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

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).

This section adds separate schedules for appropriation year (AY) 2024 and AY 2025 to account for the salary increase authorized under Section 17.16 (Appropriation for a Salary Increase for General State Employees).

Paragraph (c) adds the chief administrative officer of a state agency to the list of entities that may request to set the rate of compensation provided for an agency's respective exempt position(s).

This section sets the state salary schedules for classified positions for a council of government.

This section directs the SAO to assign appropriate Schedule C salary classifications for new park police positions.

The section removes council of governments and a further clarification of a “state agency” from the definitions.

Paragraph (l) is new. If the Comptroller determines employee benefit amounts are disproportionally paid from General Revenue Fund (GR) appropriations, on notification to the SAO, the Comptroller will reimburse GR appropriations of the agency or institution from other methods of finance of the agency or institution.

Paragraph (a) adds “institutions” to the entities that will not expend appropriated funds after November 20 following the close of the fiscal year (FY) unless an annual financial report (AFR) has been filed.

Paragraph (b) adds that a “contract” does not include a contract paid for exclusively using federal grant monies if all parties to the contract and the terms of the contract have been determined by the federal government.

Paragraphs (g) and (h) are new. These paragraphs add clarifying language for the Legislative Budget Board (LBB) to follow for contracts that are found in violation of this section.

This section clarifies when HUB reporting from each agency and institution is due.

Paragraph (a) provides a new informational listing of the estimated amounts appropriated for border security for several agencies. Paragraph (b) changes the definition of what is considered a “border security activity.” Paragraphs (c) and (d) provide additional reporting requirements for expended amounts and performance indicator results for border security.

Paragraph (e) adds that except for a contract paid for exclusively using federal grant monies if all parties to the contract and the terms of the contract have been determined by the federal government, a state agency or institution of higher education receiving an appropriation under the GAA will provide notice of a contract pursuant to this section.

This section adds reporting requirements for the Comptroller to follow when it receives funds from opioid-related litigation and for other state agencies/institutions to follow that receive funds from the opioid abatement account or trust fund.

This language comes from the 87th GAA, Article IX, Section 17.12.

This section requires a state agency or institution of higher education to report on any activities in collaboration with, directed by or financed by the World Health Organization to the Health and Human Services Commission by the end of each fiscal year.

Paragraph (b) is new. This language comes from the 87th GAA, Article IX, Section 8.16.

This section consolidates definitions applicable to the rest of the section.

Paragraph (b) changes the language from “equal to or greater than $10 million” to “exceeds $10 million.”

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

Paragraph (d) further defines what qualifies as a “major information resources project,” including changing the qualifying threshold to projects estimated to exceed $5 million.

Paragraph (h) states that the “health and human services agency” referenced in the section includes the Health and Human Services Commission and the agencies named under Government Code, Section 531.001.

Paragraph (g) is new. It defines “aircraft” to have a meaning consistent with the rules adopted by the Comptroller.

This section requires that all agencies participate in the Master Lease Purchase Program (MLPP) to the extent that the MLPP would be the most cost-effective type of financing when using a lease purchase method to acquire capital assets.

This section removes the language that specifically excluded from appropriation funds received from the American Rescue Plan Act of 2021 (public law 117-2) for the Coronavirus State Fiscal Recovery Fund except for funds appropriated through Section 603, Coronavirus Local Fiscal Recovery Fund of the same act, Coronavirus Capital Projects Fund, and any federal funds made available under the American Jobs Act or similar federal legislation enacted after the 87th Legislature, Regular Session, adjourned.

This section changes the language from “greater than or equal to $1 billion” to “greater than $1 billion.”

Paragraph (a) adds “in deference to Section 14.04” (Disaster Related Transfer Authority) to when an appropriation contained in this act may be transferred from one appropriation item to another.

Paragraph (c) adds “transfers made under Section 14.04” to situations that the restrictions in this section do not apply to.

Paragraph (d) changes the definition of a “capital budget” to expenditures for assets with a biennial project cost or unit cost over $500,000. Three new categories are included: data center/shared technology services; the Centralized Accounting and Payroll/Personnel System (CAPPS) statewide enterprise resource planning (ERP) system; and cybersecurity projects.

Paragraph (h) adds “in deference to Section 14.04” to the list of ways an agency may transfer capital budget items.

Paragraphs (h) and (l) add “shared technology services” to the definition of services provided by the Department of Information Resources (DIR) in accordance with Government Code, Chapter 2054.

Paragraphs (b) and (c) add “capital budget items” as an appropriation category state agencies may transfer between.

This section provides an appropriation and guidance for a salary increase for state agency employees in AY 2024 and AY 2025. See Appropriations for the Salary Increase Allocation for Certain State Positions (FPP A.009).

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.

Author: Huffman et al.

Effective Date: June 14, 2023

This bill provides an increase in the monthly annuity for most categories of Teacher Retirement System (TRS) members in payment status who retired on or before Aug. 31, 2020. This monthly increase takes effect only if HJR 2 is approved by the voters. The amount of the increase is:

• 2 percent of the annuitant’s monthly benefit if the member retired after Aug. 31, 2013, but on or before Aug. 31, 2020.
• 4 percent of the annuitant’s monthly benefit if the member retired after Aug. 31, 2001, but on or before Aug. 31, 2013.
  – or –
• 6 percent of the annuitant’s monthly benefit if the member retired on or before Aug. 31, 2001.

The bill also provides a one-time payment, no later than September 2023, to most categories of members in payment status who are 70 or older by the month before the payment is made. TRS is required to make the one-time payment only if the TRS board of trustees finds that the Legislature appropriated enough money to the retirement system to provide the payment. The amount of the one-time payment is:

• $7,500 if the annuitant is 75 or older by the month before the month when the one-time payment is made.
  – or –
• $2,400 if the annuitant is 70 but younger than 75 by the month before the month when the one-time payment is made.

Author: Huffman

Effective Date: June 9, 2023

This bill makes supplemental appropriation increases and reductions for various state agencies. See Processing Supplemental Appropriations and Reductions (FPP A.047)

Author: Nichols

Effective Date: Sept. 1, 2023

This bill provides a state agency employee with 40 days of paid leave during the employee’s period of Family and Medical Leave Act (FMLA) leave following the birth of a child, the birth of a child by gestational surrogacy, or the adoption of a child. The bill also entitles a state agency employee to 20 days of paid leave during the employee’s period of FMLA leave following the birth of a child by the employee’s spouse.

Author: Johnson

Effective Date: Sept. 1, 2023

This bill expands the definition of a “security incident” that state agencies and institutions of higher education must report to DIR to include a cyberattack that does not involve a data breach.

Author: Parker

Effective Date: Sept. 1, 2023

This bill requires the executive director of DIR to employ a chief information security officer. The chief information security officer will:

• Direct the response to certain reports of cybersecurity breaches or suspected breaches.
• Oversee development and implementation of a statewide information security framework and statewide policies and standards.
• Guide collaboration with state agencies to strengthen cybersecurity and information security.
• Provide leadership, strategic direction and coordination for the state information security program
  – and –
• Direct the preparation and submission of the statutorily required annual cybersecurity report to certain elected state officials.

Author: Huffman

Effective Date: May 19, 2023

This bill makes technical changes to the cash balance benefit structure created for members of ERS hired on or after Sept. 1, 2022. These changes do not amend the current benefit structure.

Author: Nichols

Effective Date: Sept. 1, 2023

This bill requires the Sunset Advisory Commission to determine whether a state agency sells personal data, who it sells the data to, for what purpose, the dollar amount the agency receives for the sale, and the statute that authorizes the agency to sell the data. The commission will recommend prohibiting the practice unless it identifies a compelling state interest to justify the sale.

Author: Parker

Effective Date: Sept. 1, 2023

This bill amends current law relating to an employment preference for members of the military and their spouses for positions at state agencies and institutions of higher education.

Author: Huffman

Effective Date: May 19, 2023

This bill repeals the statute that allowed members of ERS to retire without separating from a position if the member was 60 or older and had reached the maximum annuity permitted.

Author: Schwertner

Effective Date: June 18, 2023

This bill amends the general laws relating to the timing of the sunset review process for numerous state agencies and government entities.

Author: Birdwell

Effective Date: June 14, 2023

This bill prohibits the use of certain social media applications and services on devices owned or leased by government entities including state agencies and institutions of higher education. DIR and the Department of Public Safety will jointly develop a model policy for government entities to use in restricting the use or installation of these applications.