82R23499 MCK-F
 
  By: Callegari, Cain H.B. No. 3168
 
  Substitute the following for H.B. No. 3168:
 
  By:  Zedler C.S.H.B. No. 3168
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to state personnel and other human resources matters and
  the disposition of certain state property.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  STATE EMPLOYEE FURLOUGHS AND COMPENSATION
         SECTION 1.01.  Section 658.007, Government Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  Notwithstanding other law or terms of contract, an
  institution of higher education may establish a mandatory employee
  furlough or work reduction program as necessary to increase
  efficiency, reduce the cost of operations, or otherwise address the
  financial condition of the institution. While a furlough or work
  reduction program is in effect, the terms and conditions of the
  program apply notwithstanding other law. The terms and conditions
  of the program may address the eligibility of an employee for and
  contributions for benefits under Chapter 1551 or 1601, Insurance
  Code, as applicable.
         SECTION 1.02.  Chapter 658, Government Code, is amended by
  adding Section 658.011 to read as follows:
         Sec. 658.011.  INVOLUNTARY FURLOUGH PROGRAM. (a) In this
  section, "state agency" means a board, commission, office,
  department, or other agency in the executive, judicial, or
  legislative branch of state government. The term does not include
  an institution of higher education as defined by Section 61.003,
  Education Code.
         (b)  On approval of the governing body of the state agency,
  the executive director of a state agency may require an employee of
  the state agency to participate in an involuntary furlough program
  without pay in order to balance the state agency's budget.
         (c)  The state agency implementing an involuntary furlough
  program under this section shall reduce an employee's compensation
  in an amount equal to the number of hours the employee is furloughed
  times the employee's hourly rate or equivalent hourly rate as
  provided by Section 659.085.
         (d)  Except as provided by Subsection (g), a state employee
  may not use vacation, sick, or any other paid leave while the
  employee is on an unpaid furlough.
         (e)  An unpaid furlough under this section does not
  constitute a break in service for the state employee.
         (f)  A state employee who is on unpaid furlough continues to
  accrue:
               (1)  state service credit for purposes of longevity
  pay;
               (2)  vacation leave; and
               (3)  sick leave.
         (g)  A state employee on an unpaid furlough that exceeds one
  month in length may continue to accrue service credit with the
  Employees Retirement System of Texas or Teacher Retirement System
  of Texas by receiving state pay during each month of the unpaid
  furlough in an amount equal to the employee's contribution to the
  retirement system under Section 815.402 or 825.403, as appropriate.
  The employee may use any combination of paid leave, including state
  compensatory leave, overtime leave under the federal Fair Labor
  Standards Act of 1938 (29 U.S.C. Section 201 et seq.), sick leave,
  or annual leave to qualify for the state pay.
         SECTION 1.03.  Section 659.043, Government Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  Notwithstanding Subsections (a)(1) and (2), an employee
  participating in an involuntary furlough program under Section
  658.011 who is otherwise eligible for longevity pay is entitled to
  longevity pay.
         SECTION 1.04.  Subchapter K, Chapter 659, Government Code,
  is amended by adding Section 659.264 to read as follows:
         Sec. 659.264.  CERTAIN SALARY REDUCTIONS AT INSTITUTIONS OF
  HIGHER EDUCATION. Notwithstanding other law or terms of contract,
  subject solely to procedures and rules adopted by the governing
  board, an institution of higher education may establish a program
  of temporary or permanent salary reductions as necessary to reduce
  the cost of operations or otherwise address the financial condition
  of the institution.
         SECTION 1.05.  Section 811.001(7), Government Code, is
  amended to read as follows:
               (7)  "Compensation" means the base salary of a person;
  amounts that would otherwise qualify as compensation but are not
  received directly by a person pursuant to a good faith, voluntary,
  written salary reduction agreement in order to finance payments to
  a deferred compensation or tax sheltered annuity program
  specifically authorized by state law or to finance benefit options
  under a cafeteria plan qualifying under Section 125 of the Internal
  Revenue Code of 1986 (26 U.S.C. Section 125); longevity and
  hazardous duty pay; nonmonetary compensation, the value of which
  is determined by the retirement system; amounts by which a person's
  salary is reduced under a salary reduction agreement authorized by
  Chapter 610; amounts by which a person's salary is reduced under an
  involuntary furlough program under Section 658.011; and the benefit
  replacement pay a person earns under Subchapter H, Chapter 659, [as
  added by Chapter 417, Acts of the 74th Legislature, 1995,] except
  for the benefit replacement pay a person earns as a result of a
  payment made under Subchapter B, C, or D, Chapter 661. The term
  excludes overtime pay and a cleaning or clothing allowance.
         SECTION 1.06.  Subchapter C, Chapter 1551, Insurance Code,
  is amended by adding Section 1551.1015 to read as follows:
         Sec. 1551.1015.  INVOLUNTARY FURLOUGH PROGRAM. An
  individual is eligible to participate in the group benefits program
  if the individual would otherwise be eligible to participate in the
  program under this subchapter except that the individual is not
  receiving compensation for service because the individual is
  participating in an involuntary furlough program under Section
  658.011, Government Code.
         SECTION 1.07.  Section 1551.319, Insurance Code, is amended
  by adding Subsection (g) to read as follows:
         (g)  For purposes of determining whether an individual is a
  full-time or part-time employee under this section, any reduction
  in the employee's hours that results from the employee's
  participation in an involuntary furlough program under Section
  658.011, Government Code, may not be considered.
         SECTION 1.08.  Subchapter G, Chapter 1551, Insurance Code,
  is amended by adding Section 1551.325 to read as follows:
         Sec. 1551.325.  CONTRIBUTIONS AND PAYMENTS FROM CERTAIN
  EMPLOYEES. (a)  An employee participating in an involuntary
  furlough program under Section 658.011, Government Code, for a
  period of a month or more shall make the contributions required for
  the coverage selected by the employee, including any amount of a
  salary reduction agreement under a cafeteria plan, as required by
  the trustee.
         (b)  The employee is entitled to receive compensation for any
  combination of paid leave, including state compensatory leave,
  overtime leave under the federal Fair Labor Standards Act of 1938
  (29 U.S.C. Section 201 et seq.), sick leave, or annual leave, to the
  extent necessary to make the required contribution.
  ARTICLE 2.  STATE PERSONNEL AND OTHER STATE HUMAN RESOURCES MATTERS
         SECTION 2.01.  Section 670.002, Government Code, is amended
  to read as follows:
         Sec. 670.002.  HUMAN RESOURCES STAFFING FOR LARGE STATE
  AGENCIES. A state agency with 500 or more full-time equivalent
  employees shall adjust the agency's human resources staff to
  achieve a human resources employee-to-staff ratio of not more than
  one human resources employee for every 100 [85] staff members.
         SECTION 2.02.  Section 670.003, Government Code, is amended
  to read as follows:
         Sec. 670.003.  HUMAN RESOURCES STAFFING FOR [MEDIUM-SIZED
  AND] SMALL STATE AGENCIES; OUTSOURCING. [(a)] The State Council on
  Competitive Government shall:
               (1)  perform a review to determine the
  cost-effectiveness of consolidating the human resources functions
  of or contracting with private entities to perform the human
  resources functions of all state agencies that employ 100 or fewer
  [than 500] full-time equivalent employees;
               (2)  implement the findings of the review, including
  contracting for human resources functions on behalf of small state
  agencies, as necessary; and
               (3)  review the human resources functions of small
  state agencies at least once every five years or as determined
  necessary based on the terms of a contract entered into to implement
  this section.
         [(b)     If the council determines that contracting with
  private entities is cost-effective, the council shall issue a
  request for proposals for vendors to perform the human resources
  functions of the agencies.
         [(c)     The council shall determine which human resources
  functions are subject to the contract and which functions the
  agency may select to perform itself.
         [(d)     Each agency shall pay for the contracts for human
  resources functions out of the agency's human resources budget.]
         SECTION 2.03.  Chapter 670, Government Code, is amended by
  adding Section 670.004 to read as follows:
         Sec. 670.004.  HUMAN RESOURCES STAFFING FOR MEDIUM-SIZED
  STATE AGENCIES; OUTSOURCING. (a) A state agency with fewer than 500
  full-time equivalent employees but more than 100 full-time
  equivalent employees shall:
               (1)  adjust the agency's human resources staff to
  achieve a human resources employee-to-staff ratio of not more than
  one human resources employee for every 100 staff members; or
               (2)  request the State Council on Competitive
  Government to perform a review to determine the cost-effectiveness
  of consolidating the human resources functions of, or contracting
  with private entities to perform the human resources functions of,
  the agency.
         (b)  If, based on the review performed under Subsection
  (a)(2), the State Council on Competitive Government determines that
  the agency should contract with a private entity to perform the
  human resources functions, the agency shall work with the State
  Council on Competitive Government to contract for performance of
  the agency's human resources functions.
  ARTICLE 3. SURPLUS AND SALVAGE PROPERTY
         SECTION 3.01.  Section 2175.002, Government Code, is amended
  to read as follows:
         Sec. 2175.002.  ADMINISTRATION OF CHAPTER. The commission
  shall dispose of surplus and salvage property. The commission's
  surplus and salvage property division shall administer this
  chapter.
         SECTION 3.02.  Section 2175.065, Government Code, is amended
  by amending Subsection (a) and adding Subsections (c) and (d) to
  read as follows:
         (a)  The commission may authorize a state agency to dispose
  of surplus or salvage property if the agency demonstrates to the
  commission its ability to dispose of the property under this
  chapter [Subchapters C and E] in a manner that results in cost
  savings to the state, under commission rules adopted under this
  chapter.
         (c)  If a state agency disposes of property under this
  section, the agency shall report the disposal to the commission.  
  The report must include:
               (1)  a description of the disposed property;
               (2)  the reasons for the disposal;
               (3)  if the property is sold, the price for the disposed
  property; and
               (4)  the recipient of the disposed property.
         (d)  If the commission determines that a state agency
  violated a law or rule, the commission shall report the violation to
  the Legislative Budget Board.
         SECTION 3.03.  The heading to Subchapter D, Chapter 2175,
  Government Code, is amended to read as follows:
  SUBCHAPTER D.  DISPOSITION OF SURPLUS OR SALVAGE PROPERTY [BY
  COMMISSION]
         SECTION 3.04.  Section 2175.181, Government Code, is amended
  to read as follows:
         Sec. 2175.181.  APPLICABILITY. [(a) This subchapter
  applies only to surplus and salvage property located in:
               [(1)  Travis County;
               [(2)     a county in which federal surplus property is
  warehoused by the commission under Subchapter G; or
               [(3)     a county for which the commission determines that
  it is cost-effective to follow the procedures created under this
  subchapter and informs affected state agencies of that
  determination.
         [(b)]  This subchapter applies [does not apply] to a state
  agency delegated the authority to dispose of surplus or salvage
  property under Section 2175.065.
         SECTION 3.05.  Section 2175.182, Government Code, is amended
  to read as follows:
         Sec. 2175.182.  STATE AGENCY NOTICE TO COMMISSION AND
  TRANSFER OF PROPERTY [TO COMMISSION]. (a) A state agency that
  determines it has [The commission is responsible for the disposal
  of] surplus or salvage property shall notify the commission about
  the property to determine the method of disposal [under this
  subchapter].  The commission may take physical possession of the
  property.
         (b)  Based on the condition of the property, the commission,
  in conjunction with the state agency, shall determine whether the
  property is:
               (1)  surplus property that should be offered for
  transfer under Section 2175.184 or sold to the public; or
               (2)  salvage property.
         (c)  After the commission makes the determination under
  Subsection (b), the [The] commission shall direct the state agency
  to inform the comptroller's office of the property's kind, number,
  location, condition, original cost or value, and date of
  acquisition.
         SECTION 3.06.  Section 2175.1825, Government Code, is
  amended to read as follows:
         Sec. 2175.1825.  ADVERTISING ON COMPTROLLER WEBSITE;
  COMMISSION ACCESS. (a) Not later than the second day after the date
  the comptroller receives notice from a state agency [the
  commission] under Section 2175.182(c), the comptroller shall
  advertise the property's kind, number, location, and condition on
  the comptroller's website.
         (b)  The comptroller shall provide the commission access to
  all records in the state property accounting system related to
  surplus and salvage property.
         SECTION 3.07.  Section 2175.183, Government Code, is amended
  to read as follows:
         Sec. 2175.183.  COMMISSION NOTICE TO OTHER ENTITIES. The
  [On taking responsibility for surplus property under this
  subchapter, the] commission shall inform other state agencies,
  political subdivisions, and assistance organizations of the
  comptroller's website that lists surplus property that is available
  for sale.
         SECTION 3.08.  Section 2175.184, Government Code, is amended
  to read as follows:
         Sec. 2175.184.  DIRECT TRANSFER. During the 10 business
  days after the date the property is posted on the comptroller's
  website, a state agency, political subdivision, or assistance
  organization shall [may] coordinate with the commission for a
  transfer of the property at a price established by the commission
  [in cooperation with the transferring agency]. A transfer to a
  state agency has priority over any other transfer during this
  period.
         SECTION 3.09.  Section 2175.186(a), Government Code, is
  amended to read as follows:
         (a)  If a disposition of a state agency's surplus property is
  not made under Section 2175.184, the commission shall sell the
  property by competitive bid, auction, or direct sale to the public,
  including a sale using an Internet auction site. The commission may
  contract with a private vendor to assist with disposition.
         SECTION 3.10.  Section 2175.189, Government Code, is amended
  to read as follows:
         Sec. 2175.189.  ADVERTISEMENT OF SALE. If the value of an
  item or a lot of property to be sold is estimated to be more than
  $25,000 [$5,000], the commission shall advertise the sale at least
  once in at least one newspaper of general circulation in the
  vicinity in which the property is located.
         SECTION 3.11.  Section 2175.191(a), Government Code, is
  amended to read as follows:
         (a)  Proceeds from the sale of surplus or salvage property,
  less the cost of advertising the sale, the cost of selling the
  surplus or salvage property, including the cost of auctioneer
  services or assistance from a private vendor, and the amount of the
  fee collected under Section 2175.188, shall be deposited to the
  credit of the general revenue fund of the state treasury.
         SECTION 3.12.  Section 2175.302, Government Code, is amended
  to read as follows:
         Sec. 2175.302.  EXCEPTION FOR ELEEMOSYNARY INSTITUTIONS.
  Except as provided by Section 2175.905 [2175.128(b)], this chapter
  does not apply to the disposition of surplus or salvage property by
  a state eleemosynary institution.
         SECTION 3.13.  Section 2175.904, Government Code, is amended
  by amending Subsections (a) and (c) and adding Subsection (d) to
  read as follows:
         (a)  The commission shall establish a program for the sale of
  gambling equipment received from a city, from a commissioners court
  under Section 263.152(a)(5), Local Government Code, or from a
  state agency under this chapter.
         (c)  Proceeds from the sale of gambling equipment, less the
  costs of the sale, including costs of advertising, storage,
  shipping, and auctioneer or broker services, and the amount of the
  fee collected under Section 2175.188 [2175.131], shall be divided
  according to an agreement between the commission and the city or the
  commissioners court that provided the equipment for sale.  The
  agreement must provide that:
               (1)  not less than 50 percent of the net proceeds be
  remitted to the city or the commissioners court; and
               (2)  the remainder of the net proceeds retained by the
  commission be deposited to the credit of the general revenue fund.
         (d)  Proceeds from the sale of gambling equipment received
  from a state agency, less the costs of the sale, including costs of
  advertising, storage, shipping, and auctioneer or broker services,
  and the amount of the fee collected under Section 2175.188, shall be
  deposited to the credit of the general revenue fund of the state
  treasury in accordance with state law.
         SECTION 3.14.  Subchapter Z, Chapter 2175, Government Code,
  is amended by adding Sections 2175.905 and 2175.906 to read as
  follows:
         Sec. 2175.905.  DISPOSITION OF DATA PROCESSING EQUIPMENT.
  (a) If a disposition of a state agency's surplus or salvage data
  processing equipment is not made under Section 2175.184, the state
  agency shall transfer the equipment to:
               (1)  a school district or open-enrollment charter
  school in this state under Subchapter C, Chapter 32, Education
  Code;
               (2)  an assistance organization specified by the school
  district; or
               (3)  the Texas Department of Criminal Justice.
         (b)  If a disposition of the surplus or salvage data
  processing equipment of a state eleemosynary institution or an
  institution or agency of higher education is not made under other
  law, the institution or agency shall transfer the equipment to:
               (1)  a school district or open-enrollment charter
  school in this state under Subchapter C, Chapter 32, Education
  Code;
               (2)  an assistance organization specified by the school
  district; or
               (3)  the Texas Department of Criminal Justice.
         (c)  The state eleemosynary institution or institution or
  agency of higher education or other state agency may not collect a
  fee or other reimbursement from the district, the school, the
  assistance organization, or the Texas Department of Criminal
  Justice for the surplus or salvage data processing equipment
  transferred under this section.
         Sec. 2175.906.  ABOLISHED ENTITIES. The commission shall
  take custody, as surplus property, of the property and other assets
  of a state agency or advisory committee abolished in accordance
  with Chapter 325 unless the legislature designates another
  appropriate governmental entity to take custody of the property and
  assets.
         SECTION 3.15.  Section 32.102(a), Education Code, is amended
  to read as follows:
         (a)  As provided by this subchapter, a school district or
  open-enrollment charter school may transfer to a student enrolled
  in the district or school:
               (1)  any data processing equipment donated to the
  district or school, including equipment donated by:
                     (A)  a private donor; or
                     (B)  a state eleemosynary institution or a state
  agency under Section 2175.905 [2175.128], Government Code;
               (2)  any equipment purchased by the district or school,
  to the extent consistent with Section 32.105; and
               (3)  any surplus or salvage equipment owned by the
  district or school.
         SECTION 3.16.  Section 325.017(e), Government Code, is
  amended to read as follows:
         (e)  Unless the governor designates an appropriate state
  agency as prescribed by Subsection (f), [property and] records in
  the custody of an abolished state agency or advisory committee on
  September 1 of the even-numbered year after abolishment shall be
  transferred to the comptroller.  If the governor designates an
  appropriate state agency, the [property and] records shall be
  transferred to the designated state agency.
         SECTION 3.17.  Section 201.001(a), Insurance Code, is
  amended to read as follows:
         (a)  The Texas Department of Insurance operating account is
  an account in the general revenue fund. The account includes the
  following:
               (1)  taxes and fees received by the commissioner or
  comptroller that are required by this code to be deposited to the
  credit of the account; and
               (2)  money or credits received by the department or
  commissioner from sales, reimbursements, and fees authorized by law
  other than this code, including money or credits received from:
                     (A)  charges for providing copies of public
  information under Chapter 552, Government Code;
                     (B)  the disposition of surplus or salvage
  property under [Subchapters C and D,] Chapter 2175, Government
  Code;
                     (C)  the sale of publications and other printed
  material under Section 2052.301, Government Code;
                     (D)  miscellaneous transactions and sources under
  Section 403.011 or 403.012, Government Code;
                     (E)  charges for postage spent to serve legal
  process under Section 17.025, Civil Practice and Remedies Code;
                     (F)  the comptroller involving warrants for which
  payment is barred under Chapter 404, Government Code;
                     (G)  sales or reimbursements authorized by the
  General Appropriations Act; and
                     (H)  the sale of property purchased with money
  from the account or a predecessor fund or account.
         SECTION 3.18.  Subchapter C, Chapter 2175, Government Code,
  is repealed.
  ARTICLE 4. EFFECTIVE DATE
         SECTION 4.01.  This Act takes effect September 1, 2011.