By: Flynn, et al. (Senate Sponsor - Zaffirini) H.B. No. 12
(In the Senate - Received from the House May 10, 2013;
May 10, 2013, read first time and referred to Committee on
Government Organization; May 20, 2013, reported adversely, with
favorable Committee Substitute by the following vote:
Yeas 5, Nays 0; May 20, 2013, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 12 By: Zaffirini
A BILL TO BE ENTITLED
AN ACT
relating to gifts and other consideration made to state agencies
for state employee salary supplement or other purposes, and to
publication by state agencies of staff compensation and related
information.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 659, Government Code, is
amended by adding Sections 659.0201, 659.0202, and 659.026 to read
as follows:
Sec. 659.0201. GIFTS, GRANTS, AND DONATIONS FOR SALARY
SUPPLEMENT; REPORTING. (a) In this section, "state agency"
means a board, commission, department, institute, office, or
other agency in the executive branch of state government that is
created by the constitution or a statute of this state, not
including an institution of higher education as defined by Section
61.003, Education Code.
(b) The state agency shall post on the agency's Internet
website in accordance with the schedule and in the manner required
by the state auditor:
(1) the amount of each gift, grant, donation, or other
consideration provided by any person to be used as a salary
supplement for an employee of the agency; and
(2) the methodology, including any employment market
analysis, the person described by Subsection (b) used to determine
the amount the person provided for the salary supplement.
(c) The state agency by rule shall adopt conflict of
interest provisions regarding the acceptance by the agency of a
gift, grant, donation, or other consideration to be used as a salary
supplement for an employee of the agency. The agency shall post the
conflict of interest provisions on the agency's Internet website.
(d) If the person making a gift, grant, or donation or
providing other consideration to the state agency is an entity
created solely to provide support for the state agency, the entity
shall report to the agency:
(1) the name of each person who makes gifts, grants, or
donations, or provides other consideration to the entity, in an
amount or having a value that exceeds $10,000; and
(2) the amount or value of each specific gift, grant,
donation, or other consideration.
(e) The state auditor shall adopt a schedule and format for
reporting information required by this section.
(f) Each state agency receiving a gift, grant, donation, or
other consideration from a person to be used as a salary supplement
shall report the following information to the state auditor in the
form determined by the state auditor:
(1) whether the person making the gift, grant, or
donation or providing other consideration to the state agency is an
individual or an entity;
(2) if the person is an entity, the type of entity;
(3) if the entity is a nonprofit entity or
organization, whether the entity is classified as a supporting
organization by the Internal Revenue Service;
(4) if the entity is classified as a supporting
organization by the Internal Revenue Service, the type of
supporting organization, the name of the supported organization,
and any other information relating to that classification;
(5) any internal or external oversight procedures the
state agency has established to monitor the use of any gift, grant,
donation, or other consideration the agency receives; and
(6) how the state agency uses gifts, grants,
donations, and other consideration the agency receives, including
whether they are used to provide salary supplements for agency
employees.
(g) The state auditor shall compile the information
received under Subsection (f) into a report and submit the report to
the legislature.
Sec. 659.0202. GIFTS, GRANTS, AND DONATIONS TO INSTITUTIONS
OF HIGHER EDUCATION FOR SALARY SUPPLEMENT. (a) In this section:
(1) "Institution of higher education" has the meaning
assigned by Section 61.003, Education Code.
(2) "Gift" includes a gift, grant, donation, or other
consideration.
(b) An institution of higher education may not accept a
gift, including a gift for the support of a professorship, chair, or
similar position, if the terms of the gift require that it be used
to support the salary of a named individual.
(c) An employee of an institution of higher education may
not accept any payment made directly to the employee that is:
(A) compensation for the performance of the
employee's duties on behalf of institution; and
(B) not accounted for by the institution or
otherwise subject to oversight by the institution.
Sec. 659.026. INFORMATION REGARDING STAFF COMPENSATION.
(a) In this section:
(1) "Compensation" includes an emolument provided in
lieu of base salary or wages or a supplement to base salary or
wages.
(2) "Executive staff" means:
(A) the director, executive director,
commissioner, administrator, or other individual who is appointed
by the governing body of a state agency or by another state officer
to act as the chief executive or administrative head of the agency
and who is not an appointed officer; and
(B) other management or senior level staff
members of a state agency who directly report to the individual
listed in Subdivision (2)(A).
(3) "State agency" means a board, commission,
department, institute, office, or other agency in the executive
branch of state government that is created by the constitution or a
statute of this state, including an institution of higher education
as defined by Section 61.003, Education Code.
(b) A state agency shall make available to the public by
posting on the agency's Internet website:
(1) the number of full-time equivalent employees
employed by the agency;
(2) the amount of legislative appropriations to the
agency for each fiscal year of the current state fiscal biennium;
(3) the agency's methodology, including any employment
market analysis, for determining the compensation of executive
staff employed by the agency, along with the name of the person and
the person's position who selected the methodology;
(4) whether executive staff are eligible for a salary
supplement;
(5) the market average for compensation of similar
executive staff in the private and public sectors;
(6) the average compensation paid to employees
employed by the agency who are not executive staff; and
(7) the percentage increase in compensation of
executive staff for each fiscal year of the five preceding fiscal
years and the percentage increase in legislative appropriations to
the agency each fiscal year of the five preceding fiscal years.
SECTION 2. Section 659.0202, Government Code, as added by
this Act, applies only to gifts accepted on or after the effective
date of this Act.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.
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