HBA-JLV C.S.H.B. 2914 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2914
By: Bonnen
Ways & Means
4/23/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Each legislative session, the comptroller of public accounts (comptroller)
makes recommendations to the legislature to streamline and enhance the
agency's administration of the state's fiscal matters.  C.S.H.B. 2914 makes
technical and policy changes to several statutes relating to the state's
fiscal management and the comptroller's powers and duties to administer
those laws. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the state energy conservation office in
SECTION 18 (Section 447.002, Government Code), and to the comptroller of
public accounts in SECTION 24 (Section 659.308, Government Code), SECTION
42 (Section 2113.205, Government Code), SECTION 54 (Section 2251.026,
Government Code), SECTION 57 (Section 2252.903, Government Code), and in
SECTION 60 (Section, 2305.011, Government Code) of this bill. 

ANALYSIS

C.S.H.B. 2914 amends the Business & Commerce, Education, Finance,
Government, Health and Safety, Tax, and Utilities codes to make technical
and policy changes relating to the state's fiscal management and the
comptroller of public account's (comptroller) powers and duties to
administer those laws. 

The bill amends the Business & Commerce Code to provide that any
requirement of the Department of Information Resources that generally
applies to one or more state agencies using electronic records or
electronic signatures is considered to be a recommendation to the
comptroller concerning the electronic records or electronic signatures used
by the comptroller.  The bill authorizes the comptroller to adopt or
decline to adopt the recommendation (Sec. 43.020). 

The bill amends the Education Code to provide that the comptroller is no
longer prohibited from issuing a warrant or initiating an electronic funds
transfer to a person properly reported to the comptroller or to the
person's assignee, the person's estate, the distributees of the person's
estate, or the person's surviving spouse if the Texas Guaranteed Student
Loan Corporation consents to the issuance of the warrant or initiation of
the transfer (Sec. 57.48).   

The bill amends the Finance Code to provide that individuals appointed to
official committees are entitled to reimbursement for reasonable and
necessary expenses incidental to travel that occurred in connection with
the performance of official duties (Sec. 15.407). 

The bill amends the Government Code to authorize the comptroller to
establish a procedure for a person to use a digital signature to
authenticate a document, a communication, or data submitted to the
comptroller if the digital signature is unique to the person using it,
capable of independent verification, under the sole control of the person
using it, and transmitted in a manner that makes it infeasible to change
the signature, document, communication, or data without invalidating the
signature.  The bill provides that the electronic approval of a voucher is
governed by these provisions if the comptroller has established a procedure
for  the person approving the voucher or is governed by provisions
governing expenditures by state agencies (Sec. 403.027). 

The bill sets forth provisions relating to the comptroller's authority
regarding intellectual property and requires the comptroller to establish
intellectual property policies for the comptroller's office (Sec. 403.030). 

The bill authorizes a state agency to consent to the comptroller's issuance
of a warrant or initiation of a direct deposit to a person that the agency
had previously reported to the comptroller as having an indebtedness to the
state or a tax delinquency.  If the agency does not consent, the
comptroller  is still prohibited from issuing the warrant or initiating the
direct deposit (Sec. 403.055).  The bill provides that the warrant number
of an outstanding warrant is excepted from public disclosure requirements
if the warrant is issued by the comptroller.  The bill authorizes the
person who issues a warrant to disclose the warrant number of the warrant
to a person other than the comptroller only if the comptroller has informed
the person that the warrant is not an outstanding warrant or if the
comptroller has authorized or required the disclosure (Sec. 404.058). 

The bill provides that the energy management center is established as the
state energy conservation office (office) under the direction and control
of the comptroller and sets forth provisions authorizing the office to
establish procedures and adopt rules relating to energy conservation.  The
bill requires the office to provide assistance to a state agency in
implementing energy conservation measures.  The bill requires a state
agency or institution of higher education (institution) to present a plan
to the office and use the plan in preparing construction and major
renovation plans (Secs. 447.001-447.011).  

The bill sets forth provisions authorizing the Texas Youth Commission
(commission) to pay a commission employee certain amounts of longevity pay
and hazardous duty pay (Sec. 659.044).  The bill provides that the amount
of an employee's lifetime service credit does not include the period served
in a hazardous duty position if the employee is entitled to receive
hazardous duty pay or is receiving the maximum amount of hazardous duty pay
that the commission may pay to the employee (Sec. 659.046).  The bill
removes provisions prohibiting an employee from advancing to a step number
in a new salary group higher than the step number rate held before the
reallocation or reclassification if the employee's salary group is divided
into steps by the General Appropriations Act (Sec. 659.254).  The bill
prohibits a state employee from being temporarily reassigned to a position
classified in a salary group with a lower minimum salary rate (Sec.
659.260). 

The bill sets forth provisions relating to hazardous duty pay in the
Government Code (Sec. 659.301659.308). 

The bill provides that an individual is entitled to reimbursement for
certain expenses while performing the duties of the individual's office or
employment if the individual is a member of the Texas Natural Resource
Conservation Commission, the Texas Workforce Commission, the Public Utility
Commission of Texas, the Board of Pardons and Paroles, or the Sabine River
Compact Administration, or a full-time member of a board and receives a
salary from the state for service on that board (Sec. 660.203). 

The bill sets forth provisions relating to recovering excess compensation
paid to a state officer or employee (Sec. 666.001-666.007).  The bill sets
forth provisions authorizing a state agency to recover the amount of a
state employee's indebtedness by reducing future gross pay.  The bill sets
forth provisions authorizing the comptroller to recover the amount of a
state employee's indebtedness to a state agency (Sec. 666.002).  The bill
sets forth provisions to provide when an indebtedness is incurred.  The
bill provides that the provisions neither authorizes nor prohibits a state
employee  or the employee's successor from assigning the employee's or
successor's right or eligibility to receive compensation (Sec. 666.006).  

The bill provides that a state agency's approval of a voucher includes the
agency's approval of any interest that must be paid at the same time the
principal amount is paid to a vendor (Sec. 2103.004). 

 
The bill sets forth provisions relating to payments by a state agency to
debtors or delinquents.  The bill authorizes a state agency to issue a
payment to a person that is indebted to the state or has a tax delinquency
and is also authorized to issue any part of that payment to the person's
estate, the distributees of the person's estate, or the person's surviving
spouse.  The bill provides that a state agency is not prohibited from
making a payment if each state agency that properly reported the person to
the comptroller consents to the payment (Sec. 2107.008). 

The bill authorizes a state agency to use money appropriated for a
particular fiscal year to pay expenses related to conducting a seminar or
conference that will occur partly or entirely during a different fiscal
year, if it is cost-effective to do so.  The bill authorizes a state agency
to use money appropriated for a particular fiscal year to pay the entire
cost or amount of a periodical subscription, a maintenance contract, a post
office box rental, insurance, or a surety or honesty bond.  The bill also
authorizes a state agency to use money appropriated for a particular fiscal
year to pay for a utility service provided during that fiscal year and
September of the next fiscal year.  The bill authorizes the comptroller to
establish procedures and adopt rules to administer these provisions (Sec.
2113.205). 

The bill deletes provisions prohibiting a state agency from accepting a bid
or awarding a contract to certain out-of-state individuals and business
entities unless they hold a sales and use tax permit issued by the
comptroller or certify that they do not sell taxable property or services
(Sec. 2155.004). 

The bill modifies provisions to require the state energy conservation
office, rather than the energy management center of the governor's office,
to assist a governing body of a state agency, commission, or institution in
preparing energy conservation standards by providing technical assistance
and advice (Sec. 2166.402).   

The bill requires the General Services Commission (commission) to establish
procedures and adopt rules to administer provisions relating to the payment
of goods and services, except that the commission is prohibited from
establishing a procedure or adopting a rule that conflicts with a procedure
established or a rule adopted by the comptroller (Sec. 2251.003). 

The bill provides that the renewal, amendment, or extension of a contract
is considered to be the execution of a new contract for the purposes of
prompt payment by a governmental entity (Sec. 2251.021).  

The bill authorizes a state agency to pay interest to a vendor in the
amount specified in the contract between the agency and the vendor, but
only if that amount is less than the amount specified in the prompt payment
statutes.  The bill requires interest to accrue on a payment to a vendor
during the period that the comptroller is prohibited from issuing a payment
to the vendor because of its tax delinquency, indebtedness to the state,
child support delinquency, or student loan default.  The bill requires that
these provisions take effect on the date the comptroller files a
certification with the secretary of state.  The bill requires the secretary
of state to publish the certification in the Texas Register (Sec.
2251.025).  The bill sets forth provisions relating to the payment of
interest by a state agency and requires a state agency to determine the
amount of interest owed to a vendor by the agency if the amount is based on
the contract between the vendor and the agency. The bill authorizes the
comptroller to establish procedures and adopt rules to administer the
portion of prompt payment provisions that govern interest payments by the
comptroller on behalf of state agencies (Sec. 2251.026). 

The bill requires a state agency to determine whether a payment law
prohibits the comptroller from issuing a warrant or initiating an
electronic funds transfer to a person before an agency enters into a
written contract with that person.  The bill requires the agency to make
the determination not later than the seventh day before and not later than
the date of entering the contract.  If the agency determined that a payment
law prohibited the comptroller from issuing a payment to a person, the
agency is prohibited from entering into the contract unless it required the
agency's payments under the contract to be applied directly toward
eliminating the person's debt or delinquency.  The bill authorizes the
comptroller to adopt rules and establish procedures to administer these
provisions (Sec. 2252.903). 

 The bill amends the Health and Safety Code to transfer the collection of
certain 9-1-1 fees, emergency services fees, and equalization surcharges
from the Commission on State Emergency Communications to the comptroller
(Secs. 771.071, 771.0711, 771.072, 771.073, and 771.077).  The bill exempts
the federal government from fees or surcharges authorized by state or local
emergency communications or a home-rule municipality (Sec. 771.074).  The
bill authorizes the comptroller to audit a service provider without first
receiving notification of irregularity from the Commission on State
Emergency Communications (Sec. 771.076).   

The bill amends the Occupations Code to provide that money in the law
enforcement standards and education fund account at the end of the state
fiscal year, other than money encumbered by the Commission on Law
Enforcement Officer Standards and Education and money allocated by the
comptroller used for continuing education, shall be transferred to the
general revenue fund (Sec. 1701.156). 

The bill amends the Tax Code to provide that a local revenue fund is no
longer eligible to accrue credit interest (Sec. 111.064).  The bill
authorizes a governmental entity to file a claim for a refund of the state
hotel occupancy tax paid by the entity only on a fiscal year basis (Sec.
156.154).  The bill requires the comptroller to submit a biennial report to
the governor, lieutenant governor, and the speaker of the house of
representatives about franchise tax credits claimed by corporations for
certain capital investments (Sec. 171.837).  

The bill provides that all functions and activities performed by the
General Services Commission that relate to energy conservation, under
provisions governing the energy management center and restitutions for oil
overcharges, are transferred to the comptroller (SECTION 76). 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect on the 91st day after adjournment.  The bill also provides
other implementation dates for certain sections of the bill. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2914 provides that the warrant number of an outstanding warrant is
excepted from public disclosure requirements if the warrant is issued by
the comptroller.  The bill authorizes the person who issues a warrant to
disclose the warrant number under  certain circumstances (Sec. 404.058,
Government Code). 

The substitute provides that the state energy conservation office (office)
is under the direction and control of the comptroller.  The substitute sets
forth provisions authorizing the office to establish procedures and adopt
rules relating to energy conservation (Secs. 447.001-447.011, Government
Code). 

The substitute provides that money in the law enforcement standards and
education fund account at the end of the state fiscal year, other than
money encumbered by the Commission on Law Enforcement Officer Standards and
Education and money allocated by the comptroller used for continuing
education, shall be transferred to the general revenue fund (Sec. 1701.156,
Occupations Code). 

The substitute provides that all functions and activities performed by the
General Services Commission that relate to energy conservation, under
provisions governing the energy management center and restitutions for oil
overcharges, are transferred to the comptroller (SECTION 76). 

The substitute removes reimbursement provisions for the members of certain
advisory committees. The substitute no longer amends provisions relating to
reimbursement of members' expenses.