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Glenn Hegar  ·  Texas Comptroller of Public Accounts

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

F.008

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Changes to Article IX of the General Appropriations Act —
Senate Bill 1 85th Legislature, Regular Session, 2017

Part 2. Provisions Relating to the Position Classification Plan

Section 2.01 – Position Classification Plan: Detailed Listing of Classified Positions for the 2018–2019 Biennium [+]

This section contains the numerical listing of all classified positions by class number, position title, salary schedule (A, B or C) and salary group number. The listing includes classified titles that have been added and/or have title changes for the biennium. The State Auditor’s Office (SAO) has provided agencies with a conversion manual for these changes. The job classifications are designated to the appropriate pay group in the proper salary schedule (A, B or C).

Section 2.01 – Schedule A Classification Salary Schedule [+]

Pay group A3 is removed from the schedule.

Section 2.01 – Schedule C Classification Salary Schedule [+]

Pay group C03 for 20 years or more of service is increased $1,477 to $79,323.

Part 5. Travel Regulations

Section 5.05 – Travel Meals and Lodging Expenses [+]

The section removes language that the maximum lodging allowance for Texas cities and counties that do not have a specific federal per diem rate shall not be more than $85 per night.

Part 6. General Limitations on Expenditures

Section 6.08 – Benefits Paid Proportional by Method of Finance [+]

This section was previously titled Benefits Proportional by Fund.

Paragraph (a) changes “source of funds” to “method of finance”. It exempts funds from being subject to this requirement if the restrictions are directed by legislative intent or by CPA rules governing the calculation of benefits proportionality by fund.

Paragraph (b) states that funds not subject to the proportionality may include appropriations for capital purposes, appropriations with salary restrictions, deficiency grant appropriations, emergency appropriations, or statutorily restricted funds that restrict or limit the use of funds to certain programs. CPA shall make this final determination.

Paragraph (c) states that institutions of higher education, in determining the proportional allocation between GR and other appropriated funds, are required to make an adjustment local funds benefits to equitably distribute costs between GR and other appropriated funds. This paragraph also deletes language stating that appropriated general revenue funds may not be expended for employee benefit costs or indirect benefit costs associated with salaries or wages if the salaries or wages are paid from a source other than GR.

Section 6.24 – Notification Requirement for Certain RESTORE Act Funds [+]

This section removes the word “Deposit” from the title of the rider.

Paragraph (a) is removed which stated that funds related to the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act (RESTORE Act) shall be deposited to the State Treasury in a designated account to be determined by CPA.

Section 6.25 – Limitation on Abortion Funding (New) [+]

This section states that to the extent allowed by federal and state law, money appropriated by the GAA may not be distributed to any individual or entity for abortion funding under certain circumstances.

Section 6.26 – Policies for Certain Hospital Stays (New) [+]

This section states that HHSC shall ensure there are policies that specify criteria that do not permit classification of hospital services as either inpatient or outpatient for purposes of reimbursement based solely on the duration of the stay.

Part 7. Reporting Requirements

Section 7.03 – Notification to Members of the Legislature [+]

This section states that a state agency shall use funds appropriated under this act to contact each member of the legislature whose district could be affected by the agency’s press release.

Section 7.04 – Contract Notification: Amounts Greater than $50,000 [+]

This section changes paragraph (a) to redefine a contract to include a revenue generating contract.

Paragraph (b) adds that a contract does not include a contract that has been reported to the LBB under section 7.12 (see below).

Paragraph (c) states that a contract includes an amendment, modification, renewal or extension which increases a contract’s value from a value less than or equal to $50,000 to a value greater than $50,000.

Paragraph (d) changes the deadline agencies must report on these contracts to the LBB from October 1st of each year to before the 30th day after awarding the contract. The paragraph also includes language making the reporting requirement apply to amendments, modifications, renewals, and extensions.

Paragraphs (e), (f), (g), (h), and (i) are new. The LBB may conduct reviews of contracts required to be submitted under this section and valued at $1,000,000 or more. A state agency or institution of higher education shall provide notice of a contract for services for which the expected total value of the contract subsequent to amendment exceeds the total value of the initial contract award by 10 percent or more. These entities must provide notice by the 30th day after the date it exceeds this amount.

Section 7.10 – Reporting Requirement for Deepwater Horizon Oil Spill Funds [+]

This section adds “any funds held in trust” to the list of Deepwater Horizon oil spill funds for a report submitted to the LBB.

Paragraph (c) is new. It states that if an agency has completed its activities related to the Deepwater Horizon spill and has previously reported to the LBB, it may discontinue this reporting.

Section 7.11 – Border Security [+]

This section adds the Office of the Attorney General and the Soil and Water Conservation Board to the list of agencies in paragraph (a) who must report to the LBB under this rider. The paragraph also changes what must be reported from results to indicators of expended amounts and performance, and changes the reporting deadline from Jan 31st to Feb 28th.

Paragraph (c) also changes what must be reported from results to indicators of expended amounts and performance.

Section 7.12 – Notification of Certain Purchases or Contract Awards, Amendments, and Extensions [+]

This section adds paragraph (a) to define “contract” to include : “a contract, grant or agreement, including a revenue generating contract, an interagency or interlocal grant or agreement, purchase order or other written expression of terms of agreement or an amendment, modification, renewal, or extension of such for the purchase or sale of goods or services that was entered into or paid for, either in whole or in part, by a state agency or institution of higher education.” The rest of the rider removes the phrase, or purchase, so that the rider applies only to contracts.

Paragraph (c) changes the date that notice must be sent to the LBB. Currently, notice must be provided at least 10 days before making a payment, while under the new rider it must be provided prior to the date of the first payment, but no later than 30 days after the contract was awarded.

Paragraph (d) adds that the notice to the LBB must include a copy of the contract, all requests for proposals and invitations for bids (and lists some exceptions to this requirement). It states that the agency shall provide a legal justification for the inapplicability of the requirements if the contract award did not comply with this rider.

Paragraph (e) is changed to state that an agency shall provide notice of a contract under this rider without regard to the source of funds, including non-appropriated funds.

Paragraph (f) gives the LBB the option of notifying the comptroller and governor about any agency which does not meet the notification requirements (changes “shall” to “may”).

The original paragraph (f) defining “contract” is deleted.

Paragraph (h) is deleted in the new rider. It stated that this rider does not make an appropriation but provides direction to agencies and places limitation on funds.

Section 7.14 – Emergency Leave Report (New) [+]

This section requires each agency to adopt a policy governing emergency leave for its employees and provides guidelines as to when an employee may be entitled to or granted emergency leave. The agency shall post this policy on its website for its employees and the public to view.

By Oct. 1 of each year, an agency shall report to CPA the name and position of each employee who was granted more than 32 hours of emergency leave during the prior FY, and the total number of hours of emergency leave granted to that employee. The CPA shall adopt a uniform system for use by each agency to report this information. Emergency leave may not be granted unless the administrative head believes in good faith that the employee intends to return to work when the emergency leave expires. See Legislative Changes Affecting Salary Administration (FPP F.021).

Section 7.15 – Document Production Standards (New) [+]

This section states that each state agency shall review their document production protocols and apply best practices to produce documents in the most efficient and cost effective manner possible. Agencies shall report any cost savings in their LAR.

Part 8. Other Appropriation Authority

Section 8.07 – Appropriation of Collections for Seminars and Conferences [+]

This section adds that applicable expenses may include the purchase of food when the registration fee for the seminar or conference contains a mandatory and non-separable cost component based on a cost recovery methodology to pay for food costs.

Section 8.14 – Cost Recovery of Application or Testing Fees [+]

This section adds the words “Application” to the title and text of the rider. It also adds the word “required” so that the rider applies only to a cost recovery fee for an electronic based application or test that is required by the agency.

Part 9. Information Resources Provisions

Section 9.01 – Purchases of Information Resources Technologies [+]

This section adds language that a state agency shall provide to the Quality Assurance Team (QAT) within 10 business days of receipt any verification and validation report, or quality assurance report required to be produced for a major information technology project. A contract for development of a major information technology project with a value expected to exceed $10 million shall not be valid unless agency obtains prior written approval of the contract from the QAT.

Paragraphs (f), (g), (h), and (i) are new. An amendment to a contract for development of a major information technology project with a total value that exceeds $1 million shall not be valid without prior written approval from the QAT. A state agency shall provide to the QAT a copy of the final version of the amendment, including all appendices and attachments, signed by the vendor but not the state agency.

Section 9.02 – Quality Assurance Review of Major Information Resource Projects [+]

An agency must notify the QAT when it advertises a competitive bid for a major information resources project. The rider adds language stating that an agency must notify the QAT within 10 business days when it awards a contract for more than $10 million for QAT review. The QAT may require a project demonstration to determine if a completed project is functioning as intended.

Section 9.03 – Biennial Operating Plan and Information Resources Strategic Plan Approval [+]

This section removes institutions of higher education receiving appropriated funds for the acquisition of information technology from the requirement of having a current Information Resources Strategic Plan and Biennial Operating Plan.

Section 9.04 – Information Technology Replacement [+]

This section adds cybersecurity, telecommunications, and network equipment to the list of purchases that may require coordination with DIR.

Section 9.07 – Payments to the Department of Information Resources [+]

This section deletes the definition in paragraphs (d) and (e) of “two month operating reserve” and adds a definition for “total revenue” for each subsection. It changes the amount of unexpended and unobligated balances in the Telecommunications Revolving Account and the Statewide Technology Account from a two-month reserve to an amount equal to four percent of total revenue. Any excess shall be returned to agencies in the following year, not the current year.

Paragraph (f) is new. It defines “total revenue” for the subsection. It says that in the event unexpended and unobligated balances in the Statewide Network Applications Account exceed four percent of total revenue, the excess amount is transferred to GR no later than May 1 of the following FY.

Section 9.09 – Server Consolidation Status Update [+]

This section changes the reporting requirements from quarterly to semiannually.

Section 9.11 – Surplus Information Technology Hardware (formerly section 9.12)

Section 9.12 – Report of Information Technology (IT) Infrastructure (New) [+]

This section requires Department of Information Resources (DIR) to collect information regarding each state agency’s IT infrastructure. DIR shall then report to various oversite entities a summary of this information with an analysis of the risks and vulnerabilities, and the requirements and costs to address those risks.

Section 9.13 – Cloud Computing Options (New) [+]

This section requires a state agency to consider cloud computing service options when making purchases for a major information resources project. Not later than November 15 of each even-numbered year, DIR shall submit a report to the Governor, Lieutenant Governor, and Speaker of the House of Representatives on the use of cloud computing service options by state agencies.

Part 10. Health-Related Provisions

Section 10.04 – Statewide Behavioral Health Strategic Plan and Coordinated Expenditures [+]

This section details changes to the Statewide Behavioral Health Coordinating Council and the Statewide Behavioral Health Strategic Plan.

Section 10.05 – Funding for Autism Services [+]

This section makes various guidance changes to entities who receive funding for autism services.

Section 10.06 – Analysis of Certain Healthcare Data (New) [+]

This section requires Health and Human Services Commission to develop recommendations and a plan for an integrated health care information system.

Section 10.07 – Cross-agency Collaboration on Value-based Payment Strategies (New) [+]

This section requires Health and Human Services Commission, Employees Retirement System and Teacher Retirement System to collaborate on the development and implementation of potential value-based payment strategies.

Part 11. Provisions Related to Real Property

Section 11.08 – Information for Joint Oversight Committee on Government Facilities (New) [+]

This section requires an agency to notify the Joint Oversight Committee on Government Facilities of any changes the agency needs in office space no later than 30 days after the need is identified by the agency.

Part 12. Provisions Related to Property

Section 12.05 – Vehicle Fleet Maintenance and Repair (New) [+]

This section requires state agencies and institutions of higher education to use the most cost effective means available to maintain and repair state vehicles, including entering into interagency agreements for services with agencies or institutions of higher education who operate vehicle maintenance shops, when feasible.

Part 13. Federal Funds

Section 13.02 – Report of Additional Funding [+]

This section adds the Chair of the House Select Committee on State and Federal Power and Responsibility to the list of entities to which each agency shall report prior to the expenditure of any funds appropriated in excess of $10 million.

Section 13.11 – Definition, Appropriation, Reporting and Audit of Earned Federal Funds [+]

This section removes Comptroller revenue codes 3965 and 3972 in paragraph (a) from the definition of Earned Federal Funds.

Part 16. Legal Representation and Judgments Provisions

Section 16.04 – Judgments and Settlements [+]

This section adds paragraph (b)(4) to limit the payment of a settlement or judgement so a payment may not exceed 1% of the total amount of funds appropriated to an agency, excluding federal funds, for an FY.

Part 17. Miscellaneous Provisions

Section 17.03 – Payroll Contribution for Group Health Insurance (formerly Section 17.04) [+]

Section 17.04 – Veterans Services at Other State Agencies (formerly Section 17.06)

Section 17.05 – Agency Coordination for Youth Prevention and Intervention Services (formerly Section 17.07)

Section 17.06 – Additional Payroll Contribution for Retirement Contribution (formerly Section 17.08)

Section 17.07 – Border Security – Informational Listing (formerly Section 17.09)

Section 17.08 – Use of the Sporting Goods Sales Tax Transfer to the General Revenue-Dedicated State Parks Account No. 64 (formerly Section 18.08)

Section 17.09 – Reporting Requirement for Funds Held Outside the Treasury (New) [+]

This section requires CPA and the LBB to jointly prepare a report on funds held outside the treasury. The report must contain the legal/statutory reason the fund is held outside the treasury; the allowable uses of the fund; a listing of programs for which the fund is expended; the estimated or actual revenues and expended or budgeted amounts; and the estimated or actual balance. Any state agency that receives, expends, or administers funds held outside the treasury shall assist in preparing the above report. The report shall be sent to the Governor, LBB, Senate Finance and House Appropriations committees by the last day in February during a legislative session.

Section 17.10 – Contract Cost Containment (New) [+]

This section provides a listing of appropriation reductions made in General Revenue and General Revenue-Dedicated funds made elsewhere in the GAA. The rider provides strategies to assist agencies and institutions in achieving savings in its management of contracts.

An agency or institution of higher education may not use funds appropriated in the GAA to pay for a contract for goods or services unless it seeks competitive bids before renewing or extending a contract that has been in effect more than three FYs as of August 31, 2017 and is valued at the lesser of $10,000,000 or 10 percent of the agency's All Funds budget for the 2018-19 biennium. The rider provides types of contracts exempt from this provision.

Each agency and institution must also conduct a cost-benefit analysis to compare canceling or continuing any contract related to a major information resource project subject to the QAT that is more than 50 percent over budget or over schedule.

Each agency and institution shall provide a report to the LBB and the Governor that details strategies implemented, savings realized, and any other information required by the LBB. The report for activities undertaken in FY 2018 is due not later than September 30, 2018 and a summary report for the 2018-19 biennium is due August 31, 2019.

Section 17.15 – Information Listing of Program Funding (New) [+]

This section requires the LBB to produce an informational report on SB 1 appropriations that allocates 2018–19 biennial funding to the program level.

Deleted Sections

The sections listed below, referenced by section number as listed in Article IX, House Bill 1, 84th Legislature, Regular Session, have been deleted from Article IX of Senate Bill 1, 85th Legislature, Regular Session.

Page Section Title and Description (SB 1, 83rd Legislature, Regular Session)
IX-48 Section 9.11 Cybersecurity Initiatives

This section required agencies to coordinate with DIR to ensure security standards promulgated by the department were met.

IX-74 Section 17.03 Interagency Contract to Coordinate Use of PARIS Data to Assist Veterans and Achieve Savings for State

This section instructed HHSC, DADS, Veterans Commission, and Veterans Land Board to enter into an interagency contract to coordinate the use and to investigate and analyze the data received from the federal Public Assistance Reporting Information System.

IX-75 Section 17.05 Appropriation for Salary Increases for Certain State Employees in Salary Schedule C

This section contained appropriations for salary increases for certain state employees in salary schedule C.

IX-79 Section 18.02 Appropriation for a Salary Increase for General State Employees

This section provided an appropriation for a salary increase for certain eligible employees.

IX-80 Section 18.03 Centralized Accounting and Payroll/Personnel Systems Deployments

The section appropriated money to CPA to operate and maintain CAPPS and to other agencies to assist with deployment activities.

IX-81 Section 18.04 Additional Benefits for FTE Increases

This section appropriated additional amounts for employee benefits to account for FTE increases.

Note: As in the past, some of the provisions of Article IX have been renumbered. The LBB staff recommendations provide drafter’s notes that could assist in finding those items that were moved but had no substantive changes.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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