By: Duncan S.B. No. 1848

(In the Senate - Filed March 9, 2007; March 22, 2007, read first time and referred to Committee on Finance; May 14, 2007, reported favorably by the following vote: Yeas 13, Nays 0; May 14, 2007, sent to printer.)

A BILL TO BE ENTITLED

AN ACT

relating to state fiscal matters.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Article 103.002, Code of Criminal Procedure, is amended to read as follows:

Art. 103.002. CERTAIN COSTS BARRED. (a) An officer may not impose a cost for a service not performed or for a service for which a cost is not expressly provided by law.

(b) If a person has paid a cost for a service that is not expressly provided by law, the money paid for the cost must first be applied to any unpaid statutory court costs that the person owes, then to other unpaid costs, fees, and fines imposed in the person's case that the person owes. Any remaining money must be refunded to the person making the payment. If the money cannot be refunded to the person making the payment, it must be remitted to the comptroller in accordance with Chapter 133, Local Government Code, for deposit in the general revenue fund.

SECTION 2. Chapter 103, Code of Criminal Procedure, is amended by adding Article 103.0021 to read as follows:

Art. 103.0021. ALLOCATION OF PARTIAL PAYMENTS. If the payment tendered by a person for court costs, fees, and fines in the person's criminal case is not adequate to cover the total amount of all obligations due, the payment shall be allocated to state court costs first and the remainder applied to other costs, fees, and fines due in the case.

SECTION 3. Subsection (e), Article 103.0031, Code of Criminal Procedure, is amended to read as follows:

(e) If a county or municipality has entered into a contract under Subsection (a) and a person pays an amount that is less than the aggregate total to be collected under Subsections (a) and (b), [the allocation to the comptroller, the county or municipality, and] the private attorney or vendor shall receive 30 percent of the aggregate amount collected, not to exceed the amount added as the collection fee, and the remainder of the amount collected shall be allocated in accordance with Article 103.0021 [be reduced proportionately].

SECTION 4. Subsection (b), Section 43.001, Education Code, as amended by Chapters 201 and 328, Acts of the 78th Legislature, Regular Session, 2003, is reenacted and amended to read as follows:

(b) The available school fund, which shall be apportioned annually to each county according to its scholastic population, consists of:

(1) the distributions to the fund from the permanent school fund as provided by Section 5(a), Article VII, Texas Constitution;

(2) [one-fourth of all revenue derived from all state occupation taxes, exclusive of delinquencies and cost of collection;

[(3)] one-fourth of revenue derived from state gasoline and special fuels excise taxes as provided by law; and

(3) [(4)] all other appropriations to the available school fund made by the legislature for public school purposes.

SECTION 5. Subsection (a), Section 43.002, Education Code, is amended to read as follows:

(a) On the first working day of each month in a state fiscal year, the agency [comptroller] shall transfer from the permanent school fund to the available school fund an amount equal to one-twelfth of the annual distribution from the permanent school fund to the available school fund as provided by Section 5(a), Article VII, Texas Constitution, for the fiscal year.

SECTION 6. Subdivision (1), Subsection (k), Section 57.48, Education Code, is amended to read as follows:

(1) "Compensation" means base salary or wages, longevity pay, hazardous duty pay, benefit replacement pay, a retirement annuity, or an emolument provided in lieu of base salary or wages.

SECTION 7. Section 63.202, Education Code, is amended by amending Subsection (b) and adding Subsection (h) to read as follows:

(b) Except as provided by Subsections (c), [and] (d), and (h), money in the fund established under this subchapter may not be used for any purpose.

(h) Expenses of managing and administering the assets of the fund shall be paid from the fund.

SECTION 8. Section 63.302, Education Code, is amended by amending Subsection (b) and adding Subsection (h) to read as follows:

(b) Except as provided by Subsections (c), [and] (e), and (h), money in the fund established under this subchapter may not be used for any purpose.

(h) Expenses of managing and administering the assets of the fund shall be paid from the fund.

SECTION 9. Subsections (c) and (d), Section 231.007, Family Code, are amended to read as follows:

(c) The Title IV-D agency is the sole assignee of [all] payments, including payments of compensation, by the state to a person indebted to the state under Subsection (a) if the comptroller is not responsible for issuing warrants or initiating electronic funds transfers to make those payments.

(d) On request of the Title IV-D agency, [:

[(1) the comptroller shall make payable and deliver to the agency any payments for which the agency is the assignee under Subsection (c), if the comptroller is responsible for issuing warrants or initiating electronic funds transfers to make those payments; and

[(2)] a state agency shall make payable and deliver to the Title IV-D agency any payments for which the Title IV-D agency is the assignee under Subsection (c) [if the comptroller is not responsible for issuing warrants or initiating electronic funds transfers to make those payments].

SECTION 10. Subsections (b) and (c), Section 25.0015, Government Code, are amended to read as follows:

(b) For a county that participates under Section 51.702(f) under a resolution adopted and filed with the comptroller before September 1, 2003, the amount shall be paid to the county's salary fund in equal quarterly [monthly] installments, and of each $35,000 paid a county, $30,000 shall be paid from funds appropriated from the judicial fund, and $5,000 shall be paid from funds appropriated from the general revenue fund.

(c) For a county that participates under Section 51.702(f) under a resolution adopted or filed with the comptroller on or after September 1, 2003, the amount shall be paid to the county's salary fund in equal quarterly [monthly] installments from funds appropriated from the judicial fund.

SECTION 11. Subsection (b), Section 25.00211, Government Code, is amended to read as follows:

(b) The amount shall be paid to the county treasury for deposit in the contributions fund created under Section 25.00213 in equal quarterly [monthly] installments from funds appropriated from the judicial fund.

SECTION 12. Subsection (b), Section 26.007, Government Code, is amended to read as follows:

(b) The amount shall be paid to the county's salary fund in equal quarterly [monthly] installments from funds appropriated from the judicial fund.

SECTION 13. Subsection (d), Section 74.061, Government Code, is amended to read as follows:

(d) For services actually performed while assigned under this chapter, a [retired or] former judge or justice shall receive from county funds and money appropriated by the legislature the same amount of salary, compensation, and expenses that the regular judge is entitled to receive from the county and from the state for those services. The presiding judge of the administrative region shall certify to the county and the state the services rendered under this chapter by a [retired or] former judge or justice and the share to be paid by the state. The amount certified by the presiding judge as the state's share shall be paid from an item in the Judiciary Section, Comptroller's [Judicial Section--Comptroller's] Department of the General Appropriations Act for the payment of salaries of district and criminal district judges.

SECTION 14. Subsection (b), Section 403.016, Government Code, is amended to read as follows:

(b) The comptroller shall use the electronic funds transfer system to pay an employee's net state salary and travel expense reimbursements unless:

(1) the employee does not hold a classified position under the state's position classification plan and the employee's [gross state] salary is less than the minimum [gross state] salary of [for a position classified to] group 8[,step 1,] of Salary Schedule A of the General Appropriations Act [state position classification plan]; or

(2) the employee holds a classified position under the state's position classification plan and the position is allocated to a group with a minimum salary of less than the minimum salary of [that is classified below] group 8 of Salary Schedule A of the General Appropriations Act.

SECTION 15. Subdivision (1), Subsection (l), Section 403.055, Government Code, is amended to read as follows:

(1) "Compensation" means base salary or wages, longevity pay, hazardous duty pay, benefit replacement pay, a retirement annuity, or an emolument provided in lieu of base salary or wages.

SECTION 16. Subsection (d), Section 403.0551, Government Code, is amended to read as follows:

(d) This section does not authorize the comptroller to deduct the amount of a state employee's indebtedness to a state agency from any amount of compensation owed by the agency to the employee, the employee's successor, or the assignee of the employee or successor. In this subsection:[,]

(1) "compensation[,]" has the meaning assigned by Section 403.055; and

(2) "indebtedness," "state agency," "state employee," and "successor" have the meanings assigned by Section 666.001.

SECTION 17. Subsections (g) and (h), Section 403.071, Government Code, are amended to read as follows:

(g) Notwithstanding Subsection (a), the comptroller [and a state agency] may [contract in writing for the comptroller to] audit claims presented by a [the] state agency after the comptroller prepares warrants or uses the electronic funds transfer system to pay the claims. The [If the comptroller and a state agency execute a contract, the] comptroller may determine [decide] the types of claims that will be audited after payment.

(h) [This subsection applies if the comptroller and a state agency have contracted in accordance with Subsection (g).] The comptroller shall audit claims after payment under Subsection (g) in the same manner [way] that the comptroller audits claims before payment under Subsection (a). The comptroller may establish requirements and adopt rules concerning the time that a state agency must retain documentation in its files to enable a postpayment audit. If a postpayment audit by the comptroller shows that a claim presented by a state agency was invalid, the comptroller may:

(1) implement procedures to ensure that similar invalid claims from the state agency are not paid in the future;

(2) report to the governor, the lieutenant governor, the speaker of the house of representatives, the state auditor, and the Legislative Budget Board the results of the audit;

(3) require the state agency to obtain a refund of the monies from the payee; and

(4) [cancel the contract with the state agency; and

[(5)] reduce the state agency's remaining appropriations by the amount of the claim.

SECTION 18. Section 404.024, Government Code, is amended by amending Subsections (b) and (l) and adding Subsections (m) and (n) to read as follows:

(b) State funds not deposited in state depositories shall be invested by the comptroller in:

(1) direct security repurchase agreements;

(2) reverse security repurchase agreements;

(3) direct obligations of or obligations the principal and interest of which are guaranteed by the United States;

(4) direct obligations of or obligations guaranteed by agencies or instrumentalities of the United States government;

(5) bankers' acceptances that:

(A) are eligible for purchase by the Federal Reserve System;

(B) do not exceed 270 days to maturity; and

(C) are issued by a bank whose other comparable short-term obligations are rated in [that has received] the highest short-term [credit] rating category, within which there may be subcategories or gradations indicating relative standing, including such subcategories or gradations as "rating category" or "rated," by a nationally recognized statistical rating organization, as defined by Rule 2a-7 (17 C.F.R. Section 270.2a-7), promulgated under the Investment Company Act of 1940 by the Securities and Exchange Commission [investment rating firm];

(6) commercial paper that:

(A) does not exceed 270 days to maturity; and

(B) except as provided by Subsection (i), is issued by an entity whose other comparable short-term obligations are rated in [has received] the highest short-term [credit] rating category by a nationally recognized statistical rating organization [investment rating firm];

(7) contracts written by the treasury in which the treasury grants the purchaser the right to purchase securities in the treasury's marketable securities portfolio at a specified price over a specified period and for which the treasury is paid a fee and specifically prohibits naked-option or uncovered option trading;

(8) direct obligations of or obligations guaranteed by the Inter-American Development Bank, the International Bank for Reconstruction and Development (the World Bank), the African Development Bank, the Asian Development Bank, and the International Finance Corporation that have received the highest long-term [credit] rating categories for debt obligations by a nationally recognized statistical rating organization [investment rating firm];

(9) bonds issued, assumed, or guaranteed by the State of Israel;

(10) obligations of a state or an agency, county, city, or other political subdivision of a state;

(11) mutual funds secured by obligations that are described by Subdivisions (1) through (6) or by obligations consistent with Rule 2a-7 (17 C.F.R. Section 270.2a-7), promulgated by the Securities and Exchange Commission, including pooled funds:

(A) established by the Texas Treasury Safekeeping Trust Company;

(B) operated like a mutual fund; and

(C) with portfolios consisting only of dollar-denominated securities; [and]

(12) foreign currency for the sole purpose of facilitating investment by state agencies that have the authority to invest in foreign securities;

(13) asset-backed securities, as defined by the Securities and Exchange Commission in Rule 2a-7 (17 C.F.R. Section 270.2a-7), that are rated at least A or its equivalent by a nationally recognized statistical rating organization and that have a weighted-average maturity of five years or less; and

(14) corporate debt obligations that are rated at least A or its equivalent by a nationally recognized statistical rating organization and mature in five years or less from the date on which the obligations were "acquired," as defined by the Securities and Exchange Commission in Rule 2a-7 (17 C.F.R. Section 270.2a-7).

(l) The comptroller may lend securities under procedures established by the comptroller. The procedures must be consistent with industry practice and must include a requirement to fully secure the loan with cash, obligations described by Subsections (b)(1)-(6), or a combination of cash and the described obligations. Notwithstanding any law to the contrary, cash may be reinvested in the items permitted under Subsection (b) or mutual funds, as defined by the Securities and Exchange Commission in Rule 2a-7 (17 C.F.R. Section 270.2a-7) [In this subsection, "obligation" means an item described by Subsections (b)(1)-(6)].

(m) In entering into a direct security repurchase agreement or a reverse security repurchase agreement, the comptroller may agree to accept cash on an overnight basis in lieu of the securities, obligations, or participation certificates identified in Section 404.001(3). Cash held by the state under this subsection is not a deposit of state or public funds for purposes of any statute, including this subchapter or Subchapter D, that requires a deposit of state or public funds to be collateralized by eligible securities.

(n) Notwithstanding any other law to the contrary, any government investment pool created to function as a money market mutual fund and managed by the comptroller or the Texas Treasury Safekeeping Trust Company may invest the funds it receives in investments that are "eligible securities," as defined by the Securities and Exchange Commission in Rule 2a-7 (17 C.F.R. Section 270.2a-7), if it maintains a dollar-weighted average portfolio maturity of 90 days or less, with the maturity of each portfolio security calculated in accordance with Rule 2a-7 (17 C.F.R. Section 270.2a-7), and meets the diversification requirements of Rule 2a-7.

SECTION 19. The heading to Section 552.024, Government Code, is amended to read as follows:

Sec. 552.024. ELECTING TO DISCLOSE ADDRESS, [AND] TELEPHONE NUMBER, DATE OF BIRTH, SOCIAL SECURITY NUMBER, AND PERSONAL FAMILY INFORMATION.

SECTION 20. Subsection (a), Section 552.024, Government Code, is amended to read as follows:

(a) Each employee or official of a governmental body and each former employee or official of a governmental body shall choose whether to allow public access to the information in the custody of the governmental body that relates to the person's home address, home telephone number, date of birth, or social security number, or that reveals whether the person has family members.

SECTION 21. The heading to Section 552.117, Government Code, is amended to read as follows:

Sec. 552.117. EXCEPTION: CERTAIN ADDRESSES, TELEPHONE NUMBERS, DATES OF BIRTH, SOCIAL SECURITY NUMBERS, AND PERSONAL FAMILY INFORMATION.

SECTION 22. Subsection (a), Section 552.117, Government Code, is amended to read as follows:

(a) Information is excepted from the requirements of Section 552.021 if it is information that relates to the home address, home telephone number, date of birth, or social security number of the following person or that reveals whether the person has family members:

(1) a current or former official or employee of a governmental body, except as otherwise provided by Section 552.024;

(2) a peace officer as defined by Article 2.12, Code of Criminal Procedure, or a security officer commissioned under Section 51.212, Education Code, regardless of whether the officer complies with Section 552.024 or 552.1175, as applicable;

(3) a current or former employee of the Texas Department of Criminal Justice or of the predecessor in function of the department or any division of the department, regardless of whether the current or former employee complies with Section 552.1175;

(4) a peace officer as defined by Article 2.12, Code of Criminal Procedure, or other law, a reserve law enforcement officer, a commissioned deputy game warden, or a corrections officer in a municipal, county, or state penal institution in this state who was killed in the line of duty, regardless of whether the deceased complied with Section 552.024 or 552.1175; or

(5) a commissioned security officer as defined by Section 1702.002, Occupations Code, regardless of whether the officer complies with Section 552.024 or 552.1175, as applicable.

SECTION 23. The heading to Section 552.1175, Government Code, is amended to read as follows:

Sec. 552.1175. CONFIDENTIALITY OF ADDRESSES, TELEPHONE NUMBERS, DATES OF BIRTH, SOCIAL SECURITY NUMBERS, AND PERSONAL FAMILY INFORMATION OF PEACE OFFICERS, COUNTY JAILERS, SECURITY OFFICERS, AND EMPLOYEES OF THE TEXAS DEPARTMENT OF CRIMINAL JUSTICE OR A PROSECUTOR'S OFFICE.

SECTION 24. Subsection (b), Section 552.1175, Government Code, is amended to read as follows:

(b) Information that relates to the home address, home telephone number, date of birth, or social security number of an individual to whom this section applies, or that reveals whether the individual has family members is confidential and may not be disclosed to the public under this chapter if the individual to whom the information relates:

(1) chooses to restrict public access to the information; and

(2) notifies the governmental body of the individual's choice on a form provided by the governmental body, accompanied by evidence of the individual's status.

SECTION 25. Subsection (b), Section 552.132, Government Code, is amended to read as follows:

(b) A crime victim may elect whether to allow public access to information held by the crime victim's compensation division of the attorney general's office that relates to:

(1) the name, social security number, date of birth, address, or telephone number of the crime victim; or

(2) any other information the disclosure of which would identify or tend to identify the crime victim.

SECTION 26. Subsection (b), Section 552.1325, Government Code, is amended to read as follows:

(b) The following information that is held by a governmental body or filed with a court and that is contained in a victim impact statement or was submitted for purposes of preparing a victim impact statement is confidential:

(1) the name, social security number, date of birth, address, and telephone number of a crime victim; and

(2) any other information the disclosure of which would identify or tend to identify the crime victim.

SECTION 27. Subsection (b), Section 552.138, Government Code, is amended to read as follows:

(b) Information maintained by a family violence shelter center or sexual assault program is excepted from the requirements of Section 552.021 if it is information that relates to:

(1) the home address, home telephone number, date of birth, or social security number of an employee or a volunteer worker of a family violence shelter center or a sexual assault program, regardless of whether the employee or worker complies with Section 552.024;

(2) the location or physical layout of a family violence shelter center;

(3) the name, home address, home telephone number, date of birth, or social security number or other numeric identifier of a current or former client of a family violence shelter center or sexual assault program;

(4) the provision of services, including counseling and sheltering, to a current or former client of a family violence shelter center or sexual assault program;

(5) the name, home address, [or] home telephone number, date of birth, or social security number or other numeric identifier of a private donor to a family violence shelter center or sexual assault program; or

(6) the home address, [or] home telephone number, date of birth, or social security number of a member of the board of directors or the board of trustees of a family violence shelter center or sexual assault program, regardless of whether the board member complies with Section 552.024.

SECTION 28. Subchapter A, Chapter 659, Government Code, is amended by adding Section 659.007 to read as follows:

Sec. 659.007. EARNINGS STATEMENTS. (a) In this section, "state agency" has the meaning assigned by Section 403.013.

(b) A state agency may provide a written or electronic earnings statement to an officer or employee of the agency.

(c) The comptroller may adopt rules and establish procedures concerning the earnings statements provided by state agencies that under Subchapter C, Chapter 2101, are required to use the uniform statewide payroll system.

SECTION 29. Subsection (e), Section 659.044, Government Code, is amended to read as follows:

(e) This subsection applies only to an employee of the Texas Youth Commission who is receiving less than the maximum amount of hazardous duty pay that the commission may pay to the employee under Section 659.303. The employee's monthly amount of longevity pay is the sum of:

(1) $20 [$4] for every two years [each year] of lifetime service credit, which may not include any period served in a hazardous duty position; and

(2) the lesser of:

(A) $20 [$4] for every 24 months of lifetime service credit accrued under Section 659.307(a) [each year served in a hazardous duty position]; or

(B) the difference between:

(i) $10 [$7] for each 12-month period of lifetime service credit accrued under Section 659.307(a) [year served in a hazardous duty position]; and

(ii) the amount paid by the commission for each 12-month period of lifetime service credit accrued under Section 659.307(a) [year served in a hazardous duty position].

SECTION 30. (a) Section 659.046, Government Code, is amended by adding Subsection (g) to read as follows:

(g) For purposes of Subsection (a)(4), an employee's service as an academic employee of a state institution of higher education includes a summer semester or session during which the employee is not required to provide services to the institution if:

(1) the employee provided services to the institution throughout the immediately preceding spring and fall semesters; and

(2) the employee resumes providing services to the institution at the beginning of the first fall semester occurring after the summer semester or session.

(b) The changes in law made by Subsection (a) of this section to Section 659.046, Government Code, apply beginning with the first summer semester or session that occurs during calendar year 2007.

SECTION 31. Subdivision (3), Subsection (a), Section 659.255, Government Code, is amended to read as follows:

(3) "Merit salary increase" means an increase in compensation to:

(A) a higher step rate in the same classified salary group, if the classified employee is compensated under a salary group that is divided into steps [Salary Schedule A of the General Appropriations Act]; or

(B) a higher rate within the range of the same classified salary group, if the classified employee is compensated under a salary group that is not divided into steps [Salary Schedule B of the General Appropriations Act].

SECTION 32. Subsections (c) and (f), Section 659.256, Government Code, are amended to read as follows:

(c) When an employee is promoted within [to a position in a higher salary group in] Salary Schedule A of the General Appropriations Act or from Salary Schedule B or C of the General Appropriations Act to Salary Schedule A of the General Appropriations Act, the employee shall receive a salary rate that is at least 3.4 percent [one step] higher than the employee's salary rate before promotion or the minimum rate of the new salary range, whichever is higher, and may, at the discretion of the state agency administrator, receive an annual salary rate up to and including the maximum rate of the new salary range. [When an employee is promoted from a position in Salary Schedule B or C of the General Appropriations Act to a position in Salary Schedule A of the General Appropriations Act, the employee shall receive a step rate that is at least one step above the rate the employee received before promotion or the minimum rate of the new salary range, whichever is higher, and may, at the discretion of the state agency administrator, receive an annual rate up to and including the maximum rate of the new salary range.]

(f) Notwithstanding the other provisions of this section, an employee whose salary prior to promotion exceeds the maximum rate of the employee's assigned salary group may not receive more than the maximum rate of the new salary group, even if the increase is less than one step in a salary group that is divided into steps [Salary Schedule A of the General Appropriations Act] or 3.4 percent in a salary group that is not divided into steps [Salary Schedule B of the General Appropriations Act].

SECTION 33. Subsection (c), Section 659.257, Government Code, is amended to read as follows:

(c) When an employee is demoted within [to a position in a lower salary group in] Salary Schedule A of the General Appropriations Act or from Salary Schedule B or C of the General Appropriations Act to Salary Schedule A of the General Appropriations Act, the employee will receive a salary rate of at least 3.4 percent [one step] below the rate the employee received before demotion. [When an employee is demoted from a position in Salary Schedule B or C of the General Appropriations Act to a position in Salary Schedule A of the General Appropriations Act, the employee shall receive a step rate that is at least 3.4 percent below the rate the employee received before demotion.]

SECTION 34. Subsection (a), Section 660.024, Government Code, is amended to read as follows:

(a) The chief administrator of a state agency must give advance written approval for any travel related to official state business for which a reimbursement for travel expenses is claimed or for which an advance for travel expenses to be incurred is sought. The advance written approval may be communicated electronically [A copy of the written approval shall be submitted with the travel voucher to the comptroller in accordance with Section 660.027].

SECTION 35. Subsections (b), (d), and (e), Section 660.027, Government Code, are amended to read as follows:

(b) A voucher submitted under Subsection (a) is valid only if:

(1) the state agency submitting the voucher approves it in accordance with Chapter 2103 and, if required by law, certifies the voucher; and

(2) the state employee who incurred the travel expense or, if the employee is unavailable, another individual acceptable to the comptroller approves the description, information, and documentation required by Subsection (d) [voucher] in writing or electronically, except that the employee's approval is not required if another person is required by law to provide the approval.

(d) A voucher must be supported by:

(1) a description of [describe] the official state business performed; and

(2) [be accompanied by] the information and documentation that the comptroller considers necessary for the comptroller to determine compliance with this chapter, the travel provisions of the General Appropriations Act, and the rules adopted by the comptroller under this chapter.

(e) The comptroller may require a state agency to provide to the comptroller the description, information, and documentation required under [by] Subsection (d):

(1) on the form adopted by the comptroller under Subsection (c);

(2) electronically;

(3) by submitting receipts or other documents; or

(4) [(3)] by any [a] combination of Subdivisions (1), [and] (2), and (3).

SECTION 36. Section 660.028, Government Code, is amended by amending Subsections (b), (c), and (d) and adding Subsection (e) to read as follows:

(b) If the comptroller audits a state agency's voucher after the comptroller issues a warrant or initiates an electronic funds transfer in response to the voucher, the comptroller may require the agency to maintain in its files the description, information, and documentation [receipts] relating to the travel expense paid or reimbursed by the voucher until the comptroller audits the voucher.

(c) If a state agency pays or reimburses a travel expense without first submitting a voucher to the comptroller, the comptroller may audit the payment or reimbursement for compliance with this chapter and the travel provisions of the General Appropriations Act. The comptroller may report the results of the audit to the governor, the lieutenant governor, the speaker of the house of representatives, the state auditor, and the Legislative Budget Board. The state agency shall cooperate with the comptroller and make available the description, information, and documentation [receipts] required by the comptroller at the time and in the manner required by the comptroller.

(d) The comptroller may require a state agency to maintain in its files the description, information, and documentation [receipts] regarding a travel expense payment or reimbursement for the period required by the comptroller.

(e) The comptroller may require or authorize the description, information, and documentation relating to a travel expense payment or reimbursement to be maintained in paper form or electronically.

SECTION 37. The heading to Subchapter C, Chapter 661, Government Code, is amended to read as follows:

SUBCHAPTER C. PAYMENT FOR VACATION LEAVE [TIME] TO

STATE EMPLOYEES WHO SEPARATE FROM STATE EMPLOYMENT

SECTION 38. Section 661.062, Government Code, is amended to read as follows:

Sec. 661.062. ENTITLEMENT TO PAYMENT FOR VACATION LEAVE [TIME]. (a) A state employee who, at any time during the employee's lifetime, has accrued six months of continuous state employment [and who resigns, is dismissed, or otherwise separates from state employment by a state agency other than an institution of higher education] is entitled to be paid for [the accrued balance of] the employee's accrued vacation leave [time as of date of the separation,] if:

(1) the employee resigns or is dismissed from a position in a state agency that is not an institution of higher education without, during the 30-day period immediately following the effective date of the resignation or dismissal:

(A) accepting a position at another state agency; and

(B) resuming state employment in a position that accrues vacation leave;

(2) the employee resigns or is dismissed from a position in a state agency that is an institution of higher education without:

(A) having accepted a position at another state agency; and

(B) resuming state employment in a position that accrues vacation leave on the first workday immediately following the effective date of the resignation or dismissal;

(3) the employee moves from a position in a state agency that accrues vacation leave to another position within the same state agency that does not accrue vacation leave and the agency agrees to pay the employee for the accrued leave;

(4) the employee moves from a position in a state agency that accrues vacation leave to a position in a different state agency that does not accrue vacation leave and the second agency refuses to credit the employee for the accrued leave;

(5) the employee moves from a position in a state agency that is not an institution of higher education to a position in a different state agency that accrues vacation leave and the first day of employment in the second position is at least 31 days after the last day of employment in the first position;

(6) the employee moves from a position in an institution of higher education to a position in a different state agency that accrues vacation leave and the first day of employment in the second position is at least two workdays after the last day of employment in the first position; or

(7) the employee holds two or more positions in a state agency, the employee resigns or is dismissed from a position that accrues vacation leave, and the agency agrees to pay the employee for the accrued leave [the individual is not reemployed by the state in a position under which the employee accrues vacation leave during the 30-day period immediately following the date of separation from state employment. A state employee who, at any time during the employee's lifetime, has accrued six months of continuous state employment and who resigns, is dismissed, or otherwise separates from state employment by an institution of higher education is entitled to be paid for the accrued balance of the employee's vacation time as of the date of separation].

(b) For purposes of this section, the amount of a state employee's accrued vacation leave is the amount existing on the date the event occurs that entitles the employee to be paid for the employee's accrued vacation leave [A separation from state employment includes a separation in which the employee:

[(1) leaves one state agency to begin working for another state agency, if one or more workdays occur between the two employments and the individual is not reemployed by the state in a position under which the employee accrues vacation leave during the 30-day period immediately following the date of separation from state employment;

[(2) moves from a position in a state agency that accrues vacation time to a position in that agency that does not accrue vacation time, if the agency agrees to pay the employee for the accrued balance of the employee's vacation time;

[(3) moves from a position in a state agency that accrues vacation time to a position in another state agency that does not accrue vacation time, if the other state agency refuses to credit the employee for the balance of the employee's vacation time as of the date of the move;

[(4) moves from a position in a state agency that does not accrue vacation time to a position in another state agency that does not accrue vacation time, if the other state agency is not authorized or refuses to credit the employee for the balance of the employee's vacation time as of the date of the move; or

[(5) holds two or more positions, and separates from one that accrues vacation time, if the agency agrees to pay the employee for the accrued balance of the employee's vacation time].

(c) The state agency to which a state employee moves shall credit the employee for the employee's accrued vacation leave if the employee is not entitled under Subsection (a)(3) or (4) to receive payment for that leave.

(d) A state employee who holds two or more positions is entitled to be paid for the employee's accrued vacation leave concerning a particular [separation under Subsection (b)(4) applies only with respect to the] position only if the event entitling the employee to receive the payment relates to the position that accrues vacation leave, as provided in Subsection (a) [from which the separation occurs].

(e) [(d)] State employment is continuous for purposes of this section [Subsection (a)] while the employee is entitled to be paid a regular state salary, except that continuity of state employment is not interrupted while the employee is on a leave of absence without pay for less than one calendar month.

(f) [(e)] The following are ineligible [not entitled] to receive a payment [payments] under this subchapter:

(1) an individual who holds an office that is normally filled by vote of the people;

(2) an independent contractor or an employee of an independent contractor;

(3) an operator of equipment or a driver of a team whose wages are included in the rental paid by a state agency to the owner of the equipment or team;

(4) an individual employed on a piecework basis; or

(5) an individual covered by:

(A) the Judicial Retirement System of Texas Plan One;

(B) the Judicial Retirement System of Texas Plan Two; or

(C) the Teacher Retirement System of Texas, other than an individual described by Section 661.061(2)(E) or (F).

(g) An employee of a legislative agency is eligible or entitled to receive payment for the employee's accrued [(f) Payment for accrued] vacation leave only as provided by the administrative head of that agency. An employee of the house of representatives or of a member of the house of representatives is eligible or entitled to receive payment for the employee's accrued vacation leave only as provided by the speaker of the house of representatives. An employee of the senate, of a member of the senate, or of the lieutenant governor is eligible or entitled to receive payment for the employee's accrued vacation leave only as provided by the lieutenant governor [for employees of the legislative branch, including employees of the lieutenant governor, is determined as follows:

[(1) for employees of either house of the legislature, a member of the legislature, or the lieutenant governor, by the presiding officer of the appropriate house of the legislature; and

[(2) for employees of a legislative agency, by the administrative head of the agency].

SECTION 39. Subsections (a) and (b), Section 661.063, Government Code, are amended to read as follows:

(a) Except as provided by Subsection (b), the payment to a state employee under this subchapter shall be computed by multiplying the employee's rate of compensation on the date the event occurs that entitles the employee to be paid for the employee's accrued vacation leave [of separation from state employment] by the total number of hours of vacation leave [time] determined under Section 661.064.

(b) The payment under this subchapter to a state employee who resigns, is dismissed, or moves to another position from [separates from state employment while holding] a position that does not accrue vacation leave [time] shall be computed according to this subsection. The employee's final rate of compensation in the last position held that accrues vacation leave [time] shall be multiplied by the employee's total number of hours of vacation leave [time] determined under Section 661.064.

SECTION 40. Section 661.064, Government Code, is amended to read as follows:

Sec. 661.064. COMPUTATION OF TOTAL ACCUMULATED LEAVE; HOLIDAY TIME. (a) This subsection applies except as provided by Subsection (c). For a state employee who, on the date the event occurs that entitles the employee to be paid for the employee's accrued vacation leave, [of separation] is normally scheduled to work at least 40 hours a week, eight hours are to be added to the employee's accrued vacation leave [time] for each state or national holiday that is scheduled to fall within the period after the date of the event [separation] and during which the employee could have used the leave [time]. To determine the period during which vacation leave [time] could have been used and the number of state or national holidays, the employee's vacation leave [time] is allocated over the workdays after the date of the event [employee's separation] and eight hours are added as a state or national holiday occurs during the period.

(b) For a state employee who, on the date the event occurs that entitles the employee to be paid for the employee's accrued vacation leave, [of separation] is normally scheduled to work less than 40 hours a week, the number of hours that is to be added to the employee's accrued vacation leave [time] for each state or national holiday is computed as provided by Subsection (a), but is to be proportionally reduced according to the lesser number of the employee's normally scheduled weekly work hours.

(c) For a state employee who is paid under this subchapter because the event that entitles the employee to be paid for the employee's accrued vacation leave [separation from state employment] involves a move to a position in a state agency that does not accrue vacation leave [time], no hours may be added to the employee's accrued vacation leave [time] for a state or national holiday that [which] is scheduled to fall within the period after the date of the event [separation] and during which the employee could have used the leave [time].

SECTION 41. Section 661.066, Government Code, is amended to read as follows:

Sec. 661.066. PAYMENT CHARGED TO CERTAIN FISCAL YEAR. A state agency shall charge a lump-sum payment required by this subchapter to the fiscal year in which the event occurs that entitles the employee to be paid for the employee's accrued vacation leave [state employee's separation from state employment becomes effective].

SECTION 42. Section 661.067, Government Code, is amended to read as follows:

Sec. 661.067. AGREEMENT FOR STATE EMPLOYEE TO REMAIN ON AGENCY PAYROLL. (a) A state agency may agree to permit an employee entitled to payment under this subchapter to remain on the agency's payroll to exhaust the employee's accrued vacation leave [time].

(b) A state employee who remains on the payroll of a state agency under this section:

(1) is entitled to continue to receive all compensation and benefits that the state employee was receiving on the employee's last day of duty, including paid holidays, longevity pay, and hazardous duty pay;

(2) is entitled to a general salary increase for state employees that takes effect before the employee's accrued vacation leave [time] is exhausted; and

(3) may not use sick leave or accrue sick leave or vacation leave [time].

SECTION 43. The heading to Subchapter D, Chapter 661, Government Code, is amended to read as follows:

SUBCHAPTER D. PAYMENTS FOR VACATION LEAVE [TIME] TO

CONTRIBUTING MEMBERS OF EMPLOYEES RETIREMENT SYSTEM WHO RETIRE

SECTION 44. Section 661.091, Government Code, is amended to read as follows:

Sec. 661.091. PAYMENT FOR VACATION LEAVE [TIME] ON RETIREMENT. (a) A contributing member of the Employees Retirement System of Texas who retires is entitled to be paid in a lump sum, from funds of the agency or department from which the member retires, for the member's accrued vacation leave [time] as of the date of retirement.

(b) A payment required by this section is payable on the date of retirement.

SECTION 45. Section 661.092, Government Code, is amended to read as follows:

Sec. 661.092. COMPUTATION OF PAYMENT. A payment required by this subchapter shall be computed as provided by Section 661.063 [as if the member had taken vacation time, using the member's rate of compensation as of the date of retirement].

SECTION 46. Section 662.010, Government Code, is amended to read as follows:

Sec. 662.010. HOLIDAY BEFORE WORK BEGINS OR AFTER WORK ENDS. (a) An individual who is [must be] a state employee on the first workday [before and] after a state or national holiday may not [in order to] be paid for that holiday if:

(1) the individual is not a state employee on the last workday before the holiday; and

(2) [, unless] the holiday and the [falls on the employee's] first [or last] workday after the holiday occur during different months [of the month].

(b) An individual who is a state employee on the last workday before a state or national holiday may not be paid for that holiday if:

(1) the individual is not a state employee on the first workday after the holiday; and

(2) the holiday and the last workday before the holiday occur during different months.

(c) [(b)] In this section, "state employee":

(1) includes an individual who uses paid leave from a state agency; and

(2) does not include an individual who uses unpaid leave from a state agency.

SECTION 47. Subchapter A, Chapter 2103, Government Code, is amended by adding Section 2103.005 to read as follows:

Sec. 2103.005. CONFLICTS OF LAW. This chapter prevails over all other law to the extent of any conflict.

SECTION 48. Chapter 2107, Government Code, is amended by adding Section 2107.009 to read as follows:

Sec. 2107.009. DEDUCTIONS FOR REPAYMENT OF CERTAIN DEBTS OR TAX DELINQUENCIES. (a) Except as provided by this section, a state agency may deduct the amount of a person's indebtedness to the state or tax delinquency from any amount the agency owes the person or the person's successor. The state agency shall pay to the person or successor any amount remaining after the deduction.

(b) Subsection (a) applies to a person or the person's successor only if:

(1) the state agency has provided notice to the person or successor that complies with Subsection (c);

(2) Section 57.48, Education Code, or Section 403.055 of this code prohibits the comptroller from issuing a warrant or initiating an electronic funds transfer to the person or successor; and

(3) the comptroller is not responsible under Section 404.046, 404.069, or 2103.003 for paying the amount owed by the state agency to the person or successor through the issuance of a warrant or initiation of an electronic funds transfer.

(c) A state agency shall provide notice to a person or the person's successor before deducting the amount of the person's indebtedness to the state or tax delinquency under Subsection (a). The notice must:

(1) be given in a manner reasonably calculated to give actual notice to the person or successor;

(2) state the:

(A) amount of the indebtedness or the amount of the tax, penalties, interest, and costs due, as applicable; and

(B) name of the indebted or delinquent person;

(3) specify the deadline for paying the amount due; and

(4) inform the person or successor that unless the amount due is paid before the deadline, the state agency will deduct the amount of the indebtedness or delinquency from the amount the agency owes the person or successor.

(d) This section does not authorize a state agency to deduct the amount of a state employee's indebtedness to the state from any amount of compensation owed by the agency to the employee, the employee's successor, or the assignee of the employee or successor. In this subsection:

(1) "compensation" has the meaning assigned by Section 403.055; and

(2) "indebtedness," "state agency," "state employee," and "successor" have the meanings assigned by Section 666.001.

(e) A state agency shall credit the appropriate fund or account for any amount deducted under this section if the agency is the custodian or trustee of that fund or account. The agency shall remit any amount deducted under this section to the custodian or trustee of the appropriate fund or account if the agency is not its custodian or trustee.

(f) The comptroller may determine the order that a person's multiple types of indebtedness to the state or tax delinquencies are deducted from the amount a state agency owes the person or the person's successor.

(g) The assignee of a person or the person's successor is considered to be a successor of the person for the purposes of this section, except that a deduction under this section from the amount owed to the assignee of a person or the person's successor may not be made if the assignment became effective before the person became indebted to the state or incurred the tax delinquency.

(h) Except as provided by this section, a state agency may adopt rules and establish procedures concerning deductions made by the agency under this section. To the extent of any conflict, rules adopted or procedures established by the comptroller under Subsection (i) prevail over the agency's rules or procedures.

(i) The comptroller may adopt rules and establish procedures to administer Subsection (f).

(j) Except as provided by Subsection (d), in this section "successor" means a person's estate and the distributees of that estate.

SECTION 49. Subdivision (1), Section 2115.001, Government Code, is amended to read as follows:

(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 a [state sales] tax or fee that the state is not required to pay under applicable law, except that the term does not include a tax or fee imposed under a law of this state; or

(E) for a good or service the vendor did not provide.

SECTION 50. The heading to Section 2115.003, Government Code, is amended to read as follows:

Sec. 2115.003. SCOPE OF [STATE AGENCIES SUBJECT TO] MANDATORY RECOVERY AUDITS.

SECTION 51. Subsection (b), Section 2115.003, Government Code, is amended to read as follows:

(b) The comptroller may exempt from the mandatory recovery audit process a state agency or a type of payment:

(1) if the comptroller determines, in accordance with [that has a low proportion of its expenditures made to vendors, according to] criteria the comptroller adopts by rule, that the exemption would be in the best interests of the state; or

(2) 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].

SECTION 52. Subsection (a), Section 2115.004, Government Code, is amended to read as follows:

(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. Unless otherwise prohibited by law, the payment must be made from recovered money.

SECTION 53. Section 117.002, Local Government Code, is amended to read as follows:

Sec. 117.002. TRANSFER OF UNCLAIMED FUNDS TO COMPTROLLER. Any funds deposited under this chapter[, except cash bail bonds,] that are presumed abandoned under Chapter 72, 73, or 75, Property Code, shall be reported and delivered by the county or district clerk to the comptroller without further action by any court. The dormancy period for funds deposited under this chapter begins on the later of:

(1) the date of entry of final judgment or order of dismissal in the action in which the funds were deposited;

(2) the 18th birthday of the minor for whom the funds were deposited; or

(3) a reasonable date established by rule by the comptroller to promote the public interest in disposing of unclaimed funds.

SECTION 54. Section 74.202, Property Code, is amended to read as follows:

Sec. 74.202. NOTICE FOR ITEM WITH VALUE OF LESS THAN $200 [$100]. In the notice required by Section 74.201, the comptroller is not required to publish information regarding an item having a value that is less than $200 [$100] unless the comptroller determines that publication of that information is in the public interest.

SECTION 55. Subsection (a), Section 74.101, Property Code, is amended to read as follows:

(a) Each holder who on June 30 holds property that is presumed abandoned under Chapter 72, 73, or 75 of this code or under Chapter 154, Finance Code, shall file a report of that property on or before the following November 1. The comptroller may require the report to be in a particular format, including an electronic [a] format that can be read by a computer. The comptroller may adopt rules to establish threshold requirements for electronic filing by holders.

SECTION 56. Section 74.301, Property Code, is amended by adding Subsection (d) to read as follows:

(d) The comptroller may require holders to electronically transmit money subject to delivery under Subsection (a). The comptroller may adopt rules to establish the threshold requirement for electronic transmission of money by holders.

SECTION 57. Subsection (a), Section 74.401, Property Code, is amended to read as follows:

(a) Except as provided by Subsection (c) or Section 74.404, the comptroller shall sell at public sale all personal property, other than money and [marketable] securities, delivered to the comptroller in accordance with Section 74.301. The comptroller shall conduct the sale in the city in this state that the comptroller determines affords the most favorable market for the particular property.

SECTION 58. Section 74.601, Property Code, is amended by adding Subsection (g) to read as follows:

(g) If an owner does not assert a claim for unclaimed money and the owner is reported to be the state or a state agency, the comptroller may deposit the unclaimed money to the credit of the general revenue fund. The comptroller may establish procedures and adopt rules as necessary to implement this section.

SECTION 59. The following laws are repealed:

(1) Section 43.020, Education Code;

(2) Section 661.093, Government Code;

(3) Chapter 2112, Government Code; and

(4) Section 2103.063, Government Code.

SECTION 60. (a) The changes in law made by this Act to Sections 552.024, 552.117, 552.1175, 552.132, 552.1325, and 552.138, Government Code, apply to information, records, and notations collected, made, assembled, or maintained on, before, or after the effective date of this Act.

(b) The changes in law made by this Act to Sections 552.024, 552.117, 552.1175, 552.132, 552.1325, and 552.138, Government Code, apply to a request for information that is received by a governmental body on, before, or after the effective date of this Act.

(c) In this section, "governmental body" has the meaning assigned by Section 552.003, Government Code.

SECTION 61. A rule adopted by the comptroller of public accounts before the effective date of the changes made by this Act to Chapter 2115, Government Code, is not required to be readopted by the comptroller if the rule is consistent with that chapter as amended by this Act. This section applies only to a rule adopted to administer that chapter.

SECTION 62. (a) Except as provided by Subsection (e) of this section, 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.

(b) If this Act does not receive the vote necessary for immediate effect, the changes to or additions or repeal of the following laws made by this Act take effect on the 91st day after the last day of the legislative session:

(1) Section 57.48, Education Code;

(2) Section 231.007, Family Code;

(3) Sections 403.055, 403.0551, 552.024, 552.117, 552.1175, 552.132, 552.1325, 552.138, 659.044, 659.046, 661.062, 661.063, 661.064, 661.066, 661.067, 661.091, 661.092, 661.093, 662.010, 2103.063, 2107.009, 2115.001, 2115.003, and 2115.004, Government Code;

(4) the headings for Subchapters C and D, Chapter 661, Government Code; and

(5) Chapter 2112, Government Code.

(c) If this Act does not receive the vote necessary for immediate effect, the changes to or additions of the following laws made by this Act take effect September 1, 2007:

(1) Articles 103.002, 103.0021, and 103.0031, Code of Criminal Procedure;

(2) Sections 63.202 and 63.302, Education Code;

(3) Sections 25.0015, 25.00211, 26.007, 403.071, 404.024, 659.007, 660.024, 660.027, and 660.028, Government Code;

(4) Section 117.002, Local Government Code; and

(5) Sections 74.101, 74.202, 74.301, 74.401, and 74.601, Property Code.

(d) If this Act does not receive the vote necessary for immediate effect, all provisions of this Act not provided for in Subsection (b) or (e) of this section take effect September 1, 2007.

(e) The changes to or repeal of the following laws made by this Act take effect September 1, 2007:

(1) Sections 43.001, 43.002, and 43.020, Education Code; and

(2) Sections 74.061, 403.016, 659.255, 659.256, and 659.257, Government Code.

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