By Bonnen                                             H.B. No. 2914
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to state fiscal matters, including electronic records and
 1-3     signatures used or accepted by the comptroller, rulemaking about
 1-4     the rollback tax rate limit, the intellectual property of the
 1-5     comptroller, the collection of delinquent taxes and debts to the
 1-6     state, state property accounting, advisory committees, determining
 1-7     the fiscal year to charge for certain state expenditures, financial
 1-8     reporting by state agencies, administration of the energy
 1-9     management center, longevity pay, hazardous duty pay, temporary
1-10     reassignments of state employees, automatic payment of interest to
1-11     vendors, the applicability and collection of 9-1-1 fees and
1-12     surcharges, the payment of credit interest on local revenue funds,
1-13     the deadline for governmental entities to claim refund of the state
1-14     hotel occupancy tax, and reports about the franchise tax credit for
1-15     after school care.
1-16           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-17           SECTION 1.  Chapter 43, Business & Commerce Code, is amended
1-18     by adding Section 43.020, to read as follows:
1-19           Sec. 43.020.  CERTAIN REQUIREMENTS CONSIDERED TO BE
1-20     RECOMMENDATIONS. Any requirement of the Department of Information
1-21     Resources under this chapter that generally applies to one or more
1-22     state agencies using electronic records or electronic signatures is
1-23     considered to be a recommendation to the comptroller concerning the
 2-1     electronic records or electronic signatures used by the
 2-2     comptroller. The comptroller may adopt or decline to adopt the
 2-3     recommendation.
 2-4           SECTION 2.  Section 42.2522(e), Education Code, is amended to
 2-5     read as follows:
 2-6           (e)  The commissioner shall notify school districts as soon
 2-7     as practicable as to the availability of funds under this section.
 2-8     For purposes of computing a rollback tax rate under Section 26.08,
 2-9     Tax Code, a district shall adjust the district's tax rate limit [in
2-10     the manner provided by comptroller rule] to reflect assistance
2-11     received under this section.
2-12           SECTION 3.  Section 57.48, Education Code, is amended by
2-13     amending Subsections (c)-(d), adding Subsection (i), redesignating
2-14     Subsection (i) as Subsection (j), and redesignating Subsection (j)
2-15     as Subsection (k), to read as follows:
2-16           (c)  Except as provided by this section, the [The]
2-17     comptroller may not issue a warrant or initiate an electronic funds
2-18     transfer to the assignee of a person who has been reported properly
2-19     under Subsection (a) if the assignment became effective after the
2-20     person defaulted.
2-21           (d)  If this section prohibits the comptroller from issuing a
2-22     warrant or initiating an electronic funds transfer to a person, the
2-23     comptroller may [not] issue a warrant or initiate an electronic
2-24     funds transfer only as provided by this section to:
2-25                 (1)  the person's estate;
2-26                 (2)  the distributees of the person's estate; or
 3-1                 (3)  the person's surviving spouse.
 3-2           (i)  This section does not prohibit the comptroller from
 3-3     issuing a warrant or initiating an electronic funds transfer to a
 3-4     person properly reported to the comptroller under Subsection (a) or
 3-5     to the person's assignee, the person's estate, the distributees of
 3-6     the person's estate, or the person's surviving spouse if the
 3-7     corporation consents to issuance of the warrant or initiation of
 3-8     the transfer.
 3-9           (j) [(i)]  The comptroller may adopt rules and establish
3-10     procedures to administer this section.
3-11           (k) [(j)]  In this section:
3-12                 (1)  "Compensation" means base salary or wages,
3-13     longevity pay, hazardous duty pay, benefit replacement pay, or an
3-14     emolument provided in lieu of base salary or wages.
3-15                 (2)  "State agency" means a board, commission, council,
3-16     committee, department, office, agency, or other governmental entity
3-17     in the executive, legislative, or judicial branch of state
3-18     government.  The term includes an institution of higher education
3-19     as defined by Section 61.003, other than a public junior or
3-20     community college.
3-21                 (3)  "State officer or employee" means an officer or
3-22     employee of a state agency.
3-23           SECTION 4.  Sections 231.007(i)-(j), Family Code, are amended
3-24     to read as follows:
3-25           (i)  [Notwithstanding] Section 403.055(d) [403.055],
3-26     Government Code, does not authorize the comptroller [may not] to
 4-1     issue a warrant or initiate an electronic funds transfer to pay
 4-2     [(1)] the compensation or remuneration of an individual [a state
 4-3     officer or employee] who is indebted to the state under Subsection
 4-4     (a)[; or (2) the remuneration of an individual who is being paid by
 4-5     a private person through a state agency, if the individual is
 4-6     indebted to the state under Subsection (a)].
 4-7           (j)  [Notwithstanding] Section 2107.008(h) [2107.008],
 4-8     Government Code, does not authorize a state agency to [may not]
 4-9     pay[: (1)] the compensation or remuneration of an individual [to a
4-10     state officer or employee] who is indebted to the state under
4-11     Subsection (a)[; or (2) remuneration to an individual who is being
4-12     paid by a private person through the agency if the individual is
4-13     indebted to the state under Subsection (a)].
4-14           SECTION 5.  Section 15.407, Finance Code, is amended to read
4-15     as follows to conform more closely to the law from which it was
4-16     derived:
4-17           Sec. 15.407.  OFFICIAL COMMITTEES. The chairman may appoint
4-18     individuals who are not commission members to serve on official
4-19     committees that are charged with evaluating industry methods or
4-20     problems and presenting formal recommendations to the commission
4-21     for possible action.  The individuals appointed are entitled to
4-22     reimbursement for reasonable and necessary expenses incidental to
4-23     travel incurred in connection with the performance of official
4-24     duties.
4-25           SECTION 6.  Section 403.013(b), Government Code, is amended
4-26     to read as follows:
 5-1           (b)  On the first Monday of November of each year, and at
 5-2     other times the governor requires, the comptroller shall exhibit to
 5-3     the governor, in addition to the reports required by the
 5-4     constitution, an exact and complete statement showing:
 5-5                 (1)  the funds and revenues of the state; and
 5-6                 (2)  public expenditures during the preceding year or
 5-7     during another period required by the governor[;and]
 5-8                 [(3)  a detailed estimate of the expenditures to be
 5-9     paid from the treasury during the next year, including a statement
5-10     of:]
5-11                       [(A)  the object of the expenditures;]
5-12                       [(B)  which expenditures are provided for by
5-13     general or special appropriation and which are required to be
5-14     provided for by law; and]
5-15                       [(C)  the means from which the expenditures are
5-16     to be defrayed].
5-17           SECTION 7.  Section 403.013, Government Code, is amended by
5-18     adding Subsection (f), to read as follows:
5-19           (f)  The Growth Fund and Growth Fund II, created by Section
5-20     70, Article XVI, Texas Constitution, shall provide the financial
5-21     information listed in Subchapter B, Chapter 2101 to the comptroller
5-22     once each year, not later than the date established by the
5-23     comptroller.
5-24           SECTION 8.  Section 403.027, Government Code, is reenacted
5-25     and amended to read as follows:
5-26           Sec. 403.027.  DIGITAL SIGNATURES. (a)  The comptroller may
 6-1     establish a procedure for a person to use [provide] a digital
 6-2     signature to authenticate [for any] a document, a communication, or
 6-3     data submitted to the comptroller if:
 6-4                 (1)  the comptroller determines the procedure will
 6-5     provide a degree of security and authenticity at least equal to
 6-6     that provided by a manual signature; and
 6-7                 (2)  the digital signature is:
 6-8                       (A)  unique to the person using it;
 6-9                       (B)  capable of independent verification;
6-10                       (C)  under the sole control of the person using
6-11     it; and
6-12                       (D)  transmitted in a manner that makes it
6-13     infeasible to change the signature, document, communication, or
6-14     data without invalidating the signature.
6-15           (b)  A digital signature provided according to a procedure
6-16     established under Subsection (a) [this section] has the same legal
6-17     force and effect for all purposes as a manual signature.
6-18           (c)  The electronic approval of a voucher is governed by
6-19     [This]:
6-20                 (1)  this section [does not apply to the electronic
6-21     submission and approval of vouchers under] and Chapter 2103 if the
6-22     comptroller has established a procedure for the person approving
6-23     the voucher to provide a digital signature concerning the voucher;
6-24     or
6-25                 (2)  Chapter 2103 if the comptroller has not
6-26     established the procedure.
 7-1           (d)  This section prevails over Chapter 2103 to the extent of
 7-2     conflict if both this section and that chapter apply under
 7-3     Subsection (c)(1).
 7-4           (e)  Except as provided in this subsection, Section 2054.060
 7-5     applies to a digital signature used to authenticate any document,
 7-6     communication, or data submitted to the comptroller if the
 7-7     comptroller has not established a procedure under Subsection (a)
 7-8     concerning the signature.  Section 2054.060 does not apply to the
 7-9     electronic approval of a voucher under Chapter 2103.
7-10           (f)  The use of a digital signature under this section is
7-11     subject to criminal laws pertaining to fraud and computer crimes,
7-12     including Chapters 32 and 33, Penal Code.
7-13           (g)  In this section, "digital signature" has the meaning
7-14     assigned by Section 2.108(d), Business & Commerce Code.
7-15           SECTION 9.  Subchapter B, Chapter 403, Government Code, is
7-16     amended by adding Section 403.030, to read as follows:
7-17           Sec. 403.030.  INTELLECTUAL PROPERTY. (a)  The comptroller
7-18     may:
7-19                 (1)  apply for, register, secure, hold, and protect
7-20     under the laws of the United States or any state or nation:
7-21                       (A)  a patent for the invention, discovery, or
7-22     improvement of any process, machine, manufacture, or composition of
7-23     matter;
7-24                       (B)  a copyright for an original work of
7-25     authorship fixed in any tangible medium of expression, now known or
7-26     later developed, from which it can be perceived, reproduced, or
 8-1     otherwise communicated, either directly or with the aid of a
 8-2     machine or device;
 8-3                       (C)  a trademark, service mark, collective mark,
 8-4     or certification mark for a word, name, symbol, device, or slogan
 8-5     that the comptroller uses to identify and distinguish the
 8-6     comptroller's goods and services from other goods and services; or
 8-7                       (D)  other evidence of protection or exclusivity
 8-8     issued for intellectual property;
 8-9                 (2)  contract with a person for the sale, lease,
8-10     marketing, or other distribution of the comptroller's intellectual
8-11     property;
8-12                 (3)  obtain under a contract described in Subdivision
8-13     (2) a royalty, license right, or other appropriate means of
8-14     securing reasonable compensation for the development or purchase of
8-15     the comptroller's intellectual property; and
8-16                 (4)  waive or reduce the amount of compensation secured
8-17     by contract under Subdivision (3) if the comptroller determines
8-18     that the waiver or reduction will:
8-19                       (A)  further a goal or mission of the
8-20     comptroller; and
8-21                       (B)  result in a net benefit to the state.
8-22           (b)  Intellectual property is excepted from required
8-23     disclosure under Chapter 552 if the comptroller has applied for or
8-24     received a patent, copyright, trademark, service mark, collective
8-25     mark, certification mark, or other evidence of protection or
8-26     exclusivity concerning the property.
 9-1           (c)  Except as provided in Section 2054.115(c), money paid to
 9-2     the comptroller under this section shall be deposited to the credit
 9-3     of the general revenue fund.
 9-4           (d)  Notwithstanding any law of this state, the comptroller
 9-5     may award to an employee of the comptroller who conceives, creates,
 9-6     discovers, invents, or develops intellectual property an
 9-7     appropriate amount of equity interest or participation in the
 9-8     research, development, licensing, or exploitation of that property.
 9-9           (e)  The comptroller shall establish intellectual property
9-10     policies for the comptroller's office that include minimum
9-11     standards for:
9-12                 (1)  the public disclosure or availability of products,
9-13     technology, and scientific information, including inventions,
9-14     discoveries, trade secrets, and computer software;
9-15                 (2)  review by the comptroller's office of products,
9-16     technology, and scientific information, including consideration of
9-17     ownership and appropriate legal protection;
9-18                 (3)  the licensing of products, technology, and
9-19     scientific information;
9-20                 (4)  the identification of ownership and licensing
9-21     responsibilities for each class of intellectual property; and
9-22                 (5)  royalty participation by inventors and the
9-23     comptroller's office.
9-24           SECTION 10.  Section 403.055, Government Code, is amended by
9-25     amending Subsections (b)-(c), redesignating Subsection (h) as
9-26     Subsection (i), redesignating Subsection (i) as Subsection (j),
 10-1    redesignating Subsection (j) as Subsection (l), redesignating
 10-2    Subsection (k) as Subsection (m), and adding Subsection (k), to
 10-3    read as follows:
 10-4          (b)  Except as provided by this section, the [The]
 10-5    comptroller may not issue a warrant or initiate an electronic funds
 10-6    transfer to the assignee of a person who has been reported properly
 10-7    under Subsection (f) if the assignment became effective after the
 10-8    person became indebted to the state or incurred a tax delinquency.
 10-9          (c)  If [When] this section prohibits the comptroller from
10-10    issuing a warrant or initiating an electronic funds transfer to a
10-11    person, the comptroller may [not] issue a warrant or initiate an
10-12    electronic funds transfer only as provided by this section to:
10-13                (1)  the person's estate;
10-14                (2)  the distributees of the person's estate; or
10-15                (3)  the person's surviving spouse.
10-16          (i) [(h)]  This section does not apply:
10-17                (1)  to the extent Section 57.48, Education Code,
10-18    applies; or
10-19                (2)  to the extent this section conflicts with Section
10-20    231.007, Family Code.
10-21          (j) [(i)]  This section does not prohibit the comptroller
10-22    from issuing a warrant or initiating an electronic funds transfer
10-23    if:
10-24                (1)  the warrant or transfer would result in a payment
10-25    being made in whole or in part with money paid to the state by the
10-26    United States; and
 11-1                (2)  the state agency that administers the money
 11-2    certifies to the comptroller that federal law:
 11-3                      (A)  requires the payment to be made; or
 11-4                      (B)  conditions the state's receipt of the money
 11-5    on the payment being made.
 11-6          (k)  This section does not prohibit the comptroller from
 11-7    issuing a warrant or initiating an electronic funds transfer to a
 11-8    person, the person's assignee, the person's estate, the
 11-9    distributees of the person's estate, or the person's surviving
11-10    spouse if each state agency that properly reported the person to
11-11    the comptroller under Subsection (f) consents to issuance of the
11-12    warrant or initiation of the transfer.
11-13          (l) [(j)]  The comptroller may adopt rules and establish
11-14    procedures to administer this section.
11-15          (m) [(k)]  In this section:
11-16                (1)  "Compensation" means base salary or wages,
11-17    longevity pay, hazardous duty pay, benefit replacement pay, or an
11-18    emolument provided in lieu of base salary or wages.
11-19                (2)  "State agency" means a board, commission, council,
11-20    committee, department, office, agency, or other governmental entity
11-21    in the executive, legislative, or judicial branch of state
11-22    government.  The term includes an institution of higher education
11-23    as defined by Section 61.003, Education Code, other than a public
11-24    junior or community college.
11-25                (3)  "State officer or employee" means an officer or
11-26    employee of a state agency.
 12-1                (4)  "Tax delinquency" means a delinquency in payment
 12-2    of:
 12-3                      (A)  a tax to the state; or
 12-4                      (B)  a tax that the comptroller administers or
 12-5    collects.
 12-6          SECTION 11.  Section 403.0551(d), Government Code, is amended
 12-7    to read as follows:
 12-8          (d)  This section does not authorize the comptroller to
 12-9    deduct the amount of a state employee's indebtedness to a state
12-10    agency from any amount of compensation owed by the agency to the
12-11    employee, the employee's successor, or the assignee of the employee
12-12    or successor.  In this subsection, "compensation," "indebtedness,"
12-13    "state agency," "state employee," and "successor" have the meanings
12-14    assigned by Section 668.001 [666.001].
12-15          SECTION 12.  (a) Effective immediately, Section 403.0552(b),
12-16    Government Code, is amended to read as follows:
12-17          (b)  Except as provided in this subsection, the [The]
12-18    comptroller may prepare a warrant to make a payment that Section
12-19    57.48, Education Code, Section 231.007, Family Code, or Section
12-20    403.055 prohibits the comptroller from initiating by electronic
12-21    funds transfer.  The comptroller shall prepare the warrant if the
12-22    payment is overdue under Section 2251.021.
12-23          (b)  Effective September 1, 2001, Section 403.0552(c),
12-24    Government Code, is amended to read as follows:
12-25          (c)  If the comptroller prepares a warrant under Subsection
12-26    (a) or (b), the comptroller shall:
 13-1                (1)  make the warrant payable to the person to whom the
 13-2    warrant may not be issued or an electronic funds transfer may not
 13-3    be initiated; and
 13-4                (2)  retain the warrant until the earliest of:
 13-5                      (A)  the first day the warrant may no longer be
 13-6    paid by the comptroller under Section 404.046 or other applicable
 13-7    law;
 13-8                      (B)  the date the comptroller deducts the amount
 13-9    of the person's indebtedness to the state or tax delinquency from
13-10    the amount of the warrant under Section 403.0551[, Chapter 666,] or
13-11    other applicable law; [or]
13-12                      (C)  the date the comptroller recovers the amount
13-13    of the person's indebtedness to the state under Chapter 668; or
13-14                      (D) [(C)]  the first day the comptroller is no
13-15    longer prohibited from issuing the warrant or initiating an
13-16    electronic funds transfer to that person.
13-17          SECTION 13.  Section 403.0915, Government Code, is amended to
13-18    read as follows:
13-19          Sec. 403.0915.  DORMANT FUND OR ACCOUNT. At any time the
13-20    comptroller, with notification to the state auditor, may transfer
13-21    to the general revenue fund a balance in a dormant fund or account
13-22    if the source of the fund or account is unknown or the purpose for
13-23    which it was collected is moot. The legislature at any time after
13-24    the transfer may appropriate the balance as a refund if the source
13-25    and purpose of the fund or account become known and active.  [The
13-26    comptroller shall report any dormant funds or accounts to the Funds
 14-1    Review Advisory Committee.]
 14-2          SECTION 14.  Section 403.273, Government Code, is amended to
 14-3    read as follows:
 14-4          Sec. 403.273.  PROPERTY MANAGER; PROPERTY INVENTORY. (a)  The
 14-5    head of each state agency is responsible for the custody and care
 14-6    of [state] property in the agency's possession.
 14-7          (b)  The head of each state agency shall designate a property
 14-8    manager and inform the comptroller of the designation.  Subject to
 14-9    comptroller approval, more than one property manager may be
14-10    designated [appointed by the agency head].
14-11          (c)  The property manager of a state agency shall maintain
14-12    the records required and be the custodian of all property possessed
14-13    by the agency.
14-14          (d) [(e)]  When a state [an] agency's property is entrusted
14-15    to a person other than the agency's property manager, [the property
14-16    manager shall require a written receipt from] the person [receiving
14-17    custody of] to whom the property is entrusted shall provide a
14-18    written receipt to the manager.  A [When the property of one] state
14-19    agency may lend its property [is lent] to another state agency[,]
14-20    only if the head of the agency lending the property provides
14-21    written authorization for the lending [must be authorized in
14-22    writing by the head of the agency that is lending the property].
14-23    The [A written receipt must be executed by the] head of the agency
14-24    to which [that is receiving] the property is lent must execute a
14-25    written receipt.
14-26          (e) [(f)]  A [On the date prescribed by the comptroller, a]
 15-1    state agency shall conduct an annual [make a complete] physical
 15-2    inventory of all property in its possession.  [The inventory must
 15-3    be completed once each year.]  The comptroller may specify the date
 15-4    on which the inventory must be conducted.
 15-5          (f) [(g)]  Not later than [Within 45 days after] the
 15-6    [inventory] date prescribed by the comptroller, the head of a
 15-7    [each] state agency shall submit [forward] to the comptroller:
 15-8                (1)  a signed statement describing the methods [method]
 15-9    used to conduct [verify] the agency's annual physical inventory
15-10    under Subsection (e); [and]
15-11                (2)  a copy of the results of the inventory; and
15-12                (3)  any other information concerning the inventory
15-13    that the comptroller requires.
15-14          (g) [(h)]  At all times, the [The] property records of a
15-15    [prepared by each] state agency must accurately reflect the
15-16    property [currently] possessed by the agency.  [The agency must use
15-17    the methods prescribed by the comptroller to delete property from
15-18    the agency's property records.]  Property [that has become surplus
15-19    or obsolete and no longer serviceable] may be deleted from the
15-20    agency's records only in accordance with rules adopted [upon
15-21    authorization] by the comptroller. [Property that is missing or
15-22    that is disposed of directly by the agency shall be deleted from
15-23    the comptroller's records on approval by the state auditor.]
15-24          (h)  The state auditor shall periodically examine each state
15-25    agency's property records or inventory as necessary to determine if
15-26    controls are adequate to safeguard property in the agency's
 16-1    possession.
 16-2          SECTION 15.  Section 403.274, Government Code, is amended to
 16-3    read as follows:
 16-4          Sec. 403.274.  CHANGE OF AGENCY HEAD OR PROPERTY MANAGER.
 16-5    When the head or property manager of a state [an] agency changes,
 16-6    the outgoing [new] head of agency or property manager [of the
 16-7    agency] shall complete the form required by the comptroller about
 16-8    property in the agency's possession. The outgoing head of agency or
 16-9    property manager shall deliver the form to the incoming [execute a
16-10    receipt for all agency property accounted for to the outgoing
16-11    agency] head of agency or property manager.  After verifying the
16-12    information on and signing the form, the incoming head of agency or
16-13    property manager shall submit a [A] copy of the form [receipt shall
16-14    be delivered] to the comptroller[, the state auditor, and the
16-15    outgoing agency head or property manager].
16-16          SECTION 16.  Section 403.276, Government Code, is amended to
16-17    read as follows:
16-18          Sec. 403.276.  REPORTING TO COMPTROLLER [STATE AUDITOR] AND
16-19    ATTORNEY GENERAL. (a)  If the [a] head or property manager of a
16-20    state [an] agency has reasonable cause to believe that any [state]
16-21    property in the agency's possession has been lost, destroyed, or
16-22    damaged through the negligence [or fault] of any state official or
16-23    employee, the head of agency [head responsible] or property manager
16-24    shall [immediately] report the loss, destruction, or damage to the
16-25    comptroller [state auditor] and [to] the attorney general not later
16-26    than the date established by the comptroller.  If the head or
 17-1    property manager of a state agency has reasonable cause to believe
 17-2    that any property in the agency's possession has been stolen, the
 17-3    head of agency or property manager shall report the theft to the
 17-4    comptroller, the attorney general, and the appropriate law
 17-5    enforcement agency not later than the date established by the
 17-6    comptroller.
 17-7          (b)  The attorney general may [shall] investigate a report
 17-8    received under Subsection (a) [of loss, destruction, or damage to
 17-9    state property].
17-10          (c)  If an [the] investigation by the attorney general under
17-11    Subsection (b) reveals [discloses] that a property loss has been
17-12    sustained [by the state] through the negligence [fault] of a state
17-13    official or employee, the attorney general shall make written
17-14    demand on the [state] official or employee for reimbursement of [to
17-15    the state for] the loss [sustained].
17-16          (d)  If the demand made by the attorney general under
17-17    Subsection (c) [for reimbursement for property loss, destruction,
17-18    or damage] is refused or disregarded [by the state official or
17-19    employee on whom such demand is made], the attorney general may
17-20    take legal action to recover the value of the [state] property as
17-21    the attorney general deems necessary.
17-22          (e)  Venue for all suits instituted under this section
17-23    against a state official or employee is in a court of appropriate
17-24    jurisdiction of Travis County.
17-25          SECTION 17.  Section 447.001, Government Code, is amended to
17-26    read as follows:
 18-1          Sec. 447.001.  ESTABLISHMENT OF CENTER. The energy management
 18-2    center is established as the state energy conservation office
 18-3    within [in] the office of the comptroller [General Services
 18-4    Commission] and shall be authorized to promote those policies of
 18-5    the state enumerated in this chapter.
 18-6          SECTION 18.  The heading for Subchapter C, Chapter 659,
 18-7    Government Code, is amended to read as follows:
 18-8                  SUBCHAPTER C.  [COMPENSATORY] PER DIEM.
 18-9          SECTION 19.  Subchapter C, Chapter 659, Government Code, is
18-10    amended by adding Section 659.034, to read as follows:
18-11          Sec. 659.034.  CERTAIN ADVISORY COMMITTEES. (a)  This section
18-12    applies to a member of an advisory committee only if:
18-13                (1)  the statutory authorization or requirement for
18-14    reimbursing or paying a travel or other expense incurred while the
18-15    member provided services as a committee member was specifically
18-16    repealed by:
18-17                      (A)  Chapter 165, Acts of the 74th Legislature,
18-18    Regular Session, 1995, which enacted the Transportation Code
18-19    effective September 1, 1995;
18-20                      (B)  Chapter 1008, Acts of the 75th Legislature,
18-21    Regular Session, 1997, which enacted the Finance Code effective
18-22    September 1, 1997;
18-23                      (C)  Chapter 166, Acts of the 75th Legislature,
18-24    Regular Session, 1997, which enacted the Utilities Code effective
18-25    September 1, 1997; or
18-26                      (D)  Chapter 388, Acts of the 76th Legislature,
 19-1    Regular Session, 1999, which enacted the Occupations Code effective
 19-2    September 1, 1999; and
 19-3                (2)  an official "Revisor's Note" of the Texas
 19-4    Legislative Council says that the authorization or requirement
 19-5    described in Subdivision (1) was omitted from the Transportation
 19-6    Code, the Finance Code, the Utilities Code, or the Occupations Code
 19-7    because Article 6252-33, Revised Statutes, impliedly repealed the
 19-8    authorization or requirement effective September 1, 1993.
 19-9          (b)  A travel or other expense incurred by an advisory
19-10    committee member covered by this section is payable or reimbursable
19-11    if and to the extent the statute described in Subsection (a)
19-12    authorized or required the payment or reimbursement before the
19-13    effective date of the statute's repeal.
19-14          (c)  Subsections (a) and (b) do not apply to an advisory
19-15    committee covered by:
19-16                (1)  Section 15.407, Finance Code; or
19-17                (2)  Section 56.113, Utilities Code.
19-18          (d)  In this section, "advisory committee" has the meaning
19-19    assigned by Section 2110.001.
19-20          SECTION 20.  Section 659.044, Government Code, is amended by
19-21    amending Subsection (a) and adding Subsection (e), to read as
19-22    follows:
19-23          (a)  Except as provided in Subsection (e), the [The] monthly
19-24    amount of longevity pay is $4 for each year of lifetime service
19-25    credit.
19-26          (e)  This subsection applies only to an employee of the Texas
 20-1    Youth Commission who is receiving less than the maximum amount of
 20-2    hazardous duty pay that the commission may pay to the employee
 20-3    under Section 659.303.  The employee's monthly amount of longevity
 20-4    pay is the sum of:
 20-5                (1)  $4 for each year of lifetime service credit, which
 20-6    may not include any period served in a hazardous duty position; and
 20-7                (2)  the lesser of:
 20-8                      (A)  $4 for each year served in a hazardous duty
 20-9    position; and
20-10                      (B)  the difference between:
20-11                            (i)  $7 for each year served in a hazardous
20-12    duty position; and
20-13                            (ii)  the amount paid by the commission for
20-14    each year served in a hazardous duty position.
20-15          SECTION 21.  Section 659.046, Government Code, is amended by
20-16    adding Subsection (f), to read as follows:
20-17          (f)  The amount of an employee's lifetime service credit does
20-18    not include the period served in a hazardous duty position if the
20-19    employee is:
20-20                (1)  entitled to receive hazardous duty pay under
20-21    Section 659.302; or
20-22                (2)  receiving the maximum amount of hazardous duty pay
20-23    that the Texas Youth Commission may pay to the employee under
20-24    Section 659.303.
20-25          SECTION 22.  Section 659.254(c), Government Code, is amended
20-26    to read as follows:
 21-1          (c)  An employee whose classified position is reallocated by
 21-2    the General Appropriations Act or reclassified under Chapter 654 to
 21-3    a higher salary group will be paid at the minimum salary rate in
 21-4    the higher salary group or at the salary rate the employee would
 21-5    have received without the reallocation or reclassification,
 21-6    whichever is higher, except[: (1)] to maintain desirable salary
 21-7    relationships among employees in the affected positions, the salary
 21-8    may be adjusted not more than:
 21-9                (1) [(A)]  two steps higher, if the employee's salary
21-10    group is divided into steps by the General Appropriations Act; or
21-11                (2) [(B)]  6.8 percent higher, if the employee's salary
21-12    group is not divided into steps by the General Appropriations Act[;
21-13    and (2) the employee may not advance to a step number in the new
21-14    salary group higher than the step number rate held before the
21-15    reallocation or reclassification, if the employee's salary group is
21-16    divided into steps by the General Appropriations Act].
21-17          SECTION 23.  Subsections (b) and (e), Section 659.260,
21-18    Government Code, are amended to read as follows:
21-19          (b)  To facilitate a state agency's work during an emergency
21-20    or other special circumstance, an employee may[: (1)] be
21-21    temporarily assigned to other duties for a period not to exceed six
21-22    months[; and].  The employee is entitled to [(2)] receive during
21-23    the period of reassignment at least the same [appropriate] rate of
21-24    pay that the employee received immediately before the reassignment
21-25    [for the temporary position if the temporary position is classified
21-26    in a salary group with a higher minimum salary rate].  An employee
 22-1    may not be temporarily assigned under this subsection to a position
 22-2    classified in a salary group with a lower minimum salary rate.
 22-3          (e)  While the employee is temporarily assigned under this
 22-4    section, the state agency may not:
 22-5                (1)  award a merit salary increase to the employee; or
 22-6                (2)  promote or demote the employee[; or]
 22-7                [(3)  reduce the employee's salary].
 22-8          SECTION 24.  Chapter 659, Government Code, is amended by
 22-9    adding Subchapter L, to read as follows:
22-10                    SUBCHAPTER L.  HAZARDOUS DUTY PAY.
22-11          Sec. 659.301.  DEFINITIONS. In this subchapter:
22-12                (1)  "Full-time state employee" means a state employee
22-13    who normally works at least 40 hours each week.
22-14                (2)  "Hazardous duty position" means a position in the
22-15    service of this state that:
22-16                      (A)  renders any individual holding that position
22-17    a state employee; or
22-18                      (B)  requires the performance of hazardous duty.
22-19                (3)  "Institution of higher education" has the meaning
22-20    assigned by Section 61.003, Education Code.
22-21                (4)  "Part-time state employee" means a state employee
22-22    who is not a full-time state employee.
22-23                (5)  "State employee" means an individual who:
22-24                      (A)  is a commissioned law enforcement officer of
22-25    the Department of Public Safety of the State of Texas, the General
22-26    Services Commission, the Texas Alcoholic Beverage Commission, or
 23-1    the institutional division of the Texas Department of Criminal
 23-2    Justice;
 23-3                      (B)  is a commissioned security officer of the
 23-4    comptroller;
 23-5                      (C)  is a law enforcement officer commissioned by
 23-6    the Parks and Wildlife Commission;
 23-7                      (D)  is a commissioned peace officer of an
 23-8    institution of higher education;
 23-9                      (E)  is an employee or official of the Board of
23-10    Pardons and Paroles or the pardons and paroles division of the
23-11    Texas Department of Criminal Justice if the employee or official
23-12    has routine direct contact with inmates of any penal or
23-13    correctional institution or with administratively released
23-14    prisoners subject to the board's jurisdiction;
23-15                      (F)  has been certified to the Employees
23-16    Retirement System of Texas under Section 815.505 as having begun
23-17    employment as a law enforcement officer or custodial officer,
23-18    unless the individual has been certified to the system as having
23-19    ceased employment as a law enforcement officer or custodial
23-20    officer; or
23-21                      (G)  before May 29, 1987, received hazardous duty
23-22    pay based on the terms of any state law if the individual holds a
23-23    position designated under that law as eligible for the pay.
23-24                (6)  "Workday" means any day that is not Saturday,
23-25    Sunday, or a state or national holiday under Section 662.003.  The
23-26    term includes a state or national holiday that the General
 24-1    Appropriations Act prohibits state agencies from observing.
 24-2          Sec. 659.302.  ENTITLEMENT TO RECEIVE HAZARDOUS DUTY PAY. (a)
 24-3    Hazardous duty pay is included in the compensation paid to an
 24-4    individual for services rendered during a month if the individual:
 24-5                (1)  is a state employee for any portion of the first
 24-6    workday of the month; and
 24-7                (2)  has completed at least twelve months of lifetime
 24-8    service credit not later than the last day of the preceding month.
 24-9          (b)  This section does not apply to an employee of the Texas
24-10    Youth Commission.
24-11          Sec. 659.303.  TEXAS YOUTH COMMISSION EMPLOYEES. (a)  The
24-12    commission may include hazardous duty pay in the compensation paid
24-13    to an individual for services rendered during a month if the
24-14    individual:
24-15                (1)  has routine direct contact with youth:
24-16                      (A)  placed in a residential facility of the
24-17    commission; or
24-18                      (B)  released under the commission's supervision;
24-19    and
24-20                (2)  has completed at least twelve months of lifetime
24-21    service credit not later than the last day of the preceding month.
24-22          (b)  For the purposes of Subsection (a)(1), an individual who
24-23    is having routine direct contact with youth on any portion of the
24-24    first workday of a month is considered to have routine direct
24-25    contact with youth for the entire month.
24-26          (c)  The commission's authority under Subsection (a) is
 25-1    subject to any conditions or limitations in the General
 25-2    Appropriations Act.
 25-3          (d)  The commission may not pay hazardous duty pay:
 25-4                (1)  from funds authorized for payment of an
 25-5    across-the-board employee salary increase; or
 25-6                (2)  to an employee who works at the commission's
 25-7    central office.
 25-8          (e)  In this section, "commission" means the Texas Youth
 25-9    Commission.
25-10          Sec. 659.304.  INELIGIBILITY TO RECEIVE HAZARDOUS DUTY PAY.
25-11    Hazardous duty pay may be paid only to an individual who is:
25-12                (1)  entitled to receive the pay under Section 659.302;
25-13    or
25-14                (2)  eligible to receive the pay under Section 659.303.
25-15          Sec. 659.305.  AMOUNT OF HAZARDOUS DUTY PAY. (a)  Except as
25-16    provided in Subsection (b), the amount of a full-time state
25-17    employee's hazardous duty pay for a particular month is the lesser
25-18    of:
25-19                (1)  $7 for each 12-month period of lifetime service
25-20    credit accrued by the employee; and
25-21                (2)  $210.
25-22          (b)  This subsection applies only to a state employee whose
25-23    compensation for services provided to the state during any month
25-24    before August 1987 included hazardous duty pay that was based on
25-25    total state service performed before May 29, 1987.  The amount of a
25-26    full-time state employee's hazardous duty pay for a particular
 26-1    month is the sum of:
 26-2                (1)  $7 for each 12-month period of state service
 26-3    credit the employee finished accruing before May 29, 1987; and
 26-4                (2)  $7 for each 12-month period of lifetime service
 26-5    credit that the employee accrued after the date, which must be
 26-6    before May 29, 1987, on which the employee finished accruing the
 26-7    last 12-month period of state service credit.
 26-8          (c)  The amount determined under Subsection (b)(2) may not
 26-9    exceed $210.
26-10          (d)  For the purposes of Subsections (a)(1) and (b)(2), the
26-11    number of 12-month periods of lifetime service credit that the
26-12    employee has accrued must be determined as of the last day of the
26-13    preceding month.
26-14          (e)  A state employee is considered to be a full-time state
26-15    employee for the purposes of Subsection (a) or (b) if the employee
26-16    is a full-time state employee for any portion of the first workday
26-17    of the month.
26-18          (f)  The amount of a part-time state employee's hazardous
26-19    duty pay is proportional to the amount of a full-time state
26-20    employee's pay under Subsection (a) or (b).
26-21          (g)  A state employee may not receive more than $7 for each
26-22    12-month period of lifetime service credit, regardless of:
26-23                (1)  the number of positions the employee holds; or
26-24                (2)  the number of hours the employee works each week.
26-25          Sec. 659.306.  RESPONSIBILITY FOR PAYING HAZARDOUS DUTY PAY.
26-26    The state agency that employs an individual at the beginning of the
 27-1    first workday of a month must pay any hazardous duty pay that is
 27-2    included in the compensation paid to the individual for services
 27-3    rendered during that month. If the individual transfers to a second
 27-4    state agency during that month, the first agency remains
 27-5    responsible for paying the full amount of hazardous duty pay for
 27-6    that month.
 27-7          Sec. 659.307.  SERVICE CREDIT. (a)  The amount of an
 27-8    individual's lifetime service credit equals the number of months
 27-9    the individual has served in a hazardous duty position during the
27-10    individual's lifetime.
27-11          (b)  The amount of an individual's state service credit
27-12    equals the sum of:
27-13                (1)  the amount of the individual's lifetime service
27-14    credit, as determined under Subsection (a); and
27-15                (2)  the number of months during the individual's
27-16    lifetime that the individual has provided services to the state in
27-17    a position that is not a hazardous duty position.
27-18          Sec. 659.308.  ADMINISTRATION. The comptroller may establish
27-19    procedures and adopt rules to administer this subchapter.
27-20          SECTION 25.  Section 660.203(a), Government Code, is amended
27-21    to read as follows:
27-22          (a)  An individual is entitled to reimbursement for the
27-23    actual expense of meals and lodging incurred while performing the
27-24    duties of the individual's office or employment if the individual
27-25    is:
27-26                (1)  a judicial officer;
 28-1                (2)  a chief administrative officer of a state agency,
 28-2    subject to Subsection (c);
 28-3                (3)  the executive director of the Texas Legislative
 28-4    Council; [or]
 28-5                (4)  the secretary of the senate;
 28-6                (5)  a member of the Texas Natural Resource
 28-7    Conservation Commission, the Texas Workforce Commission, the Public
 28-8    Utility Commission of Texas, the Board of Pardons and Paroles, or
 28-9    the Sabine River Compact Administration; or
28-10                (6)  a full-time member of a board and receives a
28-11    salary from the state for service on that board.
28-12          SECTION 26.  Chapter 666, Government Code, as added by
28-13    Section 1.27, Chapter 1467, Acts of the 76th Legislature, Regular
28-14    Session, 1999, is redesignated as Chapter 668, Subtitle B, Title 6,
28-15    Government Code, and amended to read as follows:
28-16           CHAPTER 668 [666].  RECOVERING [PAYROLL DEDUCTION TO
28-17     RECOUP] EXCESS COMPENSATION PAID TO A STATE OFFICER OR EMPLOYEE.
28-18          Sec. 668.001 [666.001].  DEFINITIONS. In this chapter:
28-19                (1)  "Compensation" includes:
28-20                      (A)  base salary or wages;
28-21                      (B)  longevity or hazardous duty pay;
28-22                      (C)  benefit replacement pay;
28-23                      (D)  a payment for the balance of vacation and
28-24    sick leave under Subchapter B, Chapter 661;
28-25                      (E)  a payment for the accrued balance of
28-26    vacation time under Subchapter C, Chapter 661; and
 29-1                      (F)  an emolument provided in lieu of base salary
 29-2    or wages.
 29-3                (2)  "Indebtedness" means the amount of compensation
 29-4    paid to a state employee that exceeds the amount the employee is
 29-5    eligible to receive under law because at the time the compensation
 29-6    was paid:
 29-7                      (A)  the employee was ineligible to receive the
 29-8    entire amount paid; or
 29-9                      (B)  the employee's eligibility to receive the
29-10    entire amount paid was conditioned on:
29-11                            (i)  the occurrence of an event that did
29-12    not occur; or
29-13                            (ii)  the employee's fulfillment of a
29-14    promise that the employee did not fulfill.
29-15                (3)  "State agency" means a board, commission, council,
29-16    committee, department, office, agency, or other governmental entity
29-17    in the executive, legislative, or judicial branch of state
29-18    government. The term includes:
29-19                      (A)  the Texas Guaranteed Student Loan
29-20    Corporation; and
29-21                      (B)  an institution of higher education as
29-22    defined by Section 61.003, Education Code, other than a public
29-23    junior or community college.
29-24                (4)  "State employee" means an officer or employee of a
29-25    state agency.
29-26                (5)  "Successor" means:
 30-1                      (A)  the estate of a deceased state employee;
 30-2                      (B)  the surviving spouse of a deceased state
 30-3    employee; or
 30-4                      (C)  the distributees of the estate of a deceased
 30-5    state employee.
 30-6          Sec. 668.002 [666.002].  RECOVERY [DEDUCTION] AUTHORIZATION.
 30-7    (a)  A state agency may recover in accordance with this chapter
 30-8    [deduct] the amount of a state employee's indebtedness to the
 30-9    agency [from any amount of compensation the agency owes the
30-10    employee or the employee's successor] if:
30-11                (1)  the agency provides a notice to the employee or
30-12    successor that complies with Section 668.003 [666.003];
30-13                (2)  the agency provides the employee or successor with
30-14    an opportunity to exercise any due process or other constitutional
30-15    or statutory protection that must be accommodated before the agency
30-16    may begin a collection action or procedure;
30-17                (3)  the agency determines that the recovery
30-18    [deduction] would not violate any applicable law or rule of this
30-19    state or the United States; and
30-20                (4)  the comptroller is not responsible under Section
30-21    404.046, 404.069, or 2103.003 for paying the amount owed by the
30-22    agency to the employee or successor through the issuance of a
30-23    warrant or initiation of an electronic funds transfer.
30-24          (b)  The comptroller may recover in accordance with this
30-25    chapter [deduct] the amount of a state employee's indebtedness to a
30-26    state agency [from any amount of compensation the agency owes the
 31-1    employee or the employee's successor] if:
 31-2                (1)  the agency provides a notice to the employee or
 31-3    successor that complies with Section 668.003 [666.003];
 31-4                (2)  the agency's request for [agency requests] the
 31-5    comptroller to recover [make] the indebtedness complies [deduction
 31-6    in accordance] with Section 668.005 [666.005]; and
 31-7                (3)  the comptroller is responsible under Section
 31-8    404.046, 404.069, or 2103.003 for paying the amount owed by the
 31-9    agency to the employee or the successor through the issuance of a
31-10    warrant or initiation of an electronic funds transfer.
31-11          (c)  A state agency may recover the amount of a state
31-12    employee's indebtedness to the agency under this chapter by:
31-13                (1)  deducting the amount of the indebtedness from any
31-14    amount of compensation the agency owes the employee or the
31-15    employee's successor; or
31-16                (2)  reducing the gross amount of base salary or wages
31-17    that the agency owes the employee or the employee's successor for
31-18    services provided by the employee during any pay period after the
31-19    pay period in which the indebtedness was incurred.
31-20          (d)  The comptroller may recover the amount of a state
31-21    employee's indebtedness to a state agency under this chapter by:
31-22                (1)  deducting the amount of the indebtedness from any
31-23    amount of compensation the agency owes the employee or the
31-24    employee's successor; or
31-25                (2)  reducing the gross amount of base salary or wages
31-26    that the agency owes the employee or the employee's successor for
 32-1    services provided by the employee during any pay period after the
 32-2    pay period in which the indebtedness was incurred.
 32-3          (e)  For the purposes of Subsections (c)(2) and (d)(2), an
 32-4    indebtedness is incurred during the pay period the compensation is
 32-5    earned by the employee.  For the purpose of this subsection,
 32-6    compensation is earned without regard to whether the amount of that
 32-7    compensation exceeds the amount the employee was eligible to
 32-8    receive.
 32-9          Sec. 668.003 [666.003].  NOTICE. (a)  A state agency shall
32-10    provide notice to a state employee or the employee's successor
32-11    before the agency:
32-12                (1)  recovers [deducts] the amount of the employee's
32-13    indebtedness to the agency under Section 668.002(a) [666.002(a)];
32-14    or
32-15                (2)  requests the comptroller to recover the amount of
32-16    the employee's indebtedness to the agency [make a deduction] under
32-17    Section 668.002(b) [666.002(b)].
32-18          (b)  The notice must:
32-19                (1)  be given in a manner reasonably calculated to give
32-20    actual notice to the employee or successor;
32-21                (2)  state the:
32-22                      (A)  amount of the indebtedness; and
32-23                      (B)  name of the indebted employee;
32-24                (3)  specify the date by which the indebtedness must be
32-25    paid; and
32-26                (4)  inform the employee or successor that unless the
 33-1    indebtedness is paid on or before the date specified, the amount of
 33-2    the indebtedness may be recovered by:
 33-3                      (A)  deducting it [deducted] from any amount of
 33-4    compensation the agency owes the employee or successor; or
 33-5                      (B)  reducing the gross amount of base salary or
 33-6    wages that the agency owes the employee or successor for services
 33-7    provided by the employee during any pay period after the pay period
 33-8    in which the indebtedness was incurred.
 33-9          (c)  For the purpose of Subsection (b)(4)(B), an indebtedness
33-10    is incurred during the pay period the compensation is earned by the
33-11    employee.  For the purpose of this subsection, compensation is
33-12    earned without regard to whether the amount of that compensation
33-13    exceeds the amount the employee was eligible to receive.
33-14          Sec. 668.004 [666.004].  PAYMENT OF AMOUNT REMAINING. Any
33-15    amount that remains owed after a recovery [deduction] under Section
33-16    668.002 [666.002] shall be paid to the state employee or successor.
33-17          Sec. 668.005 [666.005].  RECOVERY [DEDUCTION] REQUESTS TO THE
33-18    COMPTROLLER. (a)  A state agency may not request the comptroller to
33-19    make a recovery [deduction from compensation owed to a state
33-20    employee or successor] under Section 668.002(b) [666.002(b)] before
33-21    the agency:
33-22                (1)  provides the employee or successor the opportunity
33-23    to exercise any due process or other constitutional or statutory
33-24    protection that must be accommodated before a collection action or
33-25    procedure may begin; and
33-26                (2)  determines that the recovery [deduction] would not
 34-1    violate any applicable law or rule of this state or the United
 34-2    States.
 34-3          (b)  The comptroller may not investigate or determine whether
 34-4    the agency has complied with Subsection (a)(1).  The comptroller
 34-5    may rely on a determination made under Subsection (a)(2).
 34-6          (c)  A state agency's request to the comptroller to make a
 34-7    recovery [deduction] under Section 668.002(b) [666.002(b)] must
 34-8    comply with the comptroller's requirements for format, content, and
 34-9    frequency.
34-10          Sec. 668.006 [666.006].  ASSIGNEES. (a)  The assignee of a
34-11    state employee or the employee's successor is considered to be a
34-12    successor for the purposes of this chapter, except that a recovery
34-13    [deduction] under this chapter from the compensation or base salary
34-14    or wages owed to the assignee of a state employee or the employee's
34-15    successor may not be made if the assignment became effective before
34-16    [after] the employee incurred the indebtedness.
34-17          (b)  For the purpose of Subsection (a), an indebtedness is
34-18    incurred on:
34-19                (1)  the date the compensation is paid, if eligibility
34-20    to receive the entire amount of the compensation was not
34-21    conditioned on a state employee fulfilling a promise; or
34-22                (2)  the day after the deadline for a state employee to
34-23    fulfill a promise, if eligibility to receive the entire amount of
34-24    the compensation was conditioned on the employee fulfilling the
34-25    promise.
34-26          (c)  This chapter neither authorizes nor prohibits a state
 35-1    employee or the employee's successor from assigning the employee's
 35-2    or successor's right or eligibility to receive compensation.
 35-3          Sec. 668.007.  OTHER METHODS OF RECOVERY NOT PROHIBITED. This
 35-4    chapter does not prohibit the comptroller or a state agency from
 35-5    recovering an indebtedness in any manner authorized by a law
 35-6    outside this chapter.
 35-7          Sec. 668.008 [666.007].  ADMINISTRATION. The comptroller may
 35-8    adopt rules and establish procedures to administer this chapter.
 35-9          SECTION 27.  Sections 2101.011(a)-(c), Government Code, are
35-10    amended to read as follows:
35-11          (a)  In this section:
35-12                (1)  "Annual financial report" means the annual
35-13    financial report required by this section.
35-14                (2)  "Appropriated money" means money appropriated by
35-15    the legislature under the General Appropriations Act or other law.
35-16                [(2)  "Appropriation item" includes an item listed in
35-17    the General Appropriations Act under an informational listing of
35-18    appropriated funds.]
35-19          (b)  Not later than November 20 of each year, a [the
35-20    executive head of each] state agency shall submit an annual
35-21    financial report regarding the agency's use of appropriated money
35-22    during the preceding fiscal year to:
35-23                (1)  the governor;
35-24                (2)  the comptroller;
35-25                (3)  the Legislative Reference Library;
35-26                (4)  the state auditor; and
 36-1                (5)  the Legislative Budget Board.
 36-2          (c)  A state agency's [The] annual financial report must
 36-3    include[: (1)] a detailed statement of all assets, liabilities, and
 36-4    fund balances, including:
 36-5                (1) [(A)]  cash on hand and on deposit in banks and
 36-6    accounts in the state treasury;
 36-7                (2) [(B)]  the value of consumable supplies and
 36-8    postage;
 36-9                (3) [(C)]  the value of the [state] agency's inventory
36-10    of movable equipment and other fixed assets;
36-11                (4) [(D)]  all other assets;
36-12                (5) [(E)]  an itemization [a list] of the investments,
36-13    bonds, notes, and other securities owned by any special funds under
36-14    the agency's jurisdiction [of the state agency], including the
36-15    amount and value of the securities;
36-16                (6) [(F)]  all money due the [state] agency from any
36-17    source;
36-18                (7) [(G)]  all outstanding commitments of the agency,
36-19    including amounts due for services or goods received by the agency;
36-20                (8) [(H)]  a summary by source of all revenue collected
36-21    or accruing through the [state] agency;
36-22                (9) [(I)]  a summary of all appropriations,
36-23    expenditures, bona fide encumbrances, and other disbursements by
36-24    the [state] agency; and
36-25                (10)  any other financial information requested by the
36-26    comptroller.
 37-1                [(2)  a list of all bonded employees, including the
 37-2    name of the surety company, the name and title of the employee, and
 37-3    the amount of the surety bond;]
 37-4                [(3)  an analysis of space occupied by the state
 37-5    agency, including:]
 37-6                      [(A)  the total number of square feet of space
 37-7    rented by the agency;]
 37-8                      [(B)  the total number of square feet of occupied
 37-9    space in state-owned buildings;]
37-10                      [(C)  the name and address of each building in
37-11    which the state agency occupies space and the number of square feet
37-12    in each building devoted to a particular use;]
37-13                      [(D)  the cost per square foot of all rented
37-14    space;]
37-15                      [(E)  the annual and monthly cost of all rented
37-16    space;]
37-17                      [(F)  the lessor of all rented space;]
37-18                      [(G)  a statement of the state agency's progress
37-19    toward achieving the objective provided by Section 2165.104, if the
37-20    agency is subject to that section; and]
37-21                      [(H)  other information helpful to describe the
37-22    state agency's use of space;]
37-23                [(4)  an itemized statement of all fees paid by the
37-24    state agency for professional and consulting services provided
37-25    under Chapter 2254, including the name of each person receiving
37-26    fees and the reason for the provision of the services;]
 38-1                [(5)  an itemized statement of all legal services paid
 38-2    by the state agency, other than services provided by an employee of
 38-3    the agency or the attorney general, that includes the name of each
 38-4    person receiving fees and the reason for the provision of the
 38-5    services;]
 38-6                [(6)  a copy of the report, relating to the state
 38-7    agency's use and cost of operating aircraft that is state-owned or
 38-8    under rental or long-term lease, prepared by the agency in
 38-9    accordance with Section 2205.041;]
38-10                [(7)  a list of any purchases made under Section
38-11    2155.067, including each product purchased, the purchase amount,
38-12    and the name of each vendor;]
38-13                [(8)  for each fiscal year ending in an even-numbered
38-14    calendar year, a copy of the Master File Report Verification Form
38-15    certified by the General Land Office, if applicable to the state
38-16    agency, to confirm that the agency is in compliance with Subchapter
38-17    E, Chapter 31, Natural Resources Code, or, if the agency's
38-18    inventory record is not accurate and complete, a statement that the
38-19    appropriate forms will be submitted to the General Land Office not
38-20    later than the 15th day after the date of the annual report;]
38-21                [(9)  a copy of the report, relating to the state
38-22    agency's use of historically underutilized businesses, prepared by
38-23    the agency in accordance with Section 2161.124;]
38-24                [(10)  a report of any transfer of appropriated money
38-25    between appropriation items that shows the sum of all transfers
38-26    affecting a particular item;]
 39-1                [(11)  a list of each passenger vehicle the state
 39-2    agency purchased, including the make and model, purchase price,
 39-3    assigned type of use, and fuel efficiency as expressed by the
 39-4    manufacturer's fuel efficiency rating;]
 39-5                [(12)  a schedule, applicable to state agencies
 39-6    determined by the Legislative Budget Board, detailing total
 39-7    expenditures by or on behalf of a state agency for employee
 39-8    benefits, such as social security, health insurance, and retirement
 39-9    contributions, benefit replacement pay, and workers' and
39-10    unemployment compensation payments; bond debt service; and payments
39-11    for general governmental services as determined by the comptroller,
39-12    including services of the comptroller, the attorney general, the
39-13    General Services Commission, the Department of Information
39-14    Resources, and the state auditor;]
39-15                [(13)  for an institution of higher education, the
39-16    total amount of lump-sum payments made to employees who separated
39-17    from state service during the fiscal year for accrued vacation and
39-18    compensatory leave; and]
39-19                [(14)  any other financial information requested by the
39-20    comptroller.]
39-21          SECTION 28.  Subchapter B, Chapter 2101, Government Code, is
39-22    amended by adding Section 2101.0115, to read as follows:
39-23          Sec. 2101.0115.  OTHER INFORMATION REQUIRED OF STATE
39-24    AGENCIES. (a)  A state agency shall submit an annual report to:
39-25                (1)  the governor;
39-26                (2)  the comptroller;
 40-1                (3)  the Legislative Reference Library;
 40-2                (4)  the state auditor; and
 40-3                (5)  the Legislative Budget Board.
 40-4          (b)  A state agency's annual report must cover an entire
 40-5    fiscal year.  The agency shall submit the report not later than the
 40-6    date and in the form prescribed by the comptroller.
 40-7          (c)  A state agency's annual report must include:
 40-8                (1)  the name and job title of each bonded agency
 40-9    employee, the amount of the bond, and the name of the surety
40-10    company that issued the bond;
40-11                (2)  an analysis of space occupied by the agency,
40-12    including:
40-13                      (A)  the total amount of space rented by the
40-14    agency, expressed in square feet;
40-15                      (B)  the total amount of space occupied by the
40-16    agency in state-owned buildings, expressed in square feet;
40-17                      (C)  the name and address of each building in
40-18    which the agency occupies space and the amount of square feet in
40-19    each building devoted to each particular use;
40-20                      (D)  the cost per square foot of all rented
40-21    space;
40-22                      (E)  the annual and monthly cost of all rented
40-23    space;
40-24                      (F)  the name of each lessor of space rented by
40-25    the agency;
40-26                      (G)  a description of the agency's progress
 41-1    toward achieving the objective provided by Section 2165.104, if the
 41-2    agency is subject to that section; and
 41-3                      (H)  any other information helpful to describe
 41-4    the agency's use of space;
 41-5                (3)  an itemization of all fees paid by the agency for
 41-6    professional or consulting services provided under Subchapter A or
 41-7    B, Chapter 2254, including the name of each person receiving those
 41-8    fees and the reason for the provision of the services;
 41-9                (4)  an itemization of all fees paid by the agency for
41-10    legal services, other than legal services provided by an agency
41-11    employee or the attorney general, including the name of each person
41-12    receiving those fees and the reason for the provision of the
41-13    services;
41-14                (5)  a copy of the report prepared by the agency under
41-15    Section 2205.041, relating to the agency's use and cost of
41-16    operating aircraft that are state-owned or under rental or
41-17    long-term lease;
41-18                (6)  an itemization of any purchases made under Section
41-19    2155.067, including each product purchased, the amount of the
41-20    purchase, and the name of the vendor;
41-21                (7)  for each fiscal year ending in an even-numbered
41-22    calendar year:
41-23                      (A)  a copy of the master file report
41-24    verification form certified by the General Land Office, if
41-25    applicable to the agency, to confirm that the agency is in
41-26    compliance with Subchapter E, Chapter 31, Natural Resources Code;
 42-1    or
 42-2                      (B)  if the agency's inventory record is
 42-3    inaccurate or incomplete, a statement that the agency will submit
 42-4    the appropriate forms to the General Land Office not later than the
 42-5    15th day after the date the agency submits its annual report;
 42-6                (8)  a copy of the report prepared by the agency under
 42-7    Section 2161.124, relating to the agency's use of historically
 42-8    underutilized businesses;
 42-9                (9)  a report of each transfer of appropriated money
42-10    between appropriation items that shows the sum of all transfers
42-11    affecting each item;
42-12                (10)  an itemization of each passenger vehicle the
42-13    agency purchased, including the make, model, purchase price,
42-14    assigned type of use, and fuel efficiency as expressed by the
42-15    manufacturer's fuel efficiency rating;
42-16                (11)  a schedule, applicable to state agencies
42-17    determined by the Legislative Budget Board, detailing total
42-18    expenditures by or on behalf of the agency for:
42-19                      (A)  employee benefits, including social
42-20    security, health insurance, retirement contributions, benefit
42-21    replacement pay, and workers' and unemployment compensation
42-22    payments;
42-23                      (B)  bond debt service; and
42-24                      (C)  payments for general governmental services
42-25    as determined by the comptroller, including services of the
42-26    comptroller, the attorney general, the General Services Commission,
 43-1    the Department of Information Resources, and the state auditor;
 43-2                (12)  for an institution of higher education, the total
 43-3    amount of lump-sum vacation and compensatory leave payments made to
 43-4    employees who separated from state service during the fiscal year;
 43-5                (13)  the name and job title of each state officer or
 43-6    employee authorized to use a state-owned or state-leased vehicle
 43-7    and the reasons for the authorization, in accordance with Section
 43-8    2113.013; and
 43-9                (14)  a report of expenditures made for each commodity
43-10    or service identified under Section 2155.448, including:
43-11                      (A)  the total amount spent on those commodities
43-12    and services;
43-13                      (B)  the total amount spent for commodities and
43-14    services purchased that accomplish the same purpose; and
43-15                      (C)  the total amount spent for all other
43-16    recycled, remanufactured, or environmentally sensitive commodities
43-17    or services, itemized by type of commodity or service.
43-18          (d)  In this section:
43-19                (1)  "Annual report" means the annual report required
43-20    by this section.
43-21                (2)  "Appropriated money" means money appropriated by
43-22    the legislature under the General Appropriations Act or other law.
43-23                (3)  "Appropriation item" includes an item listed in
43-24    the General Appropriations Act under an informational listing of
43-25    appropriated funds.
43-26          SECTION 29.  Section 2101.012(b), Government Code, is amended
 44-1    to read as follows:
 44-2          (b)  The procedures must:
 44-3                (1)  comply with generally accepted accounting
 44-4    principles as established by the Governmental Accounting Standards
 44-5    Board and the American Institute of Certified Public Accountants or
 44-6    their successors; and
 44-7                (2)  include the requirements for compliance with the
 44-8    federal Single Audit Act of 1984 and Office of Management and
 44-9    Budget Circular A-133 [A-128] and any subsequent changes or
44-10    amendments that will fulfill the audit requirements for a statewide
44-11    single audit[; and]
44-12                [(3)  to provide for maximum consistency with the
44-13    national reporting system for higher education, incorporate insofar
44-14    as possible the provisions of the financial accounting and
44-15    reporting manual published by the National Association of College
44-16    and University Business Officers].
44-17          SECTION 30.  Section 2103.004, Government Code, is amended to
44-18    read as follows:
44-19          Sec. 2103.004.  WARRANTS AND ELECTRONIC FUNDS TRANSFERS. (a)
44-20    A warrant may not be drawn or an electronic funds transfer
44-21    initiated until:
44-22                (1)  the state agency from whose appropriated or
44-23    unappropriated funds the warrant or electronic funds transfer is
44-24    payable has submitted a voucher to the comptroller;
44-25                (2)  the state agency has approved the voucher in
44-26    accordance with this chapter; and
 45-1                (3)  the comptroller has audited and approved the
 45-2    voucher as required by law.
 45-3          (b)  A state agency's approval of a voucher includes the
 45-4    agency's approval of any interest that must be paid at the same
 45-5    time the principal amount is paid to a vendor under Chapter 2251.
 45-6    In this subsection, "state agency" has the meaning assigned by
 45-7    Section 2251.001.
 45-8          SECTION 31.  Section 2107.008, Government Code, is amended to
 45-9    read as follows:
45-10          Sec. 2107.008.  PAYMENTS TO DEBTORS OR DELINQUENTS
45-11    PROHIBITED. (a)  Except as provided by this section, a state
45-12    agency, as a ministerial duty, may not use funds in or outside the
45-13    state treasury to pay a person if[: (1)] Section 403.055 prohibits
45-14    the comptroller from issuing a warrant or initiating an electronic
45-15    funds transfer to the person[; or (2)].
45-16          (b)  Except as provided by this section, a state agency may
45-17    refuse to use funds in or outside the state treasury to pay a
45-18    person if the person is indebted to the state or has a tax
45-19    delinquency[,] and the agency is responsible for collecting that
45-20    indebtedness or delinquency[, and].  This subsection applies only
45-21    if Section 403.055 does not prohibit the comptroller from issuing a
45-22    warrant or initiating an electronic funds transfer to the person.
45-23          (c) [(b)]  A state agency may not pay the assignee of a
45-24    person that the agency may not pay under Subsection (a) [(a)(1)] if
45-25    Section 403.055 prohibits the comptroller from issuing a warrant or
45-26    initiating an electronic funds transfer to the assignee.  The
 46-1    agency may refuse to [not] pay the assignee of a person that the
 46-2    agency may refuse to [not] pay under Subsection (b) [(a)(2)] if the
 46-3    assignment became effective after the person became indebted to the
 46-4    state or incurred a tax delinquency.
 46-5          (d) [(c)]  A state agency that Subsection (a)  prohibits from
 46-6    making a payment to a person also is prohibited from paying any
 46-7    part of that payment to:
 46-8                (1)  the person's estate;
 46-9                (2)  the distributees of the person's estate; or
46-10                (3)  the person's surviving spouse.
46-11          (e)  A state agency that may refuse to make a payment to a
46-12    person under Subsection (b) also may refuse to make any part of
46-13    that payment to:
46-14                (1)  the person's estate;
46-15                (2)  the distributees of the person's estate; or
46-16                (3)  the person's surviving spouse.
46-17          (f) [(d)]  This section neither prohibits [does not prohibit]
46-18    a state agency from paying nor authorizes a state agency to refuse
46-19    to pay a person [subject to Subsection (a)(2)] or the person's
46-20    assignee if the agency determines that the person is complying with
46-21    an installment payment agreement or similar agreement between the
46-22    agency and that person to pay or eliminate the debt or delinquency.
46-23          (g) [(e)]  The comptroller may not reimburse a state agency
46-24    for a payment that the comptroller determines was made in violation
46-25    of Subsection (a) [this section].
46-26          (h) [(f)]  Subsection (b) [(a)(2)] does not authorize
 47-1    [prohibit] a state agency to refuse to pay [from paying]:
 47-2                (1)  the compensation of a state officer or employee;
 47-3    or
 47-4                (2)  the remuneration of an individual if the
 47-5    remuneration is being paid by a private person through the agency.
 47-6          (i) [(g)]  Subsection (b) [(a)(2)] does not authorize
 47-7    [prohibit] a state agency to refuse to make [from making] a payment
 47-8    if:
 47-9                (1)  the payment would be made in whole or in part with
47-10    money paid to the state by the United States; and
47-11                (2)  the agency determines that federal law:
47-12                      (A)  requires the payment to be made; or
47-13                      (B)  conditions the state's receipt of the money
47-14    on the payment being made.
47-15          (j) [(h)]  A state agency may not refuse to make a payment
47-16    under Subsection (b) [(a)(2)] before the agency has provided the
47-17    person with an opportunity to exercise any due process or other
47-18    constitutional or statutory protection that must be accommodated
47-19    before the agency or the state may begin a collection action or
47-20    procedure.
47-21          (k)  Subsection (a) does not prohibit a state agency from
47-22    making a payment if each state agency that properly reported the
47-23    person to the comptroller under Section 403.055(f) consents to the
47-24    payment.
47-25          (l) [(i)]  This section does not apply to the extent that
47-26    Section 57.482, Education Code, applies.
 48-1          (m) [(j)]  This section applies to a payment only if the
 48-2    comptroller is not responsible under Section 404.046, 404.069, or
 48-3    2103.003 for issuing a warrant or initiating an electronic funds
 48-4    transfer to make the payment.
 48-5          (n) [(k)]  In [Notwithstanding Section 2107.001, in] this
 48-6    section:
 48-7                (1)  "Compensation," ["compensation," "state agency,"]
 48-8    "state officer or employee," and "tax delinquency" have the
 48-9    meanings assigned by Section 403.055.
48-10                (2)  "State agency" has the meaning assigned by Section
48-11    403.055, notwithstanding Section 2107.001(2).
48-12          SECTION 32.  Section 2110.001, Government Code, is amended to
48-13    read as follows:
48-14          Sec. 2110.001.  DEFINITION. In this chapter, "advisory
48-15    committee" means a committee, council, commission, task force, or
48-16    other entity with multiple members [in the executive branch of
48-17    state government] that[:]
48-18                [(1)  is not a state agency;]
48-19                [(2)  is created by or under state law; and]
48-20                [(3)]  has as its primary function advising a state
48-21    agency in the executive branch of state government.
48-22          SECTION 33.  Chapter 2110, Government Code, is amended by
48-23    adding Sections 2110.0011 and 2110.0012, to read as follows:
48-24          Sec. 2110.0011.  APPLICABILITY OF THIS CHAPTER. This chapter
48-25    applies unless and to the extent:
48-26                (1)  another state law specifically says that this
 49-1    chapter does not apply; or
 49-2                (2)  a federal law or regulation:
 49-3                      (A)  imposes an unconditional requirement that
 49-4    irreconcilably conflicts with this chapter; or
 49-5                      (B)  imposes a condition on the state's
 49-6    eligibility to receive money from the federal government that
 49-7    irreconcilably conflicts with this chapter.
 49-8          Sec. 2110.0012.  ESTABLISHMENT OF ADVISORY COMMITTEES. For
 49-9    the purposes of this chapter, a state agency has established an
49-10    advisory committee if:
49-11                (1)  state or federal law has specifically created the
49-12    committee to advise the agency; or
49-13                (2)  the agency has created the committee to advise the
49-14    agency under state or federal law.
49-15          SECTION 34.  Section 2110.002, Government Code, is amended to
49-16    read as follows:
49-17          Sec. 2110.002.  COMPOSITION OF ADVISORY COMMITTEES. (a)  An
49-18    [Notwithstanding other law, an] advisory committee must be composed
49-19    of a reasonable number of members not to exceed 24.
49-20          (b)  The composition of an advisory [the] committee that
49-21    advises a state agency regarding an industry or occupation
49-22    regulated or directly affected by the agency must [also] provide a
49-23    balanced representation between:
49-24                (1)  the industry or occupation [industries or
49-25    occupations regulated or directly affected by the advised state
49-26    agency]; and
 50-1                (2)  consumers of services provided [either] by the
 50-2    [advised state] agency, [or] industry, [by industries] or
 50-3    occupation [occupations regulated by the agency].
 50-4          [(b)  This section does not apply to an advisory committee if
 50-5    the committee must be composed in a manner inconsistent with this
 50-6    section under federal law or for federal funding purposes.]
 50-7          SECTION 35.  Section 2110.003(a), Government Code, is amended
 50-8    to read as follows:
 50-9          (a)  An advisory committee shall select from among its
50-10    members a presiding officer[, unless a different procedure for
50-11    selecting the presiding officer is prescribed by other law].
50-12          SECTION 36.  Section 2110.004, Government Code, is amended to
50-13    read as follows:
50-14          Sec. 2110.004.  REIMBURSEMENT OF MEMBERS' EXPENSES;
50-15    APPROPRIATIONS PROCESS. (a)  The money appropriated by the General
50-16    Appropriations Act may be expended to pay or reimburse a
50-17    [Notwithstanding other law, the manner and amount of reimbursement
50-18    for expenses, including] travel or other expense [expenses, of
50-19    members] incurred by a member of an advisory committee [may be
50-20    prescribed] only if:
50-21                (1)  [by] the General Appropriations Act specifically
50-22    provides that the money may be expended for this purpose; or
50-23                (2)  a [through the] budget execution order
50-24    specifically providing for the payment or reimbursement is adopted
50-25    [process] under Chapter 317, except as provided in Subsections
50-26    (b)-(e) [if the advisory committee is created after it is
 51-1    practicable to address the existence of the committee in the
 51-2    General Appropriations Act].
 51-3          (b)  Not subject to the requirement in Chapter 317 for
 51-4    publication in the Texas Register is:
 51-5                (1)  a proposed budget execution order under Subsection
 51-6    (a)(2);
 51-7                (2)  an adopted budget execution order under Subsection
 51-8    (a)(2); or
 51-9                (3)  the approval or rejection of a contingent budget
51-10    execution order under Subsection (a)(2).
51-11          (c)  If a person proposes a budget execution order under
51-12    Subsection (a)(2), the person proposing the order shall notify the
51-13    other person about the proposal.  If the other person rejects the
51-14    proposed order, the order does not take effect.  If the other
51-15    person does not reject the proposed order, the person may adopt
51-16    either the proposed order or a contingent order for changing the
51-17    proposed order.  The proposed order expires if the other person
51-18    does not adopt the order or a contingent order before the 31st day
51-19    after the date the person receives notification of the proposed
51-20    order. If a person adopts a contingent order, the person adopting
51-21    the order shall notify the other person about the order.  A
51-22    contingent order expires if the person proposing the budget
51-23    execution order does not approve the contingent order before the
51-24    31st day after the date the other person received notification of
51-25    the proposed budget execution order.  In this subsection, "person"
51-26    means the governor or the Legislative Budget Board.
 52-1          (d)  The Legislative Budget Board may designate the board's
 52-2    executive director to propose or adopt any order described in
 52-3    Subsection (c).  If the board designates the executive director,
 52-4    the board shall adopt appropriate criteria for the executive
 52-5    director to use when considering whether to propose or adopt an
 52-6    order.
 52-7          (e)  The governor may designate an employee of the governor
 52-8    to propose or adopt an order described in Subsection (c).  If the
 52-9    governor designates an employee, the governor shall adopt
52-10    appropriate criteria for the employee to use when considering
52-11    whether to propose or adopt an order.
52-12          (f) [(b)]  A state agency [that is advised by an advisory
52-13    committee must] may request the legislature to include in the
52-14    General Appropriations Act a provision described in Subsection
52-15    (a)(1).  A state agency may request the Legislative Budget Board or
52-16    the governor to propose or adopt an order described in Subsection
52-17    (c) [authority to reimburse the expenses of members of the
52-18    committee through the appropriations or budget execution process,
52-19    as appropriate, if the agency determines that the expenses of
52-20    committee members should be reimbursed].  A [The] request under
52-21    this subsection must:
52-22                (1)  identify the costs related to the advisory
52-23    committee's existence, including the cost of agency staff time
52-24    spent in support of the committee's activities;
52-25                (2)  state the reasons the advisory committee should
52-26    continue in existence; and
 53-1                (3)  identify any other advisory committees established
 53-2    by [created to advise] the agency that should be consolidated or
 53-3    abolished.
 53-4          (g) [(c)]  As part of the appropriations and budget execution
 53-5    process, the governor and the Legislative Budget Board shall
 53-6    jointly identify advisory committees that should be abolished.  The
 53-7    comptroller may recommend to the governor and the Legislative
 53-8    Budget Board that an advisory committee [should] be abolished.
 53-9          (h) [(d)]  The General Appropriations Act may provide for
53-10    reimbursing the expenses of members of certain advisory committees
53-11    without providing for reimbursing the expenses of members of other
53-12    advisory committees.
53-13          (i)  If an expense payment or reimbursement is authorized
53-14    under this section, the amount of the payment or reimbursement is
53-15    the amount prescribed under the law outside this chapter that
53-16    applies to the committee.
53-17          (j) [(e)]  This section does not apply to an advisory
53-18    committee the services of which are determined by the governing
53-19    board of a retirement system trust fund to be necessary for the
53-20    performance of the governing board's fiduciary duties under the
53-21    state constitution.
53-22          SECTION 37.  Section 2110.005, Government Code, is amended to
53-23    read as follows:
53-24          Sec. 2110.005.  AGENCY-DEVELOPED STATEMENT OF PURPOSE;
53-25    REPORTING REQUIREMENTS. A state agency that establishes [is advised
53-26    by] an advisory committee shall by rule [adopt rules that]:
 54-1                (1)  state the purpose and tasks of the committee; and
 54-2                (2)  describe [the task of the committee and] the
 54-3    manner in which the committee will report to the agency.
 54-4          SECTION 38.  Section 2110.006, Government Code, is amended to
 54-5    read as follows:
 54-6          Sec. 2110.006.  AGENCY EVALUATION OF COMMITTEE COSTS AND
 54-7    EFFECTIVENESS. A state agency that has established [is advised by]
 54-8    an advisory committee shall evaluate annually:
 54-9                (1)  the committee's work;
54-10                (2)  the committee's usefulness; and
54-11                (3)  the costs related to the committee's existence,
54-12    including the cost of agency staff time spent in support of the
54-13    committee's activities.
54-14          SECTION 39.  Section 2110.007, Government Code, is amended to
54-15    read as follows:
54-16          Sec. 2110.007.  REPORT TO THE LEGISLATIVE BUDGET BOARD. A
54-17    state agency that has established [is advised by] an advisory
54-18    committee shall report to the Legislative Budget Board the
54-19    information developed in the evaluation required by Section
54-20    2110.006.  The agency shall file the report biennially in
54-21    connection with the agency's request for appropriations.
54-22          SECTION 40.  Section 2110.008, Government Code, is amended to
54-23    read as follows:
54-24          Sec. 2110.008.  DURATION OF ADVISORY COMMITTEES. (a)  A state
54-25    agency that has established [is advised by] an advisory committee
54-26    may designate [shall establish by rule] the [a] date on which the
 55-1    committee will automatically be abolished.  The designation must be
 55-2    by rule.  The [advisory] committee may continue in existence after
 55-3    that date only if the [governing body of the] agency amends the
 55-4    rule to provide for a different abolishment date [affirmatively
 55-5    votes to continue the committee in existence].
 55-6          (b)  Unless the state agency that establishes an [An]
 55-7    advisory committee designates a different date under Subsection
 55-8    (a), the committee is automatically abolished on the later of:
 55-9                (1)  September 1, 2005; or
55-10                (2)  the fourth anniversary of the date of its creation
55-11    [unless the governing body of the agency establishes a different
55-12    date under Subsection (a)].
55-13          (c)  An advisory committee that state or federal law has
55-14    specifically created as described in Section 2110.0012(1) is
55-15    considered for the purpose of Subsection (b)(2) to have been
55-16    created on the effective date of that law unless the law
55-17    specifically provides for a different date of creation.
55-18          (d) [(c)]  This section does not apply to an advisory
55-19    committee that has a specific duration prescribed by statute.
55-20          SECTION 41.  Section 2113.001, Government Code, as added by
55-21    Section 4, Chapter 1498, Acts of the 76th Legislature, Regular
55-22    Session, 1999, is reenacted and amended to read as follows:
55-23          Sec. 2113.001.  DEFINITIONS. Except as provided in this
55-24    chapter, in [In] this chapter:
55-25                (1)  "Appropriated money" means money appropriated by
55-26    the legislature through the General Appropriations Act or other
 56-1    law.
 56-2                (2)  "State agency" means:
 56-3                      (A)  a department, commission, board, office, or
 56-4    other entity in the executive branch of state government;
 56-5                      (B)  the supreme court, the court of criminal
 56-6    appeals, another entity in the judicial branch of state government
 56-7    with statewide authority, or a court of appeals; or
 56-8                      (C)  a university system or an institution of
 56-9    higher education as defined by Section 61.003, Education Code,
56-10    except that a public junior college is excluded from the meaning of
56-11    the term in all of Subchapter C except Section 2113.101 and all of
56-12    Subchapter D except Section 2113.205 [and all of Subchapter C
56-13    except Section 2113.101].
56-14          SECTION 42.  Section 2113.013(b), Government Code, is amended
56-15    to read as follows:
56-16          (b)  The administrative head of a state agency may authorize
56-17    an officer or employee to use a state-owned or state-leased motor
56-18    vehicle to commute to and from work when the administrative head
56-19    determines that the use may be necessary to ensure that vital
56-20    agency functions are performed.  The name and job title of each
56-21    individual authorized under this subsection, and the reasons for
56-22    the authorization, must be included in the [annual] report required
56-23    by Section 2101.0115 [law].
56-24          SECTION 43.  Section 2113.205, Government Code, is reenacted
56-25    and amended to read as follows:
56-26          Sec. 2113.205.  CERTAIN EXPENDITURES INVOLVING MULTIPLE [TWO]
 57-1    FISCAL YEARS. (a)  Except as provided in this subsection, a  [The
 57-2    comptroller shall adopt rules to permit] state agency may [agencies
 57-3    to] use money appropriated for a particular fiscal year to pay
 57-4    expenses related to conducting or attending a seminar or a
 57-5    conference [seminars and conferences] only to the extent it occurs
 57-6    [that will not occur] during that year.  To the extent
 57-7    cost-effective to do so, a state agency may use money appropriated
 57-8    for a particular fiscal year to pay expenses related to conducting
 57-9    or attending a seminar or conference that will occur partly or
57-10    entirely during a different [until the next] fiscal year [in
57-11    circumstances when it is cost-effective to do so].
57-12          (b)  A [The comptroller also shall adopt rules to permit]
57-13    state agency may [agencies to] use money appropriated for a
57-14    particular fiscal year to pay the entire cost or amount of
57-15    [expenses for items such as] a periodical subscription,
57-16    [subscriptions and monthly utility] a maintenance contract, a post
57-17    office box rental, insurance, or a surety or honesty bond,
57-18    regardless of whether it covers more than one [charges in
57-19    circumstances when the billing or subscription period extends to
57-20    the next] fiscal year.
57-21          (c)  A state agency may use money appropriated for a
57-22    particular fiscal year to pay for a utility service provided during
57-23    that fiscal year and September of the next fiscal year.
57-24          (d)  The comptroller may establish procedures and adopt rules
57-25    to administer this section.
57-26          (e)  In this section:
 58-1                (1)  "Institution of higher education" has the meaning
 58-2    assigned by Section 61.003, Education Code.
 58-3                (2)  "State agency" means:
 58-4                      (A)  a department, commission, board, office, or
 58-5    other entity in the executive branch of state government, including
 58-6    an institution of higher education as defined by Section 61.003,
 58-7    Education Code;
 58-8                      (B)  the supreme court, the court of criminal
 58-9    appeals, another entity in the judicial branch of state government
58-10    with statewide authority, or a court of appeals; or
58-11                      (C)  the legislature or another entity in the
58-12    legislative branch of state government with statewide authority.
58-13                (3)  "Utility service" means:
58-14                      (A)  the furnishing of electricity, water, or
58-15    natural gas;
58-16                      (B)  a telecommunications service, a wastewater
58-17    treatment service, or a waste disposal service; or
58-18                      (C)  any similar commodity or service that the
58-19    comptroller considers to be a utility service.
58-20          SECTION 44.  Section 2155.004, Government Code, is amended to
58-21    read as follows:
58-22          Sec. 2155.004.  CERTAIN BIDS AND CONTRACTS PROHIBITED. (a)  A
58-23    state agency may not accept a bid or award a contract that includes
58-24    proposed financial participation by a person who received
58-25    compensation from the agency to participate in preparing the
58-26    specifications or request for proposals on which the bid or
 59-1    contract is based.
 59-2          [(b)  A state agency may not accept a bid or award a contract
 59-3    to any individual not residing in this state or business entity not
 59-4    incorporated in or whose principal domicile is not in this state
 59-5    unless the individual or business entity:]
 59-6                [(1)  holds a permit issued by the comptroller to
 59-7    collect or remit all state and local sales and use taxes that
 59-8    become due and owing as a result of the individual's or entity's
 59-9    business in this state; or]
59-10                [(2)  certifies that it does not sell tangible personal
59-11    property or services that are subject to the state and local sales
59-12    and use tax.]
59-13          (b) [(c)]  A bid or award subject to the requirements of this
59-14    section must include the following statement:
59-15          "Under Section 2155.004, Government Code, the vendor
59-16    certifies that the individual or business entity named in this bid
59-17    or contract is not ineligible to receive the specified contract and
59-18    acknowledges that this contract may be terminated and payment
59-19    withheld if this certification is inaccurate."
59-20          (c) [(d)]  If a state agency determines that an individual or
59-21    business entity holding a state contract was ineligible to have the
59-22    contract accepted or awarded under Subsection (a) [or (b)], the
59-23    state agency may immediately terminate the contract without further
59-24    obligation to the vendor.
59-25          [(e)  If the certification required under Subsection (b)(2)
59-26    is shown to be false, the vendor is liable to the state for
 60-1    attorney's fees, the costs necessary to complete the contract,
 60-2    including the cost of advertising and awarding a second contract,
 60-3    and any other damages provided by law or contract.]
 60-4          (d) [(f)]  This section does not create a cause of action to
 60-5    contest a bid or award of a state contract.
 60-6          [(g)  In the absence of a certification by the vendor under
 60-7    Subsection (b)(2), the purchasing state agency shall determine if a
 60-8    prospective vendor holds a permit for the collection and remission
 60-9    of state and local sales and use taxes.]
60-10          (e) [(h)]  This section does not prohibit a bidder or
60-11    contract participant from providing free technical assistance to a
60-12    state agency.
60-13          SECTION 45.  Section 2155.448(c), Government Code, is amended
60-14    to read as follows:
60-15          (c)  A state agency shall include [report] in the [its annual
60-16    financial] report[,] required by Section 2101.0115, and in an
60-17    annual report to the commission at a date and in a manner and form
60-18    prescribed by the commission, the expenditures made during the
60-19    preceding state fiscal year for each of the commodities or services
60-20    identified under Subsection (a).  The report must at a minimum
60-21    identify the total amount spent on those commodities and services
60-22    and the total amount spent for commodities and services purchased
60-23    that accomplish the same purpose.  State [Additionally, state]
60-24    agencies shall include in the reports [report] the amount spent for
60-25    all other recycled, remanufactured, and environmentally sensitive
60-26    commodities and services by type of commodity and service [as
 61-1    prescribed by the commission].
 61-2          SECTION 46.  Section 2166.402, Government Code, is amended to
 61-3    read as follows:
 61-4          Sec. 2166.402.  ENERGY CONSERVATION STANDARDS FOR ENTITIES
 61-5    OTHERWISE EXCLUDED FROM CHAPTER. (a)  The governing body of a state
 61-6    agency, commission, or institution that is exempt from this chapter
 61-7    under Section 2166.003 shall adopt and publish energy conservation
 61-8    design standards as provided by Section 447.004 for a new building
 61-9    under the entity's authority.  The standards must be:
61-10                (1)  consistent with those adopted by the commission
61-11    for other state buildings; and
61-12                (2)  prepared in cooperation and consultation with the
61-13    state energy conservation office [management center] of the
61-14    comptroller [governor's office].
61-15          (b)  The state energy conservation office [management center]
61-16    of the comptroller [governor's office] shall assist a governing
61-17    body of a state agency, commission, or institution subject to
61-18    Subsection (a)  in preparing energy conservation standards by
61-19    providing technical assistance and advice.
61-20          SECTION 47.  Section 2175.242(c), Government Code, is amended
61-21    to read as follows:
61-22          (c)  This subchapter does not affect Section 403.273, which
61-23    provides for the deletion from state property accounting records of
61-24    a state agency's missing property [on the state auditor's
61-25    authorization].
61-26          SECTION 48.  Section 2251.001, Government Code, is amended to
 62-1    read as follows:
 62-2          Sec. 2251.001.  DEFINITIONS. Except as otherwise provided in
 62-3    this chapter, in [In] this chapter:
 62-4                (1)  "Distribution date" means:
 62-5                      (A)  if no payment law prohibits the comptroller
 62-6    from issuing the warrant, the date the comptroller makes a warrant
 62-7    available:
 62-8                            (i)  for mailing directly to its payee
 62-9    under Section 2155.382(c); or
62-10                            (ii)  to the state agency that requested
62-11    issuance of the warrant;
62-12                      (B)  if no payment law prohibits the comptroller
62-13    from initiating the transfer, the date the comptroller initiates an
62-14    electronic funds transfer;
62-15                      (C)  if a payment law prohibits the comptroller
62-16    from issuing the warrant, the date the comptroller would have made
62-17    a warrant available, in the absence of the payment law:
62-18                            (i)  for mailing directly to its payee
62-19    under Section 2155.382(c); or
62-20                            (ii)  to the state agency that requested
62-21    issuance of the warrant; or
62-22                      (D)  if a payment law prohibits the comptroller
62-23    from initiating an electronic funds transfer, the date the
62-24    comptroller would have made the warrant prepared under Section
62-25    403.0552(b) available, in the absence of the payment law:
62-26                            (i)  for mailing directly to its payee
 63-1    under Section 2155.382(c); or
 63-2                            (ii)  to the state agency that requested
 63-3    initiation of the transfer.
 63-4                (2) [(1)]  "Goods" includes supplies, materials, or
 63-5    equipment.
 63-6                (3) [(2)]  "Governmental entity" means a state agency
 63-7    or political subdivision of this state.
 63-8                (4) [(3)]  "Payment" means money owed to a vendor.
 63-9                (5)  "Payment law" means:
63-10                      (A)  Section 57.48 or 57.482, Education Code;
63-11                      (B)  Section 231.007, Family Code;
63-12                      (C)  Section 403.055 or 2107.008; or
63-13                      (D)  any similar statute.
63-14                (6) [(4)]  "Political subdivision" means:
63-15                      (A)  a county;
63-16                      (B)  a municipality;
63-17                      (C)  a public school district; or
63-18                      (D)  a special-purpose district or authority.
63-19                (7) [(5)]  "Service" includes gas and water utility
63-20    service.
63-21                (8) [(6)]  "State agency" means:
63-22                      (A)  a board, commission, department, office, or
63-23    other agency in the executive branch of state government that is
63-24    created by the constitution or a statute of this state, including a
63-25    river authority and an institution of higher education as defined
63-26    by Section 61.003, Education Code;
 64-1                      (B)  the legislature or a legislative agency; or
 64-2                      (C)  the Supreme Court of Texas, the Court of
 64-3    Criminal Appeals of Texas, a court of appeals, a state judicial
 64-4    agency, or the State Bar of Texas.
 64-5                (9) [(7)]  "Subcontractor" means a person who contracts
 64-6    with a vendor to work or contribute toward completing work for a
 64-7    governmental entity.  The term does not include a state agency.
 64-8    The term includes an officer or employee of a state agency when the
 64-9    officer or employee contracts with a vendor in a private capacity.
64-10                (10) [(8)]  "Vendor" means a person who supplies goods
64-11    or a service [services] to a governmental entity or another person
64-12    directed by the entity.  The term does not include a state agency,
64-13    except for Texas Correctional Industries.  The term includes [Texas
64-14    Correctional Industries] an officer or employee of a state agency
64-15    when acting in a private capacity to supply goods or a service.
64-16          SECTION 49.  Section 2251.002(a), Government Code, is amended
64-17    to read as follows:
64-18          (a)  This chapter does not apply to a payment made by a
64-19    governmental entity, vendor, or subcontractor if:
64-20                (1)  there is a bona fide dispute between the political
64-21    subdivision and a vendor, contractor, subcontractor, or supplier
64-22    about the goods delivered or the service [services] performed that
64-23    causes the payment to be late;
64-24                (2)  there is a bona fide dispute between a vendor and
64-25    a subcontractor or between a subcontractor and its supplier about
64-26    the goods delivered or the service [services] performed that causes
 65-1    the payment to be late;
 65-2                (3)  the terms of a federal contract, grant,
 65-3    regulation, or statute prevent the governmental entity from making
 65-4    a timely payment with federal funds; or
 65-5                (4)  the invoice is not mailed to the person to whom it
 65-6    is addressed in strict accordance with any instruction on the
 65-7    purchase order relating to the payment.
 65-8          SECTION 50.  Section 2251.003, Government Code, is amended to
 65-9    read as follows:
65-10          Sec. 2251.003.  RULES. The General Services Commission shall
65-11    establish procedures and adopt rules to administer [implement] this
65-12    chapter, except that the commission may not establish a procedure
65-13    or adopt a rule that conflicts with a procedure established or a
65-14    rule adopted by the comptroller under Section 2251.026(h).
65-15          SECTION 51.  Section 2251.021, Government Code, is amended by
65-16    amending Subsection (a)  and adding Subsection (d), to read as
65-17    follows:
65-18          (a)  Except as provided by Subsection (b), a payment by a
65-19    governmental entity under a contract executed on or after September
65-20    1, 1987, is overdue on the 31st day after the later of:
65-21                (1)  the date the governmental entity receives the
65-22    goods under the contract;
65-23                (2)  the date the performance of the service under the
65-24    contract is completed; or
65-25                (3)  the date the governmental entity receives an
65-26    invoice for the goods or service [services].
 66-1          (d)  For the purposes of this section, the renewal,
 66-2    amendment, or extension of a contract is considered to be the
 66-3    execution of a new contract.
 66-4          SECTION 52.  Section 2251.025, Government Code, is amended by
 66-5    amending Subsections (a) and (c) and adding Subsection (d), to read
 66-6    as follows:
 66-7          (a)  A payment begins to accrue interest on the date the
 66-8    payment becomes [is] overdue.
 66-9          (c)  Interest on an overdue payment stops accruing on the
66-10    date the governmental entity or vendor mails or electronically
66-11    transmits the payment.  In this subsection, "governmental entity"
66-12    does not include a state agency.
66-13          (d)  This subsection applies only if the comptroller is not
66-14    responsible for issuing a warrant or initiating an electronic funds
66-15    transfer to pay the principal amount owed by a state agency to a
66-16    vendor.  The accrual of interest on an overdue payment to the
66-17    vendor:
66-18                (1)  stops on the date the agency mails or
66-19    electronically transmits the payment; and
66-20                (2)  is not suspended during any period that a payment
66-21    law prohibits the agency from paying the vendor.
66-22          SECTION 53.  Section 2251.025, Government Code, is amended by
66-23    amending Subsection (b) and adding Subsection (f), to read as
66-24    follows:
66-25          (b)  Except as provided in Subsection (f), interest accrues
66-26    on an [An] overdue payment [bears interest] at the rate of one
 67-1    percent each month.
 67-2          (f)  The amount of interest that accrues on an overdue
 67-3    payment by a state agency under this chapter is the lesser of the
 67-4    amount determined under:
 67-5                (1)  the applicable contract between the agency and the
 67-6    vendor; and
 67-7                (2)  Subsections (a), (b), (d), and (e).
 67-8          SECTION 54.  (a) Section 2251.025, Government Code, is
 67-9    amended by adding Subsection (e), to read as follows:
67-10          (e)  This subsection applies only if the comptroller is
67-11    responsible for issuing a warrant or initiating an electronic funds
67-12    transfer to pay the principal amount owed by a state agency to a
67-13    vendor.  Interest on an overdue payment to the vendor:
67-14                (1)  stops accruing on its distribution date; and
67-15                (2)  does not accrue at all if, on the date the
67-16    comptroller would issue a warrant or initiate an electronic funds
67-17    transfer to make the payment, a payment law prohibits the
67-18    comptroller from issuing the warrant or initiating the transfer.
67-19          (b)  The addition of Subsection (e) to Section 2251.025,
67-20    Government Code, by Subsection (a) of this section is intended to
67-21    more closely reflect existing law and does not imply that the law
67-22    as it existed before the effective date of this section is
67-23    substantively different from the law as it exists on and after the
67-24    effective date of this section.
67-25          (c)  If Section 55(a) of this Act takes effect on the same
67-26    date that this section would take effect, this section has no
 68-1    effect.
 68-2          SECTION 55.   (a)  Effective on the date determined under
 68-3    Subsection (b) of this section, Section 2251.025, Government Code,
 68-4    is amended by adding Subsection (e), to read as follows:
 68-5          (e)  This subsection applies only if the comptroller is
 68-6    responsible for issuing a warrant or initiating an electronic funds
 68-7    transfer to pay the principal amount owed by a state agency to a
 68-8    vendor.  Interest on an overdue payment to the vendor:
 68-9                (1)  stops accruing on its distribution date; and
68-10                (2)  is not suspended during any period that a payment
68-11    law prohibits the comptroller from issuing the warrant or
68-12    initiating the transfer.
68-13          (b)  The changes in law made by Subsection (a) of this
68-14    section take effect on the date the comptroller files a
68-15    certification with the secretary of state that the comptroller has
68-16    completed modifications to the uniform statewide accounting system
68-17    to enable compliance with Section 2251.025(e), Government Code, as
68-18    added by Subsection (a) of this section.  The secretary of state
68-19    shall publish in the Texas Register the certification filed by the
68-20    comptroller under this subsection.
68-21          SECTION 56.  Section 2251.026, Government Code, is amended to
68-22    read as follows:
68-23          Sec. 2251.026.  PAYMENT OF INTEREST BY STATE AGENCY. (a)  A
68-24    [If the warrant for a payment the originating] state agency [owes
68-25    is not mailed or electronically transmitted before the payment is
68-26    overdue, the agency is liable for an] shall pay from funds
 69-1    appropriated or otherwise available to the agency any interest
 69-2    [payment] that accrues on an overdue payment under this chapter.
 69-3    The interest must be paid at the same time the principal amount is
 69-4    paid.
 69-5          (b)  The comptroller shall issue a warrant or initiate an
 69-6    electronic funds transfer on behalf of a state agency to pay any
 69-7    interest that the agency must pay under Subsection (a), if the
 69-8    comptroller is responsible for issuing a warrant or initiating an
 69-9    electronic funds transfer to pay the principal amount on behalf of
69-10    the agency.
69-11          (c) [(b)]  The comptroller shall [compute] determine the
69-12    amount of interest that accrues [imposed] on [the] an overdue
69-13    payment by a state agency under this chapter if:
69-14                (1)  the comptroller is responsible for issuing a
69-15    warrant or initiating an electronic funds transfer to pay the
69-16    principal amount on behalf of the agency; and
69-17                (2)  the amount of interest is not determined under
69-18    Section 2251.025(f)(1).
69-19          (d) [(c)]  [The comptroller shall pay the interest at the
69-20    time payment is made on the principal.]  A state agency shall
69-21    determine the amount of interest that accrues on an overdue payment
69-22    by the agency under this chapter if:
69-23                (1)  the comptroller is not responsible for issuing a
69-24    warrant or initiating an electronic funds transfer to pay the
69-25    principal amount on behalf of the agency;
69-26                (2)  the amount of interest is determined under Section
 70-1    2251.025(f)(1); or
 70-2                (3)  both Subdivisions (1) and (2) apply.
 70-3          [(d)  The comptroller shall submit the interest payment with
 70-4    the net amount due for goods and services.]
 70-5          (e)  Neither the [The] comptroller nor a [and the] state
 70-6    agency may [not] require a vendor to request payment of the
 70-7    interest that accrues under this chapter before [petition, bill, or
 70-8    wait an additional day to receive] the interest is paid to the
 70-9    vendor [due].
70-10          (f)  The comptroller may require a state agency to submit any
70-11    information the comptroller determines necessary [and timely
70-12    information and adopt rules to administer this section] to
70-13    administer and comply with Subsections (b) and (c).  The
70-14    information must be submitted at the time and in the manner
70-15    required by the comptroller.
70-16          (g)  The comptroller may require a state agency to change its
70-17    accounting systems or procedures as the comptroller determines
70-18    necessary to administer and comply with Subsections (b) and (c).
70-19    Any changes must conform with the comptroller's requirements.
70-20          (h)  The comptroller may establish procedures and adopt rules
70-21    to administer Subsections (b), (c), (f), and (g).
70-22          SECTION 57.  Section 2251.027(c), Government Code, is amended
70-23    to read as follows:
70-24          (c)  The political subdivision shall submit the interest
70-25    payment with the net amount due for the goods or service [and
70-26    services].
 71-1          SECTION 58.  Section 2251.030(d), Government Code, is
 71-2    reenacted and amended to read as follows:
 71-3          (d)  A state agency, when paying for the goods or service
 71-4    [and services] purchased under an agreement that includes a prompt
 71-5    or early payment discount, shall submit the necessary payment
 71-6    documents or information to the comptroller sufficiently in advance
 71-7    of the prompt or early payment deadline to allow the comptroller or
 71-8    the agency to pay the vendor in time to obtain the discount.
 71-9          SECTION 59.  Subchapter Z, Chapter 2252, Government Code, is
71-10    amended by adding Section 2252.902, to read as follows:
71-11          Sec. 2252.902.  CONTRACTING WITH PERSONS WHO HAVE CERTAIN
71-12    DEBTS OR DELINQUENCIES. (a)  Each state agency shall determine
71-13    whether a payment law prohibits the comptroller from issuing a
71-14    warrant or initiating an electronic funds transfer to a person
71-15    before the agency enters into a written contract with that person.
71-16    The agency shall make this determination not earlier than the
71-17    seventh day before and not later than the date of entering into the
71-18    contract.  The determination must be made in accordance with the
71-19    comptroller's requirements.
71-20          (b)  This subsection applies if the agency determines that a
71-21    payment law prohibits the comptroller from issuing a warrant or
71-22    initiating an electronic funds transfer to the person.  The agency
71-23    may not enter into a written contract with the person unless:
71-24                (1)  the contract requires the agency's payments under
71-25    the contract to be applied directly toward eliminating the person's
71-26    debt or delinquency; and
 72-1                (2)  the requirement described in Subdivision (1)
 72-2    specifically applies to any debt or delinquency, regardless of when
 72-3    it arises.
 72-4          (c)  The comptroller may determine the order that a person's
 72-5    multiple types of debts or delinquencies are reduced or eliminated
 72-6    under this section.
 72-7          (d)  The comptroller may adopt rules and establish procedures
 72-8    to administer this section.
 72-9          (e)  In this section:
72-10                (1)  "Debt or delinquency" means a debt, tax
72-11    delinquency, student loan delinquency, or child support delinquency
72-12    that results in a payment law prohibiting the comptroller from
72-13    issuing a warrant or initiating an electronic funds transfer.
72-14                (2)  "Payment law" means:
72-15                      (A)  Section 57.48, Education Code;
72-16                      (B)  Section 231.007, Family Code;
72-17                      (C)  Section 403.055; or
72-18                      (D)  any similar law that prohibits the
72-19    comptroller from issuing a warrant or initiating an electronic
72-20    funds transfer to a person.
72-21                (3)  "State agency" has the meaning assigned by Section
72-22    403.055.
72-23          SECTION 60.  Section 2305.002(3), Government Code, is amended
72-24    to read as follows:
72-25                (3)  "Energy office" means the state energy
72-26    conservation office of the comptroller [General Services
 73-1    Commission].
 73-2          SECTION 61.  The heading of Section 2305.011, Government
 73-3    Code, is amended to read as follows:
 73-4          Sec. 2305.011.  ADMINISTRATION BY COMPTROLLER [GENERAL
 73-5    SERVICES COMMISSION] AND ENERGY OFFICE.
 73-6          SECTION 62.  Section 2305.011, Government Code, is amended by
 73-7    adding Subsection (f), to read as follows:
 73-8          (f)  The comptroller may adopt rules as necessary to
 73-9    administer the programs prescribed by this chapter.
73-10          SECTION 63.  Section 2305.022, Government Code, is amended to
73-11    read as follows:
73-12          Sec. 2305.022.  USE OF ACCOUNT. Money in the account may be
73-13    used only by the governor and the comptroller [General Services
73-14    Commission] to implement and operate the programs authorized by
73-15    this chapter.
73-16          SECTION 64.  Section 533.0351(g), Health and Safety Code, is
73-17    amended to read as follows:
73-18          (g)  Except as provided in this subsection, the [The]
73-19    committee is subject to Chapter 2110, Government Code.  The
73-20    [department by rule shall provide, in accordance with Section
73-21    2110.008, Government Code, that the] committee is abolished
73-22    automatically on September 1, 2007, unless the board adopts a rule
73-23    continuing [affirmatively votes to continue] the committee in
73-24    existence beyond that date.
73-25          SECTION 65.  Section 771.071(e), Health and Safety Code, is
73-26    amended to read as follows:
 74-1          (e)  A local exchange service provider shall collect the fees
 74-2    imposed on its customers under this section.  Not later than the
 74-3    30th day after the last day of the month in which the fees are
 74-4    collected, the local exchange service provider shall deliver the
 74-5    fees to the comptroller [commission].  The comptroller [commission]
 74-6    shall deposit money from the fees to the credit of the 9-1-1
 74-7    services fee account in the general revenue fund.  The comptroller
 74-8    may establish alternative dates for payment of fees under this
 74-9    section.
74-10          SECTION 66.  Subsections (b), (c), and (f), Section 771.0711,
74-11    Health and Safety Code, are amended to read as follows:
74-12          (b)  A wireless service provider shall collect the fee in an
74-13    amount equal to 50 cents a month for each wireless
74-14    telecommunications connection from its subscribers and shall pay
74-15    the money collected to the comptroller [commission] not later than
74-16    the 30th day after the last day of the month during which the fees
74-17    were collected.  The comptroller may establish alternative dates
74-18    for payment of fees under this section.  The wireless service
74-19    provider may retain an administrative fee of one percent of the
74-20    amount collected. The comptroller shall deposit the money from the
74-21    fees to the credit of the 9-1-1 services fees account.  Until
74-22    deposited to the credit of the 9-1-1 services fees account [fund]
74-23    as required by Subsection (c), money the comptroller [commission]
74-24    collects under this subsection remains in a trust fund with
74-25    [outside] the state treasury.
74-26          (c)  Money collected under Subsection (b) may be used only
 75-1    for services related to 9-1-1 services, including automatic number
 75-2    identification and automatic location information services.  Not
 75-3    later than the 15th day [Within 15 days] after the end of the month
 75-4    in which the money is collected [of the date of collection of the
 75-5    money], the commission shall distribute to each emergency
 75-6    communications district that does not participate in the state
 75-7    system a portion of the money that bears the same proportion to the
 75-8    total amount collected that the population of the area served by
 75-9    the district bears to the population of the state.  The commission
75-10    shall deposit the remaining money collected under Subsection (b) to
75-11    the 9-1-1 services fee account [fund].
75-12          (f)  A wireless service provider is not required to take
75-13    legal action to enforce the collection of any wireless 9-1-1
75-14    service fee.  The comptroller [commission] may establish collection
75-15    procedures and recover the cost of collection from the subscriber
75-16    liable for the fee.  The comptroller [commission] may institute
75-17    legal proceedings to collect a fee and in those proceedings is
75-18    entitled to recover from the subscriber court costs, attorney's
75-19    fees, and interest on the amount delinquent.  [The interest is
75-20    computed at an annual rate of 12 percent beginning on the date the
75-21    fee becomes due.]
75-22          SECTION 67.  Subsections (b), (c), and (f), Section 771.072,
75-23    Health and Safety Code, are amended to read as follows:
75-24          (b)  The amount of the surcharge may not exceed one and
75-25    three-tenths [1-3/10] of one percent of the charges for intrastate
75-26    long-distance service, as defined by the commission.
 76-1          (c)  Except as provided by Section 771.073(f), an intrastate
 76-2    long-distance service provider shall collect the surcharge imposed
 76-3    on its customers under this section and shall deliver the
 76-4    surcharges to the comptroller [commission] not later than the date
 76-5    specified by the comptroller.  If the comptroller does not specify
 76-6    a date, the provider shall deliver the surcharges to the
 76-7    comptroller not later than the 30th day after the last day of the
 76-8    month in which the surcharges are collected.
 76-9          (f)  The comptroller [commission] shall deposit the
76-10    surcharges and any prior balances in accounts [an account] in the
76-11    general revenue fund in the state treasury until they are allocated
76-12    to regional planning commissions, other 9-1-1 jurisdictions, and
76-13    regional poison control centers in accordance with this section.
76-14    From those accounts [that account], the amount necessary for the
76-15    commission to fund approved plans of regional planning commissions
76-16    and regional poison control centers and to carry out its duties
76-17    under this chapter shall be appropriated to the commission.
76-18    Section 403.095, Government Code, does not apply to an [the]
76-19    account established by this subsection.
76-20          SECTION 68.  Sections 771.073(b)-(c), Health and Safety Code,
76-21    are amended to read as follows:
76-22          (b)  A business service user that provides residential
76-23    facilities and owns or leases a private telephone switch used to
76-24    provide telephone service to facility residents shall collect the
76-25    9-1-1 emergency service fee and transmit the fees monthly to the
76-26    comptroller [commission].  A business service user that does not
 77-1    collect and remit the 9-1-1 emergency service fee as required is
 77-2    subject to a civil cause of action.  A court may award to the
 77-3    comptroller [commission] court costs, attorney's fees, and interest
 77-4    on the amount delinquent [at an annual rate of 12 percent], to be
 77-5    paid by the nonpaying business service user.  A certificate of
 77-6    [sworn affidavit by] the comptroller [commission] specifying the
 77-7    unremitted fees is prima facie evidence that the fees were not
 77-8    remitted and of the amount of the unremitted fees.
 77-9          (c)  The comptroller [commission] may establish collection
77-10    procedures and recover the cost of collection from the customer
77-11    liable for the fee or surcharge.  The comptroller [commission] may
77-12    institute legal proceedings to collect a fee or surcharge and in
77-13    those proceedings is entitled to recover from the customer court
77-14    costs, attorney's fees, and an interest on the amount delinquent.
77-15    [The interest is computed at an annual rate of 12 percent beginning
77-16    on the date the fee or surcharge becomes due.]
77-17          SECTION 69.  Section 771.074, Health and Safety Code, is
77-18    amended to read as follows:
77-19          Sec. 771.074.  EXEMPTION. A fee or surcharge authorized by
77-20    this subchapter, Chapter 772, or a home-rule municipality may not
77-21    be imposed or collected from the state or the federal government.
77-22          SECTION 70.  Section 771.076(a), Health and Safety Code, is
77-23    amended to read as follows:
77-24          (a)  The commission or an employee of the commission may
77-25    notify the comptroller of any irregularity that may indicate that
77-26    an audit of a service provider collecting a fee or surcharge under
 78-1    this chapter is warranted.  The comptroller also may audit a
 78-2    service provider at the comptroller's discretion, without first
 78-3    receiving a notification from the commission or an employee of the
 78-4    commission.  The commission may require at its own expense that an
 78-5    audit be conducted of a public agency receiving money under this
 78-6    chapter.
 78-7          SECTION 71.  Section 771.077, Health and Safety Code, is
 78-8    amended to read as follows:
 78-9          Sec. 771.077.  COLLECTION OF FEES AND SURCHARGES. (a)  The
78-10    comptroller may [by rule shall] establish collection procedures to
78-11    collect past due amounts and may recover the costs of collection
78-12    from a service provider or business service user that fails to
78-13    timely deliver the fees and the equalization surcharge to the
78-14    comptroller [commission]. Subtitles A and B, Title 2, Tax Code,
78-15    apply to the administration and collection of amounts by the
78-16    comptroller under this subchapter.
78-17          (b)  The comptroller may [by rule shall] establish procedures
78-18    to be used by the commission to notify the comptroller of a service
78-19    provider's or business service user's failure to timely deliver the
78-20    fees or surcharges.
78-21          [(c)  In addition to amounts collected under Subsection (a),
78-22    after notice and an opportunity for a hearing, the comptroller may
78-23    assess a late penalty against a service provider who fails to
78-24    timely deliver the fees or surcharges. The late penalty is in an
78-25    amount not to exceed $100 a day for each day that the fees or
78-26    surcharges are late.]
 79-1          (c) [(d)]  The comptroller shall deposit amounts received as
 79-2    costs of collection in the general fund.
 79-3          (d) [(e)]  The comptroller shall:
 79-4                (1)  remit to the commission money collected under this
 79-5    section for fees provided by Section 771.0711 and associated late
 79-6    penalties;
 79-7                (2)  deposit to the 9-1-1 services fee fund any money
 79-8    collected under this section for fees provided by Section 771.071
 79-9    and associated late penalties; and
79-10                (3)  deposit to the account as authorized by Section
79-11    771.072 any money collected under this section for fees provided by
79-12    Section 771.072 and associated late penalties.
79-13          (e) [(f)]  The commission shall:
79-14                (1)  deposit or distribute the money remitted under
79-15    Subsection (d)(1) [(e)(1)] as Section 771.0711 provides for fees
79-16    received under that section; and
79-17                (2)  distribute the money remitted under Subsection
79-18    (d)(2) [(e)(2)] and appropriated to the commission under contracts
79-19    as provided by Section 771.078(b)(1).
79-20          SECTION 72.  Section 111.064, Tax Code, is amended by adding
79-21    Subsection (f), to read as follows:
79-22          (f)  A local revenue fund is not subject to Subsections
79-23    (a)-(c).  In this subsection, "local revenue fund" includes a court
79-24    cost, a fee, a fine, or a similar charge collected by a
79-25    municipality, a county, or a court of this state and remitted to
79-26    the comptroller.
 80-1          SECTION 73.  Section 156.154(c), Tax Code, is amended to read
 80-2    as follows:
 80-3          (c)  A claim for a refund may be filed only for each fiscal
 80-4    year [calendar] quarter for all reimbursements accrued during that
 80-5    quarter.
 80-6          SECTION 74.  Subchapter R, Chapter 171, Tax Code, is amended
 80-7    by adding Section 171.837, to read as follows:
 80-8          Sec. 171.837.  BIENNIAL REPORT BY THE COMPTROLLER. (a) Before
 80-9    the beginning of each regular session of the legislature, the
80-10    comptroller shall submit to the governor, the lieutenant governor,
80-11    and the speaker of the house of representatives a report stating:
80-12                (1)  the total amount of qualifying expenditures
80-13    incurred by corporations that claim a credit under this subchapter;
80-14                (2)  the total amount of credits applied against the
80-15    tax under this chapter and the amount of unused credits, including:
80-16                      (A)  the total amount of franchise tax due by
80-17    corporations claiming a credit under this subchapter before and
80-18    after the application of the credit;
80-19                      (B)  the average percentage reduction  in
80-20    franchise tax due by corporations claiming a credit under this
80-21    subchapter;
80-22                      (C)  the percentage of tax credits that were
80-23    awarded to corporations with fewer than 100 employees; and
80-24                      (D)  the two-digit standard industrial
80-25    classification of corporations claiming a credit under this
80-26    subchapter;
 81-1                (3)  the geographical distribution of qualifying
 81-2    expenditures giving rise to a credit authorized by this subchapter;
 81-3                (4)  the impact of the credit authorized by this
 81-4    subchapter on promoting economic development in this state; and
 81-5                (5)  the impact of the credit authorized by this
 81-6    chapter on state tax revenues.
 81-7          (b)  The final report issued prior to the expiration of this
 81-8    subchapter shall include historical information on the credit
 81-9    authorized by this subchapter.
81-10          (c)  The comptroller may not include in the report
81-11    information that is confidential by law.
81-12          (d)  For the purposes of this section, the comptroller may
81-13    require a corporation that claims a credit under this subchapter to
81-14    submit:
81-15                (1)  information, on a form provided by the
81-16    comptroller, on the location of the corporation's qualifying
81-17    expenditures; and
81-18                (2)  any other information the comptroller deems
81-19    necessary.
81-20          SECTION 75.  Chapter 56, Utilities Code, is amended to
81-21    conform more closely to the law from which it was derived by adding
81-22    Section 56.113, to read as follows:
81-23          Sec. 56.113.  ADVISORY COMMITTEE COMPENSATION AND EXPENSES. A
81-24    member of the advisory committee serves without compensation but is
81-25    entitled to reimbursement at rates established for state employees
81-26    for travel and per diem incurred in the performance of the member's
 82-1    official duties.
 82-2          SECTION 76.  (a) The following laws are repealed:
 82-3                (1)  Article 2.45, Texas Business Corporation Act;
 82-4                (2)  Section 403.055(h), Government Code, as added by
 82-5    Section 1, Chapter 583, Acts of the 76th Legislature, Regular
 82-6    Session, 1999;
 82-7                (3)  Sections 659.062 and 659.063, Government Code;
 82-8                (4)  Section 2251.002(c), Government Code;
 82-9                (5)  Section 1701.156(c), Occupations Code;
82-10                (6)  Section 8.03(b), Chapter 62, Acts of the 76th
82-11    Legislature, Regular Session, 1999;
82-12                (7)  Section 48(e), Chapter 268, Acts of the 73rd
82-13    Legislature, Regular Session, 1993; and
82-14                (8)  Section 2(b), Chapter 57, Acts of the 70th
82-15    Legislature, 2nd Called Session, 1987.
82-16          (b)  The repeal of Section 2251.002(c), Government Code, by
82-17    Subsection (a)(4) of this section is intended to repeal a law that
82-18    became obsolete on the date the provision to which Section
82-19    2251.002(c) refers was repealed by Section 12, Chapter 660, Acts of
82-20    the 73rd Legislature, Regular Session, 1993.
82-21          SECTION 77.  Section 8 of this Act reenacts Section 403.027,
82-22    Government Code, to ensure that Section 403.027 remains in effect
82-23    after repeal of the Act that added Section 403.027 to the law.
82-24    Section 76, Chapter 1035, Acts of the 75th Legislature, Regular
82-25    Session, 1997, added both Section 403.027 and a duplicative version
82-26    of Section 403.026, Government Code, to the law, effective June 19,
 83-1    1997. Section 8.03(a), Chapter 62, Acts of the 76th Legislature,
 83-2    Regular Session, 1999, repealed the duplicative version of Section
 83-3    403.026, effective September 1, 1999.  Section 8.03(b) of that Act
 83-4    repealed Section 76, effective September 1, 1999.  The repeal of
 83-5    Section 76 created unintended ambiguity about whether Section
 83-6    403.027 remained in effect on and after the effective date of
 83-7    Section 8.03(b).
 83-8          SECTION 78.  (a) The changes in law by Sections 20, 21, 24,
 83-9    and 76(3), (7)-(8) of this Act apply only to longevity pay or
83-10    hazardous duty pay that is earned on or after September 1, 2001.
83-11    Longevity pay or hazardous duty pay that is earned before that date
83-12    is governed by the law in effect on the date the pay is earned, and
83-13    the prior law is continued in effect for this purpose.
83-14          (b)  The changes in law by Section 23 of this Act apply only
83-15    to a temporary assignment that takes effect on or after September
83-16    1, 2001.  A temporary assignment that takes effect before that date
83-17    is governed by the law in effect on the date the temporary
83-18    assignment takes effect, and the prior law is continued in effect
83-19    for this purpose.
83-20          (c)  The changes to Section 660.203, Government Code, by
83-21    Section 25 of this Act apply only to a meal or lodging expense
83-22    incurred on or after September 1, 2001.  A meal or lodging expense
83-23    incurred before that date is governed by the law in effect on the
83-24    date the meal or lodging expense is incurred, and the prior law is
83-25    continued in effect for this purpose.
83-26          SECTION 79.  (a) The changes in law made by Sections 51 and
 84-1    53 of this Act apply only to a payment that becomes overdue under
 84-2    Chapter 2251, Government Code, on or after the effective date of
 84-3    those sections.  A payment that becomes overdue under Chapter 2251,
 84-4    Government Code, before that date is governed by Sections 2251.021
 84-5    and 2251.025, Government Code, as they exist on the date the
 84-6    payment becomes overdue, and the prior law is continued in effect
 84-7    for this purpose.
 84-8          (b)  The changes in law made by Section 54 of this Act apply
 84-9    only to a payment whose distribution date is at least one day after
84-10    the effective date of those changes.  A payment whose distribution
84-11    date is on or before the effective date of those changes is
84-12    governed by the law in effect on the date the payment becomes
84-13    overdue under Chapter 2251, Government Code, and the prior law is
84-14    continued in effect for this purpose.
84-15          (c)  The changes in law made by Section 55 of this Act apply
84-16    only to a payment whose distribution date is at least one day after
84-17    the effective date of those changes.  A payment whose distribution
84-18    date is on or before the effective date of those changes is
84-19    governed by the law in effect on the date the payment becomes
84-20    overdue under Chapter 2251, Government Code, and the prior law is
84-21    continued in effect for this purpose.
84-22          (d)  In this section, "payment" and "distribution date" have
84-23    the meanings assigned by Section 2251.001, Government Code, as
84-24    amended by Section 48 of this Act.
84-25          SECTION 80.  (a) Except as provided by Subsections (b)-(g) of
84-26    this section:
 85-1                (1)  this Act takes effect immediately if it receives a
 85-2    vote of two-thirds of all the members elected to each house, as
 85-3    provided by Section 39, Article III, Texas Constitution; and
 85-4                (2)  if this Act does not receive the vote necessary
 85-5    for immediate effect, this Act takes effect on the 91st day after
 85-6    the last day of the legislative session.
 85-7          (b)  This subsection and Section 1 of this Act take effect on
 85-8    the date the Uniform Electronic Transactions Act takes effect, if
 85-9    that Act is codified in Chapter 43, Business & Commerce Code, and
85-10    becomes law under S.B. No. 393, H.B. No. 1201, or another bill
85-11    enacted by the 77th Legislature, Regular Session, 2001.  This
85-12    subsection and Section 1 of this Act do not take effect if the
85-13    Uniform Electronic Transactions Act is not codified or does not
85-14    become law as described in this subsection.
85-15          (c)  This subsection and Sections 2, 5, 6, 11, 12(b), 13,
85-16    18-29, 32-40, 42, 45, 64, 73, 75, 76(3), (5), (7)-(8), and 78 of
85-17    this Act take effect September 1, 2001.
85-18          (d)  This subsection and Section 72 of this Act take effect
85-19    October 1, 2001.
85-20          (e)  This subsection and Sections 65-71 of this Act take
85-21    effect January 1, 2002.
85-22          (f)  The changes in law made by Section 55(a) of this Act
85-23    take effect according to Section 55(b) of this Act.
85-24          (g)  Section 79(c) of this Act takes effect on the date that
85-25    the changes in law made by Section 55(a) of this Act take effect.
85-26          SECTION 81.  The constitutional rule requiring bills to be
 86-1    read on three several days in each house is hereby suspended.