The following section lists the major changes made to the provisions in Article IX, followed by a detailed listing of all other amended, new, and deleted provisions.
5.04. Transportation Expense. Sets the mileage reimbursement rate as the maximum fixed mileage allowance specified in IRS revenue rulings under federal tax regulations. Removes the minimum and maximum restrictions on the reimbursement rate (previously a minimum of 25 cents and a maximum of 35 cents). Removes requirement that the Comptroller conduct a biennial study of the actual expenses associated with employee use of a personally owned vehicle and report to the Legislature.
5.06. Travel Meals and Lodging Expenses. Increases employee reimbursement rates to $85/day for lodging and $36/day for meals. Chief administrator may authorize reimbursement for meals for travel without an overnight stay at a rate of $36/day.
5.09. Expenditures for Commercial Air Travel. NEW ITEM - Adds section that reduces appropriations per biennium by $4,994,716 for state agencies and $3 million for higher education institutions effective September 1, 2005. Reduction amounts per agency will be determined by the Texas Building and Procurement Commission based on historical travel expenditures and must be approved by the LBB and Governor’s Office. The intent is to encourage agencies to purchase airline tickets at least 14 days before travel.
6.14. Limitation on State Employment Levels. Adds a provision to reduce agency FTE caps by 2 percent with the exception of the Governor's Office, Comptroller’s Office, Office of the Attorney General, and agencies with fewer than 300 FTEs. Allows the LBB and Governor to consider requests for exemptions. Adds that requests can be submitted, not only to exceed FTE limitations, but also to reduce FTEs. Also adds a provision to allow the LBB and Governor to reduce FTEs below the levels established in the GAA during the biennium for an agency or higher education institution when a program has been transferred from the agency.
9.06 Higher Education Institution Data Centers. NEW ITEM- Adds section requiring institutions of higher education to inventory their data center services, have the results examined by the internal audit department, and submit the results to DIR. DIR is to use the information to prepare a report regarding possible data service center consolidation to be submitted to the LBB and Governor by September 1, 2006.
13.17 Appropriation for a Salary Increase for General State Employees. Provides for a compensation increase for state employees of 4 percent, with a minimum of $100 per month, beginning September 1, 2005 and of 3%, with a minimum of $50 per month, beginning September 1, 2006. Higher education is not included except for the General Revenue portion of employees of the A&M System research and service agencies whose gross salary is below $75,000 per year (once the salary increase is included). The salary increase is also intended to cover the entire proportion of the salary increase for county extension agents that would otherwise be paid from county funds. The rider appropriates $350 million in GR, $30 million in GR-Dedicated, and $205 million in Other Funds to the Comptroller to fund salary increases. The section does not specify how the funds will be allocated to agencies. Instead, it requires the Comptroller to make rules to administer the section. Increases longevity for state employees to $20 per month for every 2 years of service (previously every 3 years of service) and increases hazardous duty pay to $10 per month for each year of service (previously $7 per month); however, new funding is not provided for the increases in longevity or hazardous duty pay for any state agency.
Listing of all other changes:
4.04. Per Diem of Board or Commission Members and Advisory Committee Members. Increases the rate of reimbursement from $110 to $121 per day for meals and lodging. Modifies the limit for reimbursement for advisory committee members from 90 percent of the committee's FY 2003 total expenditures to the greater of 90 percent of FY 2003 expenditures or the total committee reimbursement expenditures in FY 2004.
4.07. Contract Workforce. Deletes provision requiring a report to the LBB, SAO, and Governor on the use of contract workforce. Also deletes the requirement for the SAO to report agency non-compliance to the Comptroller and Legislative Audit Committee. Instead, the SAO may require interim reports or additional information from an agency.
6.01. Definitions (General Limitations on Expenditures). Limits exemption from the requirement to have an appropriation in order to expend earned or received federal funds to institutions and agencies of higher education whose earned federal funds are held outside the state treasury. Previously, there was no reference to applying the exemption only to higher education entities whose funds are outside the treasury.
6.08. Appropriation Transfers. Reduces the amount that agencies may transfer from one appropriation to another from 25 percent to 12.5 percent. This is not applicable to institutions of higher education but applies to the Higher Education Coordinating Board.
6.11. Salaries to be Proportional by Fund. Renames to "Benefits Paid Proportional by Fund" and only lists benefits as being required to be proportional. Adds requirement that the Comptroller consult with the LBB and SAO in developing administration rules and report format. Clarifies that community or junior colleges are included in the requirement to file a report showing the proportionality of funds. Adds a stipulation that the review for compliance must be completed at least biennially by the SAO. Previously there were no requirements regarding the frequency of reviews. Limits the review to only those agencies and institutions receiving funds appropriated in Article II, III, or VI in the GAA.
6.19. Expenditures for State Federal Relations. Adds definition of "travel" that applies to this section. It includes only those activities involving federal funds or impacting federal policies. Previously, trips to Washington D.C. required notification to the Office of State-Federal Relations. Adds any trips to Reagan-National, Dulles, and Baltimore Washington International airports are subject to the reporting requirement.
6.21. Court Representation and Outside Legal Counsel. Modifies LBB notification regarding settlements. Previously, an entity receiving funds from a settlement was required to notify the LBB of both the terms of the settlement and their plans for using the funds. Now the Office of the Attorney General will notify the LBB regarding the terms of the settlement. This notification is required by no later than the 20th day of the month following approval of the settlement, replacing the deadline of 12 or more days before the approval of the settlement.
6.22. Judgments and Settlements. Clarifies language, but no substantive change or impact.
6.30. Payments to the State Office of Risk Management (SORM). Previously, if agency assessments by SORM exceeded worker compensation payments for the year by more than 10 percent, the excess was returned to General Revenue. Now the excess will be returned to the agencies. An excess of 10 percent or less will continue to be used to lower the overall assessment amount to agencies the following year. Adds a requirement that agencies must report to SORM the specific funding sources for payments of the assessment.
6.31. Consolidated Funds. No change from previous biennium.
6.32. Demographic and Statistical Studies. Adds a provision that agencies must determine if the University of Texas at San Antonio has the resources to assist the agency in a study required by the Legislature which includes statistical or demographic analysis. Previously, agencies were only required to consider the Texas Legislative Council.
6.34. Use of Appropriations to Contract for Audits. NEW ITEM - Adds section to restrict the use of appropriated funds to contract with an outside auditor. Agencies are required to either (1) enter an IAC with the SAO for the services, or (2) have the SAO review and approve the scope of the audit and if the agency does not have statutory authority to enter into a contract, delegate the authority to the agency to enter into a contract.
6.35. Restriction on Expenditures for Lobbying Activities. NEW ITEM - Adds section prohibiting the use of funds appropriated under the Act to compensate a registered lobbyist. Provides an exception for persons employed by a state agency or institution from this provision.
7.04. Contract Notification: Amounts Greater than $50,000. Clarifies what constitutes a contract that must be reported to the LBB. Also clarifies what contracts are not included in reporting. Assigns interlocal agreement to the contracts that do not have to be reported. Previously, a contract that was already being reported under Government Code §§ 2054.008 (major information systems), 2166.2551 (construction), 2254.006 (professional services), or 2254.0301 (consulting services), was required to be reported. The new section exempts those contracts from the reporting requirement. Establishes a deadline of October 1 of the fiscal year for reporting to the LBB.
7.05. Contract Notification. Amounts Greater than $500,000. NEW ITEM- Removes contracts greater than $500,000 from the rules set out in 7.04 and creates separate criteria for reporting to the LBB. Both single contracts and a series of contracts between one entity and a state agency which meet the $500,000 threshold are subject to the reporting requirement. Unlike the above section 7.04, contracts to be reported do include purchase orders, interagency contracts, and interlocal agreements. Contracts reported to the LBB under §§ 2054.008, 2166.2551, 2254.006, and 2254.0301, Government Code or Section 7.04 are exempted from this section. Establishes an October 1 deadline for reporting.
7.07. Disclosure of Federal Funds. NEW ITEM - Requires agencies receiving federal funds, which have been designated for a specific geographical area of the State, to report, to the extent the awarded funds exceed appropriations, what has been awarded, expended, and unexpended before the beginning of each regular session.
7.08. Report of Form Documents Available to Public. NEW ITEM - Adds section requiring agencies to report to the TBPC annually by October 1 the agency's efforts to make information and forms more easily accessible to the public, the number of form documents that may be filed with the agency, and the number of those forms immediately available to the public.
7.09. Reporting Fees, Fines, and Penalties. NEW ITEM - Adds section requiring agencies and institutions of higher education to report all fees, fines, and penalties, which have been assessed but not collected, to the LBB annually by November 1. The report must also include details of the agency's collection efforts.
7.11. Reporting of Federal Homeland Security Funding. NEW ITEM - Adds section requiring agencies and institutions of higher education to report to the LBB in their Operating Budget the estimated amount of federal homeland security funding received and used by the agency, as well as amounts passed through to other entities. The LBB is required to report this information to the Legislature at the end of each fiscal year.
8.02. Federal Funds/Block Grants. Updates agency names to reflect reorganization. Removes the restriction on expending federal funds received in excess of $5,000,000 for programs not included in the GAA without LBB and Governor approval.
8.03. Reimbursements and Payments. Adds a limitation to appropriations of reimbursements for authorized services. If the payments are received as a result of a recovery audit under Chapter 2101 (Accounting Procedures), Government Code, only 50 percent is credited to the agency with the other 50 percent deposited as unappropriated revenue in the state treasury.
8.04. Surplus Property. Removes livestock (surplus property) sales receipts from funds appropriated to the agency for expenditure. Clarifies that salvage includes recycled products. Restricts the use of the funds received from the sale of surplus property to expenditures from the appropriation item of the sold property. Previously, the limitation was that the funds had to be credited to the appropriation item of the sold property.
8.09. Appropriation of Bond Proceeds. Expands the bond proceeds which are appropriated to the state agency by including bonds pursuant to other law, rather than just those pursuant to Government Code Chapters 1232 (Texas Public Finance Authority) and 1401 (Criminal Justice and MHMR facilities).
8.10. CMIA Interest Payments. No change from previous biennium.
8.11. Appropriation of Receipts: Credit, Charge or Debit Card Service Fee. Adds provision to appropriate any cost recovery fees approved by Texas Online, excluding subscription fees.
9.01. Purchases of Information Resources Technology. Includes a representative from DIR in the Quality Assurance Team (QAT), which is notified of contract amendments resulting in a 10% or greater change. Therefore, DIR is no longer on the notification list.
9.02. Quality Assurance Review of Major Information Resource Projects. Includes a representative from DIR in the QAT. Adds LBB approval in the BOP to the requirements before expenditures on major information resources projects may be made. Previously, only QAT approval was required. Changes requirement for the SAO to review the information provided by agencies to be at the request of the QAT. Authorizes the QAT to take actions as necessary as specified in Government Code §2054.1181. Statute includes provisions for creating corrective action plans to modify projects and discontinuing projects.
9.03 Biennial Operating Plan and Information Resources Strategic Plan Approval. No change from previous biennium.
9.04 Information Technology Replacement. Changes language from West Texas Disaster Recovery and Operations Center to State Data Center.
9.06 Higher Education Institution Data Centers. NEW ITEM- Adds section requiring institutions of higher education to inventory their data center services, have the results examined by the internal audit department, and submit the results to DIR. DIR uses the information to prepare a report regarding possible data service center consolidation to be submitted to the LBB and Governor by 9/1/06.
10.01 Purchasing of Pharmaceuticals. Updates agency names to reflect reorganization.
10.03 State Agency Communication with Employees Regarding State Kids Insurance Program (SKIP). No change from previous biennium.
10.04 Completion of MOU regarding Transition Services for Students with Disabilities. Updates agency names to reflect reorganization.
10.05 Interagency Contract Funding for Regional Specialist Projects. Updates agency names to reflect agency reorganization.
10.07 Informational Listing - Health Care. Updates agency names to reflect reorganization. Updates appropriation amounts for fiscal years.
10.08 Informational Listing - Tobacco Settlement. Updates agency names, strategies and amounts.
10.09 IAC Funding for Prescription Drug Study. NEW ITEM- Adds section requiring ERS to enter into an interagency contract with 20 agencies to fund a cost benefit analysis of a prescription drug importation program. Establishes requirements for the study and report to be submitted to the LBB and Governor by March 1, 2006.
10.10 Use of Unused Unopened Nursing Home Prescription Drugs. NEW ITEM- Adds section which provides that the Department of State Health Services must require nursing homes to send unopened packages of prescription drugs that would otherwise be destroyed for use in the Correctional Managed Care program.
11.01 Limitation on Use of Funds for Personal Residences. Moves section from 6.19. Clarifies that the $25,000 limit is applicable to one single residence.
11.02 Statewide Capital Planning. Moves section from 6.35. No change from previous biennium.
11.03 Limitation on Expenditures for Leased Space. Moves section from 11.05. No change from previous biennium.
11.04 Efficient Use of State Owned and Lease Space. Moves section from 11.06. No change from previous biennium.
11.05 State Owned Housing. Moves section from 11.09. Adds a provision for an agency to withhold rent payments from the employee's salary following rules established by the Comptroller.
11.06 State Agency Emergency Leases. Moves section from 11.17. No change from previous biennium.
11.07 Prepayment of Annual Lease Costs. NEW ITEM - Adds section authorizing TBPC to enter into an agreement for an agency to prepay annual lease costs for an early payment discount. TBPC must report to the LBB within 30 days of executing the agreement the amount of savings realized. The affected agency's appropriation may be reduced by an amount identified by TBPC as approved by the LBB.
11.08 Equipment Maintenance Cost Reductions. NEW ITEM - Adds section authorizing TBPC to establish consolidated volume contracts for maintenance services or to assist agencies in renegotiating maintenance contracts in order to reduce costs. Requires TBPC to report annually any resulting savings by October 1.
12.01 Aircraft. Moves section from 5.08. Adds a clarification that State Aircraft Pooling Board includes a state agency performing Pooling Board functions.
12.02 Publication or Sale of Printed, Recorded or Electronically Produced Matter or Records. Moves section from 6.16. No change from previous biennium.
12.03 Limitations on Expenditures Alternative Fuel Vehicles. Moves section from 6.27. No change from previous biennium.
12.04 Lost Property. Moves section from 11.03. Allows Comptroller to withhold 50 percent of the value of the lost property when the loss falls outside the American Society for Testing and Materials standards from GR-Dedicated Funds and Other Funds. Previously only allowed from General Revenue. Amends section to apply to all agencies regardless of the source of funds used for property acquisition.
13.07 Incentive and Productivity. Moves section from 11.14. Updates agency names to reflect reorganization. Modifies employee reward not to exceed amounts for money saving suggestions to $5,000 or 10 percent of the annual savings. Previously the limit was 10 percent of the annual savings. The minimum percent of savings to be retained by the agency is increased from 80 percent to 90 percent.
13.08 Contingency Appropriation Reductions. Moves section from 11.15. Changes section to provide that should appropriations in Articles I-X exceed the estimated revenue, all appropriations will automatically be reduced on a pro-rata basis. Requires the Comptroller to report the amount of reductions to the Governor and LBB. Allows exemptions from the reduction for estimated appropriations. Also exempts appropriations for employee benefits (Section 6.10).
13.09 Appropriations from State Tax Revenue. Moves section from 11.16. Updates limit of appropriation of state tax revenue not dedicated by the Constitution.
13.10 Appropriation Transfers: Billings for Statewide Allocation Costs. Moves section from 11.18. Removes exemption for State Aircraft Pooling Board from appropriation transfers for statewide allocated costs. Updates amount to an estimated $30 million.
13.12 TexasOnline Authority: Occupational Licenses. Moves section from 11.20. Adds requirement that agencies completing actions to increase fees to cover TexasOnline subscription charges must then provide information to the Comptroller, who will upon approval make available the appropriation.
13.15 Incentive Program to Waive Participation in Group Benefit Plan. NEW ITEM - Contingent upon passage of legislation allowing employees/retirees to receive incentives to waive participation in the group benefit plan. Requires ERS to inform individuals of their eligibility for such incentives. The individual will receive $60 per month for the waiver or optional coverage not to exceed $60. Reduces ERS appropriations from GR, GR Dedicated, and Other Funds by a total of $4,189,164 in each fiscal year of the biennium.
13.16 Contingency Rider for HB 3540. Requires Comptroller to identify the number of return-to-work retirees receiving BRP on September 1, 2005 and receiving longevity on September 1, 2005 and September 1, 2006 and then to reduce appropriations for BRP and longevity.
13.18 Appropriation of Any Vetoed Funds. Appropriates any General Revenue or General Revenue Dedicated funds vetoes by the Governor and makes the funds available for allocation through budget execution.
Part 14 Various Contingency Appropriations.
- State Data Center. Deletes section. Section required DIR to manage the State Data Center at Angelo State University. All agencies were required to either obtain a waiver or use the center for their data operations.
- Other Provisions Contingent on SB 1952. Deletes section, which required appropriation reductions for leased office space.
- Reduction of Management Costs. Deletes section, which required appropriation reductions regarding staff to management ratios.
- Retirement Incentives. Deletes section, which required an appropriation reduction in the event of a lump-sum retirement incentive payment.
- Alternative Fuels Finance Payments. Deletes section
Moved Sections – No change
12.05 Transfer of Master Lease Purchase Program Payments. Moves section from 11.07. No change from previous biennium.
12.06 Vehicle Fleet Management. Moves section from 11.12. No change from previous biennium.
12.07 Interoperability Communications-Federal Funding. Moves section from 11.25. No change from previous biennium.
12.08 Interoperability Communications-All Appropriated Funding. Moves section from 11.26. No change from previous biennium.
13.01 Employee Meal Authorization. Moves section from 11.01. Updates agency names to reflect agency reorganization.
13.02 Bank Fees and Charges. Moves section from 11.02. No change from previous biennium.
13.03 In Kind Gas Program. Moves section from 11.04. No change from previous biennium.
13.04 Cleaning Allowances. Moves section from 11.10. No change from previous biennium.
13.05 Coordination of Tourism and Travel. Moves section from 11.11. Updates agency names to reflect reorganization.
- Appropriation: TANF. Moves section from 11.13. No change from previous biennium.
13.11 Contingency Rider. Moves section from 11.19. No change from previous biennium.
13.13 Disaster Related Transfer Authority. Moves section from 11.22. No change from previous biennium.
13.14 Informational Items. Moves section from 11.24. No change from previous biennium.
This cumulative listing of provisions and riders may not include every change that occurred this session. If a question arises on a particular section, please contact the Office of Governmental Relations.