22-17          Sec. 403.411.  TEXAS PRODUCT DEVELOPMENT FUND. (a)  The Texas
22-18    product development fund is a revolving fund in the state treasury.
22-19          (b)  The product fund is composed of proceeds of bonds issued
22-20    under this subchapter, financing application fees, loan repayments,
22-21    guarantee fees, royalty receipts, dividend income, money
22-22    appropriated by the legislature for authorized purposes of the
22-23    product fund, amounts received by the state from loans, loan
22-24    guarantees, and equity investments made under this subchapter,
22-25    amounts received by the state from federal grants or other sources,
22-26    and any other amounts received under this subchapter and required
22-27    by resolution of the board to be deposited in the product fund.
 23-1    The product fund contains a program account, an interest and
 23-2    sinking account, and other accounts that the board authorizes to be
 23-3    created and maintained.  Money in the product fund is available for
 23-4    use by the board under this subchapter.  Notwithstanding any other
 23-5    provision of this subchapter, any money in the product fund may be
 23-6    used for debt service.
 23-7          (c)  Money in the program account of the product fund, minus
 23-8    the costs of issuance of bonds under this subchapter and necessary
 23-9    costs of administering the product fund, may be used only to
23-10    provide financing to aid in the development and production,
23-11    including the commercialization, of new or improved products in
23-12    this state.  The board shall provide financing from the product
23-13    fund on the terms and conditions that the board determines to be
23-14    reasonable, appropriate, and consistent with the purposes and
23-15    objectives of the product fund and this subchapter, for the purpose
23-16    of aiding in the development and production of new or improved
23-17    products in this state.
23-18          Sec. 403.412.  SMALL BUSINESS INCUBATOR FUND. (a)  The Texas
23-19    small business incubator fund is a revolving fund in the state
23-20    treasury.
23-21          (b)  The small business fund is composed of proceeds of bonds
23-22    issued under this subchapter, financing application fees, loan
23-23    repayments, guarantee fees, royalty receipts, dividend income,
23-24    money appropriated by the legislature for authorized purposes of
23-25    the small business fund, amounts received by the state from loans,
23-26    loan guarantees, and equity investments made under this subchapter,
23-27    amounts received by the state from federal grants or other sources,
 24-1    and any other amounts received under this subchapter and required
 24-2    by resolution of the board to be deposited in the small business
 24-3    fund.  The small business fund contains a project account, an
 24-4    interest and sinking account, and other accounts that the board
 24-5    authorizes to be created and maintained.  Money in the small
 24-6    business fund is available for use by the board under this
 24-7    subchapter.  Notwithstanding any other provision of this
 24-8    subchapter, any money in the small business fund may be used for
 24-9    debt service.
24-10          (c)  Money in the project account of the small business fund,
24-11    minus the costs of issuance of bonds under this subchapter and
24-12    necessary costs of administering the small business fund, may be
24-13    used only to provide financing to foster and stimulate the
24-14    development of small businesses in this state.  The board shall
24-15    provide financing from the small business fund on the terms and
24-16    conditions that the board determines to be reasonable, appropriate,
24-17    and consistent with the purposes and objectives of the small
24-18    business fund and this subchapter, for the purpose of fostering and
24-19    stimulating the development of new or existing small businesses in
24-20    this state.
24-21          Sec. 403.413.  ELIGIBLE PRODUCTS AND BUSINESSES; FINANCING.
24-22    (a)  Financing may be made under this subchapter only for a product
24-23    or small business approved by the board.
24-24          (b)  In determining eligible products and small businesses,
24-25    the board shall give special preference to products or businesses
24-26    in the areas of biotechnology and biomedicine that have the
24-27    greatest likelihood of commercial success, job creation, and job
 25-1    retention in this state.  The board shall give further preference
 25-2    to providing financing to projects or businesses that are:
 25-3                (1)  grantees under the small business innovation
 25-4    research program established under 15 U.S.C. Section 638, as
 25-5    amended;
 25-6                (2)  companies formed in this state to commercialize
 25-7    research funded at least in part with state funds;
 25-8                (3)  applicants that have acquired other sources of
 25-9    financing;
25-10                (4)  companies formed in this state and receiving
25-11    assistance from designated state small business development
25-12    centers; or
25-13                (5)  applicants who are residents of this state doing
25-14    business in this state and performing financed activities
25-15    predominantly in this state.
25-16          (c)  The board shall adopt rules governing the terms and
25-17    conditions of the financing, specifically including requirements
25-18    for appropriate security or collateral, equity interest, and the
25-19    rights and remedies of the board and office in the event of a
25-20    default on the loan.  The rules must include a requirement that
25-21    applicants report to the board on the use of money distributed
25-22    through either fund.
25-23          (d)  Before approving the provision of financing to a person,
25-24    the board shall enter into an agreement with the person under which
25-25    the board will obtain an appropriate portion of royalties, patent
25-26    rights, equitable interests, or a combination of those royalties,
25-27    rights, and interests from or in the product or proceeds of the
 26-1    product for which financing is requested.  Contracts executed under
 26-2    this subchapter must include agreements to ensure proper use of
 26-3    funds and the receipt of royalties, patent rights, or equity
 26-4    interest, as appropriate.
 26-5          (e)  The board may appoint an advisory committee of experts
 26-6    in the areas of biotechnology and biomedicine to review projects
 26-7    and businesses seeking financing from the board.
 26-8          (f)  The amount of financing provided to a single recipient
 26-9    may not exceed 10 percent of the total amount of bonds issued.
26-10          (g)  A claim of the state for a payment owed to the state
26-11    under this subchapter by a person who has been provided financing
26-12    has priority over all other claims against the person.
26-13          Sec. 403.414.  APPLICATION PROCESS. (a)  To apply for
26-14    financing from the board, an applicant shall submit to the board:
26-15                (1)  an application for financing on a form prescribed
26-16    by the board; and
26-17                (2)  a reasonable application fee set by the board.
26-18          (b)  The application must include a business plan, containing
26-19    the information required by the board, including at a minimum:
26-20                (1)  information regarding:
26-21                      (A)  the history and financial condition of the
26-22    applicant, including the applicant's income statement;
26-23                      (B)  the applicant's present markets and market
26-24    prospects; and
26-25                      (C)  the integrity of the applicant's management;
26-26                (2)  a statement of the feasibility of the product for
26-27    which financing is requested, including the state of development of
 27-1    any product to be developed and the proposed schedule of its
 27-2    commercialization; and
 27-3                (3)  if applicable, documentation of attempts to obtain
 27-4    private financing.
 27-5          (c)  The board shall determine, with respect to each
 27-6    application for financing, whether:
 27-7                (1)  the product or business for which financing is
 27-8    requested is economically sound;
 27-9                (2)  there is a reasonable expectation that the product
27-10    or business will be successful;
27-11                (3)  the product or business will create or preserve
27-12    jobs and otherwise benefit the economy of the state;
27-13                (4)  the applicant has the management resources and
27-14    other funding to complete the project;
27-15                (5)  financing is necessary because full financing is
27-16    unavailable in traditional capital markets or credit has been
27-17    offered on terms that would preclude the success of the project;
27-18    and
27-19                (6)  there is reasonable assurance that the potential
27-20    revenues to be derived from the sale of the product will be
27-21    sufficient to repay any financing approved by the board.
27-22          (d)  After considering the application and all other
27-23    information it considers relevant, the board shall approve or deny
27-24    the application and promptly notify the applicant of its decision.
27-25          Sec. 403.415.  INFORMATION CONFIDENTIAL. (a)  Information
27-26    described by Subsection (b) collected, assembled, or maintained by
27-27    or for the board is confidential and may not be disclosed by the
 28-1    board, the comptroller, or the office.
 28-2          (b)  This section applies to information in any form provided
 28-3    by or on behalf of an applicant for financing or a recipient of
 28-4    financing under this subchapter, including information contained
 28-5    in, accompanying, or derived from any application or report, that
 28-6    relates to a product, to the development, application, manufacture,
 28-7    or use of a product, or to the markets, market prospects, or
 28-8    marketing of a product, and that is proprietary information of
 28-9    actual or potential commercial value to the applicant or recipient
28-10    that has not been disclosed to the public.  Confidential
28-11    information includes scientific and technological information,
28-12    including computer programs and software, and marketing and
28-13    business operation information, regardless of whether the product
28-14    to which the information relates is patentable or capable of being
28-15    registered under copyright or trademark laws or has a potential for
28-16    being sold, traded, or licensed for a fee.  This section does not
28-17    make confidential information in an account, voucher, or contract
28-18    relating to the receipt or expenditure of public funds by the board
28-19    or the comptroller under this subchapter.
28-20          (c)  Any application for financing that is withdrawn by the
28-21    applicant before approval or funding or that is denied by the board
28-22    shall be returned to the applicant promptly on request, together
28-23    with all materials submitted by or on behalf of the applicant that
28-24    relate to the application, except that the board may retain a
28-25    record of the submission and disposition of the application that
28-26    does not include any information described by Subsection (b).
28-27          Sec. 403.416.  PROGRAM COORDINATION. The board and office
 29-1    shall coordinate the administration and funding of the programs.
 29-2          SECTION 20.  Section 404.058, Government Code, is amended to
 29-3    read as follows:
 29-4          Sec. 404.058.  Outstanding Warrants. (a)  The comptroller
 29-5    shall compile information concerning outstanding warrants, which
 29-6    must be consistent with the requirements of the uniform statewide
 29-7    accounting system.
 29-8          (b)  The warrant number of an outstanding warrant is excepted
 29-9    from the requirements of Section 552.021 if the warrant is issued
29-10    by the comptroller.
29-11          (c)  A person who issues a warrant under Section 403.060(a)
29-12    may disclose the warrant number of the warrant to a person other
29-13    than the comptroller only if the comptroller has:
29-14                (1)  informed the person that the warrant is not an
29-15    outstanding warrant; or
29-16                (2)  authorized or required the disclosure.
29-17          (d)  In this section:
29-18                (1)  "Outstanding warrant" means any warrant except a
29-19    warrant that:
29-20                      (A)  has been paid by the comptroller;
29-21                      (B)  has been canceled; or
29-22                      (C)  may not be paid by the comptroller because
29-23    it was not presented before the date determined under Section
29-24    404.046 or other applicable law.
29-25                (2)  "Warrant number" means the number or other data
29-26    element printed on a warrant that the comptroller uses to
29-27    distinguish it from all other warrants that the comptroller may pay
 30-1    during the same period that the comptroller may pay the warrant
 30-2    under Section 404.046 or other applicable law.
 30-3          SECTION 21.  Section 404.101, Government Code, is amended to
 30-4    read as follows:
 30-5          Sec. 404.101.  DEFINITIONS. In this subchapter:
 30-6                (1)  "Advisory board" means the Texas treasury
 30-7    safekeeping trust company investment advisory board.
 30-8                (2)  "Participant" means the state, agencies and local
 30-9    political subdivisions of the state, and nonprofit corporations,
30-10    foundations, and other charitable organizations created on behalf
30-11    of the state or an agency or local political subdivision of the
30-12    state authorized to deposit money and securities with the trust
30-13    company.
30-14                (3)  "The state and its agencies" includes the
30-15    Employees Retirement System of Texas and the Teacher Retirement
30-16    System of Texas.
30-17                (4) [(2)]  "Trust company" means the Texas Treasury
30-18    Safekeeping Trust Company.
30-19          SECTION 22.  Section 404.103, Government Code, is amended by
30-20    amending Subsection (b) and adding Subsections (e), (f), and (g) to
30-21    read as follows:
30-22          (b)  The trust company may enter into contracts, [and] trust
30-23    agreements, or other fiduciary instruments with the comptroller,
30-24    the Federal Reserve System, a depository trust company, and other
30-25    third parties.  The trust company shall be liable under those
30-26    contracts in accordance with the terms contained in the contracts.
30-27    Notwithstanding any other statute to the contrary, to the extent
 31-1    permitted by the Texas Constitution and the contracts, trust
 31-2    agreements, or other fiduciary instruments between the trust
 31-3    company, the Federal Reserve System, and a depository trust
 31-4    company, the trust company's obligations shall be guaranteed by the
 31-5    state, and the state expressly waives all defenses of governmental
 31-6    immunity by and on behalf of the trust company, the comptroller,
 31-7    and the state and expressly consents to sue and be sued in federal
 31-8    court or in any court of competent jurisdiction.  However, this
 31-9    provision does not alter or affect the immunity accorded to state
31-10    officials and employees under state law.  The trust company may
31-11    enter into contracts with the comptroller and the Federal Reserve
31-12    System to provide any services that the Federal Reserve System
31-13    makes available, including:
31-14                (1)  safekeeping book-entry United States Treasury and
31-15    agency securities owned by the state and its agencies;
31-16                (2)  using the federal reserve wire transfer system to
31-17    transfer money and book-entry securities and to settle securities
31-18    transactions involving book-entry United States Treasury and agency
31-19    securities owned by the state and its agencies;
31-20                (3)  collecting, through the Federal Reserve System,
31-21    checks deposited with the treasury;
31-22                (4)  receiving payments from and making payments to the
31-23    federal government on behalf of the state and its agencies;
31-24                (5)  originating automated clearinghouse transactions
31-25    or other electronic transfers to make payments on behalf of the
31-26    state and its agencies, collecting revenues due the state and its
31-27    agencies, and transferring money between state depositories;
 32-1                (6)  paying warrants drawn on the treasury and
 32-2    presented through the Federal Reserve System for payment; and
 32-3                (7)  safekeeping collateral pledged to secure deposits
 32-4    of public funds.
 32-5          (e)  The trust company may hire employees and may fix their
 32-6    compensation and prescribe their duties or may contract with the
 32-7    comptroller's office for staff support.
 32-8          (f)  The trust company shall develop a fee schedule in the
 32-9    amount necessary to recover costs of service and to retain adequate
32-10    reserves to support the operations of the trust company.
32-11          (g)  The trust company is exempt from other state laws
32-12    regulating or limiting state purchasing or a purchasing decision if
32-13    the trust company determines that the purchase or decision relates
32-14    to the fiduciary duties of the trust company.  The trust company
32-15    shall make all purchases of goods and services using purchasing
32-16    methods that ensure the best value to the trust company and its
32-17    participants.  In determining best value, the trust company may
32-18    consider the best value standards applicable to state agencies as
32-19    enumerated in Section 2155.074.  The trust company shall develop a
32-20    plan of operation that includes procedures and standards for the
32-21    purchases of goods and services using best value methods.
32-22          SECTION 23.  Section 404.104(c), Government Code, is amended
32-23    to read as follows:
32-24          (c)  The comptroller shall submit to the Legislative Budget
32-25    Board an audited report regarding the operations of the trust
32-26    company.  The trust company may contract with a certified public
32-27    accountant or the state auditor to [shall] conduct an independent
 33-1    audit of the operations of the trust company.  This subsection does
 33-2    not affect the state auditor's authority to conduct an audit of the
 33-3    trust company in accordance with Chapter 321.
 33-4          SECTION 24.  Section 404.105, Government Code, is amended to
 33-5    read as follows:
 33-6          Sec. 404.105.  CAPITAL OR RESERVE [REQUIREMENTS]. The trust
 33-7    company shall hold [have] capital stock and [or] reserve balances
 33-8    outside the treasury in an amount required by applicable regulatory
 33-9    bodies for eligibility for federal reserve services, for
33-10    participation in a depository trust company, and as necessary to
33-11    achieve its purposes under Section 404.103[, but the amount may not
33-12    be more than $1 million].  The stock of the trust company is an
33-13    authorized investment for state funds and shall be held by the
33-14    comptroller, but the amount may not be more than $1 million.
33-15          SECTION 25.  Section 404.106, Government Code, is amended by
33-16    amending Subsection (a) and adding Subsection (d) to read as
33-17    follows:
33-18          (a)  Any net earnings of the trust company attributable to
33-19    capital stock or investments of capital stock shall be credited
33-20    annually to the account of the treasury and shall be allocated
33-21    annually to the funds held and managed by the comptroller in
33-22    accordance with Section 404.071(a).
33-23          (d)  The trust company may hold reserve balances or
33-24    securities as required by the Federal Reserve System or as required
33-25    for participation in a depository trust company.
33-26          SECTION 26. Section 404.107, Government Code, is amended to
33-27    read as follows:
 34-1          Sec. 404.107.  Fees. (a)  Any fees or assessments imposed by
 34-2    state law for the incorporation, regulation, or operation of trust
 34-3    companies do not apply to the Texas Treasury Safekeeping Trust
 34-4    Company.
 34-5          (b)  Agencies and local political subdivisions of the state
 34-6    and nonprofit corporations, foundations, and other charitable
 34-7    organizations created on behalf of the state or an agency or local
 34-8    political subdivision of the state that are authorized or required
 34-9    to deposit money and securities with the trust company shall pay
34-10    the fees established on the trust company's fee schedule.
34-11          SECTION 27.  Subchapter G, Chapter 404, Government Code, is
34-12    amended by adding Sections 404.108 through 404.116 to read as
34-13    follows:
34-14          Sec. 404.108.  TRUST COMPANY INVESTMENT ADVISORY BOARD. (a)
34-15    The comptroller may appoint an investment advisory board to advise
34-16    the comptroller with respect to managing the assets held by the
34-17    trust company.  The advisory board shall provide the comptroller
34-18    guidance on the investment philosophy that should be pursued in
34-19    managing the assets under the trust company's control.  The
34-20    advisory board serves in an advisory capacity only and is not a
34-21    fiduciary with respect to the assets held by the trust company.
34-22          (b)  The advisory board is composed of seven members
34-23    appointed by the comptroller with the advice of the governor,
34-24    lieutenant governor, and speaker of the house of representatives.
34-25          (c)  The members of the advisory board must have knowledge of
34-26    or experience in finance, including the management of funds or
34-27    business operations.
 35-1          (d)  Appointments to the advisory board shall be made without
 35-2    regard to the race, color, disability, sex, religion, age, or
 35-3    national origin of appointees.
 35-4          (e)  Each member of the advisory board must be a resident of
 35-5    this state.
 35-6          (f)  The creation, size, composition, and duration of the
 35-7    advisory board is governed exclusively by this subchapter.  Chapter
 35-8    2110 does not apply to the size, composition, or duration of the
 35-9    advisory board.
35-10          Sec. 404.109.  RESTRICTIONS ON ADVISORY BOARD APPOINTMENT,
35-11    MEMBERSHIP, AND EMPLOYMENT. A person is not eligible for
35-12    appointment to the advisory board if the person or the person's
35-13    spouse:
35-14                (1)  is employed by or participates in the management
35-15    of a business entity or other organization receiving funds from the
35-16    trust company;
35-17                (2)  owns or controls, directly or indirectly, more
35-18    than a 10 percent interest in a business entity or other
35-19    organization receiving funds from the trust company; or
35-20                (3)  receives money from the business entity or other
35-21    organization receiving funds from the trust company that exceeds
35-22    five percent of the person's gross income for the preceding
35-23    calendar year.
35-24          Sec. 404.110.  REMOVAL OF ADVISORY BOARD MEMBERS. The
35-25    comptroller may remove from the advisory board an advisory board
35-26    member at will or for any of the following causes:
35-27                (1)  at the time of the member's appointment, the
 36-1    member did not have the qualifications prescribed by Section
 36-2    404.108 or was ineligible under Section 404.109;
 36-3                (2)  while serving on the advisory board, the member
 36-4    does not maintain the qualifications prescribed by Section 404.108
 36-5    or becomes ineligible for appointment under Section 404.109;
 36-6                (3)  for a substantial portion of the member's term,
 36-7    the member is unable to discharge the member's duties because of
 36-8    illness or disability; or
 36-9                (4)  without being excused by a majority vote of the
36-10    advisory board, the member is absent from more than one-third of
36-11    the regularly scheduled board meetings that the member is eligible
36-12    to attend during a calendar year.
36-13          Sec. 404.111.  ADVISORY BOARD MEMBER TRAINING. (a)  Before a
36-14    member of the advisory board may assume the member's duties, the
36-15    member must complete at least one course of the training program
36-16    established under this section.
36-17          (b)  A training program established under this section shall
36-18    provide information regarding:
36-19                (1)  the role and functions of the trust company;
36-20                (2)  the assets managed by and programs operated by the
36-21    trust company; and
36-22                (3)  the statutes applicable to the trust company,
36-23    including Chapters 551, 552, and 2001.
36-24          Sec. 404.112.  COMPENSATION; EXPENSES. Members of the
36-25    advisory board serve without compensation but are entitled to
36-26    reimbursement for actual and necessary expenses in attending
36-27    meetings of the advisory board or performing other official duties
 37-1    authorized by the comptroller.
 37-2          Sec. 404.113.  MEETINGS. (a)  The advisory board may meet as
 37-3    often as necessary, but shall meet at least twice each year.
 37-4          (b)  Advisory board meetings are subject to Chapter 551.
 37-5          Sec. 404.114.  INVESTMENT MANAGEMENT. (a)  The comptroller
 37-6    may delegate investment authority and may contract with private
 37-7    professional investment managers to manage or assist in managing
 37-8    assets held by the trust company.
 37-9          (b)  The comptroller may delegate a power or duty relating to
37-10    the investment of assets held by the trust company to an employee
37-11    or agent of the comptroller, including professional investment
37-12    managers.
37-13          Sec. 404.115.  PERSONNEL. (a)  The comptroller may appoint a
37-14    person to serve as chief executive officer in managing the trust
37-15    company and carrying out the policies of the trust company.  The
37-16    chief executive officer and employees of the trust company serve at
37-17    the will of the comptroller.
37-18          (b)  The comptroller may delegate any of the comptroller's
37-19    duties to the chief executive officer and trust company employees.
37-20          (c)  The chief executive officer or the chief executive
37-21    officer's designee shall develop a career ladder program and a
37-22    system of compensation necessary to retain qualified staff.
37-23          (d)  The chief executive officer or the chief executive
37-24    officer's designee shall develop a system of annual performance
37-25    evaluations.  Merit pay for trust company employees must be based
37-26    on the system established under this subsection.
37-27          (e)  The chief executive officer or the chief executive
 38-1    officer's designee shall prepare and maintain a written policy
 38-2    statement to assure implementation of a program of equal employment
 38-3    opportunity under which all personnel decisions are made without
 38-4    regard to race, color, disability, religion, age, or national
 38-5    origin.
 38-6          (f)  The chief executive officer shall appoint an internal
 38-7    auditor for the trust company.  The appointment of the internal
 38-8    auditor must be approved by the comptroller.  The comptroller may
 38-9    require the internal auditor to submit certain reports directly to
38-10    the comptroller.
38-11          (g)  Except as provided by this section and Section
38-12    404.103(e), trust company employees hired under this subchapter are
38-13    state employees for all purposes, including accrual of leave time,
38-14    insurance benefits, retirement benefits, and travel regulations,
38-15    Chapter 104, Civil Practice and Remedies Code, and Chapter 501,
38-16    Labor Code.
38-17          Sec. 404.116.  LIABILITY INSURANCE FOR CERTAIN BOARD MEMBERS,
38-18    OFFICIALS, AND STAFF. (a)  The trust company may purchase or
38-19    otherwise acquire insurance to protect members of the advisory
38-20    board and the trust company staff.
38-21          (b)  Insurance purchased or acquired by the trust company
38-22    under this section may:
38-23                (1)  protect against any type of liability to third
38-24    persons that might be incurred while conducting trust company
38-25    business; and
38-26                (2)  provide for all costs of defending against such
38-27    liability, including court costs and attorney's fees.
 39-1          (c)  This section does not authorize the purchase or
 39-2    acquisition of insurance to protect against liability not described
 39-3    in Subsection (b).
 39-4          SECTION 28.  Chapter 447, Government Code, is amended to read
 39-5    as follows:
 39-6              CHAPTER 447.  STATE ENERGY CONSERVATION OFFICE
 39-7                            [MANAGEMENT CENTER]
 39-8          Sec. 447.001.  GOVERNANCE AND GENERAL AUTHORITY
 39-9    [ESTABLISHMENT OF CENTER]. The state energy conservation office:
39-10                (1)  is under the direction and control of the
39-11    comptroller;
39-12                (2)  [management center is established in the General
39-13    Services Commission and] shall [be authorized to] promote the
39-14    [those] policies [of the state] enumerated in this chapter; and
39-15                (3)  may act in any capacity authorized by state or
39-16    federal law.
39-17          Sec. 447.002.  INFORMATION; PROCEDURES AND RULES; MEASURES
39-18    AND PROGRAMS. (a)  The state energy conservation office [management
39-19    center] shall develop and provide energy conservation information
39-20    for the state.
39-21          (b)  The state energy conservation office [center] may
39-22    establish procedures and adopt [make] rules relating to the
39-23    development [adoption] and implementation of energy conservation
39-24    measures and programs applicable to state buildings and facilities.
39-25          (c)  A procedure established or a rule adopted under
39-26    Subsection (b) [The center may act in such other capacities as
39-27    otherwise authorized by state or federal law.  The center's rules
 40-1    for programs and energy conservation, adopted under Chapter 2001]
 40-2    may include provisions relating to:
 40-3                (1)  the retrofitting of existing state buildings and
 40-4    facilities [structures] with energy-saving devices; and
 40-5                (2)  [to] the energy-related renovation of those
 40-6    buildings and facilities [such structures].
 40-7          (d)  To the extent that the [office of the] governor receives
 40-8    money appropriated for energy efficiency programs, [the office of]
 40-9    the governor, through the state energy conservation office
40-10    [management center], shall implement programs that the state energy
40-11    conservation office [center] identifies as encouraging energy
40-12    conservation by state government.
40-13          (e)  A [Unless money is available for the implementation of
40-14    such a program, a] state agency shall implement [is not required to
40-15    spend money for] an energy conservation measure or program in
40-16    accordance with plans developed under Section 447.011 [under this
40-17    section].
40-18          Sec. 447.003.  Liaison to Federal Government. The state
40-19    energy conservation office is [management center shall serve as]
40-20    the state liaison to the federal government for the implementation
40-21    and administration of federal programs relating to state agency
40-22    energy matters.  The office [In that capacity, the center] shall
40-23    administer state programs established under:
40-24                (1)  Part D, Title III, Energy Policy and Conservation
40-25    Act (42 U.S.C. 6321 et seq.), and its subsequent amendments;
40-26                (2)  Part G, Title III, Energy Policy and Conservation
40-27    Act (42 U.S.C. 6371 et seq.), and its subsequent amendments; and
 41-1                (3)  [the National Energy Extension Service Act (42
 41-2    U.S.C. 7001 et seq.); and]
 41-3                [(4)]  other federal energy conservation programs as
 41-4    [may be] assigned to the office [energy management center] by the
 41-5    governor or the legislature.
 41-6          Sec. 447.004.  Design Standards. (a)  The state energy
 41-7    conservation office [management center] shall establish [adopt] and
 41-8    publish mandatory energy conservation design standards for each[,
 41-9    under Chapter 2001, that all] new state building or [buildings and]
41-10    major renovation project [projects], including a new building or
41-11    [buildings and] major renovation project [projects] of a
41-12    state-supported institution [institutions] of higher education[,
41-13    are required to meet].  The office [center] shall define "major
41-14    renovation project" for purposes of [what constitutes a major
41-15    renovation project under] this section and shall review and update
41-16    the standards biennially.
41-17          (b)  The standards established under Subsection (a) must:
41-18                (1)  include performance and procedural standards for
41-19    the maximum energy conservation allowed by the latest and most
41-20    cost-effective technology that is consistent with the requirements
41-21    of public health, safety, and economic resources;[.]
41-22                (2)  be stated [(c)  The standards must be adopted] in
41-23    terms of energy consumption levels;
41-24                (3)  consider [and must take into consideration] the
41-25    various types [classes] of building uses; and
41-26                (4)  [must] allow for design flexibility.
41-27          (c)  Any procedural standard established under this section
 42-1    [Procedural standards] must be directed toward specific design and
 42-2    building practices that produce good thermal resistance and low
 42-3    infiltration and toward requiring practices in the design of
 42-4    mechanical and electrical systems that maximize energy efficiency.
 42-5    The procedural standards must address [concern], as applicable:
 42-6                (1)  insulation;
 42-7                (2)  lighting;
 42-8                (3)  ventilation;
 42-9                (4)  climate control;
42-10                (5)  special energy requirements of health-related
42-11    facilities of higher education and state agencies; and
42-12                (6)  any other item that the state energy conservation
42-13    office [center] considers appropriate [that is adopted under
42-14    Chapter 2001].
42-15          (d)  A state [In order to demonstrate compliance with the
42-16    requirement to adopt and update the conservation design standards,
42-17    each] agency or an [and] institution of higher education shall
42-18    submit a copy of its design and construction manuals to the state
42-19    energy conservation office as the office considers necessary to
42-20    demonstrate compliance by the agency or institution with the
42-21    standards established under this section [center on request].
42-22          (e)  A state agency or an institution of higher education may
42-23    not begin [Prior to] construction of a new state building or a
42-24    major renovation project before[, agencies and institutions of
42-25    higher education shall have] the design architect or engineer for
42-26    the construction or renovation has:
42-27                (1)  certified [on the project certify] to the agency
 43-1    or institution that the construction or[, with a copy to the energy
 43-2    management center, that all new building construction and major
 43-3    building] renovation complies [projects comply] with the [energy
 43-4    conservation design] standards established [required] under this
 43-5    section; and
 43-6                (2)  provided a copy of that certification to the state
 43-7    energy conservation office.
 43-8          Sec. 447.005.  Energy Efficiency Projects. Subject to
 43-9    applicable state and federal laws or guidelines, the state energy
43-10    conservation office [management center] may:
43-11                (1)  implement an energy efficiency project [projects]
43-12    at a state agency; [agencies] or
43-13                (2)  [may] assist the agency [those agencies] in
43-14    implementing the project [projects] through an energy efficiency
43-15    program [programs financed through state or federal grants or
43-16    loans].
43-17          [Sec. 447.006.  OBTAINING DATA. The energy management center
43-18    shall obtain semiannually from each state agency information
43-19    relating to the cost of heating and cooling buildings owned by the
43-20    state.]
43-21          [Sec. 447.007.  MODEL CODES. The energy management center may
43-22    recommend model energy conservation building codes to
43-23    municipalities for use in enacting or amending municipal
43-24    ordinances.]
43-25          Sec. 447.008.  Additional Energy Services. (a)  The state
43-26    energy conservation office [management center] may provide
43-27    additional energy services, including:
 44-1                (1)  training of designated state employees in energy
 44-2    management, energy-accounting techniques, and energy efficient
 44-3    design and construction;
 44-4                (2)  technical assistance regarding energy efficient
 44-5    capital improvements, energy efficient building design, and
 44-6    cogeneration and thermal storage investments;
 44-7                (3)  technical assistance to the state auditor or a
 44-8    [State Auditor and to] state agency [agencies] regarding
 44-9    [conducting] energy management performance audits and the
44-10    monitoring of utility bills to detect billing errors;
44-11                (4)  technical assistance to a state agency [agencies]
44-12    regarding third-party financing of an energy efficient capital
44-13    improvement project [projects]; and
44-14                (5)  other energy-related assistance that the office
44-15    considers appropriate, if the assistance is requested by a state
44-16    agency, an institution of higher education, a consortium of
44-17    institutions of higher education, or another governmental entity
44-18    [agencies, other legislatively] created by [entities of the] state
44-19    law[, institutions of higher education, and consortiums of
44-20    institutions of higher education that the center considers
44-21    appropriate].
44-22          (b)  Using available state, federal, or oil overcharge funds,
44-23    the state energy conservation office may provide technical
44-24    assistance to a [management center may assist] state agency or an
44-25    institution [agencies and institutions] of higher education in
44-26    analyzing or [and] negotiating rates for electricity or [and]
44-27    natural gas supplies from a locally certificated electric supplier
 45-1    [suppliers], a natural gas supplier [suppliers], or a state-owned
 45-2    energy resource [resources], including a transportation charge
 45-3    [charges] for natural gas.  This [The provisions of this] section
 45-4    does [shall] not authorize [be construed to empower] the office
 45-5    [energy management center] to negotiate rates for natural gas
 45-6    supplies on behalf of an agency or institution [state agencies or
 45-7    institutions but rather to provide technical assistance as needed].
 45-8          (c)  A state agency or an institution [Agencies and
 45-9    institutions] of higher education may request [seek] the assistance
45-10    of the state energy conservation office [management center] before
45-11    negotiating or contracting for the supply or [and] transportation
45-12    of natural gas or [and] electricity [that will result in an
45-13    anticipated annual expenditure of more than $100,000].
45-14          (d)  A [Any] state agency or institution of higher education
45-15    with expertise in rate analysis, negotiation, or any other matter
45-16    related to the procurement of electricity and natural gas supplies
45-17    from a locally certificated electric supplier [suppliers], a
45-18    natural gas supplier [suppliers], or a state-owned energy resource
45-19    [resources] may assist the state energy conservation office
45-20    [management center] whenever practicable.  The attorney general on
45-21    request shall assist the office [energy management center] and
45-22    other state agencies and institutions of higher education in
45-23    negotiating rates for electricity and other terms of electric
45-24    utility service.
45-25          (e)  Using available funds from any source [where permitted],
45-26    the state energy conservation office [management center] may assist
45-27    a state agency, an institution of higher education, a consortium of
 46-1    institutions of higher education, or another governmental entity
 46-2    [agencies, legislatively] created by state law [entities of the
 46-3    state, institutions of higher education, and consortiums of
 46-4    institutions of higher education] to further the goals and pursue
 46-5    the policies of the state in energy research as may be determined
 46-6    by the governor or the legislature.  The office [energy management
 46-7    center] may assist a state agency [agencies, which are hereby
 46-8    authorized to act in accordance with this section,] in implementing
 46-9    current federal energy policy [as expressed in Pub. L. No. 102-486,
46-10    106 Stat. 2776 (1992)].
46-11          (f)  The state energy conservation office [management center]
46-12    on request may negotiate rates for electricity and other terms of
46-13    electric utility service for a state agency or an institution of
46-14    higher education.  The office [energy management center may] also
46-15    may negotiate the rates and the other terms of service for a group
46-16    of agencies or [and] institutions [together] in a single contract.
46-17          (g)  The state energy conservation office may [management
46-18    center shall] analyze the rates for electricity charged to and the
46-19    amount of electricity used by state agencies and institutions of
46-20    higher education to determine ways the state could obtain lower
46-21    rates and use less electricity.  Each state agency [State
46-22    agencies], including the Public Utility Commission of Texas, and
46-23    institution [institutions] of higher education shall assist the
46-24    office [energy management center] in obtaining the information the
46-25    office needs [center requires] to perform its analysis.
46-26          (h)  The state energy conservation office [management center]
46-27    and the attorney general may [shall] cooperate in monitoring
 47-1    efforts to deregulate the electric utility industry and in
 47-2    reporting on the ways in which deregulation would affect state
 47-3    government as a purchaser of electricity.  The office [energy
 47-4    management center], represented by the attorney general, may
 47-5    intervene in proceedings before the Public Utility Commission of
 47-6    Texas that are related to deregulating all or part of the electric
 47-7    utility industry to represent the interests of state government as
 47-8    a purchaser of electricity [in those proceedings].
 47-9          Sec. 447.009.  Energy Audits. (a)  The state energy
47-10    conservation office may audit a [management center shall conduct
47-11    audits of] state-owned building [buildings] used by a state agency
47-12    [agencies.  The audits shall be designed] to assist the agency
47-13    [state agencies] in reducing energy consumption and costs through
47-14    improved energy efficiency.
47-15          (b)  Based on any [the] audit performed under Subsection (a)
47-16    [of this section], the state energy conservation office [of the
47-17    governor] may recommend changes to improve energy efficiency.
47-18          (c)  The state energy conservation office [management center]
47-19    may provide training, technical assistance, and funding, if
47-20    available, to the state auditor [State Auditor's office] or the
47-21    state agency responsible for [office charged with] performing
47-22    management audits of state agencies and institutions of higher
47-23    education to conduct energy management audits in those [state]
47-24    agencies and institutions [of higher education].
47-25          (d)  Each state agency or institution [State agencies and
47-26    institutions] of higher education shall review [conduct reviews]
47-27    and audit [audits of] utility billings and contracts to detect
 48-1    billing errors.  Any contract [Contracts] with a private person to
 48-2    conduct the review or audit [sector firms] must comply with all
 48-3    applicable provisions of Subchapter A, Chapter 2254, [654]
 48-4    regarding professional services contracts.  The contract [and] may
 48-5    not be awarded on a contingent fee basis unless the governor
 48-6    determines [a finding] that the contract is necessary, reasonable,
 48-7    and prudent [is obtained from the office of the governor].
 48-8          Sec. 447.010.  Energy-Saving Devices or Measures. (a)  On
 48-9    approval by the state energy conservation office [management
48-10    center], a state agency that reduces its energy expenses may use
48-11    any funds saved by the agency from appropriated utility funds for
48-12    the purchase of an energy-saving device [devices] or measure
48-13    [measures].  For purposes of this section, "energy-saving device or
48-14    measure" means a device or measure that directly reduces:
48-15                (1)  energy costs; or
48-16                (2)  the energy consumption of equipment, including a
48-17    lighting, heating, ventilation [ventilating], or air conditioning
48-18    system, [or of other equipment that uses electricity, natural gas,
48-19    fuel oil, or any other energy source] without materially altering
48-20    the quality of the equipment [such lighting, heating, ventilating,
48-21    air conditioning, or other energy consuming system].
48-22          (b)  A state agency, in accordance with the recommendations
48-23    of an energy audit, may purchase energy-saving devices or measures
48-24    from appropriated utility funds if the savings in utility funds
48-25    projected by the audit will offset the purchase.  The agency shall
48-26    retain in its files a [within four years. A] copy of the
48-27    recommendation and repayment schedule [must be attached to the
 49-1    purchase voucher] as evidence of the projected savings.
 49-2          Sec. 447.011.  Energy Management Planning. (a)  The state
 49-3    energy conservation office [management center] shall provide energy
 49-4    management planning assistance to a state agency or an institution
 49-5    [agencies and institutions] of higher education, including:
 49-6                (1)  preparation by the agency or institution of a
 49-7    long-range plan for the delivery of reliable, cost-effective
 49-8    utility services for the state agency or institution [agencies,
 49-9    institutions of higher education, boards, and commissions in Travis
49-10    County.  This plan shall be presented to the affected agencies for
49-11    use in preparing their five-year construction and major
49-12    rehabilitation plans.  After other energy-saving alternatives are
49-13    considered, district heating and cooling and on-site generation of
49-14    electricity may be considered in planning for reliable, efficient,
49-15    and cost-effective utility services];
49-16                (2)  assistance to the Department of Public Safety for
49-17    energy emergency contingency planning, using state or federal funds
49-18    when available; [and]
49-19                (3)  assistance to each state agency or institution
49-20    [agencies and institutions] of higher education in preparing
49-21    comprehensive energy management plans; and
49-22                (4)  assistance to a state agency in complying with
49-23    Section 447.002, including the prioritization and scheduling of
49-24    implementation plans to ensure adoption of qualified,
49-25    cost-effective efficiency measures and programs for each state
49-26    building or facility.
49-27          (b)  A state agency or an institution of higher education
 50-1    shall present a plan prepared under Subsection (a)(1) to the state
 50-2    energy conservation office.  The agency or institution shall use
 50-3    the plan in preparing its five-year construction and major
 50-4    renovation plans.  After other energy-saving alternatives are
 50-5    considered, district heating and cooling or on-site generation of
 50-6    electricity may be considered in planning for reliable, efficient,
 50-7    and cost-effective utility services.
 50-8          (c)  The state energy conservation office [management center]
 50-9    shall prepare guidelines for the preparation of a plan under
50-10    Subsection (a)(3).  A state agency or an institution [these plans.
50-11    State agencies and institutions] of higher education that occupies
50-12    a [expend more than $250,000 annually for heating, lighting, and
50-13    cooling and that occupy] state-owned building [buildings] shall
50-14    prepare and submit a five-year energy management plan to the
50-15    office.  The agency or institution shall update its plan [center.
50-16    Agencies and institutions of higher education with smaller usage
50-17    may be required to submit such plans.  Updated plans shall be
50-18    submitted] biennially, if [when] requested to do so by the office
50-19    [center].  A state agency or an institution of higher education
50-20    that occupies a building not owned by the state shall cooperate
50-21    with the office in addressing the energy management of that
50-22    building.
50-23          (d) [(b)]  The comprehensive energy management plan prepared
50-24    under [required in] Subsection (a)(3) shall be included in the
50-25    five-year construction and major repair and rehabilitation plans
50-26    for institutions of higher education as required by [under] Section
50-27    [61.058 and] 61.0651, Education Code.
 51-1          SECTION 29.  Section 466.355, Government Code, is amended by
 51-2    adding Subsection (c) to read as follows:
 51-3          (c)  Each August the comptroller shall:
 51-4                (1)  estimate the amount to be transferred to the
 51-5    foundation school fund on or before September 15; and
 51-6                (2)  notwithstanding Subsection (b)(4), transfer the
 51-7    amount estimated in Subdivision (1) to the foundation school fund
 51-8    before August installment payments are made under Section 42.259,
 51-9    Education Code.
51-10          SECTION 30. The heading to Subchapter C, Chapter 659,
51-11    Government Code, is amended to read as follows:
51-12                  SUBCHAPTER C.  [COMPENSATORY] PER DIEM
51-13          SECTION 31.  Section 659.043(a), Government Code, is amended
51-14    to read as follows:
51-15          (a)  A state employee is entitled to longevity pay to be
51-16    included in the employee's monthly compensation if the employee:
51-17                (1)  is a full-time state employee on the first workday
51-18    of the month;
51-19                (2)  is not on leave without pay on the first workday
51-20    of the month; and
51-21                (3)  has accrued at least three [five] years of
51-22    lifetime service credit not later than the last day of the
51-23    preceding month.
51-24          SECTION 32. Section 659.044, Government Code, is amended by
51-25    amending Subsections (a) and (d) and adding Subsection (e) to read
51-26    as follows:
51-27          (a)  Except as provided by Subsection (e), the [The] monthly
 52-1    amount of longevity pay is $4 for each year of lifetime service
 52-2    credit.
 52-3          (d)  An employee may not receive from the state as longevity
 52-4    pay more than the amount determined under Subsection (a) or (e), as
 52-5    applicable [$4 for each year of lifetime service credit],
 52-6    regardless of the number of positions the employee holds or the
 52-7    number of hours the employee works each week.
 52-8          (e)  This subsection applies only to an employee of the Texas
 52-9    Youth Commission who is receiving less than the maximum amount of
52-10    hazardous duty pay that the commission may pay to the employee
52-11    under Section 659.303.  The employee's monthly amount of longevity
52-12    pay is the sum of:
52-13                (1)  $4 for each year of lifetime service credit, which
52-14    may not include any period served in a hazardous duty position; and
52-15                (2)  the lesser of:
52-16                      (A)  $4 for each year served in a hazardous duty
52-17    position; or
52-18                      (B)  the difference between:
52-19                            (i)  $7 for each year served in a hazardous
52-20    duty position; and
52-21                            (ii)  the amount paid by the commission for
52-22    each year served in a hazardous duty position.
52-23          SECTION 33. Section 659.046, Government Code, is amended by
52-24    adding Subsection (f) to read as follows:
52-25          (f)  The amount of an employee's lifetime service credit does
52-26    not include the period served in a hazardous duty position if the
52-27    employee is:
 53-1                (1)  entitled to receive hazardous duty pay under
 53-2    Section 659.302; or
 53-3                (2)  receiving the maximum amount of hazardous duty pay
 53-4    that the Texas Youth Commission may pay to the employee under
 53-5    Section 659.303.
 53-6          SECTION 34.  Section 659.254(c), Government Code, is amended
 53-7    to read as follows:     
 53-8          (c)  An employee whose classified position is reallocated by
 53-9    the General Appropriations Act or reclassified under Chapter 654 to
53-10    a higher salary group will be paid at the minimum salary rate in
53-11    the higher salary group or at the salary rate the employee would
53-12    have received without the reallocation or reclassification,
53-13    whichever rate is higher, except[:]
53-14                [(1)]  to maintain desirable salary relationships among
53-15    employees in the affected positions, the salary may be adjusted not
53-16    more than:
53-17                (1) [(A)]  two steps higher, if the employee's salary
53-18    group is divided into steps by the General Appropriations Act; or
53-19                (2) [(B)]  6.8 percent higher, if the employee's salary
53-20    group is not divided into steps by the General Appropriations Act[;
53-21    and]
53-22                [(2)  the employee may not advance to a step number in
53-23    the new salary group higher than the step number rate held before
53-24    the reallocation or reclassification, if the employee's salary
53-25    group is divided into steps by the General Appropriations Act].
53-26          SECTION 35.  Subchapter K, Chapter 659, Government Code, is
53-27    amended by adding Sections 659.2551 and 659.2552 to read as
 54-1    follows:
 54-2          Sec. 659.2551.  PERFORMANCE LINKED TO AGENCY GOALS. Each
 54-3    state agency shall adopt policies to ensure that an employee's
 54-4    performance expectations are linked to the goals in the agency's
 54-5    strategic plan adopted under Chapter 2056.
 54-6          Sec. 659.2552.  TASK FORCE TO EVALUATE EMPLOYEE COMPENSATION
 54-7    SYSTEMS. (a)  The task force is composed of:
 54-8                (1)  a representative of:
 54-9                      (A)  the governor's office, appointed by the
54-10    governor;
54-11                      (B)  the state auditor's office, appointed by the
54-12    state auditor;
54-13                      (C)  the comptroller's office, appointed by the
54-14    comptroller; and
54-15                      (D)  the Legislative Budget Board, appointed by
54-16    the director; and
54-17                (2)  the following representatives, appointed by the
54-18    governor:
54-19                      (A)  three representatives from state agencies
54-20    that employ fewer than 100 full-time employees;
54-21                      (B)  three representatives from state agencies
54-22    that employ at least 100 but fewer than 1,000 full-time employees;
54-23    and
54-24                      (C)  three representatives from state agencies
54-25    that employ 1,000 or more full-time employees;
54-26          (b)  The representative of the state auditor's office shall
54-27    serve as the presiding officer of the task force.
 55-1          (c)  The task force shall:
 55-2                (1)  evaluate the strengths and weaknesses of the
 55-3    current merit increase system for compensating employees;
 55-4                (2)  identify statewide opportunities for funding
 55-5    pay-for-performance policies and practices to supplement current
 55-6    efforts at recruiting and retaining employees; and
 55-7                (3)  provide recommendations on those matters to the
 55-8    legislature not later than January 1, 2003.
 55-9          (d)  A member of the task force serves at the will of the
55-10    appointing entity.
55-11          SECTION 36. Sections 659.260(b) and (e), Government Code, are
55-12    amended to read as follows:
55-13          (b)  To facilitate a state agency's work during an emergency
55-14    or other special circumstance, an employee may[:]
55-15                [(1)]  be temporarily assigned to other duties for a
55-16    period not to exceed six months.  The employee is entitled to[; and]
55-17                [(2)]  receive during the period of reassignment at
55-18    least the same [appropriate] rate of pay that the employee received
55-19    immediately before the reassignment [for the temporary position if
55-20    the temporary position is classified in a salary group with a
55-21    higher minimum salary rate].  An employee may not be temporarily
55-22    assigned under this subsection to a position classified in a salary
55-23    group with a lower minimum salary rate.
55-24          (e)  While the employee is temporarily assigned under this
55-25    section, the state agency may not:
55-26                (1)  award a merit salary increase to the employee; or
55-27                (2)  promote or demote the employee[; or]
 56-1                [(3)  reduce the employee's salary].
 56-2          SECTION 37. Chapter 659, Government Code, is amended by
 56-3    adding Subchapter L to read as follows:
 56-4                     SUBCHAPTER L.  HAZARDOUS DUTY PAY
 56-5          Sec. 659.301.  DEFINITIONS.  In this subchapter:
 56-6                (1)  "Full-time state employee" means a state employee
 56-7    who normally works at least 40 hours each week.
 56-8                (2)  "Hazardous duty position" means a position in the
 56-9    service of this state that:
56-10                      (A)  renders any individual holding that position
56-11    a state employee; or
56-12                      (B)  requires the performance of hazardous duty.
56-13                (3)  "Institution of higher education" has the meaning
56-14    assigned by Section 61.003, Education Code.
56-15                (4)  "Part-time state employee" means a state employee
56-16    who is not a full-time state employee.
56-17                (5)  "State employee" means an individual who:
56-18                      (A)  is a commissioned law enforcement officer of
56-19    the Department of Public Safety, the General Services Commission,
56-20    the Texas Alcoholic Beverage Commission, or the institutional
56-21    division of the Texas Department of Criminal Justice;
56-22                      (B)  is a commissioned security officer of the
56-23    comptroller;
56-24                      (C)  is a law enforcement officer commissioned by
56-25    the Parks and Wildlife Commission;
56-26                      (D)  is a commissioned peace officer of an
56-27    institution of higher education;
 57-1                      (E)  is an employee or official of the Board of
 57-2    Pardons and Paroles or the pardons and paroles division of the
 57-3    Texas Department of Criminal Justice if the employee or official
 57-4    has routine direct contact with inmates of any penal or
 57-5    correctional institution or with administratively released
 57-6    prisoners subject to the board's jurisdiction;
 57-7                      (F)  has been certified to the Employees
 57-8    Retirement System of Texas under Section 815.505 as having begun
 57-9    employment as a law enforcement officer or custodial officer,
57-10    unless the individual has been certified to the system as having
57-11    ceased employment as a law enforcement officer or custodial
57-12    officer; or
57-13                      (G)  before May 29, 1987, received hazardous duty
57-14    pay based on the terms of any state law if the individual holds a
57-15    position designated under that law as eligible for the pay.
57-16                (6)  "Workday" means any day that is not a Saturday, a
57-17    Sunday, or a state or national holiday under Section 662.003. The
57-18    term includes a state or national holiday that the General
57-19    Appropriations Act prohibits state agencies from observing.
57-20          Sec. 659.302.  ENTITLEMENT TO RECEIVE HAZARDOUS DUTY PAY. (a)
57-21    Hazardous duty pay is included in the compensation paid to an
57-22    individual for services rendered during a month if the individual:
57-23                (1)  is a state employee for any portion of the first
57-24    workday of the month; and
57-25                (2)  has completed at least 12 months of lifetime
57-26    service credit not later than the last day of the preceding month.
57-27          (b)  This section does not apply to an employee of the Texas
 58-1    Youth Commission.
 58-2          Sec. 659.303.  TEXAS YOUTH COMMISSION EMPLOYEES. (a)  The
 58-3    commission may include hazardous duty pay in the compensation paid
 58-4    to an individual for services rendered during a month if the
 58-5    individual:
 58-6                (1)  has routine direct contact with youth:
 58-7                      (A)  placed in a residential facility of the
 58-8    commission; or
 58-9                      (B)  released under the commission's supervision;
58-10    and
58-11                (2)  has completed at least 12 months of lifetime
58-12    service credit not later than the last day of the preceding month.
58-13          (b)  For purposes of Subsection (a)(1), an individual who is
58-14    having routine direct contact with youth on any portion of the
58-15    first workday of a month is considered to have routine direct
58-16    contact with youth for the entire month.
58-17          (c)  The commission's authority under Subsection (a)  is
58-18    subject to any conditions or limitations in the General
58-19    Appropriations Act.
58-20          (d)  The commission may not pay hazardous duty pay:
58-21                (1)  from funds authorized for payment of an
58-22    across-the-board employee salary increase; or
58-23                (2)  to an employee who works at the commission's
58-24    central office.
58-25          (e)  In this section, "commission" means the Texas Youth
58-26    Commission.
58-27          Sec. 659.304.  INELIGIBILITY TO RECEIVE HAZARDOUS DUTY PAY.
 59-1    Hazardous duty pay may be paid only to an individual who is:
 59-2                (1)  entitled to receive the pay under Section 659.302;
 59-3    or
 59-4                (2)  eligible to receive the pay under Section 659.303.
 59-5          Sec. 659.305.  AMOUNT OF HAZARDOUS DUTY PAY. (a)  Except as
 59-6    provided by Subsection (b), the amount of a full-time state
 59-7    employee's hazardous duty pay for a particular month is the lesser
 59-8    of:
 59-9                (1)  $7 for each 12-month period of lifetime service
59-10    credit accrued by the employee; or
59-11                (2)  $210.
59-12          (b)  This subsection applies only to a state employee whose
59-13    compensation for services provided to the state during any month
59-14    before August 1987 included hazardous duty pay that was based on
59-15    total state service performed before May 29, 1987.  The amount of a
59-16    full-time state employee's hazardous duty pay for a particular
59-17    month is the sum of:
59-18                (1)  $7 for each 12-month period of state service
59-19    credit the employee finished accruing before May 29, 1987; and
59-20                (2)  $7 for each 12-month period of lifetime service
59-21    credit that the employee accrued after the date, which must be
59-22    before May 29, 1987, on which the employee finished accruing the
59-23    last 12-month period of state service credit.
59-24          (c)  The amount determined under Subsection (b)(2) may not
59-25    exceed $210.
59-26          (d)  For purposes of Subsections (a)(1) and (b)(2), the
59-27    number of 12-month periods of lifetime service credit that the
 60-1    employee has accrued must be determined as of the last day of the
 60-2    preceding month.
 60-3          (e)  A state employee is considered to be a full-time state
 60-4    employee for purposes of Subsection (a)  or (b) if the employee is
 60-5    a full-time state employee for any portion of the first workday of
 60-6    the month.
 60-7          (f)  The amount of a part-time state employee's hazardous
 60-8    duty pay is proportional to the amount of a full-time state
 60-9    employee's pay under Subsection (a)  or (b).
60-10          (g)  A state employee may not receive more than $7 for each
60-11    12-month period of lifetime service credit, regardless of:
60-12                (1)  the number of positions the employee holds; or
60-13                (2)  the number of hours the employee works each week.
60-14          Sec. 659.306.  RESPONSIBILITY FOR PAYING HAZARDOUS DUTY PAY.
60-15    The state agency that employs an individual at the beginning of the
60-16    first workday of a month must pay any hazardous duty pay that is
60-17    included in the compensation paid to the individual for services
60-18    rendered during that month.  If the individual transfers to a
60-19    second state agency during that month, the first agency remains
60-20    responsible for paying the full amount of hazardous duty pay for
60-21    that month.
60-22          Sec. 659.307.  SERVICE CREDIT. (a)  The amount of an
60-23    individual's lifetime service credit equals the number of months
60-24    the individual has served in a hazardous duty position during the
60-25    individual's lifetime.
60-26          (b)  The amount of an individual's state service credit
60-27    equals the sum of:
 61-1                (1)  the amount of the individual's lifetime service
 61-2    credit, as determined under Subsection (a); and
 61-3                (2)  the number of months during the individual's
 61-4    lifetime that the individual has provided services to the state in
 61-5    a position that is not a hazardous duty position.
 61-6          Sec. 659.308.  ADMINISTRATION.  The comptroller may establish
 61-7    procedures and adopt rules to administer this subchapter.
 61-8          SECTION 38. Section 660.203(a), Government Code, is amended
 61-9    to read as follows:
61-10          (a)  An individual is entitled to reimbursement for the
61-11    actual expense of meals and lodging incurred while performing the
61-12    duties of the individual's office or employment if the individual
61-13    is:
61-14                (1)  a judicial officer;
61-15                (2)  a chief administrative officer of a state agency,
61-16    subject to Subsection (c);
61-17                (3)  the executive director of the Texas Legislative
61-18    Council;  [or]
61-19                (4)  the secretary of the senate;
61-20                (5)  a member of the Texas Natural Resource
61-21    Conservation Commission, the Texas Workforce Commission, the Public
61-22    Utility Commission of Texas, the Board of Pardons and Paroles, or
61-23    the Sabine River Compact Administration; or
61-24                (6)  a full-time member of a board and receives a
61-25    salary from the state for service on that board.
61-26          SECTION 39. Chapter 666, Government Code, as added by Chapter
61-27    1467, Acts of the 76th Legislature, Regular Session, 1999, is
 62-1    amended to read as follows:
 62-2           CHAPTER 666. RECOVERING [PAYROLL DEDUCTION TO RECOUP]
 62-3          EXCESS COMPENSATION PAID TO A STATE OFFICER OR EMPLOYEE
 62-4          Sec. 666.001.  DEFINITIONS.  In this chapter:
 62-5                (1)  "Compensation" includes:
 62-6                      (A)  base salary or wages;
 62-7                      (B)  longevity or hazardous duty pay;
 62-8                      (C)  benefit replacement pay;
 62-9                      (D)  a payment for the balance of vacation and
62-10    sick leave under Subchapter B, Chapter 661;
62-11                      (E)  a payment for the accrued balance of
62-12    vacation time under Subchapter C, Chapter 661; and
62-13                      (F)  an emolument provided in lieu of base salary
62-14    or wages.
62-15                (2)  "Indebtedness" means the amount of compensation
62-16    paid to a state employee that exceeds the amount the employee is
62-17    eligible to receive under law because at the time the compensation
62-18    was paid:
62-19                      (A)  the employee was ineligible to receive the
62-20    entire amount paid; or
62-21                      (B)  the employee's eligibility to receive the
62-22    entire amount paid was conditioned on:
62-23                            (i)  the occurrence of an event that did
62-24    not occur; or
62-25                            (ii)  the employee's fulfillment of a
62-26    promise that the employee did not fulfill.
62-27                (3)  "State agency" means a board, commission, council,
 63-1    committee, department, office, agency, or other governmental entity
 63-2    in the executive, legislative, or judicial branch of state
 63-3    government.  The term includes:
 63-4                      (A)  the Texas Guaranteed Student Loan
 63-5    Corporation; and
 63-6                      (B)  an institution of higher education as
 63-7    defined by Section 61.003, Education Code, other than a public
 63-8    junior or community college.
 63-9                (4)  "State employee" means an officer or employee of a
63-10    state agency.
63-11                (5)  "Successor" means:
63-12                      (A)  the estate of a deceased state employee;
63-13                      (B)  the surviving spouse of a deceased state
63-14    employee; or
63-15                      (C)  the distributees of the estate of a deceased
63-16    state employee.
63-17          Sec. 666.002.  RECOVERY [DEDUCTION] AUTHORIZATION. (a)  A
63-18    state agency may recover in accordance with this chapter [deduct]
63-19    the amount of a state employee's indebtedness to the agency [from
63-20    any amount of compensation the agency owes the employee or the
63-21    employee's successor] if:
63-22                (1)  the agency provides a notice to the employee or
63-23    successor that complies with Section 666.003;
63-24                (2)  the agency provides the employee or successor with
63-25    an opportunity to exercise any due process or other constitutional
63-26    or statutory protection that must be accommodated before the agency
63-27    may begin a collection action or procedure;
 64-1                (3)  the agency determines that the recovery
 64-2    [deduction] would not violate any applicable law or rule of this
 64-3    state or the United States; and
 64-4                (4)  the comptroller is not responsible under Section
 64-5    404.046, 404.069, or 2103.003 for paying the amount owed by the
 64-6    agency to the employee or successor through the issuance of a
 64-7    warrant or initiation of an electronic funds transfer.
 64-8          (b)  The comptroller may recover in accordance with this
 64-9    chapter [deduct] the amount of a state employee's indebtedness to a
64-10    state agency [from any amount of compensation the agency owes the
64-11    employee or the employee's successor] if:
64-12                (1)  the agency provides a notice to the employee or
64-13    successor that complies with Section 666.003;
64-14                (2)  the agency's request for [agency requests] the
64-15    comptroller to recover the indebtedness complies [make the
64-16    deduction in accordance] with Section 666.005; and
64-17                (3)  the comptroller is responsible under Section
64-18    404.046, 404.069, or 2103.003 for paying the amount owed by the
64-19    agency to the employee or the successor through the issuance of a
64-20    warrant or initiation of an electronic funds transfer.
64-21          (c)  A state agency may recover the amount of a state
64-22    employee's indebtedness to the agency under this chapter by:
64-23                (1)  deducting the amount of the indebtedness from any
64-24    amount of compensation the agency owes the employee or the
64-25    employee's successor; or
64-26                (2)  reducing the gross amount of base salary or wages
64-27    that the agency owes the employee or the employee's successor for
 65-1    services provided by the employee during any pay period after the
 65-2    pay period in which the indebtedness was incurred.
 65-3          (d)  The comptroller may recover the amount of a state
 65-4    employee's indebtedness to a state agency under this chapter by:
 65-5                (1)  deducting the amount of the indebtedness from any
 65-6    amount of compensation the agency owes the employee or the
 65-7    employee's successor; or
 65-8                (2)  reducing the gross amount of base salary or wages
 65-9    that the agency owes the employee or the employee's successor for
65-10    services provided by the employee during any pay period after the
65-11    pay period in which the indebtedness was incurred.
65-12          (e)  For the purposes of Subsections (c)(2) and (d)(2), an
65-13    indebtedness is incurred during the pay period the compensation is
65-14    earned by the employee.  For purposes of this subsection,
65-15    compensation is earned without regard to whether the amount of that
65-16    compensation exceeds the amount the employee was eligible to
65-17    receive.
65-18          Sec. 666.003.  NOTICE. (a)  A state agency shall provide
65-19    notice to a state employee or the employee's successor before the
65-20    agency:
65-21                (1)  recovers [deducts] the amount of the employee's
65-22    indebtedness to the agency under Section 666.002(a); or
65-23                (2)  requests the comptroller to recover the amount of
65-24    the employee's indebtedness to the agency [make a deduction] under
65-25    Section 666.002(b).
65-26          (b)  The notice must:
65-27                (1)  be given in a manner reasonably calculated to give
 66-1    actual notice to the employee or successor;
 66-2                (2)  state the:
 66-3                      (A)  amount of the indebtedness; and
 66-4                      (B)  name of the indebted employee;
 66-5                (3)  specify the date by which the indebtedness must be
 66-6    paid; and
 66-7                (4)  inform the employee or successor that unless the
 66-8    indebtedness is paid on or before the date specified, the amount of
 66-9    the indebtedness may be recovered by:
66-10                      (A)  deducting it [deducted] from any amount of
66-11    compensation the agency owes the employee or successor; or
66-12                      (B)  reducing the gross amount of base salary or
66-13    wages that the agency owes the employee or successor for services
66-14    provided by the employee during any pay period after the pay period
66-15    in which the indebtedness was incurred.
66-16          (c)  For purposes of Subsection (b)(4)(B), an indebtedness is
66-17    incurred during the pay period the compensation is earned by the
66-18    employee.  For purposes of this subsection, compensation is earned
66-19    without regard to whether the amount of that compensation exceeds
66-20    the amount the employee was eligible to receive.
66-21          Sec. 666.004.  PAYMENT OF AMOUNT REMAINING.  Any amount that
66-22    remains owed after a recovery [deduction] under Section 666.002
66-23    shall be paid to the state employee or successor.
66-24          Sec. 666.005.  RECOVERY [DEDUCTION] REQUESTS TO THE
66-25    COMPTROLLER. (a)  A state agency may not request the comptroller to
66-26    make a recovery [deduction from compensation owed to a state
66-27    employee or successor] under Section 666.002(b) before the agency:
 67-1                (1)  provides the employee or successor the opportunity
 67-2    to exercise any due process or other constitutional or statutory
 67-3    protection that must be accommodated before a collection action or
 67-4    procedure may begin; and
 67-5                (2)  determines that the recovery [deduction] would not
 67-6    violate any applicable law or rule of this state or the United
 67-7    States.
 67-8          (b)  The comptroller may not investigate or determine whether
 67-9    the agency has complied with Subsection (a)(1).  The comptroller
67-10    may rely on a determination made under Subsection (a)(2).
67-11          (c)  A state agency's request to the comptroller to make a
67-12    recovery [deduction] under Section 666.002(b) must comply with the
67-13    comptroller's requirements for format, content, and frequency.
67-14          Sec. 666.006.  ASSIGNEES.  (a) The assignee of a state
67-15    employee or the employee's successor is considered to be a
67-16    successor for the purposes of this chapter, except that a recovery
67-17    [deduction] under this chapter from the compensation or base salary
67-18    or wages owed to the assignee of a state employee or the employee's
67-19    successor may not be made if the assignment became effective before
67-20    [after] the employee incurred the indebtedness.
67-21          (b)  For purposes of Subsection (a), an indebtedness is
67-22    incurred on:
67-23                (1)  the date the compensation is paid, if eligibility
67-24    to receive the entire amount of the compensation was not
67-25    conditioned on a state employee fulfilling a promise; or
67-26                (2)  the day after the deadline for a state employee to
67-27    fulfill a promise, if eligibility to receive the entire amount of
 68-1    the compensation was conditioned on the employee fulfilling the
 68-2    promise.
 68-3          (c)  This chapter neither authorizes nor prohibits a state
 68-4    employee or the employee's successor from assigning the employee's
 68-5    or successor's right or eligibility to receive compensation.
 68-6          Sec. 666.007.  OTHER METHODS OF RECOVERY NOT PROHIBITED. This
 68-7    chapter does not prohibit the comptroller or a state agency from
 68-8    recovering an indebtedness in any manner authorized by a law other
 68-9    than this chapter.
68-10          Sec. 666.008.  ADMINISTRATION.  The comptroller may adopt
68-11    rules and establish procedures to administer this chapter.
68-12          SECTION 40. Sections 2101.011(a), (b), and (c), Government
68-13    Code, are amended to read as follows:
68-14          (a)  In this section:
68-15                (1)  "Annual financial report" means the annual
68-16    financial report required by this section.
68-17                (2)  "Appropriated money" means money appropriated by
68-18    the legislature under the General Appropriations Act or other law.
68-19                [(2)  "Appropriation item" includes an item listed in
68-20    the General Appropriations Act under an informational listing of
68-21    appropriated funds.]
68-22          (b)  Not later than November 20 of each year, a [the
68-23    executive head of each] state agency shall submit an annual
68-24    financial report regarding the agency's use of appropriated money
68-25    during the preceding fiscal year to:
68-26                (1)  the governor;
68-27                (2)  the comptroller;
 69-1                (3)  the Legislative Reference Library;
 69-2                (4)  the state auditor; and
 69-3                (5)  the Legislative Budget Board.
 69-4          (c)  A state agency's [The] annual financial report must
 69-5    include[:]
 69-6                [(1)]  a detailed statement of all assets, liabilities,
 69-7    and fund balances, including:
 69-8                (1) [(A)]  cash on hand and on deposit in banks and
 69-9    accounts in the state treasury;
69-10                (2) [(B)]  the value of consumable supplies and
69-11    postage;
69-12                (3) [(C)]  the value of the [state] agency's inventory
69-13    of movable equipment and other fixed assets;
69-14                (4) [(D)]  all other assets;
69-15                (5)  an itemization [(E)  a list] of the investments,
69-16    bonds, notes, and other securities owned by any special funds under
69-17    the agency's jurisdiction [of the state agency], including the
69-18    amount and value of the securities;
69-19                (6) [(F)]  all money due the [state] agency from any
69-20    source;
69-21                (7) [(G)]  all outstanding commitments of the agency,
69-22    including amounts due for services or goods received by the agency;
69-23                (8) [(H)]  a summary by source of all revenue collected
69-24    or accruing through the [state] agency; [and]
69-25                (9) [(I)]  a summary of all appropriations,
69-26    expenditures, bona fide encumbrances, and other disbursements by
69-27    the [state] agency; and
 70-1                (10) [(2)  a list of all bonded employees, including
 70-2    the name of the surety company, the name and title of the employee,
 70-3    and the amount of the surety bond;]
 70-4                [(3)  an analysis of space occupied by the state
 70-5    agency, including:]
 70-6                      [(A)  the total number of square feet of space
 70-7    rented by the agency;]
 70-8                      [(B)  the total number of square feet of occupied
 70-9    space in state-owned buildings;]
70-10                      [(C)  the name and address of each building in
70-11    which the state agency occupies space and the number of square feet
70-12    in each building devoted to a particular use;]
70-13                      [(D)  the cost per square foot of all rented
70-14    space;]
70-15                      [(E)  the annual and monthly cost of all rented
70-16    space;]
70-17                      [(F)  the lessor of all rented space;]
70-18                      [(G)  a statement of the state agency's progress
70-19    toward achieving the objective provided by Section 2165.104, if the
70-20    agency is subject to that section; and]
70-21                      [(H)  other information helpful to describe the
70-22    state agency's use of space;]
70-23                [(4)  an itemized statement of all fees paid by the
70-24    state agency for professional and consulting services provided
70-25    under Chapter 2254, including the name of each person receiving
70-26    fees and the reason for the provision of the services;]
70-27                [(5)  an itemized statement of all legal services paid
 71-1    by the state agency, other than services provided by an employee of
 71-2    the agency or the attorney general, that includes the name of each
 71-3    person receiving fees and the reason for the provision of the
 71-4    services;]
 71-5                [(6)  a copy of the report, relating to the state
 71-6    agency's use and cost of operating aircraft that is state-owned or
 71-7    under rental or long-term lease, prepared by the agency in
 71-8    accordance with Section 2205.041;]
 71-9                [(7)  a list of any purchases made under Section
71-10    2155.067, including each product purchased, the purchase amount,
71-11    and the name of each vendor;]
71-12                [(8)  for each fiscal year ending in an even-numbered
71-13    calendar year, a copy of the Master File Report Verification Form
71-14    certified by the General Land Office, if applicable to the state
71-15    agency, to confirm that the agency is in compliance with Subchapter
71-16    E, Chapter 31, Natural Resources Code, or, if the agency's
71-17    inventory record is not accurate and complete, a statement that the
71-18    appropriate forms will be submitted to the General Land Office not
71-19    later than the 15th day after the date of the annual report;]
71-20                [(9)  a copy of the report, relating to the state
71-21    agency's use of historically underutilized businesses, prepared by
71-22    the agency in accordance with Section 2161.124;]
71-23                [(10)  a report of any transfer of appropriated money
71-24    between appropriation items that shows the sum of all transfers
71-25    affecting a particular item;]
71-26                [(11)  a list of each passenger vehicle the state
71-27    agency purchased, including the make and model, purchase price,
 72-1    assigned type of use, and fuel efficiency as expressed by the
 72-2    manufacturer's fuel efficiency rating;]
 72-3                [(12)  a schedule, applicable to state agencies
 72-4    determined by the Legislative Budget Board, detailing total
 72-5    expenditures by or on behalf of a state agency for employee
 72-6    benefits, such as social security, health insurance, and retirement
 72-7    contributions, benefit replacement pay, and workers' and
 72-8    unemployment compensation payments;  bond debt service; and
 72-9    payments for general governmental services as determined by the
72-10    comptroller, including services of the comptroller, the attorney
72-11    general, the General Services Commission, the Department of
72-12    Information Resources, and the state auditor;]
72-13                [(13)  for an institution of higher education, the
72-14    total amount of lump-sum payments made to employees who separated
72-15    from state service during the fiscal year for accrued vacation and
72-16    compensatory leave; and]
72-17                [(14)]  any other financial information requested by
72-18    the comptroller.
72-19          SECTION 41. Subchapter B, Chapter 2101, Government Code, is
72-20    amended by adding Section 2101.0115 to read as follows:
72-21          Sec. 2101.0115.  OTHER INFORMATION REQUIRED OF STATE
72-22    AGENCIES. (a)  A state agency shall submit an annual report to:
72-23                (1)  the governor;
72-24                (2)  the comptroller;
72-25                (3)  the Legislative Reference Library;
72-26                (4)  the state auditor; and
72-27                (5)  the Legislative Budget Board.
 73-1          (b)  A state agency's annual report must cover an entire
 73-2    fiscal year.  The agency shall submit the report not later than the
 73-3    date and in the form prescribed by the comptroller.
 73-4          (c)  A state agency's annual report must include:
 73-5                (1)  the name and job title of each bonded agency
 73-6    employee, the amount of the bond, and the name of the surety
 73-7    company that issued the bond;
 73-8                (2)  an analysis of space occupied by the agency,
 73-9    including:
73-10                      (A)  the total amount of space rented by the
73-11    agency, expressed in square feet;
73-12                      (B)  the total amount of space occupied by the
73-13    agency in state-owned buildings, expressed in square feet;
73-14                      (C)  the name and address of each building in
73-15    which the agency occupies space and the amount of square feet in
73-16    each building devoted to each particular use;
73-17                      (D)  the cost per square foot of all rented
73-18    space;
73-19                      (E)  the annual and monthly cost of all rented
73-20    space;
73-21                      (F)  the name of each lessor of space rented by
73-22    the agency;
73-23                      (G)  a description of the agency's progress
73-24    toward achieving the objective provided by Section 2165.104, if the
73-25    agency is subject to that section; and
73-26                      (H)  any other information helpful to describe
73-27    the agency's use of space;
 74-1                (3)  an itemization of all fees paid by the agency for
 74-2    professional or consulting services provided under Subchapter A or
 74-3    B, Chapter 2254, including the name of each person receiving those
 74-4    fees and the reason for the provision of the services;
 74-5                (4)  an itemization of all fees paid by the agency for
 74-6    legal services, other than legal services provided by an agency
 74-7    employee or the attorney general, including the name of each person
 74-8    receiving those fees and the reason for the provision of the
 74-9    services;
74-10                (5)  a copy of the form prepared by the agency under
74-11    Section 2205.041, relating to the agency's use and cost of
74-12    operating aircraft that are state-owned or under rental or
74-13    long-term lease;
74-14                (6)  an itemization of any purchases made under Section
74-15    2155.067, including each product purchased, the amount of the
74-16    purchase, and the name of the vendor;
74-17                (7)  for each fiscal year ending in an even-numbered
74-18    calendar year:
74-19                      (A)  a copy of the master file report
74-20    verification form certified by the General Land Office, if
74-21    applicable to the agency, to confirm that the agency is in
74-22    compliance with Subchapter E, Chapter 31, Natural Resources Code;
74-23    or
74-24                      (B)  if the agency's inventory record is
74-25    inaccurate or incomplete, a statement that the agency will submit
74-26    the appropriate forms to the General Land Office not later than the
74-27    15th day after the date the agency submits its annual report;
 75-1                (8)  a copy of the report prepared by the agency under
 75-2    Section 2161.124, relating to the agency's use of historically
 75-3    underutilized businesses;
 75-4                (9)  a report of each transfer of appropriated money
 75-5    between appropriation items that shows the sum of all transfers
 75-6    affecting each item;
 75-7                (10)  an itemization of each passenger vehicle the
 75-8    agency purchased, including the make, model, purchase price,
 75-9    assigned type of use, and fuel efficiency as expressed by the
75-10    manufacturer's fuel efficiency rating;
75-11                (11)  a schedule, applicable to state agencies
75-12    determined by the Legislative Budget Board, detailing total
75-13    expenditures by or on behalf of the agency for:
75-14                      (A)  employee benefits, including social
75-15    security, health insurance, retirement contributions, benefit
75-16    replacement pay, and workers' and unemployment compensation
75-17    payments;
75-18                      (B)  bond debt service; and
75-19                      (C)  payments for general governmental services
75-20    as defined by the comptroller, including services of the
75-21    comptroller, the attorney general, the General Services Commission,
75-22    the Department of Information Resources, and the state auditor;
75-23                (12)  for an institution of higher education, the total
75-24    amount of lump-sum vacation and compensatory leave payments made to
75-25    employees who separated from state service during the fiscal year;
75-26                (13)  the name and job title of each state officer or
75-27    employee authorized to use a state-owned or state-leased vehicle
 76-1    and the reasons for the authorization, in accordance with Section
 76-2    2113.013; and
 76-3                (14)  a report of expenditures made for each commodity
 76-4    or service identified under Section 2155.448, including:
 76-5                      (A)  the total amount spent on those commodities
 76-6    and services;
 76-7                      (B)  the total amount spent for commodities and
 76-8    services purchased that accomplish the same purpose; and
 76-9                      (C)  the total amount spent for all other
76-10    recycled, remanufactured, or environmentally sensitive commodities
76-11    or services, itemized by type of commodity or service.
76-12          (d)  In this section:
76-13                (1)  "Annual report" means the annual report required
76-14    by this section.
76-15                (2)  "Appropriated money" means money appropriated by
76-16    the legislature under the General Appropriations Act or other law.
76-17                (3)  "Appropriation item" includes an item listed in
76-18    the General Appropriations Act under an informational listing of
76-19    appropriated funds.
76-20          SECTION 42. Section 2101.012(b), Government Code, is amended
76-21    to read as follows:
76-22          (b)  The procedures must:
76-23                (1)  comply with generally accepted accounting
76-24    principles as established by the Governmental Accounting Standards
76-25    Board and the American Institute of Certified Public Accountants or
76-26    their successors; and
76-27                (2)  include the requirements for compliance with the
 77-1    federal Single Audit Act of 1984 and Office of Management and
 77-2    Budget Circular A-133 [A-128] and any subsequent changes or
 77-3    amendments that will fulfill the audit requirements for a statewide
 77-4    single audit[; and]
 77-5                [(3)  to provide for maximum consistency with the
 77-6    national reporting system for higher education, incorporate insofar
 77-7    as possible the provisions of the financial accounting and
 77-8    reporting manual published by the National Association of College
 77-9    and University Business Officers].
77-10          SECTION 43. Section 2103.004, Government Code, is amended to
77-11    read as follows:
77-12          Sec. 2103.004.  WARRANTS AND ELECTRONIC FUNDS TRANSFERS.
77-13    (a)  A warrant may not be drawn or an electronic funds transfer
77-14    initiated until:
77-15                (1)  the state agency from whose appropriated or
77-16    unappropriated funds the warrant or electronic funds transfer is
77-17    payable has submitted a voucher to the comptroller;
77-18                (2)  the state agency has approved the voucher in
77-19    accordance with this chapter; and
77-20                (3)  the comptroller has audited and approved the
77-21    voucher as required by law.
77-22          (b)  A state agency's approval of a voucher includes the
77-23    agency's approval of any interest that must be paid at the same
77-24    time the principal amount is paid to a vendor under Chapter 2251.
77-25    In this subsection, "state agency" has the meaning assigned by
77-26    Section 2251.001.
77-27          SECTION 44. Section 2107.008, Government Code, is amended to
 78-1    read as follows:
 78-2          Sec. 2107.008.  PAYMENTS TO DEBTORS OR DELINQUENTS
 78-3    PROHIBITED. (a)  Except as provided by this section, a state
 78-4    agency, as a ministerial duty, may not use funds in or outside of
 78-5    the state treasury to pay a person if[:]
 78-6                [(1)] Section 403.055 prohibits the comptroller from
 78-7    issuing a warrant or initiating an electronic funds transfer to the
 78-8    person.
 78-9          (b)  Except as provided by this section, a state agency may
78-10    refuse to use funds in or outside of the state treasury to pay a
78-11    person if[; or]
78-12                [(2)]  the person is indebted to the state or has a tax
78-13    delinquency and[,] the agency is responsible for collecting that
78-14    indebtedness or delinquency.  This subsection applies only if[,
78-15    and] Section 403.055 does not prohibit the comptroller from issuing
78-16    a warrant or initiating an electronic funds transfer to the person.
78-17          (c) [(b)]  A state agency may not pay the assignee of a
78-18    person that the agency may not pay under Subsection (a) [(a)(1)] if
78-19    Section 403.055 prohibits the comptroller from issuing a warrant or
78-20    initiating an electronic funds transfer to the assignee.  The
78-21    agency may refuse to [not] pay the assignee of a person that the
78-22    agency may refuse to [not] pay under Subsection (b) [(a)(2)] if the
78-23    assignment became effective after the person became indebted to the
78-24    state or incurred a tax delinquency.
78-25          (d) [(c)]  A state agency that Subsection (a)  prohibits from
78-26    making a payment to a person also is prohibited from paying any
78-27    part of that payment to:
 79-1                (1)  the person's estate;
 79-2                (2)  the distributees of the person's estate; or
 79-3                (3)  the person's surviving spouse.
 79-4          (e)  A state agency that may refuse to make a payment to a
 79-5    person under Subsection (b) also may refuse to make any part of
 79-6    that payment to:
 79-7                (1)  the person's estate;
 79-8                (2)  the distributees of the person's estate; or
 79-9                (3)  the person's surviving spouse.
79-10          (f) [(d)]  This section neither prohibits [does not prohibit]
79-11    a state agency from paying nor authorizes a state agency to refuse
79-12    to pay a person [subject to Subsection (a)(2)] or the person's
79-13    assignee if the agency determines that the person is complying with
79-14    an installment payment agreement or similar agreement between the
79-15    agency and that person to pay or eliminate the debt or delinquency.
79-16          (g) [(e)]  The comptroller may not reimburse a state agency
79-17    for a payment that the comptroller determines was made in violation
79-18    of Subsection (a) [this section].
79-19          (h) [(f)]  Subsection (b) [(a)(2)] does not authorize
79-20    [prohibit] a state agency to refuse to pay [from paying]:
79-21                (1)  the compensation of a state officer or employee;
79-22    or
79-23                (2)  the remuneration of an individual if the
79-24    remuneration is being paid by a private person through the agency.
79-25          (i) [(g)]  Subsection (b) [(a)(2)] does not authorize
79-26    [prohibit] a state agency to refuse to make [from making] a payment
79-27    if:
 80-1                (1)  the payment would be made in whole or in part with
 80-2    money paid to the state by the United States; and
 80-3                (2)  the agency determines that federal law:
 80-4                      (A)  requires the payment to be made; or
 80-5                      (B)  conditions the state's receipt of the money
 80-6    on the payment being made.
 80-7          (j) [(h)]  A state agency may not refuse to make a payment
 80-8    under Subsection (b) [(a)(2)] before the agency has provided the
 80-9    person with an opportunity to exercise any due process or other
80-10    constitutional or statutory protection that must be accommodated
80-11    before the agency or the state may begin a collection action or
80-12    procedure.
80-13          (k)  Subsection (a)  does not prohibit a state agency from
80-14    making a payment if each state agency that properly reported the
80-15    person to the comptroller under Section 403.055(f) consents to the
80-16    payment.
80-17          (l) [(i)]  This section does not apply to the extent that
80-18    Section 57.482, Education Code, applies.
80-19          (m) [(j)]  This section applies to a payment only if the
80-20    comptroller is not responsible under Section 404.046, 404.069, or
80-21    2103.003 for issuing a warrant or initiating an electronic funds
80-22    transfer to make the payment.
80-23          (n)  In [(k) Notwithstanding Section 2107.001, in] this
80-24    section:
80-25                (1)  "Compensation," ["compensation," "state agency,"]
80-26    "state officer or employee," and "tax delinquency" have the
80-27    meanings assigned by Section 403.055.
 81-1                (2)  "State agency" has the meaning assigned by Section
 81-2    403.055, notwithstanding Section 2107.001.
 81-3          SECTION 45. Section 2110.001, Government Code, is amended to
 81-4    read as follows:
 81-5          Sec. 2110.001.  DEFINITION.  In this chapter, "advisory
 81-6    committee" means a committee, council, commission, task force, or
 81-7    other entity with multiple members [in the executive branch of
 81-8    state government] that[:]
 81-9                [(1)  is not a state agency;]
81-10                [(2)  is created by or under state law; and]
81-11                [(3)]  has as its primary function advising a state
81-12    agency in the executive branch of state government.
81-13          SECTION 46. Chapter 2110, Government Code, is amended by
81-14    adding Sections 2110.0011 and 2110.0012 to read as follows:
81-15          Sec. 2110.0011.  APPLICABILITY OF CHAPTER. This chapter
81-16    applies unless and to the extent:
81-17                (1)  another state law specifically states that this
81-18    chapter does not apply; or
81-19                (2)  a federal law or regulation:
81-20                      (A)  imposes an unconditional requirement that
81-21    irreconcilably conflicts with this chapter; or
81-22                      (B)  imposes a condition on the state's
81-23    eligibility to receive money from the federal government that
81-24    irreconcilably conflicts with this chapter.
81-25          Sec. 2110.0012.  ESTABLISHMENT OF ADVISORY COMMITTEES. For
81-26    purposes of this chapter, a state agency has established an
81-27    advisory committee if:
 82-1                (1)  state or federal law has specifically created the
 82-2    committee to advise the agency; or
 82-3                (2)  the agency has, under state or federal law,
 82-4    created the committee to advise the agency.
 82-5          SECTION 47. Section 2110.002, Government Code, is amended to
 82-6    read as follows:
 82-7          Sec. 2110.002.  COMPOSITION OF ADVISORY COMMITTEES. (a)  An
 82-8    [Notwithstanding other law, an] advisory committee must be composed
 82-9    of a reasonable number of members not to exceed 24.
82-10          (b)  The composition of an advisory [the] committee that
82-11    advises a state agency regarding an industry or occupation
82-12    regulated or directly affected by the agency must [also] provide a
82-13    balanced representation between:
82-14                (1)  the industry or occupation [industries or
82-15    occupations regulated or directly affected by the advised state
82-16    agency]; and
82-17                (2)  consumers of services provided [either] by the
82-18    [advised state] agency, industry, or occupation [or by industries
82-19    or occupations regulated by the agency].
82-20          [(b)  This section does not apply to an advisory committee if
82-21    the committee must be composed in a manner that is inconsistent
82-22    with this section under federal law or for federal funding
82-23    purposes.]
82-24          SECTION 48. Section 2110.003(a), Government Code, is amended
82-25    to read as follows:
82-26          (a)  An advisory committee shall select from among its
82-27    members a presiding officer[, unless a different procedure for
 83-1    selecting the presiding officer is prescribed by other law].
 83-2          SECTION 49. Section 2110.005, Government Code, is amended to
 83-3    read as follows:
 83-4          Sec. 2110.005.  AGENCY-DEVELOPED STATEMENT OF PURPOSE AND
 83-5    TASKS; REPORTING REQUIREMENTS. A state agency that establishes [is
 83-6    advised by] an advisory committee shall by rule [adopt rules that]:
 83-7                (1)  state the purpose and tasks of the committee; and
 83-8                (2)  describe [the task of the committee and] the
 83-9    manner in which the committee will report to the agency.
83-10          SECTION 50. Section 2110.006, Government Code, is amended to
83-11    read as follows:
83-12          Sec. 2110.006.  AGENCY EVALUATION OF COMMITTEE COSTS AND
83-13    EFFECTIVENESS. A state agency that has established [is advised by]
83-14    an advisory committee shall evaluate annually:
83-15                (1)  the committee's work;
83-16                (2)  the committee's usefulness; and
83-17                (3)  the costs related to the committee's existence,
83-18    including the cost of agency staff time spent in support of the
83-19    committee's activities.
83-20          SECTION 51. Section 2110.007, Government Code, is amended to
83-21    read as follows:
83-22          Sec. 2110.007.  REPORT TO THE LEGISLATIVE BUDGET BOARD. A
83-23    state agency that has established [is advised by] an advisory
83-24    committee shall report to the Legislative Budget Board the
83-25    information developed in the evaluation required by Section
83-26    2110.006.  The agency shall file the report biennially in
83-27    connection with the agency's request for appropriations.
 84-1          SECTION 52. Section 2110.008, Government Code, is amended to
 84-2    read as follows:
 84-3          Sec. 2110.008.  DURATION OF ADVISORY COMMITTEES. (a)  A state
 84-4    agency that has established [is advised by] an advisory committee
 84-5    may designate the [shall establish by rule a] date on which the
 84-6    committee will automatically be abolished.  The designation must be
 84-7    by rule.  The [advisory] committee may continue in existence after
 84-8    that date only if the [governing body of the] agency amends the
 84-9    rule to provide for a different abolishment date [affirmatively
84-10    votes to continue the committee in existence].
84-11          (b)  Unless the state agency that establishes an [An]
84-12    advisory committee designates a different date under Subsection
84-13    (a), the committee is automatically abolished on the later of:
84-14                (1)  September 1, 2005; or
84-15                (2)  the fourth anniversary of the date of its creation
84-16    [unless the governing body of the agency establishes a different
84-17    date under Subsection (a)].
84-18          (c)  An advisory committee that state or federal law has
84-19    specifically created as described in Section 2110.0012(1) is
84-20    considered for purposes of Subsection (b)(2) to have been created
84-21    on the effective date of that law unless the law specifically
84-22    provides for a different date of creation.
84-23          (d)  This section does not apply to an advisory committee
84-24    that has a specific duration prescribed by statute.
84-25          SECTION 53. Section 2113.001, Government Code, as added by
84-26    Chapter 1498, Acts of the 76th Legislature, Regular Session, 1999,
84-27    is reenacted and amended to read as follows:
 85-1          Sec. 2113.001.  DEFINITIONS. Except as otherwise provided by
 85-2    this chapter, in [In] this chapter:
 85-3                (1)  "Appropriated money" means money appropriated by
 85-4    the legislature through the General Appropriations Act or other
 85-5    law.
 85-6                (2)  "State agency" means:
 85-7                      (A)  a department, commission, board, office, or
 85-8    other entity in the executive branch of state government;
 85-9                      (B)  the supreme court, the court of criminal
85-10    appeals, another entity in the judicial branch of state government
85-11    with statewide authority, or a court of appeals; or
85-12                      (C)  a university system or an institution of
85-13    higher education as defined by Section 61.003, Education Code,
85-14    except that a public junior college is excluded from the meaning of
85-15    the term in [Subchapter D and] all of Subchapter C  except Section
85-16    2113.101 and all of Subchapter D except Section 2113.205.
85-17          SECTION 54. Section 2113.013(b), Government Code, is amended
85-18    to read as follows:
85-19          (b)  The administrative head of a state agency may authorize
85-20    an officer or employee to use a state-owned or state-leased motor
85-21    vehicle to commute to and from work when the administrative head
85-22    determines that the use may be necessary to ensure that vital
85-23    agency functions are performed.  The name and job title of each
85-24    individual authorized under this subsection, and the reasons for
85-25    the authorization, must be included in the [annual] report required
85-26    by Section 2101.0115 [law].
85-27          SECTION 55. Section 2113.205, Government Code, is reenacted
 86-1    and amended to read as follows:
 86-2          Sec. 2113.205.  CERTAIN EXPENDITURES INVOLVING MULTIPLE [TWO]
 86-3    FISCAL YEARS. (a)  Except as provided by this subsection, a [The
 86-4    comptroller shall adopt rules to permit] state agency may [agencies
 86-5    to] use money appropriated for a particular fiscal year to pay
 86-6    expenses related to conducting or attending a seminar or a
 86-7    conference only to the extent it occurs during that year.  To the
 86-8    extent that it is cost-effective, a state agency may use money
 86-9    appropriated for a particular fiscal year to pay expenses related
86-10    to conducting or attending a seminar or conference [seminars and
86-11    conferences] that will [not] occur partly or entirely during a
86-12    different [until the next] fiscal year [in circumstances when it is
86-13    cost-effective to do so].
86-14          (b)  A [The comptroller also shall adopt rules to permit]
86-15    state agency may [agencies to] use money appropriated for a
86-16    particular fiscal year to pay the entire cost or amount of a
86-17    [expenses for items such as] periodical [subscriptions and monthly
86-18    utility charges in circumstances when the billing or] subscription,
86-19    a maintenance contract, a post office box rental, insurance, or a
86-20    surety or honesty bond, regardless of whether it covers more than
86-21    one [period extends to the next] fiscal year.
86-22          (c)  A state agency may use money appropriated for a
86-23    particular fiscal year to pay for a utility service provided during
86-24    that fiscal year and September of the next fiscal year.
86-25          (d)  The comptroller may establish procedures and adopt rules
86-26    to administer this section.
86-27          (e)  In this section:
 87-1                (1)  "Institution of higher education" has the meaning
 87-2    assigned by Section 61.003, Education Code.
 87-3                (2)  "State agency" means:
 87-4                      (A)  a department, commission, board, office, or
 87-5    other entity in the executive branch of state government, including
 87-6    an institution of higher education;
 87-7                      (B)  the supreme court, the court of criminal
 87-8    appeals, another entity in the judicial branch of state government
 87-9    with statewide authority, or a court of appeals; or
87-10                      (C)  the legislature or another entity in the
87-11    legislative branch of state government with statewide authority.
87-12                (3)  "Utility service" means:
87-13                      (A)  the furnishing of electricity, water, or
87-14    natural gas;
87-15                      (B)  a telecommunications service, a wastewater
87-16    treatment service, or a waste disposal service; or
87-17                      (C)  any similar commodity or service that the
87-18    comptroller considers to be a utility service.
87-19          SECTION 56. Section 2155.004, Government Code, is amended to
87-20    read as follows:
87-21          Sec. 2155.004.  CERTAIN BIDS AND CONTRACTS PROHIBITED. (a)  A
87-22    state agency may not accept a bid or award a contract that includes
87-23    proposed financial participation by a person who received
87-24    compensation from the agency to participate in preparing the
87-25    specifications or request for proposals on which the bid or
87-26    contract is based.
87-27          (b)  [A state agency may not accept a bid or award a contract
 88-1    to any individual not residing in this state or business entity not
 88-2    incorporated in or whose principal domicile is not in this state
 88-3    unless the individual or business entity:]
 88-4                [(1)  holds a permit issued by the comptroller to
 88-5    collect or remit all state and local sales and use taxes that
 88-6    become due and owing as a result of the individual's or entity's
 88-7    business in this state; or]
 88-8                [(2)  certifies that it does not sell tangible personal
 88-9    property or services that are subject to the state and local sales
88-10    and use tax.]
88-11          [(c)]  A bid or award subject to the requirements of this
88-12    section must include the following statement:
88-13          "Under Section 2155.004, Government Code, the vendor
88-14    certifies that the individual or business entity named in this bid
88-15    or contract is not ineligible to receive the specified contract and
88-16    acknowledges that this contract may be terminated and payment
88-17    withheld if this certification is inaccurate."
88-18          (c) [(d)]  If a state agency determines that an individual or
88-19    business entity holding a state contract was ineligible to have the
88-20    contract accepted or awarded under Subsection (a) [or (b)], the
88-21    state agency may immediately terminate the contract without further
88-22    obligation to the vendor.
88-23          (d) [(e)  If the certification required under Subsection
88-24    (b)(2) is shown to be false, the vendor is liable to the state for
88-25    attorney's fees, the costs necessary to complete the contract,
88-26    including the cost of advertising and awarding a second contract,
88-27    and any other damages provided by law or contract.]
 89-1          [(f)]  This section does not create a cause of action to
 89-2    contest a bid or award of a state contract.
 89-3          (e) [(g)  In the absence of a certification by the vendor
 89-4    under Subsection (b)(2), the purchasing state agency shall
 89-5    determine if a prospective vendor holds a permit for the collection
 89-6    and remission of state and local sales and use taxes.]
 89-7          [(h)]  This section does not prohibit a bidder or contract
 89-8    participant from providing free technical assistance to a state
 89-9    agency.
89-10          SECTION 57. Section 2155.448(c), Government Code, is amended
89-11    to read as follows:
89-12          (c)  A state agency shall include [report] in the [its annual
89-13    financial] report required by Section 2101.0115, and in an annual
89-14    report to the commission at a date and in a manner and form
89-15    prescribed by the commission, the expenditures made during the
89-16    preceding state fiscal year for each of the commodities or services
89-17    identified under Subsection (a).  The annual report must at a
89-18    minimum identify the total amount spent on those commodities and
89-19    services and the total amount spent for commodities and services
89-20    purchased that accomplish the same purpose.  State [Additionally,
89-21    state] agencies shall include in the reports [report] the amount
89-22    spent for all other recycled, remanufactured, and environmentally
89-23    sensitive commodities and services by type of commodity and service
89-24    [as prescribed by the commission].
89-25          SECTION 58.  Section 2166.402, Government Code, is amended to
89-26    read as follows:
89-27          Sec. 2166.402.  Energy Conservation Standards for Entities
 90-1    Otherwise Excluded From Chapter. (a)  The governing body of a state
 90-2    agency, commission, or institution that is exempt from this chapter
 90-3    under Section 2166.003 shall adopt and publish energy conservation
 90-4    design standards as provided by Section 447.004 for a new building
 90-5    under the entity's authority.  The standards must be:
 90-6                (1)  consistent with those adopted by the commission
 90-7    for other state buildings; and
 90-8                (2)  prepared in cooperation and consultation with the
 90-9    state energy conservation [management center of the governor's]
90-10    office.
90-11          (b)  The state energy conservation [management center of the
90-12    governor's] office shall assist the [a] governing body of a state
90-13    agency, commission, or institution subject to Subsection (a) in
90-14    preparing energy conservation standards by providing technical
90-15    assistance and advice.
90-16          SECTION 59. Section 2175.242(c), Government Code, is amended
90-17    to read as follows:
90-18          (c)  This subchapter does not affect Section 403.273, which
90-19    provides for the deletion from state property accounting records of
90-20    a state agency's missing property [on the state auditor's
90-21    authorization].
90-22          SECTION 60. Section 2251.001, Government Code, is amended to
90-23    read as follows:
90-24          Sec. 2251.001.  DEFINITIONS. Except as otherwise provided by
90-25    this chapter, in [In] this chapter:
90-26                (1)  "Distribution date" means:
90-27                      (A)  if no payment law prohibits the comptroller
 91-1    from issuing a warrant, the date the comptroller makes the warrant
 91-2    available:
 91-3                            (i)  for mailing directly to its payee
 91-4    under Section 2155.382(c); or
 91-5                            (ii)  to the state agency that requested
 91-6    issuance of the warrant;
 91-7                      (B)  if no payment law prohibits the comptroller
 91-8    from initiating an electronic funds transfer, the date the
 91-9    comptroller initiates the transfer;
91-10                      (C)  if a payment law prohibits the comptroller
91-11    from issuing a warrant, the date the comptroller would have made
91-12    the warrant available, in the absence of the payment law:
91-13                            (i)  for mailing directly to its payee
91-14    under Section 2155.382(c); or
91-15                            (ii)  to the state agency that requested
91-16    issuance of the warrant; or
91-17                      (D)  if a payment law prohibits the comptroller
91-18    from initiating an electronic funds transfer, the date the
91-19    comptroller would have made the warrant prepared under Section
91-20    403.0552(b) available, in the absence of the payment law:
91-21                            (i)  for mailing directly to its payee
91-22    under Section 2155.382(c); or
91-23                            (ii)  to the state agency that requested
91-24    initiation of the transfer.
91-25                (2)  "Goods" includes supplies, materials, or
91-26    equipment.
91-27                (3) [(2)]  "Governmental entity" means a state agency
 92-1    or political subdivision of this state.
 92-2                (4) [(3)]  "Payment" means money owed to a vendor.
 92-3                (5)  "Payment law" means:
 92-4                      (A)  Section 57.48 or 57.482, Education Code;
 92-5                      (B)  Section 231.007, Family Code;
 92-6                      (C)  Section 403.055 or 2107.008; or
 92-7                      (D)  any similar statute.
 92-8                (6) [(4)]  "Political subdivision" means:
 92-9                      (A)  a county;
92-10                      (B)  a municipality;
92-11                      (C)  a public school district; or
92-12                      (D)  a special-purpose district or authority.
92-13                (7) [(5)]  "Service" includes gas and water utility
92-14    service.
92-15                (8) [(6)]  "State agency" means:
92-16                      (A)  a board, commission, department, office, or
92-17    other agency in the executive branch of state government that is
92-18    created by the constitution or a statute of this state, including a
92-19    river authority and an institution of higher education as defined
92-20    by Section 61.003, Education Code;
92-21                      (B)  the legislature or a legislative agency; or
92-22                      (C)  the Supreme Court of Texas, the Court of
92-23    Criminal Appeals of Texas, a court of appeals, a state judicial
92-24    agency, or the State Bar of Texas.
92-25                (9) [(7)]  "Subcontractor" means a person who contracts
92-26    with a vendor to work or contribute toward completing work for a
92-27    governmental entity.  The term does not include a state agency. The
 93-1    term includes an officer or employee of a state agency when the
 93-2    officer or employee contracts with a vendor in a private capacity.
 93-3                (10) [(8)]  "Vendor" means a person who supplies goods
 93-4    or a service [services] to a governmental entity or another person
 93-5    directed by the entity.  The term does not include a state agency,
 93-6    except for [includes] Texas Correctional Industries.  The term
 93-7    includes an officer or employee of a state agency when acting in a
 93-8    private capacity to supply goods or a service.
 93-9          SECTION 61. Section 2251.002(a), Government Code, is amended
93-10    to read as follows:
93-11          (a)  This chapter does not apply to a payment made by a
93-12    governmental entity, vendor, or subcontractor if:
93-13                (1)  there is a bona fide dispute between the political
93-14    subdivision and a vendor, contractor, subcontractor, or supplier
93-15    about the goods delivered or the service [services] performed that
93-16    causes the payment to be late;
93-17                (2)  there is a bona fide dispute between a vendor and
93-18    a subcontractor or between a subcontractor and its supplier about
93-19    the goods delivered or the service [services] performed that causes
93-20    the payment to be late;
93-21                (3)  the terms of a federal contract, grant,
93-22    regulation, or statute prevent the governmental entity from making
93-23    a timely payment with federal funds; or
93-24                (4)  the invoice is not mailed to the person to whom it
93-25    is addressed in strict accordance with any instruction on the
93-26    purchase order relating to the payment.
93-27          SECTION 62. Section 2251.003, Government Code, is amended to
 94-1    read as follows:
 94-2          Sec. 2251.003.  RULES. The General Services Commission shall
 94-3    establish procedures and adopt rules to administer [implement] this
 94-4    chapter, except that the commission may not establish a procedure
 94-5    or adopt a rule that conflicts with a procedure established or a
 94-6    rule adopted by the comptroller under Section 2251.026(i).
 94-7          SECTION 63. Section 2251.021, Government Code, is amended by
 94-8    amending Subsection (a) and adding Subsection (d) to read as
 94-9    follows:
94-10          (a)  Except as provided by Subsection (b), a payment by a
94-11    governmental entity under a contract executed on or after September
94-12    1, 1987, is overdue on the 31st day after the later of:
94-13                (1)  the date the governmental entity receives the
94-14    goods under the contract;
94-15                (2)  the date the performance of the service under the
94-16    contract is completed; or
94-17                (3)  the date the governmental entity receives an
94-18    invoice for the goods or service [services].
94-19          (d)  For purposes of this section, the renewal, amendment, or
94-20    extension of a contract executed on or before September 1, 1993, is
94-21    considered to be the execution of a new contract.
94-22          SECTION 64. Section 2251.025, Government Code, is amended by
94-23    amending Subsections (a) and (c) and adding Subsection (d) to read
94-24    as follows:
94-25          (a)  A payment begins to accrue interest on the date the
94-26    payment becomes [is] overdue.
94-27          (c)  Interest on an overdue payment stops accruing on the
 95-1    date the governmental entity or vendor mails or electronically
 95-2    transmits the payment.  In this subsection, "governmental entity"
 95-3    does not include a state agency.
 95-4          (d)  This subsection applies only if the comptroller is not
 95-5    responsible for issuing a warrant or initiating an electronic funds
 95-6    transfer to pay the principal amount owed by a state agency to a
 95-7    vendor.  The accrual of interest on an overdue payment to the
 95-8    vendor:
 95-9                (1)  stops on the date the agency mails or
95-10    electronically transmits the payment; and
95-11                (2)  is not suspended during any period that a payment
95-12    law prohibits the agency from paying the vendor.
95-13          SECTION 65.  Section 2251.025(b), Government Code, is amended
95-14    to read as follows:
95-15          (b)  Interest accrues on an [An] overdue payment [bears
95-16    interest] at the rate of one percent each month.
95-17          SECTION 66.  (a)  Section 2251.025, Government Code, is
95-18    amended by adding Subsection (e) to read as follows:
95-19          (e)  This subsection applies only if the comptroller is
95-20    responsible for issuing a warrant or initiating an electronic funds
95-21    transfer to pay the principal amount owed by a state agency to a
95-22    vendor.  Interest on an overdue payment to the vendor:
95-23                (1)  stops accruing on its distribution date; and
95-24                (2)  does not accrue at all if, on the date the
95-25    comptroller would issue a warrant or initiate an electronic funds
95-26    transfer to make the payment, a payment law prohibits the
95-27    comptroller from issuing the warrant or initiating the transfer.
 96-1          (b)  The addition of Subsection (e) to Section 2251.025,
 96-2    Government Code, by Subsection (a) of this section is intended to
 96-3    reflect existing law and does not imply that the law as it existed
 96-4    before the effective date of this section is substantively
 96-5    different from the law as it exists on and after the effective date
 96-6    of this section.
 96-7          (c)  If Section 53(a) of this Act takes effect on the same
 96-8    date this section would otherwise take effect, this section has no
 96-9    effect.
96-10          (d)  Section 2251.025(e), Government Code, as added by this
96-11    section, expires on the date Section 2251.025(e), Government Code,
96-12    is added by Section 53 of this Act.
96-13          SECTION 67. (a)  Effective on the date determined as provided
96-14    by Subsection (b) of this section, Section 2251.025, Government
96-15    Code, is amended by adding Subsection (e) to read as follows:
96-16          (e)  This subsection applies only if the comptroller is
96-17    responsible for issuing a warrant or initiating an electronic funds
96-18    transfer to pay the principal amount owed by a state agency to a
96-19    vendor.  Interest on an overdue payment to the vendor:
96-20                (1)  stops accruing on its distribution date; and
96-21                (2)  does not stop accruing during any period that a
96-22    payment law prohibits the comptroller from issuing the warrant or
96-23    initiating the transfer.
96-24          (b)  The changes in law made by Subsection (a) of this
96-25    section take effect on the date the comptroller files a
96-26    certification with the secretary of state that the comptroller has
96-27    completed modifications to the uniform statewide accounting system
 97-1    to enable compliance with Section 2251.025(e), Government Code, as
 97-2    added by Subsection (a) of this section.  The secretary of state
 97-3    shall publish in the Texas Register the certification filed by the
 97-4    comptroller under this subsection.
 97-5          SECTION 68. Section 2251.026, Government Code, is amended to
 97-6    read as follows:
 97-7          Sec. 2251.026.  PAYMENT OF INTEREST BY STATE AGENCY. (a)  A
 97-8    [If the warrant for a payment the originating] state agency is
 97-9    liable for any interest that accrues on an overdue payment under
97-10    this chapter and shall pay the interest from funds appropriated or
97-11    otherwise available to the agency at the same time the principal is
97-12    paid [owes is not mailed or electronically transmitted before the
97-13    payment is overdue, the agency is liable for an interest payment
97-14    that accrues under this chapter].
97-15          (b)  The comptroller shall issue a warrant or initiate an
97-16    electronic funds transfer on behalf of a state agency to pay any
97-17    interest that the agency must pay under Subsection (a) if the
97-18    comptroller is responsible for issuing a warrant or initiating an
97-19    electronic funds transfer to pay the principal amount on behalf of
97-20    the agency.
97-21          (c)  The comptroller shall determine the amount of [compute]
97-22    interest that accrues on an overdue payment by a [imposed on the]
97-23    state agency under this chapter if the comptroller is responsible
97-24    for issuing a warrant or initiating an electronic funds transfer to
97-25    pay the principal amount on behalf of the agency.
97-26          (d)  A state agency shall determine the amount of interest
97-27    that accrues on an overdue payment by the agency under this chapter
 98-1    if the comptroller is not responsible for issuing a warrant or
 98-2    initiating an electronic funds transfer to pay the principal amount
 98-3    on behalf of the agency.
 98-4          (e)  The comptroller or state agency shall submit the
 98-5    interest payment with the net amount due for the goods or services
 98-6    [(c)  The comptroller shall pay the interest at the time payment is
 98-7    made on the principal.]
 98-8          [(d)  The comptroller shall submit the interest payment with
 98-9    the net amount due for goods and services].
98-10          (f)  Neither the [(e)  The] comptroller nor a [and the] state
98-11    agency may [not] require a vendor to request payment of the
98-12    interest that accrues under this chapter before [petition, bill, or
98-13    wait an additional day to receive] the interest is paid to the
98-14    vendor [due].
98-15          (g) [(f)]  The comptroller may require a state agency to
98-16    submit any information the comptroller determines necessary [and
98-17    timely information and adopt rules] to administer and comply with
98-18    Subsections (b) and (c).  The information must be submitted at the
98-19    time and in the manner required by the comptroller [this section].
98-20          (h)  The comptroller may require a state agency to change its
98-21    accounting systems or procedure as the comptroller determines
98-22    necessary to administer and comply with Subsections (b) and (c).
98-23    Any changes must conform with the comptroller's requirements.
98-24          (i)  The comptroller may establish procedures and adopt rules
98-25    to administer Subsections (b), (c), (g), and (h).
98-26          SECTION 69. Section 2251.027(c), Government Code, is amended
98-27    to read as follows:
 99-1          (c)  The political subdivision shall submit the interest
 99-2    payment with the net amount due for the goods or service [and
 99-3    services].
 99-4          SECTION 70. Section 2251.030(d), Government Code, is amended
 99-5    to read as follows:
 99-6          (d)  A state agency, when paying for the goods or service
 99-7    [and services] purchased under an agreement that includes a prompt
 99-8    or early payment discount, shall submit the necessary payment
 99-9    documents or information to the comptroller sufficiently in advance
99-10    of the prompt or early payment deadline to allow the comptroller or
99-11    the agency to pay the vendor in time to obtain the discount.
99-12          SECTION 71. Subchapter Z, Chapter 2252, Government Code, is
99-13    amended by adding Section 2252.903 to read as follows:
99-14          Sec. 2252.903.  CONTRACTING WITH PERSONS WHO HAVE CERTAIN
99-15    DEBTS OR DELINQUENCIES. (a)  Each state agency shall determine
99-16    whether a payment law prohibits the comptroller from issuing a
99-17    warrant or initiating an electronic funds transfer to a person
99-18    before the agency enters into a written contract with that person.
99-19    The agency shall make this determination not earlier than the
99-20    seventh day before and not later than the date of entering into the
99-21    contract.  The determination must be made in accordance with the
99-22    comptroller's requirements.
99-23          (b)  This subsection applies if the agency determines that a
99-24    payment law prohibits the comptroller from issuing a warrant or
99-25    initiating an electronic funds transfer to the person.  The agency
99-26    may not enter into a written contract with the person unless:
99-27                (1)  the contract requires the agency's payments under
 100-1   the contract to be applied directly toward eliminating the person's
 100-2   debt or delinquency; and
 100-3               (2)  the requirement described in Subdivision (1)
 100-4   specifically applies to any debt or delinquency, regardless of when
 100-5   it arises.
 100-6         (c)  The comptroller may determine the order in which a
 100-7   person's multiple types of debts or delinquencies are reduced or
 100-8   eliminated under this section.
 100-9         (d)  The comptroller may adopt rules and establish procedures
100-10   to administer this section.
100-11         (e)  In this section:
100-12               (1)  "Debt or delinquency" means a debt, tax
100-13   delinquency, student loan delinquency, or child support delinquency
100-14   that results in a payment law prohibiting the comptroller from
100-15   issuing a warrant or initiating an electronic funds transfer.
100-16               (2)  "Payment law" means:
100-17                     (A)  Section 57.48, Education Code;
100-18                     (B)  Section 231.007, Family Code;
100-19                     (C)  Section 403.055; or
100-20                     (D)  any similar law that prohibits the
100-21   comptroller from issuing a warrant or initiating an electronic
100-22   funds transfer to a person.
100-23               (3)  "State agency" has the meaning assigned by Section
100-24   403.055.
100-25         SECTION 72.  Section 2260.005, Government Code, is amended to
100-26   read as follows:
100-27         Sec. 2260.005.  Exclusive Procedure. Subject to Section
 101-1   2260.007, the [The] procedures contained in this chapter are
 101-2   exclusive and required prerequisites to suit in accordance with
 101-3   Chapter 107, Civil Practice and Remedies Code.
 101-4         SECTION 73.  Subchapter A, Chapter 2260, Government Code, is
 101-5   amended by adding Section 2260.007 to read as follows:
 101-6         Sec. 2260.007.  LEGISLATIVE PERMISSION TO SUE. (a)
 101-7   Notwithstanding Section 2260.005, the legislature retains the
 101-8   authority to deny or grant a waiver of immunity to suit against a
 101-9   unit of state government by statute, resolution, or any other means
101-10   the legislature may determine appropriate.
101-11         (b)  This chapter does not and may not be interpreted to:
101-12               (1)  divest the legislature of the authority to grant
101-13   permission to sue a unit of state government on the terms,
101-14   conditions, and procedures that the legislature may specify in the
101-15   measure granting the permission;
101-16               (2)  require that the legislature, in granting or
101-17   denying permission to sue a unit of state government, comply with
101-18   this chapter; or
101-19               (3)  limit in any way the effect of a legislative grant
101-20   of permission to sue a unit of state government unless the grant
101-21   itself provides that this chapter may have that effect.
101-22         SECTION 74. Section 2305.002(3), Government Code, is amended
101-23   to read as follows:
101-24               (3)  "Energy office" means the state energy
101-25   conservation office [of the General Services Commission].
101-26         SECTION 75. The heading to Section 2305.011, Government Code,
101-27   is amended to read as follows:
 102-1         Sec. 2305.011.  ADMINISTRATION BY COMPTROLLER [GENERAL
 102-2   SERVICES COMMISSION] AND ENERGY OFFICE.
 102-3         SECTION 76. Section 2305.011, Government Code, is amended by
 102-4   adding Subsection (f) to read as follows:
 102-5         (f)  The comptroller may establish procedures and adopt rules
 102-6   as necessary to administer the programs prescribed by this chapter.
 102-7         SECTION 77. Section 2305.022, Government Code, is amended to
 102-8   read as follows:
 102-9         Sec. 2305.022.  USE OF ACCOUNT. Money in the account may be
102-10   used only by the governor and the comptroller [General Services
102-11   Commission] to implement and operate the programs authorized by
102-12   this chapter.
102-13         SECTION 78.  (a)  RETROFITTING OF RECIPROCATING INTERNAL
102-14   COMBUSTION ENGINES ASSOCIATED WITH PIPELINES. Subchapter C, Chapter
102-15   382, Health and Safety Code, is amended by adding Section
102-16   382.051865 to read as follows:
102-17         Sec. 382.051865.  REIMBURSEMENT PROGRAM FOR CERTAIN EMISSIONS
102-18   REDUCTIONS FROM RECIPROCATING INTERNAL COMBUSTION ENGINES
102-19   ASSOCIATED WITH PIPELINES. (a)  The commission by rule may develop
102-20   a program for the reduction of emissions of nitrogen oxides from
102-21   reciprocating internal combustion engines associated with pipelines
102-22   that are required by this subchapter to reduce hourly emissions of
102-23   nitrogen oxides by at least 50 percent.  In developing a program
102-24   under this section the commission must cooperate with:
102-25               (1)  local governments;
102-26               (2)  agencies, departments, and political subdivisions
102-27   of the state; and
 103-1               (3)  the United States and its agencies.
 103-2         (b)  The commission may authorize the executive director to
 103-3   enter into contracts with a public agency, private person, or other
 103-4   entity for the purpose of implementing the emissions reduction
 103-5   program developed under this section.
 103-6         (c)  The emissions reduction program may include incentives
 103-7   as developed by the commission for nitrogen oxides emissions
 103-8   reduction projects for reciprocating internal combustion engines
 103-9   described by Subsection (a), including a partial reimbursement for
103-10   the capital cost of installing technology to reduce the emissions.
103-11   The incentives may be applied only to expenses of projects to
103-12   achieve those reductions of a reciprocating internal combustion
103-13   engine's hourly emissions of nitrogen oxides only to the extent the
103-14   reductions exceed 30 percent and do not exceed 50 percent of the
103-15   engine's emissions before modification.
103-16         (d)  Rules adopted under this section must include criteria
103-17   for the determining eligibility for an emissions reduction project
103-18   incentive under the program.  To be eligible under the criteria, a
103-19   facility must:
103-20               (1)  be subject to the requirement under this
103-21   subchapter that it reduce emissions by 50 percent;
103-22               (2)  be reducing its hourly emissions of nitrogen
103-23   oxides by at least 50 percent; and
103-24               (3)  be located in the East Texas region established by
103-25   this subchapter for purposes of compliance with permit requirements
103-26   for facilities affected by Section 382.0518(g).
103-27         (e)  This section does not affect the responsibility or
 104-1   liability of an owner or operator of a reciprocating internal
 104-2   combustion engine to reduce emissions under this chapter or a rule,
 104-3   permit, or order adopted under this chapter by the commission.
 104-4         (f)  In addition to other requirements imposed by the
 104-5   commission, to be eligible for an incentive under the program
 104-6   established under this section, an emissions reduction project must
 104-7   be:
 104-8               (1)  initiated on or before September 1, 2006; and
 104-9               (2)  completed before March 1, 2007.
104-10         (g)  The commission may not pay or otherwise provide a
104-11   financial incentive for an emissions reduction project before the
104-12   project is complete.  The commission may require verification of
104-13   the reductions associated with the project before the commission
104-14   pays an incentive.  The commission may not pay or otherwise provide
104-15   a financial incentive on or after March 1, 2007.
104-16         (h)  Notwithstanding any other law, gifts or contributions by
104-17   an electric utility or an affiliated power generating company to a
104-18   program implemented under this section shall be:
104-19               (1)  considered tangible or intangible capital costs to
104-20   improve air quality;
104-21               (2)  deemed to be incurred before January 1, 2002;
104-22               (3)  included in the electric utility's
104-23   generation-related invested capital; and
104-24               (4)  deemed to be a cost to offset the emission of
104-25   airborne contaminants from electric generating facilities that is:
104-26                     (A)  an essential component in achieving
104-27   compliance with a national ambient air quality standard;
 105-1                     (B)  deemed to be the most cost effective after
 105-2   consideration of alternative measures; and
 105-3                     (C)  consistent with the air quality goals and
 105-4   policies of the commission.
 105-5         (i)  This section expires March 1, 2007.
 105-6         (b)  EMISSIONS REDUCTIONS INCENTIVES ACCOUNT. (1)  The
 105-7   comptroller of public accounts shall establish an account within
 105-8   the clean air account no. 151 to be known as the emissions
 105-9   reductions incentives account.
105-10               (2)  The emissions reductions incentives account
105-11   consists of money from:
105-12                     (A)  gifts, grants, or donations to the account
105-13   for a designated or general use; and
105-14                     (B)  money from any other source the legislature
105-15   designates.
105-16               (3)  The commission may use the money in the emissions
105-17   reductions incentives account to pay for emissions reduction
105-18   project incentives under a program developed under Section
105-19   382.051865, Health and Safety Code, and administrative expenses
105-20   associated with providing the incentives or the incentive program
105-21   established under that section.
105-22               (4)  The emissions reductions incentives account is
105-23   exempt from the application of Section 403.095, Government Code.
105-24         (c)  APPROPRIATIONS. The following amounts are appropriated
105-25   to the Texas Natural Resource Conservation Commission to provide
105-26   incentives for the reduction of air emissions from reciprocating
105-27   internal combustion engines associated with pipelines:
 106-1               (A)  up to $16,200,000 for the fiscal year beginning on
 106-2   September 1, 2001, from the emissions reductions incentives account
 106-3   within the clean air account no. 151;
 106-4               (B)  all interest earned on money in the emissions
 106-5   reductions incentives account within the clean air account no. 151
 106-6   during the fiscal year beginning on September 1, 2001, for that
 106-7   fiscal year;
 106-8               (C)  any balance in the emissions reductions incentives
 106-9   account within the clean air account no. 151 from the appropriation
106-10   made by Subsections (a)(1)  and (2)  unexpended as of August 31,
106-11   2002, for the fiscal year beginning on September 1, 2002; and
106-12               (D)  all interest earned on the emissions reductions
106-13   incentives account during the fiscal year beginning on September 1,
106-14   2002, for that fiscal year.
106-15         (d)  This section takes effect only if legislation of the
106-16   77th Legislature, Regular Session, 2001, authorizing the Texas
106-17   Natural Resource Conservation Commission to require hourly
106-18   emissions reductions of nitrogen oxides of at least 50 percent from
106-19   reciprocating internal combustion engines associated with pipelines
106-20   is enacted and becomes law.
106-21         SECTION 79. Section 533.0351(g), Health and Safety Code, is
106-22   amended to read as follows:
106-23         (g)  Except as provided by this subsection, the [The]
106-24   committee is subject to Chapter 2110, Government Code.  The
106-25   [department by rule shall provide, in accordance with Section
106-26   2110.008, Government Code, that the] committee is abolished
106-27   automatically on September 1, 2007, unless the board adopts a rule
 107-1   continuing [affirmatively votes to continue] the committee in
 107-2   existence beyond that date.
 107-3         SECTION 80. Section 771.071(e), Health and Safety Code, is
 107-4   amended to read as follows:
 107-5         (e)  A local exchange service provider shall collect the fees
 107-6   imposed on its customers under this section.  Not later than the
 107-7   30th day after the last day of the month in which the fees are
 107-8   collected, the local exchange service provider shall deliver the
 107-9   fees to the comptroller [commission].  The comptroller [commission]
107-10   shall deposit money from the fees to the credit of the 9-1-1
107-11   services fee account in the general revenue fund.  The comptroller
107-12   may establish alternative dates for payment of fees under this
107-13   section, provided that the required payment date be no earlier than
107-14   the 30th day after the last day of the reporting period in which
107-15   the fees are collected.
107-16         SECTION 81. Sections 771.0711(b), (c), and (f), Health and
107-17   Safety Code, are amended to read as follows:
107-18         (b)  A wireless service provider shall collect the fee in an
107-19   amount equal to 50 cents a month for each wireless
107-20   telecommunications connection from its subscribers and shall pay
107-21   the money collected to the comptroller [commission] not later than
107-22   the 30th day after the last day of the month during which the fees
107-23   were collected.  The comptroller may establish alternative dates
107-24   for payment of fees under this section.  The wireless service
107-25   provider may retain an administrative fee of one percent of the
107-26   amount collected.  The comptroller shall deposit the money from the
107-27   fees to the credit of the 9-1-1 services fee account.  Until
 108-1   deposited to the credit of the 9-1-1 services fee account [fund] as
 108-2   required by Subsection (c), money the comptroller [commission]
 108-3   collects under this subsection remains in a trust fund with
 108-4   [outside] the state treasury.
 108-5         (c)  Money collected under Subsection (b) may be used only
 108-6   for services related to 9-1-1 services, including automatic number
 108-7   identification and automatic location information services.  Not
 108-8   later than the 15th day after the end of the month in which the
 108-9   money is collected [Within 15 days of the date of collection of the
108-10   money], the commission shall distribute to each emergency
108-11   communication district that does not participate in the state
108-12   system a portion of the money that bears the same proportion to the
108-13   total amount collected that the population of the area served by
108-14   the district bears to the population of the state.  The [commission
108-15   shall deposit the] remaining money collected under Subsection (b)
108-16   shall be deposited to the 9-1-1 services fee account [fund].
108-17         (f)  A wireless service provider is not required to take
108-18   legal action to enforce the collection of any wireless 9-1-1
108-19   service fee.  The comptroller [commission] may establish collection
108-20   procedures and recover the cost of collection from the subscriber
108-21   liable for the fee.  The comptroller [commission] may institute
108-22   legal proceedings to collect a fee and in those proceedings is
108-23   entitled to recover from the subscriber court costs, attorney's
108-24   fees, and interest on the amount delinquent.  [The interest is
108-25   computed at an annual rate of 12 percent beginning on the date the
108-26   fee becomes due.]
108-27         SECTION 82. Sections 771.072(b), (c), and (f), Health and
 109-1   Safety Code, are amended to read as follows:
 109-2         (b)  The amount of the surcharge may not exceed one and
 109-3   three-tenths [1-3/10] of one percent of the charges for intrastate
 109-4   long-distance service, as defined by the commission.
 109-5         (c)  Except as provided by Section 771.073(f), an intrastate
 109-6   long-distance service provider shall collect the surcharge imposed
 109-7   on its customers under this section and shall deliver the
 109-8   surcharges to the comptroller [commission] not later than the date
 109-9   specified by the comptroller, provided that the required payment
109-10   date be no earlier than the 30th day after the last day of the
109-11   reporting period in which the surcharge is collected.  If the
109-12   comptroller does not specify a date, the provider shall deliver the
109-13   surcharges to the comptroller not later than the 30th day after the
109-14   last day of the month in which the surcharges are collected.
109-15         (f)  The comptroller [commission] shall deposit the
109-16   surcharges and any prior balances in accounts [an account] in the
109-17   general revenue fund in the state treasury until they are allocated
109-18   to regional planning commissions, other 9-1-1 jurisdictions, and
109-19   regional poison control centers in accordance with this section.
109-20   From those accounts [that account], the amount necessary for the
109-21   commission to fund approved plans of regional planning commissions
109-22   and regional poison control centers and to carry out its duties
109-23   under this chapter shall be appropriated to the commission.
109-24   Section 403.095, Government Code, does not apply to an [the]
109-25   account established by this subsection.
109-26         SECTION 83. Sections 771.073(b) and (c), Health and Safety
109-27   Code, are amended to read as follows:
 110-1         (b)  A business service user that provides residential
 110-2   facilities and owns or leases a private telephone switch used to
 110-3   provide telephone service to facility residents shall collect the
 110-4   9-1-1 emergency service fee and transmit the fees monthly to the
 110-5   comptroller [commission]. A business service user that does not
 110-6   collect and remit the 9-1-1 emergency service fee as required is
 110-7   subject to a civil cause of action.  A court may award to the
 110-8   comptroller [commission] court costs, attorney's fees, and interest
 110-9   on the amount delinquent [at an annual rate of 12 percent], to be
110-10   paid by the nonpaying business service user.  A certificate of the
110-11   comptroller [sworn affidavit by the commission] specifying the
110-12   unremitted fees is prima facie evidence that the fees were not
110-13   remitted and of the amount of the unremitted fees.
110-14         (c)  The comptroller [commission] may establish collection
110-15   procedures and recover the cost of collection from the customer
110-16   liable for the fee or surcharge.  The comptroller [commission] may
110-17   institute legal proceedings to collect a fee or surcharge and in
110-18   those proceedings is entitled to recover from the customer court
110-19   costs, attorney's fees, and an interest on the amount delinquent.
110-20   [The interest is computed at an annual rate of 12 percent beginning
110-21   on the date the fee or surcharge becomes due.]
110-22         SECTION 84. Section 771.074, Health and Safety Code, is
110-23   amended to read as follows:
110-24         Sec. 771.074.  EXEMPTION. A fee or surcharge authorized by
110-25   this subchapter, Chapter 772, or a home-rule municipality may not
110-26   be imposed on or collected from the state or the federal
110-27   government.
 111-1         SECTION 85. Section 771.076(a), Health and Safety Code, is
 111-2   amended to read as follows:
 111-3         (a)  The commission or an employee of the commission may
 111-4   notify the comptroller of any irregularity that may indicate that
 111-5   an audit of a service provider collecting a fee or surcharge under
 111-6   this subchapter is warranted.  The comptroller also may audit a
 111-7   service provider at the comptroller's discretion, without first
 111-8   receiving a notification from the commission or an employee of the
 111-9   commission.  The cost of the audit shall not be assessed against
111-10   the service provider.  The commission may require at its own
111-11   expense that an audit be conducted of a public agency receiving
111-12   money under this chapter.
111-13         SECTION 86. Section 771.077, Health and Safety Code, is
111-14   amended to read as follows:
111-15         Sec. 771.077.  COLLECTION OF FEES AND SURCHARGES. (a)  The
111-16   comptroller may [by rule shall] establish collection procedures to
111-17   collect past due amounts and may recover the costs of collection
111-18   from a service provider or business service user that fails to
111-19   timely deliver the fees and the equalization surcharge to the
111-20   comptroller [commission].  Subtitles A and B, Title 2, Tax Code,
111-21   apply to the administration and collection of amounts by the
111-22   comptroller under this subchapter.
111-23         (b)  The comptroller may [by rule shall] establish procedures
111-24   to be used by the commission to notify the comptroller of a service
111-25   provider's or business service user's failure to timely deliver the
111-26   fees or surcharges.
111-27         (c)  [In addition to amounts collected under Subsection (a),
 112-1   after notice and an opportunity for a hearing, the comptroller may
 112-2   assess a late penalty against a service provider who fails to
 112-3   timely deliver the fees or surcharges.  The late penalty is in an
 112-4   amount not to exceed $100 a day for each day that the fees or
 112-5   surcharges are late.]
 112-6         [(d)]  The comptroller shall deposit amounts received as
 112-7   costs of collection in the general revenue fund.
 112-8         (d) [(e)]  The comptroller shall:
 112-9               (1)  remit to the commission money collected under this
112-10   section for fees provided by Section 771.0711 and associated late
112-11   penalties;
112-12               (2)  deposit to the 9-1-1 services fee account [fund]
112-13   any money collected under this section for fees provided by Section
112-14   771.071 and associated late penalties; and
112-15               (3)  deposit to the account as authorized by Section
112-16   771.072 any money collected under this section for fees provided by
112-17   Section 771.072 and associated late penalties.
112-18         (e) [(f)]  The commission shall:
112-19               (1)  deposit or distribute the money remitted under
112-20   Subsection (d)(1) [(e)(1)] as Section 771.0711 provides for fees
112-21   received under that section; and
112-22               (2)  distribute the money remitted under Subsection
112-23   (d)(2) [(e)(2)] and appropriated to the commission under contracts
112-24   as provided by Section 771.078(b)(1).
112-25         SECTION 87.  Section 1701.156(c), Occupations Code, is
112-26   amended to read as follows:
112-27         (c)  Money in the account at the end of the state fiscal
 113-1   year, other than money encumbered by [appropriated to] the
 113-2   commission and money allocated by the comptroller under Section
 113-3   1701.157, shall be transferred to the general revenue fund.
 113-4         SECTION 88.  Section 163.004(a), Property Code, is amended to
 113-5   read as follows:
 113-6         (a)  A [Except as provided by Subsection (e), the] governing
 113-7   board may appropriate for expenditure, for the uses and purposes
 113-8   for which the fund is established, the net appreciation, realized
 113-9   and unrealized, in the fair market value of the assets of an
113-10   endowment fund over the historic dollar value of the fund to the
113-11   extent prudent under the standard provided by Section 163.007.
113-12         SECTION 89.  Section 163.004(e), Property Code, is repealed.
113-13         SECTION 90. Section 111.064, Tax Code, is amended by adding
113-14   Subsection (f) to read as follows:
113-15         (f)  A local revenue fund is not subject to Subsections
113-16   (a)-(c).  In this subsection, "local revenue fund" includes a court
113-17   cost, a fee, a fine, or a similar charge collected by a
113-18   municipality, a county, or a court of this state and remitted to
113-19   the comptroller.
113-20         SECTION 91. Section 156.154(c), Tax Code, is amended to read
113-21   as follows:
113-22         (c)  A claim for a refund may be filed only for each fiscal
113-23   year [calendar] quarter for all reimbursements accrued during that
113-24   quarter.
113-25         SECTION 92. Subchapter R, Chapter 171, Tax Code, is amended
113-26   by adding Section 171.837 to read as follows:
113-27         Sec. 171.837.  BIENNIAL REPORT BY COMPTROLLER. (a)  Before
 114-1   the beginning of each regular session of the legislature, the
 114-2   comptroller shall submit to the governor, the lieutenant governor,
 114-3   and the speaker of the house of representatives a report stating:
 114-4               (1)  the total amount of qualifying expenditures
 114-5   incurred by corporations that claim a credit under this subchapter;
 114-6               (2)  the total amount of credits applied against the
 114-7   tax under this chapter and the amount of unused credits, including:
 114-8                     (A)  the total amount of franchise tax due by
 114-9   corporations claiming a credit under this subchapter before and
114-10   after the application of the credit;
114-11                     (B)  the average percentage reduction in
114-12   franchise tax due by corporations claiming a credit under this
114-13   subchapter;
114-14                     (C)  the percentage of tax credits that were
114-15   awarded to corporations with fewer than 100 employees; and
114-16                     (D)  the two-digit standard industrial
114-17   classification of corporations claiming a credit under this
114-18   subchapter;
114-19               (3)  the geographical distribution of qualifying
114-20   expenditures giving rise to a credit authorized by this subchapter;
114-21               (4)  the impact of the credit authorized by this
114-22   subchapter on promoting economic development in this state; and
114-23               (5)  the impact of the credit authorized by this
114-24   chapter on state tax revenues.
114-25         (b)  The final report issued before the expiration of this
114-26   subchapter must include historical information on the credit
114-27   authorized by this subchapter.
 115-1         (c)  The comptroller may not include in the report
 115-2   information that is confidential by law.
 115-3         (d)  For purposes of this section, the comptroller may
 115-4   require a corporation that claims a credit under this subchapter to
 115-5   submit:
 115-6               (1)  information, on a form provided by the
 115-7   comptroller, on the location of the corporation's qualifying
 115-8   expenditures; and
 115-9               (2)  any other information the comptroller considers
115-10   necessary.
115-11         SECTION 93. Subchapter D, Chapter 56, Utilities Code, is
115-12   amended by adding Section 56.113 to read as follows:
115-13         Sec. 56.113.  ADVISORY COMMITTEE COMPENSATION AND EXPENSES. A
115-14   member of the advisory committee serves without compensation but is
115-15   entitled to reimbursement at rates established for state employees
115-16   for travel and per diem incurred in the performance of the member's
115-17   official duties.
115-18         SECTION 94. The following laws are repealed:
115-19               (1)  Article 2.45, Texas Business Corporation Act;
115-20               (2)  Section 403.055(h), Government Code, as added by
115-21   Chapter 583, Acts of the 76th Legislature, Regular Session, 1999;
115-22               (3)  Sections 659.062 and 659.063, Government Code;
115-23               (4)  Section 2251.002(c), Government Code;
115-24               (5)  Section 48(e), Chapter 268, Acts of the 73rd
115-25   Legislature, Regular Session, 1993; and
115-26               (6)  Section 2(b), Chapter 57, Acts of the 70th
115-27   Legislature, 2nd Called Session, 1987.
 116-1         SECTION 95.  (a)  The energy management center established
 116-2   under Chapter 447, Government Code, as it existed immediately
 116-3   before the effective date of Section 28 of this Act, is
 116-4   consolidated into the state energy conservation office established
 116-5   under Chapter 2305, Government Code.
 116-6         (b)  All functions and activities performed by the General
 116-7   Services Commission that relate to energy conservation under
 116-8   Chapter 447 or 2305, Government Code, are transferred to the
 116-9   comptroller.
116-10         (c)  All employees of the General Services Commission who
116-11   primarily perform duties related to energy conservation under
116-12   Chapter 447 or 2305, Government Code, are employees of the
116-13   comptroller.
116-14         (d)  Any rule, standard, or form adopted by the General
116-15   Services Commission that relates to energy conservation under
116-16   Chapter 447 or 2305, Government Code, is a rule, standard, or form
116-17   of the comptroller and remains in effect until altered by the
116-18   comptroller.
116-19         (e)  A reference to the General Services Commission in a
116-20   statute or rule that relates to energy conservation under Chapter
116-21   447 or 2305, Government Code, means the comptroller.
116-22         (f)  Any proceeding involving the General Services Commission
116-23   that is related to energy conservation under Chapter 447 or 2305,
116-24   Government Code, is transferred without change in status to the
116-25   comptroller.  The comptroller assumes without change in status the
116-26   position of the General Services Commission in any proceeding
116-27   relating to energy conservation to which the General Services
 117-1   Commission is a party.
 117-2         (g)  All money, contracts, leases, rights, and obligations of
 117-3   the General Services Commission related to energy conservation
 117-4   under Chapter 447 or 2305, Government Code, are transferred to the
 117-5   comptroller.
 117-6         (h)  All property, including records, in the custody of the
 117-7   General Services Commission related to energy conservation under
 117-8   Chapter 447 or 2305, Government Code, is transferred to the
 117-9   comptroller.
117-10         (i)  All funds appropriated to the General Services
117-11   Commission for purposes related to energy conservation under
117-12   Chapter 447 or 2305, Government Code, are transferred to the
117-13   comptroller.
117-14         SECTION 96.  (a)  The changes in law made by Sections 32, 33,
117-15   37, and 94(3), (5), and (6) of this Act apply only to longevity pay
117-16   or hazardous duty pay that is earned on or after September 1, 2001.
117-17   Longevity pay or hazardous duty pay that is earned before that date
117-18   is governed by the law in effect on the date the pay is earned, and
117-19   the prior law is continued in effect for that purpose.
117-20         (b)  To the extent of conflict and regardless of their
117-21   relative dates of enactment, the changes in law made by another
117-22   bill enacted by the 77th Legislature, Regular Session, to Section
117-23   659.044(a), Government Code, prevail over the changes made to
117-24   Section 659.044, Government Code, by Section 32 of this Act.
117-25         (c)  The changes in law made by Section 36 of this Act apply
117-26   only to a temporary assignment that takes effect on or after
117-27   September 1, 2001.  A temporary assignment that takes effect before
 118-1   that date is governed by the law in effect on the date the
 118-2   temporary assignment takes effect, and the prior law is continued
 118-3   in effect for that purpose.
 118-4         (d)  To the extent of conflict and regardless of their
 118-5   relative dates of enactment, the changes made to the hazardous duty
 118-6   pay rate by H.B. No. 657, H.B. No. 2427, S.B. No. 435, or another
 118-7   bill enacted by the 77th Legislature, Regular Session, prevail over
 118-8   Subchapter L, Chapter 659, Government Code, as added by Section 37
 118-9   of this Act.  In this subsection, "hazardous duty pay rate" means:
118-10               (1)  the amount of hazardous duty pay paid each month
118-11   to a state employee, if that amount specifically is expressed in
118-12   terms of dollars or fractions of a dollar, or both; or
118-13               (2)  the monthly amount of hazardous duty pay paid to a
118-14   state employee for each year of service in a position that requires
118-15   performance of hazardous duty, if that amount specifically is
118-16   expressed in terms of dollars or fractions of a dollar, or both.
118-17         (e)  To the extent of conflict with Section 659.302(a)(2),
118-18   Government Code, as added by Section 37 of this Act, a change in
118-19   law made by any other bill enacted by the 77th Legislature, Regular
118-20   Session, does not take effect.  This subsection applies regardless
118-21   of the relative dates of enactment of this Act and the change in
118-22   law made by the other bill.  For purposes of this subsection, the
118-23   existence of a conflict is determined without regard to the
118-24   relative effective dates of Section 659.302(a)(2), Government Code,
118-25   and the change in law made by the other bill.
118-26         (f)  The changes to Section 660.203, Government Code, made by
118-27   Section 38 of this Act apply only to a meal or lodging expense
 119-1   incurred on or after September 1, 2001.  A meal or lodging expense
 119-2   incurred before that date is governed by the law in effect on the
 119-3   date the meal or lodging expense is incurred, and the prior law is
 119-4   continued in effect for that purpose.
 119-5         SECTION 97.  (a)  The changes in law made by Sections 63 and
 119-6   65 of this Act apply only to a payment that becomes overdue under
 119-7   Chapter 2251, Government Code, on or after the effective date of
 119-8   those sections.  A payment that becomes overdue under Chapter 2251,
 119-9   Government Code, before that date is governed by Sections 2251.021
119-10   and 2251.025, Government Code, as they exist on the date the
119-11   payment becomes overdue, and the prior law is continued in effect
119-12   for that purpose.
119-13         (b)  The changes in law made by Section 66 of this Act apply
119-14   only to a payment whose distribution date is at least one day after
119-15   the effective date of those changes.  A payment whose distribution
119-16   date is on or before the effective date of those changes is
119-17   governed by the law in effect on the date the payment becomes
119-18   overdue under Chapter 2251, Government Code, and the prior law is
119-19   continued in effect for that purpose.
119-20         (c)  The changes in law made by Section 67 of this Act apply
119-21   only to a payment whose distribution date is at least one day after
119-22   the effective date of those changes.  A payment whose distribution
119-23   date is on or before the effective date of those changes is
119-24   governed by the law in effect on the date the payment becomes
119-25   overdue under Chapter 2251, Government Code, and the prior law is
119-26   continued in effect for that purpose.
119-27         (d)  In this section, "payment" and "distribution date" have
 120-1   the meanings assigned by Section 2251.001, Government Code, as
 120-2   amended by Section 60 of this Act.
 120-3         SECTION 98. In addition to other amounts appropriated by the
 120-4   77th Legislature, Regular Session, 2001, for the biennium beginning
 120-5   September 1, 2001, and subject to the restrictions provided under
 120-6   Articles II and IX, Senate Bill No. 1, Acts of the 77th
 120-7   Legislature, Regular Session, 2001 (General Appropriations Act),
 120-8   and contingent on House Bill No. 2604, Acts of the 77th
 120-9   Legislature, Regular Session, 2001, becoming law, the Texas Forest
120-10   Service is appropriated $15 million for the fiscal year beginning
120-11   September 1, 2002, from the Volunteer Fire Department Assistance
120-12   Fund.  The Texas Forest Service shall spend money appropriated by
120-13   this section for the purpose of administering the Rural Volunteer
120-14   Fire Department Assistance Program.
120-15         SECTION 99. (a)  As part of the transfer of personnel and
120-16   appropriations made by H.B. No. 819, Acts of the 77th Legislature,
120-17   Regular Session, 2001:
120-18               (1)  any appropriation to the Texas Department of
120-19   Economic Development relating to the Office of Rural Affairs is
120-20   transferred to the Department of Agriculture, including no less
120-21   than $212,612 each fiscal year of the 2002-2003 biennium; and
120-22               (2)  no fewer than 4.0 full-time equivalent positions
120-23   must be transferred by the Texas Department of Economic Development
120-24   to the Department of Agriculture.
120-25         (b)  This section takes effect September 1, 2001, only if
120-26   H.B. No. 819, Acts of the 77th Legislature, Regular Session, 2001,
120-27   becomes law.
 121-1         SECTION 100. In addition to other amounts appropriated by the
 121-2   77th Legislature, Regular Session, 2001, the following amounts are
 121-3   appropriated from the general revenue fund to components of the
 121-4   Texas State Technical College, as specified, for the purpose of
 121-5   Institutional Enhancement:
 121-6               (1)  $250,000 for the fiscal year beginning September
 121-7   1, 2001, and $250,000 for the fiscal year beginning September 1,
 121-8   2002, to Texas State Technical College - Harlingen;
 121-9               (2)  $250,000 for the fiscal year beginning September
121-10   1, 2001, and $250,000 for the fiscal year beginning September 1,
121-11   2002, to Texas State Technical College - West Texas;
121-12               (3)  $250,000 for the fiscal year beginning September
121-13   1, 2001, and $250,000 for the fiscal year beginning September 1,
121-14   2002, to Texas State Technical College - Marshall; and
121-15               (4)  $250,000 for the fiscal year beginning September
121-16   1, 2001, and $250,000 for the fiscal year beginning September 1,
121-17   2002, to Texas State Technical College - Waco.
121-18         SECTION 101.  Contingent on the passage of Senate Bill 1421
121-19   or similar legislation relating to certain court costs imposed on a
121-20   person convicted of an offense, and upon receipt by the comptroller
121-21   of collected fees, such fees, in an amount not to exceed those
121-22   collected, are hereby appropriated to Sam Houston State University
121-23   for the Correctional Management Institute of the Texas and Criminal
121-24   Justice Center.  In no event shall the amount expended by this
121-25   provision exceed the amount of additional revenue generated
121-26   pursuant to Senate Bill 1421.
121-27         SECTION 102.  If the comptroller is unable to certify revenue
 122-1   to cover higher than expected utility costs under Section 52 of the
 122-2   Special Provisions Relating only to State Agencies of Higher
 122-3   Education under Article III of S.B. 1, and upon approval of a
 122-4   majority vote of the students, Texas A&M University may assess an
 122-5   annual utility fee not to exceed $125 per student to cover utility
 122-6   costs that are in excess of 110 percent of the amount appropriated
 122-7   in S.B. 1, General Appropriations Act.
 122-8         SECTION 103.  On or before September 1, 2002, the comptroller
 122-9   shall report to the legislature as to the feasibility, methodology,
122-10   and cost of calculating the effect of each provision on the
122-11   distribution of the tax burden by ethnicity from the data included
122-12   in the tax exemptions and tax incidence report required under
122-13   Section 403.014, Government Code.
122-14         SECTION 104.  Section 659.044, Government Code, is amended to
122-15   read as follows:
122-16         Sec. 659.044.  Amount. (a)  The monthly amount of longevity
122-17   pay is $20 [$4] for every three years [each year] of lifetime
122-18   service credit.
122-19         (b)  The amount increases when the 6th, 9th, 12th, 15th,
122-20   18th, 21st, 24th, 27th, 30th, 33rd, 36th, 39th, and 42nd [10th,
122-21   15th, 20th, 25th, 30th, 35th, and 40th] years of lifetime service
122-22   credit are accrued.
122-23         (c)  An increase is effective beginning with the month
122-24   following the month in which the 6th, 9th, 12th, 15th, 18th, 21st,
122-25   24th, 27th, 30th, 33rd, 36th, 39th, and 42nd [10th, 15th, 20th,
122-26   25th, 30th, 35th, and 40th] years of lifetime service credit are
122-27   accrued.
 123-1         (d)  An employee may not receive from the state as longevity
 123-2   pay more than $20 [$4] for every three years [each year] of
 123-3   lifetime service credit, regardless of the number of positions the
 123-4   employee holds or the number of hours the employee works each week.
 123-5         SECTION 105.  (a)  Except as provided by Subsections (b)-(g)
 123-6   of this section:
 123-7               (1)  this Act takes effect immediately if it receives a
 123-8   vote of  two-thirds of all the members elected to each house, as
 123-9   provided by Section 39, Article III, Texas Constitution; and
123-10               (2)  if this Act does not receive the vote necessary
123-11   for immediate effect, this Act takes effect on the 91st day after
123-12   the last day of the legislative session.
123-13         (b)  This subsection and Section 2 of this Act take effect on
123-14   the date the Uniform Electronic Transactions Act takes effect, if
123-15   that Act is codified in Chapter 43, Business & Commerce Code, and
123-16   becomes law under S.B. No. 393, H.B. No. 1201, or another bill
123-17   enacted by the 77th Legislature, Regular Session.  This subsection
123-18   and Section 2 of this Act do not take effect if the Uniform
123-19   Electronic Transactions Act is not codified or does not become law
123-20   as described in this subsection.
123-21         (c)  This subsection and Sections 3, 7, 9, 14(b), 15, 30, 32,
123-22   33, 34, 36, 37, 38, 39, 40, 41, 42, 45-52, 54, 57, 79, 87, 91, 93,
123-23   94(3), (5), and (6), and 96(a)-(d) and (f) of this Act take effect
123-24   September 1, 2001.
123-25         (d)  This subsection and Section 90 of this Act take effect
123-26   October 1, 2001.
123-27         (e)  This subsection and Sections 80-86 of this Act take
 124-1   effect January 1, 2002.
 124-2         (f)  The changes in law made by Section 67(a) of this Act
 124-3   take effect according to Section 67(b) of this Act.
 124-4         (g)  Section 97(c) of this Act takes effect on the date the
 124-5   changes in law made by Section 67(a) of this Act take effect.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2914 was passed by the House on May
         5, 2001, by the following vote:  Yeas 140, Nays 0, 2 present, not
         voting; and that the House concurred in Senate amendments to H.B.
         No. 2914 on May 26, 2001, by the following vote:  Yeas 148, Nays 0,
         1 present, not voting; passed subject to the provisions of Article
         III, Section 49a, of the Constitution of the State of Texas.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2914 was passed by the Senate, with
         amendments, on May 23, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting; passed subject to the provisions of
         Article III, Section 49a, of the Constitution of the State of
         Texas.
                                             _______________________________
                                                 Secretary of the Senate
               I certify that the amounts appropriated in the herein H.B.
         No. 2914, Regular Session of the 77th Legislature, are within
         amounts estimated to be available in the affected fund.
                                          Certified_________________________
                                          __________________________________
                                          Comptroller of Public Accounts
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor