79R9243 PB-F
By: Chisum H.B. No. 2416
A BILL TO BE ENTITLED
AN ACT
relating to statutory authority to reduce appropriations made by
the legislature to certain governmental entities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) Notwithstanding any statute to the
contrary, the legislature, in its discretion, may determine the
amount of each appropriation of state funds. The amounts required
by statute for entities that receive state funds under Article 1 of
the General Appropriations Act, 79th Legislature, Regular Session,
2005, may be reduced or eliminated in order to achieve a balanced
budget.
(b) This section expires September 1, 2007.
SECTION 2. Section 481.078, Government Code, is amended by
amending Subsection (f) and adding Subsections (g)-(j) to read as
follows:
(f) Before awarding a grant under this section, the governor
shall [may] enter into a written agreement with the entity to be
awarded the grant money specifying that:
(1) if the governor finds that the grant recipient has
not met each of the performance targets specified in the agreement
as of a date certain provided in the agreement:
(A) the recipient shall repay the grant and any
related interest to the state at the agreed rate and on the agreed
terms;
(B) the governor will not distribute to the
recipient any grant money that remains to be awarded under the
agreement; and
(C) the governor may assess specified penalties
for noncompliance against the recipient;
(2) if all or any portion of the amount of the grant is
used to build a capital improvement:
(A) the state retains a lien or other interest in
the capital improvement in proportion to the percentage of the
grant amount used to pay for the capital improvement; and
(B) the recipient of the grant shall, if the
capital improvement is sold:
(i) repay to the state the grant money used
to pay for the capital improvement, with interest at the rate and
according to the other terms provided by the agreement; and
(ii) share with the state a proportionate
amount of any profit realized from the sale; [and]
(3) [(2)] if, as of a date certain provided in the
agreement, the grant recipient has not used grant money awarded
under this section for the purposes for which the grant was
intended, the recipient shall repay that amount and any related
interest to the state at the agreed rate and on the agreed terms;
and
(4) the entity shall disclose to the governor any
event or circumstance that arises during the period covered by the
agreement that could significantly impact the entity's financial
condition or could otherwise affect the entity's ability to comply
with the terms of the agreement, including:
(A) a lawsuit filed against the recipient; or
(B) if the entity is a business entity, the death
of a principal owner or general partner of the entity.
(g) The grant agreement may include a provision providing
that a reasonable percentage of the total amount of the grant will
be withheld until specified performance targets are met by the
entity as of the date described by Subsection (f)(1).
(h) The governor, after consultation with the speaker of the
house of representatives and the lieutenant governor, shall
determine:
(1) the performance targets and date required to be
contained in the grant agreement as provided by Subsection (f)(1);
and
(2) if the grant agreement includes the provision
authorized by Subsection (g), the percentage of grant money
required to be withheld.
(i) An entity entering into a grant agreement under this
section shall submit to the governor, lieutenant governor, and
speaker of the house of representatives a quarterly progress report
containing the information compiled during the previous quarter
regarding the attainment of each of the performance targets
specified in the agreement.
(j) Repayment of a grant under Subsection (f)(1)(A) may be
prorated to reflect a partial attainment of performance targets.
SECTION 3. Subchapter E, Chapter 481, Government Code, is
amended by adding Section 481.079 to read as follows:
Sec. 481.079. REPORT ON USE OF MONEY IN TEXAS ENTERPRISE
FUND. (a) Before the beginning of each regular session of the
legislature, the governor shall submit to the lieutenant governor,
the speaker of the house of representatives, and each other member
of the legislature a report on grants made under Section 481.078
that states:
(1) the number of direct jobs each recipient promised
to create in this state;
(2) the number of direct jobs each recipient created
in this state;
(3) the median wage of the jobs each recipient created
in this state;
(4) the amount of capital investment each recipient
promised to expend or allocate per project in this state;
(5) the amount of capital investment each recipient
expended or allocated per project in this state;
(6) the total amount of grants made to each recipient;
(7) the total amount of tax credits, local incentives,
and other money or credits distributed to each recipient by
governmental entities of this state;
(8) the percentage of money granted to recipients with
fewer than 100 employees;
(9) the geographical distribution of grants by county;
(10) the average amount of money granted in this state
for each job created in this state by grant recipients;
(11) the number of jobs created in this state by grant
recipients in each sector of the North American Industry
Classification System (NAICS); and
(12) the effect of grants on employment, personal
income, and capital investment in this state and in each regional
planning commission area.
(b) The report may not include information that is made
confidential by law.
(c) The governor may require a recipient of a grant under
Section 481.078 to submit, on a form the governor provides,
information required to complete the report.
SECTION 4. Section 659.042, Government Code, is amended to
read as follows:
Sec. 659.042. EXCLUSIONS. The following are not entitled
to longevity pay under this subchapter:
(1) a member of the legislature;
(2) an individual who holds a statewide office that is
normally filled by vote of the people;
(3) an independent contractor or an employee of an
independent contractor;
(4) a temporary employee;
(5) an officer or employee of a public junior college;
[or]
(6) an academic employee of a state institution of
higher education; or
(7) a state employee who receives an annuity based
wholly or partly on service as a state officer or state employee in
a public retirement system, as defined by Section 802.001, that was
credited to the state employee.
SECTION 5. Section 659.126, Government Code, is amended by
adding Subsection (c) to read as follows:
(c) An eligible state employee who receives an annuity based
wholly or partly on service as a state officer or state employee in
a public retirement system, as defined by Section 802.001, that was
credited to the state employee is ineligible to receive benefit
replacement pay.
SECTION 6. Section 661.152, Government Code, is amended by
adding Subsection (l) to read as follows:
(l) For purposes of computing vacation leave under
Subsection (d) for a state employee who receives an annuity based
wholly or partly on service as a state officer or state employee in
a public retirement system, as defined by Section 802.001, that was
credited to the state employee, years of total state employment
includes only the length of state employment after the date the
state employee retired.
SECTION 7. Section 812.003(e), Government Code, is amended
to read as follows:
(e) Membership [For persons whose employment or office
holding begins before September 1, 2005, membership] in the
employee class begins on the 91st day after the first day a person
is employed or holds office.
SECTION 8. Subtitle C, Title 10, Government Code, is
amended by adding Chapter 2115 to read as follows:
CHAPTER 2115. RECOVERY OF CERTAIN STATE AGENCY OVERPAYMENTS
Sec. 2115.001. DEFINITIONS. In this chapter:
(1) "Overpayment" includes a duplicate payment made to
a vendor for a single invoice and a payment made to a vendor:
(A) when an available discount from the vendor
was not applied;
(B) for a late payment penalty that was
improperly applied by the vendor;
(C) for shipping costs that were computed
incorrectly or incorrectly included in an invoice;
(D) for state sales tax; or
(E) for a good or service the vendor did not
provide.
(2) "State agency" means a department, commission,
board, office, or other agency, including a university system or an
institution of higher education other than a public junior college,
that:
(A) is in the executive branch of state
government;
(B) is created by statute; and
(C) does not have statutory geographical
boundaries limited to a part of the state.
Sec. 2115.002. CONTRACT CONSULTANTS FOR RECOVERY AUDITS FOR
CERTAIN OVERPAYMENTS. (a) The comptroller shall contract with one
or more consultants to conduct recovery audits of payments made by
state agencies to vendors. The audits must be designed to detect
and recover overpayments to the vendors and to recommend improved
state agency accounting operations.
(b) A contract under this section:
(1) may provide for reasonable compensation for
services provided under the contract, including compensation
determined by the application of a specified percentage of the
total amount recovered because of the consultant's audit activities
or recommendations as a fee for services;
(2) may permit or require the consultant to pursue a
judicial action in a court inside or outside this state to recover
an overpaid amount; and
(3) to allow time for the performance of existing
state payment auditing procedures, may not allow a recovery audit
of a payment during the 180-day period after the date the payment
was made.
(c) The comptroller or a state agency whose payments are
being audited may provide a person acting under a contract
authorized by this section with any confidential information in the
custody of the comptroller or state agency that is necessary for the
performance of the audit or the recovery of an overpayment, to the
extent the comptroller and state agency are not prohibited from
sharing the information under an agreement with another state or
the federal government. A person acting under a contract
authorized by this section, and each employee or agent of the
person, is subject to all prohibitions against the disclosure of
confidential information obtained from the state in connection with
the contract that apply to the comptroller or applicable state
agency or an employee of the comptroller or applicable state
agency. A person acting under a contract authorized by this section
or an employee or agent of the person who discloses confidential
information in violation of a prohibition made applicable to the
person under this subsection is subject to the same sanctions and
penalties that would apply to the comptroller or applicable state
agency or an employee of the comptroller or applicable state agency
for that disclosure.
Sec. 2115.003. STATE AGENCIES SUBJECT TO MANDATORY RECOVERY
AUDITS. (a) The comptroller shall require that recovery audits be
performed on the payments to vendors made by each state agency that
has total expenditures during a state fiscal biennium in an amount
that exceeds $100 million. Each state agency described by this
subsection shall provide the recovery audit consultant with all
information necessary for the audit.
(b) The comptroller may exempt from the mandatory recovery
audit process a state agency that has a low proportion of its
expenditures made to vendors, according to criteria the comptroller
adopts by rule after consideration of the likely costs and benefits
of performing recovery audits for agencies that make relatively few
or small payments to vendors.
Sec. 2115.004. PAYMENT TO CONTRACTORS. (a) A state agency
shall pay, from recovered money appropriated for the purpose, the
recovery audit consultant responsible for obtaining for the agency
a reimbursement from a vendor.
(b) A state agency shall expend or return to the federal
government any federal money that is recovered through a recovery
audit conducted under this chapter. The state agency shall expend
or return the federal money in accordance with the rules of the
federal program through which the agency received the federal
money.
Sec. 2115.005. FORWARDING REPORTS. (a) The comptroller
shall provide copies, including electronic form copies, of any
reports received from a consultant contracting under Section
2115.002 to:
(1) the governor;
(2) the state auditor's office; and
(3) the Legislative Budget Board.
(b) The comptroller shall provide the copies required by
Subsection (a) not later than the seventh day after the date the
comptroller receives the consultant's report.
(c) Not later than January 1 of each odd-numbered year, the
comptroller shall issue a report to the legislature summarizing the
contents of all reports received under this chapter during the
state fiscal biennium ending August 31 of the previous year.
SECTION 9. Subchapter C, Chapter 2162, Government Code, is
amended by adding Section 2162.106 to read as follows:
Sec. 2162.106. STATE EMPLOYEE INCENTIVE AND PRODUCTIVITY
AWARDS PROGRAM. (a) The council shall establish a program to
provide awards to state agency employees who make suggestions that:
(1) quantifiably reduce state expenditures or
increase state revenues without decreasing the quality of state
services; and
(2) are approved and implemented by the affected state
agency.
(b) Each state employee shall be eligible to participate in
the program except an employee:
(1) who has authority to implement the suggestion
being made;
(2) who is on an unpaid leave of absence;
(3) whose job description includes responsibility for
cost analysis, efficiency analysis, savings implementation, or
other similar programs in the employee's agency;
(4) who is involved in or has access to agency research
and development information used as the basis of the suggestion;
(5) whose job description or routine job duties
include developing the type of change in agency operations
recommended by the suggestion;
(6) who is an employee of the council; or
(7) who is an elected or appointed official.
(c) An employee who is temporarily assigned by the
employee's agency to a group that is established for the purpose of
developing process improvements in that agency is not ineligible
under Subsection (b)(1) or (5) to participate in the program solely
because of the employee's participation in that group.
(d) An employee award under the program may not exceed the
lesser of 10 percent of the annual savings or increased revenue
attributable to the implemented suggestion or $5,000. The
remaining savings or increased revenue attributable to the
suggestion shall be retained by the agency for the purpose of paying
expenses associated with ongoing agency operations.
(e) The council shall adopt rules in accordance with this
section relating to the establishment and implementation of the
program.
SECTION 10. The heading to Chapter 2108, Government Code,
is amended to read as follows:
CHAPTER 2108. SAVINGS [EMPLOYEE] INCENTIVE PROGRAM FOR STATE [AND]
AGENCY [PRODUCTIVITY]
SECTION 11. Section 1551.104(a), Insurance Code, is amended
to read as follows:
(a) Subject to Sections 1551.101 and 1551.102, each
full-time employee is covered automatically by the basic coverage
plan for employees and each annuitant is covered by the basic
coverage plan for annuitants unless:
(1) participation is specifically waived as provided
by Section 1551.1045;
(2) the employee or annuitant is expelled from the
program under Section 1551.351; or
(3) eligibility is otherwise limited by this chapter.
SECTION 12. Subchapter C, Chapter 1551, Insurance Code, is
amended by adding Section 1551.1045 to read as follows:
Sec. 1551.1045. WAIVER. (a) Subject to Subsection (b), an
employee or annuitant may waive in writing any coverage provided
under this chapter.
(b) To waive coverage under the basic coverage plan, a
full-time employee must demonstrate, in the manner required by the
board of trustees, that the employee is covered by another health
benefit plan that provides substantially equivalent coverage, as
determined by the board of trustees, to the coverage provided by the
basic coverage plan.
SECTION 13. Subchapter E, Chapter 1551, Insurance Code, is
amended by adding Sections 1551.221 and 1551.222 to read as
follows:
Sec. 1551.221. OPTIONAL SUPPLEMENTAL HEALTH COVERAGE FOR
INDIVIDUALS ELIGIBLE UNDER TRICARE MILITARY HEALTH SYSTEM. (a)
The board of trustees shall offer, as an optional coverage under the
group benefits program, a supplemental health coverage program.
(b) Under the supplemental health coverage program, an
employee who is eligible to participate in the group benefits
program and who is also eligible for benefits under the TRICARE
Military Health System may elect to receive primary coverage under
the TRICARE Military Health System. An employee participating in
the supplemental health coverage program does not receive basic
coverage through the group benefits program, but receives
supplemental health coverage under this section.
(c) The cost of supplemental health coverage provided under
this section may be paid in the same manner as the cost of other
optional coverage is paid under Subchapter G.
(d) The board of trustees shall contract to purchase the
supplemental health coverage in accordance with Sections
1551.213-1551.216.
(e) The board of trustees may adopt rules to implement this
section.
Sec. 1551.222. INCENTIVE PAYMENTS. (a) The board of
trustees may allow an incentive payment under this section to an
employee who elects to:
(1) waive coverage under the basic coverage plan for
employees as provided by Section 1551.1045(b); or
(2) participate in the supplemental health coverage
program under Section 1551.221.
(b) The incentive payment authorized by this section is in
the amount authorized by the General Appropriations Act and may be
used by the employee, in the manner prescribed by the board of
trustees, only to pay for other group coverage plans provided under
the group benefits program, including the supplemental health
coverage offered under Section 1551.221.
(c) The board of trustees, at the time of initial enrollment
in the group benefits program and during subsequent open-enrollment
periods, shall inform employees that they may make an election
described by Subsection (a), if eligible, and receive any
authorized incentive payment.
SECTION 14. Subchapter G, Chapter 1551, Insurance Code, is
amended by adding Section 1551.324 to read as follows:
Sec. 1551.324. REDUCTION IN CONTRIBUTION FOR CERTAIN ACTIVE
EMPLOYEES; INCENTIVE PAYMENTS. (a) Notwithstanding any other
provision of this subchapter, the state contribution for an
employee's coverage under this chapter may be reduced, as provided
in the General Appropriations Act, to reflect the reduced cost of
coverage for:
(1) an employee who elects to receive supplemental
health coverage under the program established under Section
1551.221; or
(2) an employee who elects to waive basic coverage as
provided by Section 1551.1045(b).
(b) Instead of the full state contribution for an employee
who makes an election described by Subsection (a), the state may
contribute, as specified by the General Appropriations Act, an
amount for the incentive payment authorized by Section 1551.222.
SECTION 15. Section 111.064, Tax Code, is amended by
amending Subsections (a), (c), and (f) and adding Subsections (c-1)
and (c-2) to read as follows:
(a) Except as otherwise provided by this section
[Subsections (b) and (c)], in a comptroller's final decision on a
claim for refund or in an audit, interest is at the rate set in
Section 111.060 on the amount found to be erroneously paid for a
period:
(1) beginning on the later of 60 days after the date of
payment or the due date of the tax report; and
(2) ending on, as determined by the comptroller,
either the date of allowance of credit on account of the
comptroller's final decision or audit or a date not more than 10
days before the date of the refund warrant.
(c) For a refund granted in connection with a protest
payment submitted under Chapter 112 for a report period due on or
after January 1, 2000, the rate of the interest is the rate set in
Section 111.060.
(c-1) For a refund other than a refund described in
Subsection (c) claimed before September 1, 2005, and granted for a
report period due on or after January 1, 2000, the rate of interest
is the rate set in Section 111.060. For a refund other than a refund
described in Subsection (c) claimed on or after September 1, 2005,
and granted for a report period due on or after January 1, 2000, the
rate of interest is the lesser of:
(1) the average rate of interest earned on deposits in
the state treasury during the period for which interest is paid on
the refund, as determined by the comptroller; or
(2) the rate set in Section 111.060.
(c-2) A refund, without regard to the date claimed, for a
report period due before January 1, 2000, does not accrue interest.
(f) A local revenue fund is not subject to Subsections
(a)-(c-2) [(c)]. In this subsection, "local revenue fund"
includes a court cost, a fee, a fine, or a similar charge collected
by a municipality, a county, or a court of this state and remitted
to the comptroller.
SECTION 16. The Texas Ethics Commission shall reduce
expenditures by:
(1) requiring electronic filing of documents with the
commission;
(2) providing required notice by general means instead
of individual notice; and
(3) providing forms on the commission's Internet
website instead of mailing required forms.
SECTION 17. The Pension Review Board shall reduce
expenditures by discontinuing, when possible, the provision of
technical assistance and the issuance of actuarial impact
statements.
SECTION 18. (a) This section applies to the following state
agencies:
(1) the Employees Retirement System of Texas;
(2) the Texas Ethics Commission; and
(3) the Pension Review Board.
(b) Notwithstanding any other statute of this state, each
state agency to which this section applies is authorized to reduce
expenditures by:
(1) consolidating any reports or publications the
agency is required to make and filing or delivering any of those
reports or publications exclusively by electronic means;
(2) extending the effective period of any license,
permit, or registration the agency grants or administers;
(3) entering into a contract with another governmental
entity or with a private vendor to carry out any of the agency's
duties;
(4) providing that any communication between the
agency and another person and any document required to be delivered
to or by the agency, including any application, notice, billing
statement, receipt, or certificate, may be made or delivered by
electronic mail or through the Internet; and
(5) adopting and collecting fees or charges to cover
any costs the agency incurs in performing its lawful functions.
SECTION 19. (a) Sections 812.003(d) and (h), Government
Code, are repealed.
(b) Subchapters A and B, Chapter 2108, Government Code, are
repealed.
(c) The subchapter heading to Subchapter C, Chapter 2108,
Government Code, is repealed.
SECTION 20. The changes in law made by this Act to Section
481.078, Government Code, apply only to an agreement that is
entered into on or after the effective date of this Act. An
agreement that is entered into before the effective date of this Act
is governed by the law in effect on the date the agreement was
entered into, and the former law is continued in effect for that
purpose.
SECTION 21. On the effective date of this Act:
(1) the Texas Incentive and Productivity Commission
and all commission employee positions are abolished;
(2) the state employee incentive program under
Subchapter B, Chapter 2108, Government Code, is abolished and
replaced by the state employee incentive and productivity awards
program established by the State Council on Competitive Government
under Section 2162.106, Government Code, as added by this Act;
(3) any memorandum of understanding or interagency
contract entered into between the Texas Incentive and Productivity
Commission and another state agency that relates to the state
employee incentive program under Subchapter B, Chapter 2108,
Government Code, expires;
(4) a rule or form adopted by the Texas Incentive and
Productivity Commission that relates to the state employee
incentive program under Subchapter B, Chapter 2108, Government
Code, is a rule or form of the State Council on Competitive
Government and remains in effect until the council's adoption of
rules and issuance of forms relating to the state employee
incentive and productivity awards program under Section 2162.106,
Government Code, as added by this Act;
(5) a reference in law to the Texas Incentive and
Productivity Commission that relates to the state employee
incentive program under Subchapter B, Chapter 2108, Government
Code, means the State Council on Competitive Government and a
reference in law to the state employee incentive program under
Subchapter B, Chapter 2108, Government Code, means the state
employee incentive and productivity awards program under Section
2162.106, Government Code, as added by this Act;
(6) any contract negotiation, evaluation of an
employee suggestion, or other proceeding involving the Texas
Incentive and Productivity Commission that relates to the state
employee incentive program under Subchapter B, Chapter 2108,
Government Code, is transferred without change in status to the
State Council on Competitive Government; the State Council on
Competitive Government assumes, without a change in status, the
position of the Texas Incentive and Productivity Commission in any
negotiation, evaluation, or other proceeding relating to the state
employee incentive program under Subchapter B, Chapter 2108,
Government Code; and Subchapter B, Chapter 2108, Government Code,
is continued in effect for the limited purpose of this subdivision;
(7) all contracts, leases, rights, and obligations of
the Texas Incentive and Productivity Commission related to the
state employee incentive program under Subchapter B, Chapter 2108,
Government Code, are transferred to the State Council on
Competitive Government; and
(8) all property, including records, of the Texas
Incentive and Productivity Commission related to the state employee
incentive program under Subchapter B, Chapter 2108, Government
Code, becomes the property of the State Council on Competitive
Government.
SECTION 22. As soon as possible after the effective date of
this Act, the State Council on Competitive Government shall adopt
rules relating to the establishment of a state employee incentive
and productivity awards program in accordance with Section
2162.106, Government Code, as added by this Act.
SECTION 23. The comptroller shall adopt rules under Chapter
2115, Government Code, as added by this Act, in a timely manner so
that the comptroller may begin contracting with a consultant under
that chapter not later than January 1, 2006.
SECTION 24. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2005.