HBA-NLM C.S.S.B. 178 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 178 By: Ratliff Appropriations 5/10/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE The Texas Constitution prohibits any bill form containing more than one subject. The sole exception to this rule is the General Appropriations Act, which must contain more than one subject because it aggregates all the subjects on which the state spends money, with the limitation that the Act must be strictly limited to the subjects and accounts of money. C.S.S.B. 178 codifies certain state agency practices and duties currently prescribed by the General Appropriations Act as general law to ensure their constitutional validity. C.S.S.B. 178 also codifies certain state agency practices and duties currently prescribed by the General Appropriations Act. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the comptroller in SECTION 7 (Section 403.097, Government Code), the General Services Commission in SECTION 22 (Section 2161.002, Government Code), and a state agency, including an institution of higher education, in SECTION 23 (Section 2161.003, Government Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 101.027(a), Civil Practice and Remedies Code, to authorize each governmental unit other than a unit of state government to purchase certain insurance policies. Authorizes a unit of state government to purchase such a policy only to the extent that the unit is authorized or required to do so under other law. SECTION 2. Amends Section 106.001, Civil Practice and Remedies Code, by adding Subsection (c), to provide that this section, relating to discrimination based on certain factors, does not prohibit the adoption of a program designed to increase the participation of businesses owned and controlled by women, minorities, or disadvantaged persons in public contract awards. SECTION 3. Amends Chapter 306, Government Code, by adding Section 306.007, as follows: Sec. 306.007. MINUTES AND REPORTS ELECTRONICALLY AVAILABLE TO LEGISLATURE. Requires certain governmental entities to make reports required by law and minutes of meetings of the agency's governing body available to members of the legislature and to agencies in the legislative branch of state government in an electronic format determined by the Texas Legislative Council. SECTION 4. Amends Section 321.013(c), Government Code, to require the state auditor to recommend, rather than determine, the audit plan for the state for each fiscal year to the committee. Requires the state auditor to also consider the extent to which a department has received a significant increase in appropriations, including a significant increase in federal or other money passed through to the department, and to review procurement activities for compliance with Section 2161.123. SECTION 5. Amends Section 321.014(c), Government Code, to require the state auditor to file a copy of each report prepared under this section with each member, rather than the chairman, of the governing body and the administrative head of each entity that is the subject of the report. SECTION 6. Amends Section 325.011, Government Code, to include the extent to which the agency has complied with applicable requirements of state law and applicable rules of any state agency regarding purchasing goals and programs for historically underutilized businesses, among the criteria in determining whether a public need exists for the continuation of a state agency, its advisory committees, or the performance of the functions of such entities. Makes a nonsubstantive change. SECTION 7. Amends Subchapter F, Chapter 403, Government Code, by adding Section 403.097, as follows: Sec. 403.097. FUNDS EXPENDED IN PROPORTION TO METHOD OF FINANCING. (a) Authorizes the comptroller to prescribe rules to ensure that, when it is necessary to preserve cash balances in the funds and accounts in the state treasury, appropriations are drawn from the treasury in proportion to the methods of financing specified in the Acts authorizing the appropriations. (b) Authorizes the rules to include procedures relating to the deposit of receipts and the issuance of warrants. (c) Provides that this section does not affect other powers of the comptroller under this subchapter, Subchapter H (Tax and Revenue Anticipation Notes), Chapter 404, Government Code, or other law. (d) Provides that this section does not apply if the method of financing specified for an agency or an institution of higher education in the Act authorizing appropriations includes interest earned or to be earned on local funds of the agency or institution. SECTION 8. Amends Section 403.245(b), Government Code, to require the replenishment of a petty cash account to be drawn from the appropriation from which the expenditure would otherwise have been made. SECTION 9. Amends Section 771.008, Government Code, by adding Subsection (d), as follows: (d) Provides that this subsection, relating to reimbursement procedures among cooperation state agencies, applies only if the services or resources are provided under a written contract or agreement. Requires the receiving agency to reimburse the providing agency within 30 days after the date by which the services or resources are provided and an invoice is received. Requires the receiving agency, if the receiving agency does not accept the services or resources or finds an error in the invoice, to notify the providing agency of the fact in writing as soon as possible within the 30-day period and make payment within 10 days after the date the agencies agree the problems are corrected or the error resolved. Requires the comptroller, if the agencies cannot agree on the amount of the reimbursement, to determine the appropriate amount. Authorizes the comptroller on request of the providing agency, if the receiving agency does not, within the 30-day period, reimburse the providing agency or give the providing agency written notice of a problem or error, to transfer from amounts appropriated to the receiving agency the appropriate amount in accordance with this section. SECTION 10. Amends Section 811.001(7), Government Code, to redefine "compensation" to exclude a cleaning or clothing allowance. SECTION 11. (a) Amends Subchapter B, Chapter 2001, Government Code, by adding Section 2001.039, as follows: Sec. 2001.039. AGENCY REVIEW OF EXISTING RULES. (a) Requires a state agency to review and consider for readoption each of its rules in accordance with this section. (b) Requires a state agency to review a rule not later than the fourth anniversary of the date on which the rule takes effect and every four years after that date. Provides that the adoption of an amendment to an existing rule does not affect the dates on which the rule must be reviewed except that the effective date of an amendment is considered to be the effective date of the rule if the agency formally conducts a review of the rule in accordance with this section as part of the process of adopting the amendment. (c) Requires the state agency to readopt, readopt with amendments, or repeal a rule as the result of reviewing the rule under this section. (d) Provides that the procedures of this subchapter relating to the original adoption of a rule apply to the review of a rule and to the resulting repeal, readoption, or readoption with amendments of the rule, except as provided by this subsection. Specifies that publishing the Texas Administrative Code citation to a rule under review satisfies the requirements of this subchapter relating to publishing the text of the rule unless the agency readopts the rule with amendments as a result of the review. (e) Provides that a state agency's review of a rule must include an assessment of whether the reasons for initially adopting the rule continue to exist. SECTION 11. (a) Amends Chapter 2001B, Government Code, by adding Section 2001.039, as follows: Sec. 2001.039. AGENCY REVIEW OF EXISTING RULES. Requires a state agency to review and consider for readoption each of its rules in accordance with this section. Requires a state agency to review a rule by a certain date. Provides that the adoption of an amendment of an existing rule does not affect the dates on which the rule must be reviewed except under certain situations. Requires the state agency to readopt, readopt with amendments, or repeal a rule as the result of reviewing the rule under this section. Provides that the procedures of this subchapter relating to the original adoption of a rule apply to the review of a rule and to the resulting repeal, readoption, or readoption with amendments, except as provided by this subsection. Establishes that publishing the Texas Administrative Code citation to a rule under review satisfies certain requirements of this subchapter unless the agency readopts the rule with amendments as a result of the review. Requires a state agency's review of a rule to include an assessment of whether the reasons for initially adopting the rule continue to exist. (b) Provides that the duties prescribed by this subsection apply only to state agency rules that are in effect on September 1, 1999, and have not already been reviewed in accordance with Section 167, Article IX, Chapter 1452, Acts of the 75th Legislature, Regular Session (General Appropriations Act). Requires a state agency to review each of those rules in accordance with Section 2001.039, Government Code, and in accordance with this subsection not later than August 31, 2003. Requires each state agency to develop and send to the secretary of state a plan for reviewing its existing rules by August 31, 2000 for publication in the Texas Register. Requires the plan to state the date by which the agency will begin review for each rule. (c) Establishes the effective date of an existing rule initially reviewed under Subsection (b). SECTION 12. Amends Subchapter D, Chapter 2052, Government Code, by adding Section 2052.304, as follows: Sec. 2052.304. USE OF CERTAIN PRINTING STOCK. Prohibits a state officer or board, court, commission, or other agency in the executive or judicial branch of state government from publishing a report or other printed materials on enamel-coated, cast-coated, or dull-coated printing stock unless the agency imposes a fee for receipt of the printed materials. Provides that this section does not apply to a publication that promotes tourism or economic development. SECTION 13. Amends Section 2054.003(6), Government Code, to redefine "information resources" to include the procedures, equipment, and software that are employed. SECTION 14. Amends Subchapter F, Chapter 2054, Government Code, by adding Sections 2054.121 and 2054.122, as follows: Sec. 2054.121. COORDINATION AMONG INSTITUTIONS OF HIGHER EDUCATION. Requires an institution of higher education to coordinate its use of information technologies with other such institutions to more effectively provide education, research, and community service. Sec. 2054.122. COORDINATED TECHNOLOGY TRAINING. Requires a state agency each calendar quarter to coordinate agency training for the use of information resources technologies with training offered or coordinated by the department. Requires the agency to use training offered or coordinated by the department if it meets agency requirements and is cost-competitive. SECTION 15. Amends Subchapter C, Chapter 2101, Government Code, by adding Section 2101.0377, as follows: Sec. 2101.0377. REPORTING ACCOUNTING IRREGULARITIES TO STATE AUDITOR. Requires the comptroller to report the agency or institution to the state auditor for appropriate action, including a comprehensive financial audit, on determining that a state agency, as defined by Section 658.001(Definitions), or an institution of higher education, as defined by Section 61.003 (Definitions), Education Code, has inaccurately reported the expenditure of appropriated funds or engaged in recurring accounting irregularities. SECTION 16. Amends Subchapter B, Chapter 2155, Government Code, by adding Section 2155.084, as follows: Sec. 2155.084. PURCHASES FROM FEDERAL GOVERNMENT. Authorizes the commission or the governing body of an institution of higher education to negotiate purchases of goods of any kind needed by a state agency or the institution of higher education with the appropriate agency of the federal government. Authorizes the governing body of an institution of higher education to act under this section either directly or through the commission or another state agency. Prohibits the price of goods that are purchased from the federal government from exceeding the fair market value of the goods. Authorizes the commission or the governing body of the institution of higher education to waive the requirement of a bidder's bond and performance bond that otherwise would be required, in negotiating purchases of goods from the federal government under this section or under Subchapter G (Federal Surplus Property), Chapter 2175. SECTION 17. Amends Section 2155.132(a), Government Code, to require the General Services Commission (commission) to report its determination, regarding whether a state agency followed commission rules or the laws related to delegated purchasing, to the members of the state agency's governing body, in addition to specified state leaders. SECTION 18. Amends Section 2155.268, Government Code, as follows: Sec. 2155.268. USE OF STATE AGENCY BIDDERS LIST. (a) Prohibits a state agency from maintaining and using its own bidders list. Provides that the prohibition of this subsection does not apply to the Texas Department of Transportation or to an institution of higher education as defined by Section 61.003, Education Code, but an institution of higher education should use the master bidders list when possible. Deletes the language relating to the commission's determination that the agency has special needs. (b) Redesignated from existing Subsection (c). Deletes text from existing Subsection (b) relating to the rulemaking authority of the commission to prescribe the categories of purchases or other acquisitions. (c) Redesignated from existing Subsection (d). SECTION 19. Amends Subchapter H, Chapter 2155, Government Code, by adding Section 2155.4441, as follows: Sec. 2155.4441. PREFERENCE UNDER SERVICE CONTRACTS. Requires a state agency that contracts for services to require the contractor, in performing the contract, to purchase products and materials produced in this state when they are available at a price and time comparable to products and materials produced outside this state. SECTION 20. Amends Subchapter A, Chapter 2158, Government Code, by adding Section 2158.0031, as follows: Sec. 2158.0031. PURCHASE PREFERENCE FOR AMERICAN VEHICLES. Requires a state agency authorized to purchase passenger vehicles or other ground transportation vehicles for general use to purchase economical, fuel-efficient vehicles assembled in the United States unless such a purchase would have a significant detrimental effect on the use to which the vehicles will be put. SECTION 21. Amends Section 2161.001(2), Government Code, to clarify in the definition of "historically underutilized business" that such an entity has its principal place of business in Texas. Defines "economically disadvantaged person" and makes conforming changes. SECTION 22. Amends Section 2161.002, Government Code, by adding Subsection (c), as follows: (c) Requires the General Services Commission (commission), in adopting rules to administer this chapter, to adopt rules that are based on the results of the "State of Texas Disparity Study, A Report to the Texas Legislature as Mandated by H.B. 2626, 73rd Legislature, December 1994" (prepared by National Economic Research Associates, Inc.). Requires the commission to revise the rules in response to the findings of an updates of the study that are prepared on behalf of the state. SECTION 23. Amends Subchapter A, Chapter 2161, Government Code, by adding Sections 2161.003, 2161.004, and 2161.005, as follows: Sec. 2161.003. AGENCY RULES. Requires a state agency, including an agency of higher education, to adopt the commission's rules under Section 2161.002 as the agency's or institution's own rules. Provides that those rules apply to the agency's construction projects and purchases of goods and services paid for with appropriated money without regard to whether a project or purchase is otherwise subject to this subtitle. Sec. 2161.004. APPLICABILITY; INTENT. Applies this chapter and rules adopted by the commission under this chapter to state agency construction projects and purchases of goods and services that are paid for with appropriated money and made under the authority of this subtitle or other law. Specifies that the legislature intends that all qualified businesses have access to compete for business from the state. Sec. 2161.005. TRANSFER OF FUNDS FOR PURCHASING. Requires the commission, if the state auditor reports to the commission under Subsection 2161.123(d) that a state agency is not complying with Section 2161.123, to report that fact to the Legislative Budget Board (LBB). Authorizes LBB, if LBB determines that, one year after the date of the state auditor's report to the commission, the agency is still not complying with Section 2161.123, to direct the emergency transfer of the agency's appropriated funds for making purchases under purchasing authority delegated under Section 2155.131 or 2155.133 to the appropriate state agency. Requires the amount transferred from the agency's funds to the commission to be an amount determined by LBB. SECTION 24. Amends Section 2161.122, Government Code, by adding a new Subsection (c) and redesignating Subsections (c) and (d) as Subsections (d) and (e), as follows: (c) Requires state agencies to report to the commission in accordance with Section 2161.125 (Categorization by Sex, Race, and Ethnicity) certain information on historically underutilized businesses with regard to the expenditure of both treasury and nontreasury funds, including the number of bids, proposals, or other applicable expressions of interest made by historically underutilized businesses. (d)-(e) Redesignated from existing Subsections (c) and (d). SECTION 25. Amends Section 2161.123, Government Code, by adding Subsections (d) and (e), as follows: (d) Requires the commission and the state auditor to cooperate to develop procedures to periodically monitor state agency compliance with this section. Requires the state auditor to report to the commission a state agency that is not complying with this section or is not making a good faith effort to implement the plan adopted under this section. Requires the state auditor, in determining whether a state agency is making a good faith effort to implement the plan, to consider at a minimum whether the agency has performed certain procedures. (e) Requires the commission, if the state auditor reports to the commission that a state agency is not complying with this section, to assist the agency in complying. SECTION 26. Amends Section 2161.181, Government Code, to require a state agency to make a good faith effort to increase the contract awards, rather than assist historically underutilized businesses to receive not less than 30 percent of the total value of all contract awards, for the purchase of goods or services that the agency expects to make during a fiscal year to historically underutilized businesses based on rules adopted by the commission to implement the disparity study described by Section 2161.002(c). SECTION 27. Amends Section 2161.182(a), Government Code, to require a state agency that contracts for a construction project, including a project under Section 2166.003, to make a good faith effort to increase the construction contract awards, rather than assist historically underutilized businesses to receive not less than 30 percent of the total value of each construction contract, that the agency expects to make during a fiscal year to historically underutilized businesses based on rules adopted by the commission to implement the disparity study described by Section 2161.002(c). SECTION 28. Amends Section 2165.104(c), Government Code, to prohibit the commission from allocating usable office space, as defined by the commission, to a state agency under Article I, II, V, VI, VII, or VIII of the General Appropriations Act or to other agencies named by this subsection. Requires the agency to allocate the space to achieve the required ratio, to the extent that any of those agencies allocates its own useable office space, as defined by the commission. SECTION 29. Amends Subchapter A, Chapter 2170, Government Code, by adding Sections 2170.009 and 2170.010, as follows: Sec. 2170.009. PAY TELEPHONES AUTHORIZED. Authorizes a pay telephone to be located in the Capitol Complex only with the approval of the commission. Requires the commission to collect the revenue from the installation and operation of the pay telephone and deposit it to the credit of the general revenue fund. Authorizes a pay telephone, in a state-owned or state-leased building or on state-owned land to which Subsection (a) does not apply, to be installed only with the approval of the governing body of the state entity that has charge and control of the building or land. Requires the entity to collect the revenue from the installation and operation of the pay telephone and deposit it to the credit of the general revenue fund unless the disposition of the revenue is governed by other law. Requires the commission or other state entity to account for the revenue collected under this section in the entity's annual report. Sec. 2170.010. UNLISTED TELEPHONE NUMBERS PROHIBITED. Provides that a state agency and its officers and employees may not buy, rent, or pay toll charges for a telephone for which the telephone number is not listed or available from directory assistance to the general public unless the unlisted telephone number is used: _to provide access to computers, telephone system control centers, long-distance networks, elevator control systems, and other tone-controlled devices for which restricted access to the telephone number is justified for security or other purposes; _in narcotics undercover operations; or _in the detection of illegal sales of securities. SECTION 30. Amends Section 2170.051, Government Code, as follows: Sec. 2170.051. New title: MANAGEMENT AND USE OF SYSTEM. (c) Requires a state agency to use the consolidated telecommunications system to the fullest extent possible. Prohibits a state agency from acquiring telecommunications services unless the telecommunications planning group determines that the agency's requirement for telecommunications services cannot be met at a comparable cost by the consolidated telecommunications system. (d) Prohibits a state agency from entering into or renewing a contract with a carrier or other provider of telecommunications services without obtaining a waiver from the telecommunications planning group certifying that the requested telecommunications services cannot be provided at a comparable cost on the consolidated telecommunications system. Requires the telecommunications planning group to evaluate requests for waivers based on cost-effectiveness to the state government as a whole. Authorizes a waiver to be granted only for a specific period and provides that it will automatically expire on the stated expiration date unless an extension is approved by the telecommunications planning group. Prohibits a contract for telecommunications services obtained under waiver from extending beyond the expiration date of the waiver. Requires the telecommunications planning group, if the telecommunications planning group becomes aware of any state agency receiving telecommunications services without a waiver, to notify the agency and the comptroller. Requires the state agency to have 60 days after notification by the telecommunications planning group in which to submit a waiver request to the telecommunications planning group documenting the agency's reasoning for bypassing the consolidated telecommunications system and otherwise providing all information required by the waiver application form. SECTION 31. Amends Section 2170.057(b), Government Code, to require receipts attributable to the centralized capitol complex telephone system to be deposited into the revolving account for the administration of this chapter but separately identified within the account. SECTION 32. Amends Section 2201.002, Government Code, by adding Subsection (c), to prohibit the Texas Capital Trust Fund from being used to pay salaries. SECTION 33. Amends Chapter 2203, Government Code, by adding Sections 2203.004 and 2203.005, as follows: Sec. 2203.004. REQUIREMENT TO USE STATE PROPERTY FOR STATE PURPOSES. Authorizes state property to be used only for state purposes. Prohibits a person from entrusting state property to a state officer or employee or to any other person if the property is not to be used for state purposes. Sec. 2203.005. VENDING MACHINES AUTHORIZED. (a) Authorizes a vending machine, in a state-owned or state-leased building or on state-owned or state-leased property that is not served by a vendor operating under the supervision of the Texas Commission for the Blind, to be located in the building or on the property only with the approval of the governing body of the state agency that has charge and control of the building or property. Provides the approval must be recorded in the minutes of a meeting of the governing body. (b) Requires the state agency to file with the commission a copy of all contracts between the state agency and the vendor related to the vending machine and a written description of the location of the vending machine. (c) Requires all rentals, commissions, or other net revenue the state agency receives in connection with the vending machine to be accounted for as state money and deposited to the credit of the general revenue fund unless the disposition of the revenue is governed by other law. Requires the state agency to account for the revenue received under this section in the agency's annual report. (d) Authorizes a vending machine, in a state-owned or state-leased building or on state-owned or state-leased property that is served by a vendor operating under the supervision of the Texas Commission for the Blind, to be located and operated in the building or on the property only under a joint contract with the owners of the vending machine and the vendor operating under the supervision of the Texas Commission for the Blind. SECTION 34. Amends Subchapter A, Chapter 2204, Government Code, by adding Sections 2204.002 and 2204.003, as follows: Sec. 2204.002. RESTRICTION ON ACQUISITION OF REAL PROPERTY. Prohibits a state agency, as defined by Section 658.001, from accepting a gift or devising of real property or spending appropriated money to purchase real property without statutory authority or other legislative authorization. Sec. 2204.003. GIFTS OF REAL PROPERTY TO INSTITUTIONS OF HIGHER EDUCATION. Authorizes an institution of higher education, as defined by Section 61.003, Education Code, to accept a gift or devise of real property from a private entity to establish scholarships or professorships or to be held in trust for other educational purposes only if done consistently with rules and regulations adopted by the Texas Higher Education Coordinating Board pursuant to its power to adopt such rules and regulations under Chapter 61, Education Code. SECTION 35. Amends Section 2251.030, Government Code, as follows: Sec. 2251.030. New title: PROMPT OR EARLY PAYMENT DISCOUNT. Requires an agency to when possible negotiate a prompt payment discount with a vendor. Requires a state agency, when paying for goods and services purchased under an agreement that includes a prompt or early payment discount, to submit the necessary payment documents or information to the comptroller sufficiently in advance of the prompt or early payment deadline to allow the comptroller or the agency to pay the vendor in time to obtain the discount. SECTION 36. Amends Section 2252.901, Government Code, as follows: Sec. 2252.901. New title: CONTRACTS WITH FORMER OR RETIRED AGENCY EMPLOYEES. (a) Prohibits a state agency from entering into an employment contract, a professional services contract under Chapter 2254 (Professional and Consulting Services), or a consulting services contract under Chapter 2254 with a former or retired employee of the agency before the first anniversary of the last date on which the individual was employed by the agency, if appropriated money will be used to make payments under the contract. Provides that this section does not prohibit an agency from entering into a professional services contract with a corporation, firm, or other business entity that employs a former or retired employee of the agency within one year of the employee's leaving the agency, provided that the former or retired employee does not perform services on projects for the corporation, firm, or other business entity that the employee worked on while employed by the agency. (b) Prohibits a state agency from making payments under the contract described by this section from any source of revenue at a specified annualized rate. Makes a nonsubstantive change. (c) Redesignated from existing Subsection (b) and makes conforming changes. (d) Defines "employment contract." Makes nonsubstantive changes. SECTION 37. Amends Subchapter A, Chapter 2254, Government Code, by adding Section 2254.0031, as follows: Sec. 2254.0031. INDEMNIFICATION. Authorizes a state governmental entity to require a contractor selected under this subchapter to indemnify or hold harmless the state from claims and liabilities resulting from the negligent acts or omissions of the contractor or persons employed by the contractor. Prohibits a state governmental entity from requiring a contractor to indemnify or hold harmless the state for claims or liabilities resulting from the negligent acts or omissions of the state governmental entity or its employees. SECTION 38. Amends Subchapter B, Chapter 205, Labor Code, by adding Section 205.019, as follows: Sec. 205.019. REIMBURSEMENT FROM NON-TREASURY FUNDS. (a) Requires a branch, department, or other instrumentality of this state that reimburses the commission with funds that are held outside the state treasury to reimburse the commission by writing a check to the commission for deposit into the appropriate unemployment compensation account. Requires a deposit under this section to be made not later than the 30th day after the date the instrumentality receives the commission's statement of amounts due. (b) Requires the commission to send a copy of each statement of amounts due from a branch, department, or other instrumentality of this state that reimburses the commission with funds that are held outside the state treasury to the comptroller and the state auditor. (c) Authorizes a branch, department, or other instrumentality affected by this section to allocate appropriate funds to a revolving account on its books to receive contributions from funds other than general revenue funds, based on an assessment it determines to be appropriate for the purpose of reimbursing the appropriate unemployment compensation account for benefits paid. (d) Requires the state auditor to review affected entities for compliance with this section. SECTION 39. Amends the chapter heading to Chapter 506, Labor Code, to read as follows: CHAPTER 506. New title: MISCELLANEOUS PROVISIONS APPLICABLE TO GOVERNMENT EMPLOYEES SECTION 40. Amends Chapter 506, Labor Code, by adding Section 506.002, as follows: Sec. 506.002. REIMBURSEMENT FROM NON-TREASURY FUNDS. (a) Requires an agency or other instrumentality of state government that, with funds that are held outside the state treasury, reimburses the general revenue fund for workers' compensation payments made out of the general revenue fund to former or current employees of the agency or other instrumentality to reimburse the general revenue fund by writing a check to the comptroller for certain purposes. (b) Requires the workers' compensation division of the office of the attorney general to send to the comptroller and the state auditor a copy of each statement of amounts due from an agency or other instrumentality of state government that, with funds that are held outside the state treasury, reimburses the general revenue fund for workers' compensation payments made out of the general revenue fund. (c) Authorizes an agency or other instrumentality of state government affected by this section to allocate appropriate funds to a revolving account on its books to receive contributions from funds other than general revenue funds, based on an assessment it determines to be appropriate for the purpose of reimbursing the general revenue fund for the workers' compensation payments made to its current or former employees. (d) Requires the state auditor to review affected entities for compliance with this section. SECTION 41. Amends Subchapter D, Chapter 11, Natural Resources Code, by adding Section 11.0791, as follows: Sec. 11.0791. OTHER PROVISIONS REGARDING ACCESS TO STATE LANDS. Requires a state governmental entity, when the entity sells state land, to require that the state have the right of ingress and egress to remaining state land in the immediate area by an easement to a public thoroughfare. SECTION 42. Amends Subchapter D, Chapter 11, Natural Resources Code, by adding Section 11.083, as follows: Sec. 11.083. RETENTION OF MINERAL RIGHTS. Requires the state to retain the mineral rights to state land that is sold unless it is impractical to do so. SECTION 43. Amends Section 31.401, Natural Resources Code, as follows: Sec. 31.401. NATURAL GAS ACQUISITION CONTRACTS. Requires the land office to review and approve the specified contract for the acquisition of an annual average of 100 MCF per day or more of natural gas used to meet its, rather in the production of, energy requirements. Requires the commissioner of the general land office to inform the comptroller each month of the amount of savings attributable to the substitution, if the land office is able to substitute a contract using in-kind royalty gas from state-owned lands or using other gas for a contract under which a state agency acquires or proposes to acquire its natural gas supplies. SECTION 44. Repealer: Section 403.273(d), Government Code. Subsection (d) states that state property may be used only for state purposes. SECTION 45. Provides that, Section 2165.104(c), Government Code, as amended by this Act, does not apply to the Texas Higher Education Coordinating Board or the State Board for Educator Certification until the expiration of all leases under which the board occupies office space on the effective date of this Act. SECTION 46. Provides that this Act does not affect the authority of an institution of higher education to collect, account for, and control local funds and institutional funds in the manner authorized by Subchapter A (Higher Education in General), Chapter 51, Education Code. SECTION 47. Sets forth, for information purposes only, a derivation table for the provisions of the General Appropriations Act that are codified in general law by other sections of this Act. SECTION 48. Effective date: September 1, 1999. SECTION 49. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.S.B. 178 modifies the original in SECTION 21 (Section 2161.001, Government Code) to define "economically disadvantaged person" in Subdivision (3) (not amended in the original) and makes conforming changes in Subdivision (2). C.S.S.B. 178 modifies the original in SECTION 22 (proposed Section 2161.002(c), Government Code) by requiring the General Services Commission (commission), in adopting rules to administer this chapter, to adopt rules that are based on the results of the "State of Texas Disparity Study, A Report to the Texas Legislature as Mandated by H.B. 2626, 73rd Legislature, December 1994" (prepared by National Economic Research Associates, Inc.), rather than the disparity study prepared by the comptroller under Section 65(c), Chapter 684, Acts of the 73rd Legislature, Regular Session, 1993. The substitute requires the commission to revise the rules in response to the findings of an updates of the study that are prepared on behalf of the state. In addition, the substitute removes proposed language requiring the commission, if other similar disparity studies are prepared on behalf of state government, to revise the rules in response to the findings of the latest disparity study and requiring all state agencies and institutions of higher education to adopt the commission rules. The substitute also removes the proposed requirement that each state agency and institution of higher education make a good faith effort to increase purchases and contract awards to historically underutilized businesses based on the rules adopted by the commission. C.S.S.B. 178 modifies the original by adding a new SECTION 23, amending Subchapter A, Chapter 2161, Government Code by adding Sections 2161.003, 2161.004, and 2161.005, as follows: Sec. 2161.003. AGENCY RULES. Requires a state agency, including an agency of higher education, to adopt the commission's rules under Section 2161.002 as the agency's or institutions's own rules. Provides that those rules apply to the agency's construction projects and purchases of goods and services paid for with appropriated money without regard to whether a project or purchase is otherwise subject to this subtitle. Sec. 2161.004. APPLICABILITY; INTENT. Applies this chapter and rules adopted by the commission under this chapter to state agency construction projects and purchases of goods and services that are paid for with appropriated money and made under the authority of this subtitle or other law. Specifies that the legislature intends that all qualified businesses have access to compete for business from the state. Sec. 2161.005. TRANSFER OF FUNDS FOR PURCHASING (Redesignated from SECTION 24 of the original, proposed Section 2161.123(g), Government Code). Requires the commission, if the state auditor reports to the commission under Subsection 2161.123(d) that a state agency is not complying with Section 2161.123, to report that fact to the Legislative Budget Board (LBB). Authorizes LBB, if LBB determines that, one year after the date of the state auditor's report to the commission, the agency is still not complying with Section 2161.123, to direct the emergency transfer of the agency's appropriated funds for making purchases under purchasing authority delegated under Section 2155.131 or 2155.133 to the appropriate state agency. Requires the amount transferred from the agency's funds to the commission to be an amount determined by LBB. The original authorized the commission to revoke the purchasing authority of the agency, if the state auditor reports to the commission under Subsection (d) that a state agency is not complying with this section or is not making a good faith effort to implement the plan adopted under this section and the commission determines that one year after the date of the state auditor's report to the commission the agency is still either not complying with this section or not making a good faith effort to implement the plan adopted under this section. In addition, the original authorized the comptroller to consider that fact in the event the commission needs a transfer of the agency's appropriated funds to cover the costs to the commission of assuming the agency's purchasing functions, if the commission revokes an agency's delegated purchasing authority under this section. C.S.S.B. 178 redesignates the original SECTION 23 (Section 2161.122, Government Code) to SECTION 24 in the substitute. The substitute includes the number of bids, proposals, or other applicable expressions of interest made by historically underutilized businesses among the information regarding the expenditure of treasury and nontreasury funds required to be reported to the commission by state agencies. C.S.S.B. 178 redesignates the original SECTION 24 (proposed Sections 2161.123(d) and (f), Government Code) to SECTION 25 in the substitute. The substitute further modifies proposed Subsection (d) to require the commission and the state auditor to cooperate to develop procedures to periodically monitor state agency compliance with this section. The substitute also requires the state auditor to consider whether the agency has adopted rules under Section 2161.003. rather than 2161.002. The substitute redesignates proposed Subsection (f) to Subsection (e) in the substitute, and removes text relating to the state auditor's finding that a state agency is not making a good faith effort to implement the plan adopted under this section. The substitute also removes proposed Subsection (e) of the original, which provided that the state auditor, in conducting an audit of an agency's compliance with this section or an agency's making of a good faith effort to implement the plan adopted under this section, shall not consider the success or failure of the agency to contract with historically underutilized businesses in any specific quantity. Subsection (e) of the original also required the state auditor's review to be restricted to the agency's procedural compliance with Subsection (d). C.S.S.B. 178 modifies the original by adding a new SECTION 26, to amend Section 2161.181, Government Code, to require a state agency to make a good faith effort to increase the contract awards, rather than assist historically underutilized businesses to receive not less than 30 percent of the total value of all contract awards, for the purchase of goods or services that the agency expects to make during a fiscal year to historically underutilized businesses based on rules adopted by the commission to implement the disparity study described by Section 2161.002(c). C.S.S.B. 178 modifies the original by adding a new SECTION 27, to amend Section 2161.182(a), Government Code, to require a state agency that contracts for a construction project, including a project under Section 2166.003, to make a good faith effort to increase the construction contract awards, rather than assist historically underutilized businesses to receive not less than 30 percent of the total value of each construction contract, that the agency expects to make during a fiscal year to historically underutilized businesses based on rules adopted by the commission to implement the disparity study described by Section 2161.002(c). C.S.S.B. 178 redesignates SECTIONS 25-46 of the original to SECTIONS 28-49 in the substitute.