Changes to Article IX of the GAA and Other Bills of Interest to State Agencies

Author: Klick et al.

Effective Date: June 13, 2023

This bill requires a state agency to provide notice of a proposed rule to each person who was a primary author and sponsor of the legislation that enacted the statutory authority the proposed rule is to be adopted under if that person is a current member of the Legislature. Notice must be provided electronically to the person’s designated Capitol email address. Notice of a proposed rule issued by an agency must include the bill number for the legislation that enacted the statutory authority the proposed rule is to be adopted under.

Author: Capriglione et al.

Effective Date: Sept. 1, 2023

This bill allows DIR to enter into an agreement with a public junior college or technical institution to offer a program leading to a state information technology credential. The program must:

• Be approved by the Texas Higher Education Coordinating Board.
• Develop the knowledge and skills needed for an entry-level IT position at a state agency.
  — and —
• Include a one-year apprenticeship. The apprenticeship can be with DIR or another relevant state agency, an organization working on a major information resources project, or a regional network security center.

Author: Bell, Keith et al.

Effective Date: Sept. 1, 2023

This bill prohibits a construction offer to contract from containing a term requiring a person to have a specified experience modifier in order to accept the offer. The bill also prohibits a contract solicitation from requiring a person to have a specified experience modifier to submit a response to the contract solicitation. These provisions apply only to a contract that a government entity, including a state agency or institution, first advertised or otherwise solicited offers on after the effective date of the bill.

Author: Frank et al.

Effective Date: Sept. 1, 2023

This bill allows Employees Retirement System of Texas (ERS) members who are eligible for a service retirement annuity not reduced because of age to select an optional increasing annuity. ERS provides the increasing annuity option by reducing the member's annuity for an appropriate implementation period that will begin immediately after retirement. ERS will then annually increase the amount of the annuity by an established rate for each year during the applicable implementation period. The bill requires the calculation of a member's annuity to be actuarially equivalent to a standard or optional service retirement annuity, resulting in no actuarial loss to the retirement system. The increasing annuity option only applies to retirements occurring on or after Jan. 1, 2024.

Author: Bonnen et al.

Effective Date: Jan. 1, 2024

This bill, in conjunction with House Joint Resolution (HJR) 3, makes changes to certain constitutional and statutory research funds. Some of the major provisions of the bill include:

• The bill, with HJR 3, redesignates the National Research University Fund as the Texas University Fund and amends the administration and investment, eligibility criteria and distribution methodology of the fund to eligible institutions.
• The bill amends the name, eligibility requirements and allocation methodology for the Core Research Support Fund (now the National Research Support Fund).
• The bill also amends the allocation methodology for the Texas Comprehensive Research Fund.

The bill takes effect only if HJR 3 is approved by the voters. Otherwise, the bill has no effect.

Author: Capriglione

Effective Date: June 9, 2023

This bill stipulates that a government contract with a business entity can be considered void for failure to provide the disclosure of interested parties only if:

• The government or state agency submitted written notice to the business entity of the entity's failure to provide the required disclosure.
  – and –
• The entity failed to provide the government or state agency with the required disclosure within 10 business days after receiving the written notice.

These provisions only apply to a contract that:

• Is for lobbying services.
• Has a value of at least $1 million.
  – or –
• Requires an action or vote by the government’s or agency’s governing body before the contract can be signed.

A contract that is executed before the effective date of the bill is presumed to have been properly executed if no action to void or invalidate it has been filed before the effective date of the bill.

Author: Bell, Metcalf

Effective Date: Sept. 1, 2023

This bill authorizes the annual salary rate for an executive or judicial branch state employee immediately after a transfer to be set at any rate in the appropriate salary group if the employee:

• Transfers within a state agency between two classified positions that are allocated to the same salary group and have the same position title as listed in the GAA.
• Transfers to a position whose employment opening is publicly listed with the Texas Workforce Commission.
• Voluntarily applies for the position he or she is transferring to.
  – and –
• Agrees to accept the new position at the publicly listed salary.

Author: Button

Effective Date: Sept. 1, 2023

This bill allows the Comptroller to release certain payments to a person or their assignee if the person has outstanding state debt or delinquent state taxes. The Comptroller is allowed to issue payment to a debtor if the Comptroller has retained one or more payments owed to the debtor that at least equaled the amount necessary to fully satisfy the amount of the debt owed. Payment amounts exceeding the debt will then be released to the debtor. A state agency is required to notify a debtor when it has reported a debt owed by the person to the Comptroller. Individuals delinquent on payment of child support will not be notified that the debt has been reported to the Comptroller.

Author: Slawson

Effective Date: Sept. 1, 2023

This bill exempts contracts for services necessary to respond to a natural disaster from the statutory requirement that, for procurements over $20 million, state agencies must notify interested parties at least two months before soliciting the procurement.

Author: Bonnen

Effective Date: June 13, 2023

This bill abolishes all funds, accounts and revenue dedications created by the 88th Legislature, Regular Session, unless specifically exempted under separate sections of this bill. Any funds, accounts or revenue dedications abolished under this bill must be deposited to the credit of GR.

If an agency has a contingency appropriation in the GAA from an abolished fund or account, the appropriation must be established in GR. Otherwise, the revenue will be deposited as unappropriated GR.

The bill exempts a number of funds and accounts from abolishment, including trust funds, bond funds, funds required by federal law and constitutional funds created by the 88th Legislature.

The bill extends the ending date from Aug. 31, 2023, to Aug. 31, 2025, to allow the Legislature to direct the Comptroller to make reductions in dedicated accounts whose estimated revenues and unobligated balances exceed appropriations. The Comptroller’s office is providing additional guidance on this issue separately. See Funds Consolidation: Limits on New General Revenue Accounts, Special Funds and Dedications of Revenue (FPP A.046).

Author: Kitzman

Effective Date: June 11, 2023

This bill conforms language to existing policies and practices that require the Comptroller to operate the Electronic State Business Daily (Daily) for state agencies and institutions to advertise pre-solicitation notices, solicitations and contract awards. The bill removes the requirement that state agencies and institutions cooperate with the Comptroller in making the Daily available and prohibits certain entities from charging a fee for businesses to access it. The bill requires state agencies and institutions that award a procurement contract with an estimated value over $25,000 to post certain contract information in the Daily.

Author: Bonnen

Effective Date: Sept. 1, 2023

This bill appropriates money from various accounts to pay outstanding claims and judgments against the state. Before any claim or judgment can be paid, it must be verified and substantiated by the administrator of the special fund or account and be approved by the Attorney General and Comptroller’s office by Aug. 31, 2023.

Author: Smithee

Effective Date: Sept. 1, 2024

This bill moves the AFR submission deadline for most state agencies to Nov. 1 for unaudited reports and Dec. 15 for audited reports. The current AFR submission deadline for public institutions of higher education remains Nov. 20.

The bill also eliminates the requirement for the Comptroller to provide copies of recovery audit reports received from a consultant to the governor, the State Auditor’s office and the Legislative Budget Board. The bill now requires the Comptroller to issue its own report to those entities summarizing activities conducted by a consultant for a completed recovery audit. The Comptroller is only required to issue a report if such an audit was completed in the preceding FY.

Author: Longoria

Effective Date: Sept. 1, 2023

This bill expands and aligns the lists of eligible customers for DIR services including:

• Telecommunications services.
• Contracts for information technology commodity items.
  – and –
• Network security services.