HBA-NLM C.S.S.B. 177 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 177 By: Ratliff Appropriations 4/28/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, there are legislative riders in the General Appropriations Act pertaining to multiple subjects, in contradiction of Article III, Section 35, Texas Constitution, which states that "No bill (except general appropriations bills, which may embrace the various subjects and accounts, for and on account of which moneys are appropriated) shall contain more than one subject." The General Appropriations Act itself must contain more than one subject because it aggregates all subjects on which the state spends money. However, the General Appropriations Act must be limited to the subjects and accounts of money. Nevertheless, riders are introduced in the General Appropriations Act that violate the one-subject rule by attempting to amend general law, contrary to the purposes of a budget rider to do no more than "detail, limit, or restrict the use of the funds or otherwise insure that the money is spent for the required activity for which it is therein appropriated." Op. Tex. Att'y Gen. No. V-1254 at 17 (1951). C.S.S.B. 177 takes certain riders from within Article IX of the General Appropriations Act and codifies them into general law. C.S.S.B. 177 codifies certain provisions in the General Appropriations Act that authorize or prohibit expenditures by public entities. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the General Services Commission in SECTION 3 (Section 2113.103, Government Code) and to the comptroller of public accounts in SECTION 3 (Section 2113.205, Government Code), of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 556, Government Code, as follows: CHAPTER 556. New title: POLITICAL ACTIVITIES BY CERTAIN PUBLIC ENTITIES AND INDIVIDUALS Sec. 556.001. DEFINITIONS. Defines "appropriated money" and "state officer" and redefines "state agency" and "state employee." Makes conforming changes. Sec. 556.002. New title: APPLICATION TO CERTAIN ENTITIES AND INDIVIDUALS. Provides that this chapter applies to certain public entities and their employees using appropriated money, including certain regional planning commissions, councils of government, local workforce development boards, and community centers. Provides that this chapter does not prohibit the payment of reasonable dues to an organization representing student interests from a mandatory student service fees allocated to a student government organization at a higher education institution. Prohibits student fees from being used to influence the outcome of an election. Deletes existing text providing that this chapter does not apply to an individual employed by the Department of Public Safety, except for Section 556.006 (Legislative Lobbying). Sec. 556.004. New title: PROHIBITED ACTS OF AGENCIES AND INDIVIDUALS. Prohibits a state agency from using any money under its control to finance or otherwise support a candidate for a federal or state public office. Provides that this prohibition includes direct and indirect employment of a person. Prohibits a state officer from using state-owned or state-leased motor vehicles to provide direct or indirect support a candidate. Prohibits a state officer or employee from using official authority to influence an election. Prohibits a state employee from using any kind of influential force to effect in any way a contribution to a person or political organization. Makes conforming and nonsubstantive changes. Sec. 556.005. New title: EMPLOYMENT OF LOBBYIST. Prohibits a state agency from using appropriated money to employ, as a regular full-time or part-time or contract employee, a person who is required by Chapter 305 (Registration of Lobbyist) to register as a lobbyist. Prohibits a state agency from using appropriated money to pay membership dues to an organization that pays all or part of the salary of person required to register as a lobbyist. Provides that a state agency that violates this section is subject to a reduction of amounts appropriated for administration by the General Appropriations Act for the biennium following the biennium in which the violation occurs in an amount not to exceed $100,000 for each violation. Deletes a requirement that a state employee who violates Section 556.004 (Prohibited Acts of Agencies and Individuals), Government Code, is subject to immediate termination. Sec. 556.007. TERMINATION OF EMPLOYMENT. Subjects a state employee who causes an employee to be discharged, demoted, or otherwise discriminated against for providing authorized public information under Section 556.006(b), Government Code, or violates Section 556.004(c) or (d), Government Code, to immediate termination. Sec. 556.008. COMPENSATION PROHIBITION. Prohibits a state agency from compensating with appropriated money a state officer or employee who violates Sections 556.004(a)-(c), or 556.005, 556.006, Government Code, or who is subject to termination under Section 556.007, Government Code. Sec. 556.009. NOTICE OF PROHIBITIONS. Requires a state agency to provide each officer and employee of the agency a registered delivered copy of Sections 556.004-556.008, Government Code. Provides that a new copy and receipt are required if one of those provisions is changed. Requires a state agency to maintain the delivery receipts and make them accessible to the public. SECTION 2. Amends Section 653.009, Government Code, to make a nonsubstantive change. SECTION 3. Amends Subtitle C, Title 10, Government Code, by adding Chapter 2113, as follows: CHAPTER 2113. USE OF APPROPRIATED MONEY SUBCHAPTER A. GENERAL PROVISIONS Sec. 2113.001. DEFINITIONS. Defines "appropriated money" and "state agency." SUBCHAPTER B. RESTRICTIONS ON OFFICERS AND EMPLOYEES Sec. 2113.011. PUBLICITY. Prohibits a state agency from publicizing or directing attention to, with appropriated money, an individual officer or employee of state government. Prohibits a state agency from using appropriated money for maintaining a publicity department, employing a person who has the title or duties of public relations, or paying a public relations agent or business. Authorizes an agency executive head to release information relating to the activities or legal responsibilities of the agency, subject to Section 2113.107 (Periodicals and Other Publications). Requires the information to be issued in the name of the agency and include the name of the individual authorized to issue the information. Authorizes a higher education institution to operate a news and information service for the benefit of the public, if the institution's governing body has authorized the service. Provides that this section does not prohibit the use of appropriated money for publicity functions authorized under Article 6144e, V.T.C.S. Sec. 2113.012. USE OF ALCOHOLIC BEVERAGES. Prohibits a state agency from compensating an employee who consumes alcoholic beverages on duty. Sec. 2113.013. USE OF MOTOR VEHICLE. Prohibits an officer or employee not on official state business from using a state-owned or state-leased motor vehicle. Authorizes the administrative head of an agency to authorize a state vehicle to commute to and from work in order to ensure that the vital agency functions are performed. Requires certain information to be included in the annual report. Prohibits a state agency from using appropriated money to compensate a violator of this section. Sec. 2113.014. EMPLOYEE STANDARDS OF CONDUCT. Prohibits a state agency from compensating with appropriated money an employee who violates a standard of conduct described by Section 572.051 (Standards of Conduct), Government Code. Requires a state agency to provide each state employee it employees a copy of this section and the standards of conduct described by Section 572.051 and require a signed receipt on delivery. Requires a state agency to maintain receipts collected from current state employees under this section in a manner accessible for public inspection. Makes conforming changes. SUBCHAPTER C. RESTRICTIONS ON GOODS AND SERVICES Sec. 2113.101. ALCOHOLIC BEVERAGES. Prohibits a state agency from using appropriated money to purchase or reimburse a travel expense for an alcoholic beverage, except for authorized law enforcement purposes. Sec. 2113.102. AUDITS. Prohibits a state agency from using appropriated money to contract with an auditor for the agency's financial records or accounts, except as otherwise provided by this section. Authorizes a state agency to finance with appropriated money a supplemental audit of payments received from the U.S. government, if the audit is required as a condition of receipt of the money and an amount for the audit is provided by federal grant or other payment. Authorizes a state agency to require an annual audit as a condition for funds disbursed by that agency, and to send its own internal auditors to inspect the receipt of those funds. Requires the agency to take action within a certain time frame on exceptions noted in investigative audits and to provide copies of that action to the state auditor, Legislative Audit Committee, Legislative Budget Board, and governor's budget office. Provides that the appointment of an internal auditor under Section 2102.006 or a contract with the state auditor are not subject to the application of certain provisions of this section. Sec. 2113.103. POSTAGE AND POSTAL SERVICES. Requires a state agency to employ the most cost-effective means of postal service available, including using appropriated money to purchase comparable quality and service from the U.S. Postal Service (post office). Requires the General Services Commission (commission) to assist state agencies in determining the types and comparability of postal services available from the post office. Authorizes a state agency to purchase postage or rent a post office box. Requires an agency, other than a higher education institution, to purchase or rent a postage meter from a company approved by the commission if the agency's postage expenditures are greater than the maximum set by the commission. Requires the commission to adopt, by rule, procedures for the renting entity to pay for postage. Sets forth instances in which certain provisions of this section do not apply. Sec. 2113.104. MEMBERSHIP IN AND DUES FOR PROFESSIONAL ORGANIZATIONS. Prohibits a state agency, other than a state library, from purchasing membership in a professional organization unless the administrative head of the agency reviews and approves the expenditure. Sec. 2113.105. INDOOR PLANTS. Prohibits a state agency from expending appropriated money for a live or artificial indoor plant unless the agency is an institution of higher education and the plant is to be used for educational or research purposes. Sec. 2113.106. STATE FACILITIES FOR MEETINGS AND CONFERENCES. Requires a state agency to use state-owned or state-operated facilities for meetings, conferences, and administration of group examinations; and prohibits use of appropriated money to lease private facilities for these purposes unless state facilities are not available or adequate. Sec. 2113.107. PERIODICALS AND OTHER PUBLICATIONS. (a) Prohibits a state agency from publishing with appropriated money certain periodicals or other publication, if the publication does not pay for itself. (b) Prohibits certain periodicals from being published. (c) Prohibits a state agency from publishing a publication that prominently displays the name or picture of a person holding an office elected or appointed statewide. Defines "appointed officer." Provides that this subsection does not apply to the official state travel map published by the Texas Department of Transportation. (d) Prohibits a state agency, with an elected executive head, from using appropriated money to publish a publication, within a certain time period, relating to the activities or legal responsibilities of the agency prior to an election of the executive head. (e) Prohibits a state agency from using appropriated money to publish a publication on certain printing stocks or containing more than a certain number of photos which do not recover the cost of the publication, except as otherwise provided by this section. (f) Provides that specified provisions of this section do not apply to a publication designed to promote tourism or economic development, a publication of the Texas School for the Deaf or the Texas School for the Blind and Visually Impaired, or a publication of an institution of higher education. (g) Requires a state agency or political subdivision that uses an appropriation to publish free periodicals at least quarterly to insert annually in three consecutive issues a notice asking whether the recipient wishes to continue receiving the publication. Requires the agency to provide future issues of the periodical only to persons who request it. SUBCHAPTER D. SPECIFICALLY AUTHORIZED USES OF GOODS AND SERVICES Sec. 2113.201. EMPLOYEE AWARDS. Authorizes a state agency to purchase with appropriated money at a cost not to exceed $50 per individual volunteer various awards given to employees for professional achievement or outstanding service. Sec. 2113.202. VOLUNTEER AWARDS. Authorizes a state agency to purchase with appropriate money at a cost not to exceed $50 per individual volunteer various engraved awards given to volunteers for special achievement or outstanding service, if the agency has established a volunteer program under Chapter 2109 (Volunteers), Government Code, or other law. Sec. 2113.203. EXAMINATION FEES. Requires a state agency that conducts examinations to collect all fees charged to the person being examined. Sec. 2113.204. MOVING AND STORAGE EXPENSES OF STATE EMPLOYEES. Authorizes a state agency to use appropriated money to pay reasonable and necessary moving expenses incurred by a state employee, to the extent specifically authorized by the General Appropriations Act. Sec. 2113.205. CERTAIN EXPENDITURES INVOLVING TWO FISCAL YEARS. Requires the comptroller to adopt rules to permit state agencies to use money appropriated for a particular fiscal year to pay expenses related to conducting cost-effective seminars or paying expenses for billing or subscriptions in a period that would fall on the following fiscal year. SECTION 4. Provides a derivation table for information purposes only for provisions of the General Appropriations Act that are codified in general law by other sections of this Act. SECTION 5. Provides that this Act does not affect a higher education institution's authority to collect, account for, and control local funds and institutional funds in the manner authorized by Subchapter A (Control of Funds), Chapter 51, Education Code. SECTION 6. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 7. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.S.B. 177 modifies the original in SECTION 1 (Section 556.005, Government Code) by specifying that a state agency may not use appropriated money to employ, as a regular full-time or part-time or contract employee, a person who is required by Chapter 305 (Registration of Lobbyist) to register as a lobbyist. The substitute provides that a state agency that violates this section is subject to a reduction of amounts appropriated for administration by the General Appropriations Act for the biennium following the biennium in which the violation occurs in an amount not to exceed $100,000 for each violation. The substitute removes text requiring a state agency to notify the Legislative Budget Board, the Senate Finance Committee, and the House Appropriations Committee of a payment of membership dues to an organization that pays all or part of the salary of a person registered under Chapter 305 (Registration of Lobbyist), replacing it with a provision prohibiting a state agency from using appropriated money to pay such membership dues. C.S.S.B. 177 modifies the original in SECTION 3 (proposed Section 2113.102(a), Government Code) to include Chapter 2306 (Texas Department of Housing and Community Affairs), and Chapter 361 (Texas Turnpike Authority), Transportation Code, among the exceptions to the prohibition provided in this section. C.S.S.B. 177 modifies the original in SECTION 3 (proposed Section 2113.105, Government Code) by prohibiting a state agency from expending appropriated money for a live or artificial indoor plant unless the agency is an institution of higher education and the plant is to be used for educational or research purposes, rather than prohibiting a state agency from expending appropriated money for a live or artificial indoor plant used only for aesthetic purposes. C.S.S.B. 177 modifies the original in SECTION 3 (proposed Section 2113.106, Government Code) by including administration of group examinations among the specified uses of a state-owned or state-operated facilities by a state agency. C.S.S.B. 177 modifies the original in SECTION 3 (proposed Section 2133.204, Government Code) by changing the title to "Moving Expenses of State Employees," rather than "Moving and Storage Expenses of State Employees." The substitute authorizes a state agency to use appropriated money to pay reasonable and necessary moving expenses incurred by a state employee, to the extent specifically authorized by the General Appropriations Act. The substitute removes text that proposed the following: Authorizes a state agency to pay with appropriated money moving and storage expenses for an employee's household property, under certain circumstances. Requires a state agency to use state-owned equipment for a move authorized by this section if it is available to the agency. Authorizes the agency to pay for moving services or equipment if the state-owned equipment is not available. Authorizes a state employee to receive reimbursement at an approved rate for a move authorized under this section. Authorizes a state agency to reimburse an employee for storage costs if the employee is required to live in state-owned housing and the housing is not available at the time of the move. Provides that reimbursement or payment under this section is conditioned on the submission to the comptroller of receipts or invoices showing the applicable charges. Provides that this section does not authorize payment or reimbursement of a transaction fee or sales commission for the sale of real property.