82R23499 MCK-F By: Callegari, Cain H.B. No. 3168 Substitute the following for H.B. No. 3168: By: Zedler C.S.H.B. No. 3168 A BILL TO BE ENTITLED AN ACT relating to state personnel and other human resources matters and the disposition of certain state property. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: ARTICLE 1. STATE EMPLOYEE FURLOUGHS AND COMPENSATION SECTION 1.01. Section 658.007, Government Code, is amended by adding Subsection (c) to read as follows: (c) Notwithstanding other law or terms of contract, an institution of higher education may establish a mandatory employee furlough or work reduction program as necessary to increase efficiency, reduce the cost of operations, or otherwise address the financial condition of the institution. While a furlough or work reduction program is in effect, the terms and conditions of the program apply notwithstanding other law. The terms and conditions of the program may address the eligibility of an employee for and contributions for benefits under Chapter 1551 or 1601, Insurance Code, as applicable. SECTION 1.02. Chapter 658, Government Code, is amended by adding Section 658.011 to read as follows: Sec. 658.011. INVOLUNTARY FURLOUGH PROGRAM. (a) In this section, "state agency" means a board, commission, office, department, or other agency in the executive, judicial, or legislative branch of state government. The term does not include an institution of higher education as defined by Section 61.003, Education Code. (b) On approval of the governing body of the state agency, the executive director of a state agency may require an employee of the state agency to participate in an involuntary furlough program without pay in order to balance the state agency's budget. (c) The state agency implementing an involuntary furlough program under this section shall reduce an employee's compensation in an amount equal to the number of hours the employee is furloughed times the employee's hourly rate or equivalent hourly rate as provided by Section 659.085. (d) Except as provided by Subsection (g), a state employee may not use vacation, sick, or any other paid leave while the employee is on an unpaid furlough. (e) An unpaid furlough under this section does not constitute a break in service for the state employee. (f) A state employee who is on unpaid furlough continues to accrue: (1) state service credit for purposes of longevity pay; (2) vacation leave; and (3) sick leave. (g) A state employee on an unpaid furlough that exceeds one month in length may continue to accrue service credit with the Employees Retirement System of Texas or Teacher Retirement System of Texas by receiving state pay during each month of the unpaid furlough in an amount equal to the employee's contribution to the retirement system under Section 815.402 or 825.403, as appropriate. The employee may use any combination of paid leave, including state compensatory leave, overtime leave under the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), sick leave, or annual leave to qualify for the state pay. SECTION 1.03. Section 659.043, Government Code, is amended by adding Subsection (c) to read as follows: (c) Notwithstanding Subsections (a)(1) and (2), an employee participating in an involuntary furlough program under Section 658.011 who is otherwise eligible for longevity pay is entitled to longevity pay. SECTION 1.04. Subchapter K, Chapter 659, Government Code, is amended by adding Section 659.264 to read as follows: Sec. 659.264. CERTAIN SALARY REDUCTIONS AT INSTITUTIONS OF HIGHER EDUCATION. Notwithstanding other law or terms of contract, subject solely to procedures and rules adopted by the governing board, an institution of higher education may establish a program of temporary or permanent salary reductions as necessary to reduce the cost of operations or otherwise address the financial condition of the institution. SECTION 1.05. Section 811.001(7), Government Code, is amended to read as follows: (7) "Compensation" means the base salary of a person; amounts that would otherwise qualify as compensation but are not received directly by a person pursuant to a good faith, voluntary, written salary reduction agreement in order to finance payments to a deferred compensation or tax sheltered annuity program specifically authorized by state law or to finance benefit options under a cafeteria plan qualifying under Section 125 of the Internal Revenue Code of 1986 (26 U.S.C. Section 125); longevity and hazardous duty pay; nonmonetary compensation, the value of which is determined by the retirement system; amounts by which a person's salary is reduced under a salary reduction agreement authorized by Chapter 610; amounts by which a person's salary is reduced under an involuntary furlough program under Section 658.011; and the benefit replacement pay a person earns under Subchapter H, Chapter 659, [as added by Chapter 417, Acts of the 74th Legislature, 1995,] except for the benefit replacement pay a person earns as a result of a payment made under Subchapter B, C, or D, Chapter 661. The term excludes overtime pay and a cleaning or clothing allowance. SECTION 1.06. Subchapter C, Chapter 1551, Insurance Code, is amended by adding Section 1551.1015 to read as follows: Sec. 1551.1015. INVOLUNTARY FURLOUGH PROGRAM. An individual is eligible to participate in the group benefits program if the individual would otherwise be eligible to participate in the program under this subchapter except that the individual is not receiving compensation for service because the individual is participating in an involuntary furlough program under Section 658.011, Government Code. SECTION 1.07. Section 1551.319, Insurance Code, is amended by adding Subsection (g) to read as follows: (g) For purposes of determining whether an individual is a full-time or part-time employee under this section, any reduction in the employee's hours that results from the employee's participation in an involuntary furlough program under Section 658.011, Government Code, may not be considered. SECTION 1.08. Subchapter G, Chapter 1551, Insurance Code, is amended by adding Section 1551.325 to read as follows: Sec. 1551.325. CONTRIBUTIONS AND PAYMENTS FROM CERTAIN EMPLOYEES. (a) An employee participating in an involuntary furlough program under Section 658.011, Government Code, for a period of a month or more shall make the contributions required for the coverage selected by the employee, including any amount of a salary reduction agreement under a cafeteria plan, as required by the trustee. (b) The employee is entitled to receive compensation for any combination of paid leave, including state compensatory leave, overtime leave under the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), sick leave, or annual leave, to the extent necessary to make the required contribution. ARTICLE 2. STATE PERSONNEL AND OTHER STATE HUMAN RESOURCES MATTERS SECTION 2.01. Section 670.002, Government Code, is amended to read as follows: Sec. 670.002. HUMAN RESOURCES STAFFING FOR LARGE STATE AGENCIES. A state agency with 500 or more full-time equivalent employees shall adjust the agency's human resources staff to achieve a human resources employee-to-staff ratio of not more than one human resources employee for every 100 [85] staff members. SECTION 2.02. Section 670.003, Government Code, is amended to read as follows: Sec. 670.003. HUMAN RESOURCES STAFFING FOR [MEDIUM-SIZED AND] SMALL STATE AGENCIES; OUTSOURCING. [(a)] The State Council on Competitive Government shall: (1) perform a review to determine the cost-effectiveness of consolidating the human resources functions of or contracting with private entities to perform the human resources functions of all state agencies that employ 100 or fewer [than 500] full-time equivalent employees; (2) implement the findings of the review, including contracting for human resources functions on behalf of small state agencies, as necessary; and (3) review the human resources functions of small state agencies at least once every five years or as determined necessary based on the terms of a contract entered into to implement this section. [(b) If the council determines that contracting with private entities is cost-effective, the council shall issue a request for proposals for vendors to perform the human resources functions of the agencies. [(c) The council shall determine which human resources functions are subject to the contract and which functions the agency may select to perform itself. [(d) Each agency shall pay for the contracts for human resources functions out of the agency's human resources budget.] SECTION 2.03. Chapter 670, Government Code, is amended by adding Section 670.004 to read as follows: Sec. 670.004. HUMAN RESOURCES STAFFING FOR MEDIUM-SIZED STATE AGENCIES; OUTSOURCING. (a) A state agency with fewer than 500 full-time equivalent employees but more than 100 full-time equivalent employees shall: (1) adjust the agency's human resources staff to achieve a human resources employee-to-staff ratio of not more than one human resources employee for every 100 staff members; or (2) request the State Council on Competitive Government to perform a review to determine the cost-effectiveness of consolidating the human resources functions of, or contracting with private entities to perform the human resources functions of, the agency. (b) If, based on the review performed under Subsection (a)(2), the State Council on Competitive Government determines that the agency should contract with a private entity to perform the human resources functions, the agency shall work with the State Council on Competitive Government to contract for performance of the agency's human resources functions. ARTICLE 3. SURPLUS AND SALVAGE PROPERTY SECTION 3.01. Section 2175.002, Government Code, is amended to read as follows: Sec. 2175.002. ADMINISTRATION OF CHAPTER. The commission shall dispose of surplus and salvage property. The commission's surplus and salvage property division shall administer this chapter. SECTION 3.02. Section 2175.065, Government Code, is amended by amending Subsection (a) and adding Subsections (c) and (d) to read as follows: (a) The commission may authorize a state agency to dispose of surplus or salvage property if the agency demonstrates to the commission its ability to dispose of the property under this chapter [Subchapters C and E] in a manner that results in cost savings to the state, under commission rules adopted under this chapter. (c) If a state agency disposes of property under this section, the agency shall report the disposal to the commission. The report must include: (1) a description of the disposed property; (2) the reasons for the disposal; (3) if the property is sold, the price for the disposed property; and (4) the recipient of the disposed property. (d) If the commission determines that a state agency violated a law or rule, the commission shall report the violation to the Legislative Budget Board. SECTION 3.03. The heading to Subchapter D, Chapter 2175, Government Code, is amended to read as follows: SUBCHAPTER D. DISPOSITION OF SURPLUS OR SALVAGE PROPERTY [BY COMMISSION] SECTION 3.04. Section 2175.181, Government Code, is amended to read as follows: Sec. 2175.181. APPLICABILITY. [(a) This subchapter applies only to surplus and salvage property located in: [(1) Travis County; [(2) a county in which federal surplus property is warehoused by the commission under Subchapter G; or [(3) a county for which the commission determines that it is cost-effective to follow the procedures created under this subchapter and informs affected state agencies of that determination. [(b)] This subchapter applies [does not apply] to a state agency delegated the authority to dispose of surplus or salvage property under Section 2175.065. SECTION 3.05. Section 2175.182, Government Code, is amended to read as follows: Sec. 2175.182. STATE AGENCY NOTICE TO COMMISSION AND TRANSFER OF PROPERTY [TO COMMISSION]. (a) A state agency that determines it has [The commission is responsible for the disposal of] surplus or salvage property shall notify the commission about the property to determine the method of disposal [under this subchapter]. The commission may take physical possession of the property. (b) Based on the condition of the property, the commission, in conjunction with the state agency, shall determine whether the property is: (1) surplus property that should be offered for transfer under Section 2175.184 or sold to the public; or (2) salvage property. (c) After the commission makes the determination under Subsection (b), the [The] commission shall direct the state agency to inform the comptroller's office of the property's kind, number, location, condition, original cost or value, and date of acquisition. SECTION 3.06. Section 2175.1825, Government Code, is amended to read as follows: Sec. 2175.1825. ADVERTISING ON COMPTROLLER WEBSITE; COMMISSION ACCESS. (a) Not later than the second day after the date the comptroller receives notice from a state agency [the commission] under Section 2175.182(c), the comptroller shall advertise the property's kind, number, location, and condition on the comptroller's website. (b) The comptroller shall provide the commission access to all records in the state property accounting system related to surplus and salvage property. SECTION 3.07. Section 2175.183, Government Code, is amended to read as follows: Sec. 2175.183. COMMISSION NOTICE TO OTHER ENTITIES. The [On taking responsibility for surplus property under this subchapter, the] commission shall inform other state agencies, political subdivisions, and assistance organizations of the comptroller's website that lists surplus property that is available for sale. SECTION 3.08. Section 2175.184, Government Code, is amended to read as follows: Sec. 2175.184. DIRECT TRANSFER. During the 10 business days after the date the property is posted on the comptroller's website, a state agency, political subdivision, or assistance organization shall [may] coordinate with the commission for a transfer of the property at a price established by the commission [in cooperation with the transferring agency]. A transfer to a state agency has priority over any other transfer during this period. SECTION 3.09. Section 2175.186(a), Government Code, is amended to read as follows: (a) If a disposition of a state agency's surplus property is not made under Section 2175.184, the commission shall sell the property by competitive bid, auction, or direct sale to the public, including a sale using an Internet auction site. The commission may contract with a private vendor to assist with disposition. SECTION 3.10. Section 2175.189, Government Code, is amended to read as follows: Sec. 2175.189. ADVERTISEMENT OF SALE. If the value of an item or a lot of property to be sold is estimated to be more than $25,000 [$5,000], the commission shall advertise the sale at least once in at least one newspaper of general circulation in the vicinity in which the property is located. SECTION 3.11. Section 2175.191(a), Government Code, is amended to read as follows: (a) Proceeds from the sale of surplus or salvage property, less the cost of advertising the sale, the cost of selling the surplus or salvage property, including the cost of auctioneer services or assistance from a private vendor, and the amount of the fee collected under Section 2175.188, shall be deposited to the credit of the general revenue fund of the state treasury. SECTION 3.12. Section 2175.302, Government Code, is amended to read as follows: Sec. 2175.302. EXCEPTION FOR ELEEMOSYNARY INSTITUTIONS. Except as provided by Section 2175.905 [2175.128(b)], this chapter does not apply to the disposition of surplus or salvage property by a state eleemosynary institution. SECTION 3.13. Section 2175.904, Government Code, is amended by amending Subsections (a) and (c) and adding Subsection (d) to read as follows: (a) The commission shall establish a program for the sale of gambling equipment received from a city, from a commissioners court under Section 263.152(a)(5), Local Government Code, or from a state agency under this chapter. (c) Proceeds from the sale of gambling equipment, less the costs of the sale, including costs of advertising, storage, shipping, and auctioneer or broker services, and the amount of the fee collected under Section 2175.188 [2175.131], shall be divided according to an agreement between the commission and the city or the commissioners court that provided the equipment for sale. The agreement must provide that: (1) not less than 50 percent of the net proceeds be remitted to the city or the commissioners court; and (2) the remainder of the net proceeds retained by the commission be deposited to the credit of the general revenue fund. (d) Proceeds from the sale of gambling equipment received from a state agency, less the costs of the sale, including costs of advertising, storage, shipping, and auctioneer or broker services, and the amount of the fee collected under Section 2175.188, shall be deposited to the credit of the general revenue fund of the state treasury in accordance with state law. SECTION 3.14. Subchapter Z, Chapter 2175, Government Code, is amended by adding Sections 2175.905 and 2175.906 to read as follows: Sec. 2175.905. DISPOSITION OF DATA PROCESSING EQUIPMENT. (a) If a disposition of a state agency's surplus or salvage data processing equipment is not made under Section 2175.184, the state agency shall transfer the equipment to: (1) a school district or open-enrollment charter school in this state under Subchapter C, Chapter 32, Education Code; (2) an assistance organization specified by the school district; or (3) the Texas Department of Criminal Justice. (b) If a disposition of the surplus or salvage data processing equipment of a state eleemosynary institution or an institution or agency of higher education is not made under other law, the institution or agency shall transfer the equipment to: (1) a school district or open-enrollment charter school in this state under Subchapter C, Chapter 32, Education Code; (2) an assistance organization specified by the school district; or (3) the Texas Department of Criminal Justice. (c) The state eleemosynary institution or institution or agency of higher education or other state agency may not collect a fee or other reimbursement from the district, the school, the assistance organization, or the Texas Department of Criminal Justice for the surplus or salvage data processing equipment transferred under this section. Sec. 2175.906. ABOLISHED ENTITIES. The commission shall take custody, as surplus property, of the property and other assets of a state agency or advisory committee abolished in accordance with Chapter 325 unless the legislature designates another appropriate governmental entity to take custody of the property and assets. SECTION 3.15. Section 32.102(a), Education Code, is amended to read as follows: (a) As provided by this subchapter, a school district or open-enrollment charter school may transfer to a student enrolled in the district or school: (1) any data processing equipment donated to the district or school, including equipment donated by: (A) a private donor; or (B) a state eleemosynary institution or a state agency under Section 2175.905 [2175.128], Government Code; (2) any equipment purchased by the district or school, to the extent consistent with Section 32.105; and (3) any surplus or salvage equipment owned by the district or school. SECTION 3.16. Section 325.017(e), Government Code, is amended to read as follows: (e) Unless the governor designates an appropriate state agency as prescribed by Subsection (f), [property and] records in the custody of an abolished state agency or advisory committee on September 1 of the even-numbered year after abolishment shall be transferred to the comptroller. If the governor designates an appropriate state agency, the [property and] records shall be transferred to the designated state agency. SECTION 3.17. Section 201.001(a), Insurance Code, is amended to read as follows: (a) The Texas Department of Insurance operating account is an account in the general revenue fund. The account includes the following: (1) taxes and fees received by the commissioner or comptroller that are required by this code to be deposited to the credit of the account; and (2) money or credits received by the department or commissioner from sales, reimbursements, and fees authorized by law other than this code, including money or credits received from: (A) charges for providing copies of public information under Chapter 552, Government Code; (B) the disposition of surplus or salvage property under [Subchapters C and D,] Chapter 2175, Government Code; (C) the sale of publications and other printed material under Section 2052.301, Government Code; (D) miscellaneous transactions and sources under Section 403.011 or 403.012, Government Code; (E) charges for postage spent to serve legal process under Section 17.025, Civil Practice and Remedies Code; (F) the comptroller involving warrants for which payment is barred under Chapter 404, Government Code; (G) sales or reimbursements authorized by the General Appropriations Act; and (H) the sale of property purchased with money from the account or a predecessor fund or account. SECTION 3.18. Subchapter C, Chapter 2175, Government Code, is repealed. ARTICLE 4. EFFECTIVE DATE SECTION 4.01. This Act takes effect September 1, 2011.