Professional Documents
Culture Documents
Policies and
Procedures
Guide
July 2004
This manual contains an introduction, index, and ten chapters named as follows:
• Chapter 1 – General Provisions
• Chapter 2 – Restricted Expenditures
• Chapter 3 – Expenditures Relating to State Officers and Employees
• Chapter 4 – Expenditures Relating to Legal Proceedings
• Chapter 5 – Expenditures Under Particular Contracts
• Chapter 6 – Miscellaneous Expenditures or Requirements
• Chapter 7 – Provisions Relating Only to Institutions or
Agencies of Higher Education
• Chapter 8 – Fiscal Matters
• Chapter 9 – Reference Information
• Chapter 10 – Comptroller Object Codes
The Comptroller of Public Accounts is an equal opportunity employer and does not discriminate
on the basis of race, color, religion, sex, national origin, age, or disability in employment or in the
provision of any services, programs, or activities.
In compliance with the Americans with Disabilities Act, this document may be requested in
alternative formats by calling 512-463-4850 in Austin, or by fax at 512-475-0378.
From a Telecommunications Device for the Deaf (TDD) call toll free at 1-800-248-4099, or call via
1-800-RELAY-TX. In Austin, the local TDD number is 512-463-4621.
Questions, comments, and requests for extra copies should be submitted in writing to Fiscal
Management, Information Support, 111 East 17th Street, Austin, Texas 78774-0100; fax number
512-475-0378.
Ken Welch
Director of Fiscal Management
Table of Contents
Introduction ............................................................................................................................... 1
B. Statutory prohibition.................................................................................................15
A. General discussion...................................................................................................20
suspicion....................................................................................................................21
A. General discussion...................................................................................................27
B. Department of Agriculture......................................................................................28
A. Definitions .................................................................................................................28
A. General discussion...................................................................................................33
settlements ................................................................................................................35
D. Settlements of causes of action arising under the Texas Tort Claims Act........36
A. Definitions .................................................................................................................37
A. Prohibition .................................................................................................................44
A. Indoor plants.............................................................................................................44
B. Xeriscaping ...............................................................................................................45
§�2.050 Publications.....................................................................................................................47
themselves .................................................................................................................51
prepare.............................................................................................................................52
A. General discussion...................................................................................................53
A. Fees and surcharge imposed under Chapter 771, Health and Safety Code ......54
B. Fees imposed under Chapter 772, Health and Safety Code .................................55
A. Constitutionality .......................................................................................................62
B. Statutory authority....................................................................................................63
A. Definitions .................................................................................................................64
State of Texas Purchase Policies and Procedures Guide July 2004 iii
§�3.012 Funeral expenses ...........................................................................................................65
A. General discussion...................................................................................................68
A. Definitions .................................................................................................................69
B. General discussion...................................................................................................69
A. General discussion...................................................................................................73
A. General discussion...................................................................................................75
D. Aircraft pilots............................................................................................................76
A. General discussion...................................................................................................81
A. Definitions ...............................................................................................................119
D. Selection of consultants..........................................................................................122
contract ....................................................................................................................124
J. Dividing contracts...................................................................................................127
L. Archives...................................................................................................................127
O. Mixed contracts.......................................................................................................128
P. Competitive bidding................................................................................................128
R. Consequences of non-compliance.........................................................................128
A. General discussion.................................................................................................139
B. Reimbursements ....................................................................................................145
A. Definitions ...............................................................................................................148
A. Definitions ...............................................................................................................149
§�5.030 State officers and employees, contracting under Chapter 572, Government
A. Definitions ...............................................................................................................150
B. Prohibition ...............................................................................................................152
A. Definitions ...............................................................................................................155
A. Definitions ...............................................................................................................160
defaults.....................................................................................................................162
State of Texas Purchase Policies and Procedures Guide July 2004 vii
§�6.006 Bank fees and charges .................................................................................................166
§�6.018 Economically depressed or blighted areas, preference for goods and services
from 170
§�6.024 Entertainment...............................................................................................................175
A. General discussion.................................................................................................175
A. General discussion.................................................................................................180
State of Texas Purchase Policies and Procedures Guide July 2004 viii
§�6.042 Insurance ......................................................................................................................183
G. Volunteers ...............................................................................................................203
§�6.050 Investments...................................................................................................................211
A. General discussion.................................................................................................211
A. Constitutional requirements.................................................................................216
B. Statutory requirements..........................................................................................217
A. Definitions ...............................................................................................................219
C. General Requirements...........................................................................................219
River .........................................................................................................................220
A. Definitions ...............................................................................................................221
A. Definitions.................................................................................................................226
B. Payment deadline for contracts executed after June 30, 1986, but before
G. Exemptions..............................................................................................................230
H. Waiver ......................................................................................................................230
Commission ............................................................................................................232
E. Leasing space for state agencies and institutions of higher education ...........233
§�6.084 Refunds..........................................................................................................................238
A. General discussion.................................................................................................239
agencies .........................................................................................................................244
A. Taxes and fees assessed by the United States, another state, or this state......246
D. Taxes imposed under the Limited Sales, Excise, and Use Tax Act .................247
E. Taxes imposed under the Municipal Sales and Use Tax Act ...........................248
F. Taxes imposed under the County Sales and Use Tax Act .................................248
H. Sales and use taxes imposed for landfills and criminal detention centers.....248
K. Sales and use taxes imposed on the sale, use, or rental of a motor vehicle ....249
M. Sales and use taxes imposed emergency services districts under Chapter
S. Sales and use taxes imposed by certain county development districts ............251
Y . Sales and use taxes levied under the Development Corporation Act of 1979...253
§�6.098 Telecommunications....................................................................................................253
A. Definitions ...............................................................................................................253
B. Telecommunications services...............................................................................253
A. Definitions ...............................................................................................................255
A. Definitions ...............................................................................................................266
B. Introduction ............................................................................................................267
documents ...............................................................................................................268
H. Who may designate individuals to approve payment and USPS documents ..270
documents ...............................................................................................................274
State of Texas Purchase Policies and Procedures Guide July 2004 xii
M. Signature card requirements................................................................................278
P. How electronic approvals of payment and USPS documents are provided .....279
§�7.020 Museums.......................................................................................................................288
§�7.024 Scholarships..................................................................................................................288
State of Texas Purchase Policies and Procedures Guide July 2004 xiii
Chapter 8 – Fiscal Matters ............................................................................................292
§�8.004 Appropriations..............................................................................................................293
C. Appropriations........................................................................................................293
A. General discussion.................................................................................................295
State of Texas Purchase Policies and Procedures Guide July 2004 xiv
Introduction
The Claims Division of the Texas Comptroller of Public Accounts pays the bills of most
state agencies by issuing warrants or initiating electronic funds transfers. State law
authorizes the division to pay the bill of a state agency only after the division has
The Claims Division audits purchase vouchers for compliance with certain provisions of
the constitutions, statutes, and rules of Texas and the United States. The State of Texas
Purchase Policies and Procedures Guide’s brief discussion of those provisions should
Of course, the guide discusses only a small minority of the legal issues that a state
agency will encounter during its operations. The vast majority of them are outside the
guide’s scope.
With certain exceptions, the guide discusses Texas statutory law as it existed on
January 1, 2004. The guide discusses federal statutory law as it existed on December
19, 2003.1. The guide discusses federal regulations as they existed on January 21,
2004.2. The guide discusses Texas administrative rules that are in effect on July 31,
2003. The guide covers judicial decisions that were issued through November 15, 2003.
The guide covers attorney general opinions that were issued through January 26, 2004.
Whenever the guide says that the information presented applies only to an event that
occurs after a specified date, the guide is not necessarily implying that the law
governing events on or before that date is different. A state agency should consult the
The guide contains many citations to statutes, administrative rules, judicial decisions,
and attorney general opinions. The cited authorities should be consulted for more
The guide does not unilaterally resolve ambiguities in the law because state agencies need
to be aware of them when planning their purchases and payments. If a legal ambiguity has
not been eliminated through attorney general or judicial decision, the ambiguity is reflected
in the guide. If a legal ambiguity has been reduced or eliminated through attorney general
or judicial decision, that decision is discussed or cited in the guide.
The guide represents merely the Claims Division’s opinion and does not constitute
official legal advice. A state agency should consult the attorney general, internal legal
counsel, or other appropriate counsel whenever the agency needs that advice.
The Claims Division audits purchase vouchers for legal compliance and to ensure their
proper completion. The guide should be a state agency’s primary reference whenever the
agency needs information about completing a voucher. The agency is free, however, to
direct questions about the guide and other purchase voucher issues to the Expenditure
Research and Assistance section of the Claims Division at Internet e-mail address
claims.division@cpa.state.tx.us, at 512-475-0966, or at 1-800-531-5441, extension 5-0966.
This edition of the guide is effective until superceded by the Comptroller, legislative
1
Through Public Law No. 108-198, which was approved by the President of the United States on December 19,
2003 (with a gap of Pub. L. No. 108-173).
2
Through the January 21, 2004, issue of the Federal Register.
CAPITAL ASSETS are real or personal property that have an estimated life of
greater than one year. Capital assets may or may not be capitalized for financial
reporting purposes.
CAPITALIZED ASSETS are capital assets that have a value equal to or greater than
the capitalization threshold established for that asset type. Capitalized assets
are reported in an agency’s annual financial report.
CONSUMABLE means a good that perishes with use and that, under usual
circumstances, will be entirely used during the fiscal year in which it is
purchased. For example, postage is a consumable.
DELIVERY DATE means the date on which a state agency receives a good or
service.
FISCAL YEAR means the state’s accounting year that begins on September 1st
and ends the following August 31st.
GENERAL APPROPRIATIONS ACT (GAA) means the act passed by the Legislature
each biennium that appropriates money for the support of the judicial, executive,
and legislative branches of state government. The GAA authorizes and prescribes
conditions, limitations, and procedures for allocating and expending appropriated
funds. The GAA for the 2004-05 fiscal biennium may be found at Appropriations –
General Act, 78th Leg., R.S., ch. 1330, 2003 Tex. Gen. Laws 5023-5993.
GUIDE means this edition of the State of Texas Purchase Policies and Procedures
Guide.
MAY NOT is a prohibition. The term does not mean “might not” or its equivalents.
PAYEE means an individual or entity that receives a payment from the state.
PETTY CASH ACCOUNT means a set amount of money held by a state agency
outside the state treasury that is used by the agency in compliance with
Subchapter K, Chapter 403, Government Code, for making small purchases of
goods and services and for similar purposes.
SECTION means a numeric division of the guide that is indicated by the “§” (section)
symbol.
3
See Op. Tex. Att'y Gen. No. JC-502 (2002).
TEXAS IDENTIFICATION NUMBER means the 14-digit number that the Comptroller
assigns to each recipient of a payment from the state. Digits 12-14 are mailing
designators.
TEXAS REGISTER means the legal publication issued by the secretary of state. The
publication contains administrative rules, notices of meetings, and other
information that state agencies are required or authorized by law to disseminate
to the public.
VOUCHER has the same meaning as “payment document” under USAS unless
the guide specifically says otherwise.
TEX. GOV’T CODE ANN. §�403.011(a)(3)-(4), (7), (12), (17) (Vernon Supp. 2004). This
statute requires the Comptroller to:
• supervise, as the sole accounting officer of the state, the state’s fiscal concerns
and manage those concerns as required by law; and
• prescribe the forms on which all accounts presented to the Comptroller for
settlement not otherwise provided for by law must be made; and
• prescribe forms or electronic formats of the same class, kind, and purpose so
that they are uniform in size, arrangement, matter, and form; and
• audit claims against the state the payment of which is provided for by law,
unless the audit is otherwise specially provided for; and
• draw warrants on the treasury for payment of all money required by law to be
paid from the treasury on warrants drawn by the Comptroller.
TEX. GOV’T CODE ANN. §�403.015 (VERNON 1998). This statute authorizes the
Comptroller to provide for the orderly and economical use of the Comptroller’s electronic
computing and data processing equipment. The Comptroller may prescribe and revise
claim forms, registers, warrants, and other documents submitted in support of payroll
or other claims. In addition, the statute authorizes the Comptroller to improve the flow
of data between state agencies by prescribing and revising procedures, techniques, and
formats for electronic data transmission.
TEX. GOV’T CODE ANN. §�403.016 (VERNON SUPP. 2004). This statute requires the
Comptroller to establish and operate an electronic funds transfer system so that certain
payments can be made electronically.
TEX. GOV’T CODE ANN. §�403.031(a) (Vernon 1998). This statute requires the
Comptroller to maintain accounts and information as necessary to show the purposes
for which expenditures are made. The statute also requires the Comptroller to provide
proper accounting controls to protect state finances.
TEX. GOV’T CODE ANN. § 403.054 (VERNON SUPP. 2004). This statute authorizes the
Comptroller to issue a replacement warrant in place of an original warrant drawn on
the state treasury if the state agency on whose behalf the Comptroller issued the
original warrant notifies the Comptroller that:
• the original warrant has been lost, destroyed or stolen; or
• the original warrant has not been received; or
• the payee’s endorsement on the original warrant has been forged.
The Comptroller is required to adopt rules4 and forms about replacement warrants.
TEX. GOV’T CODE ANN. § 403.055 (Vernon Supp. 2004). This statute generally
prohibits the Comptroller from issuing a warrant or initiating an electronic funds
transfer to a person who has been properly reported to the Comptroller under Section
403.055 as being indebted to the state or having a tax delinquency.
4
The rules are located at 34 TEX. ADMIN. CODE §�5.140 (2003).
Section 403.055 also prohibits the Comptroller from issuing a warrant or initiating an
electronic funds transfer to the person’s assignee if the assignment became effective
after the person became indebted to the state or incurred a tax delinquency.
TEX. GOV’T CODE ANN. §�403.0551 (Vernon Supp. 2004). This statute generally
authorizes the Comptroller to deduct the amount of a person’s indebtedness to the state
or tax delinquency from any amount the state owes the person or the person’s successor.
TEX. GOV’T CODE ANN. § 403.0552 (Vernon Supp. 2004). This statute generally
authorizes or requires the Comptroller to prepare and retain a warrant that certain
statutes prohibit the Comptroller from issuing. In addition, Section 403.0552 generally
authorizes or requires the Comptroller to prepare a warrant to make a payment that
certain statutes prohibit the Comptroller from initiating by electronic funds transfer.
TEX. GOV’T CODE ANN. §�403.071 (Vernon 1998). This statute prohibits the
Comptroller from preparing a warrant unless a properly audited claim, verified as to
correctness by the agency submitting the claim, is presented to the warrant clerk. A
claim may not be paid from an appropriation unless the claim is presented to the
Comptroller for payment not later than two years after the end of the fiscal year for
which the appropriation was made. A claim, however, may be presented not later than
four years after the end of the fiscal year for which the appropriation from which the
claim is to be paid was made if the appropriation relates to new construction contracts,
or to repair and remodeling projects that exceed the amount of $20,000, including
furniture and other equipment, architects’ and engineering fees, and other costs related
to the contracts or projects.
The statute authorizes the Comptroller to enter into a written contract with a state agency
for the Comptroller to audit claims presented by the agency after the Comptroller has
prepared warrants or initiated electronic funds transfers to pay the claims. The
Comptroller may establish requirements and adopt rules concerning the time that the
agency must retain documentation in its files to enable the audit.
A person commits an offense if the person knowingly makes a false certificate on a
claim against the state for the purpose of authenticating the claim. An offense under
this section is punishable by imprisonment for not less than two or more than five
years.
TEX. GOV’T CODE ANN. §�403.078 (Vernon 1998). This statute requires all claims and
accounts against the state to be submitted on the forms or in compliance with the
method and format that the Comptroller prescribes. The claims and accounts must be
prepared to provide for entering on the claim or account, for use by the Comptroller, the
following:
• authorization of the head of the office or other individual responsible for the
expenditure; and
• the appropriation against which the disbursement is to be charged; and
• information required by the Comptroller’s rules; and
• proof that the claim or account was presented to the state within the period of
limitation provided by TEX. CIV. PRAC. & REM. CODE ANN. §�16.051 (Vernon
1997), or other applicable statute; and
• other appropriate matters.
TEX. GOV’T CODE ANN. §�403.079 (Vernon 1998). This statute authorizes the
Comptroller to use generally recognized sampling techniques to audit claims against the
state if the techniques would be cost-effective and would promote greater efficiency in
paying claims.
TEX. GOV’T CODE ANN. §§ 2103.001-2103.0035, 2103.031-2103.064 (Vernon 2000), §
2103.004 (Vernon Supp. 2004), § 2103.031-2103.063, 2103.064(A) (VERNON 2000).
These statutes authorize a state agency5 to expend appropriated funds, except for
appropriated local funds, only on warrants issued or electronic funds transfers (EFT)
initiated by the Comptroller. The statutes also authorize a state agency to expend any
unappropriated funds that must be expended through the Comptroller only on warrants
issued or EFTs initiated by the Comptroller. The statutes prohibit the Comptroller from
issuing a warrant or initiating an EFT until:
• the state agency from whose appropriated or unappropriated funds the warrant
or EFT is payable has submitted a voucher to the Comptroller; and
• the state agency has approved the voucher in compliance with these statutes;
and
• the Comptroller has audited and approved the voucher as required by law.
These statutes also state the requirements for the approval of vouchers by state
agencies.
TEX. GOV’T CODE ANN. §§�2155.321-2155.327, 2155.382(b) (Vernon 2000). These
statutes are part of the State Purchasing and General Services Act. They specify some
of the procedures that the Comptroller and the Texas Building and Procurement
Commission must follow when auditing purchase vouchers. Section�2155.327 says that
an interagency purchase or transaction must be accomplished on a special voucher or
electronically as prescribed by the Comptroller. Section 2155.382(b) requires the
Comptroller to issue a warrant not later than the eighth day after receiving necessary
information about the payment unless it is not due until a later date and the state’s
cash flow would be maximized by delaying it.
TEX. GOV’T CODE ANN. §�2155.382(d) (Vernon 2000). This statute is part of the State
Purchasing and General Services Act. The statute authorizes the Comptroller to allow or
require a state agency6 to schedule payments that the Comptroller will make to a vendor.
The statute requires the Comptroller to prescribe the circumstances under which advance
scheduling of payments is allowed or required. The statute also requires the Comptroller to
require advance scheduling of payments when it is advantageous to the state.
5
For this purpose, “state agency” means a department, board, commission, committee, council, agency, office, or
other entity in the executive, legislative, or judicial branch of state government, the jurisdiction of which is not
limited to a geographical portion of the state. TEX. GOV’T CODE ANN. §�2103.001 (Vernon 2000). The term includes
an institution of higher education, as defined by TEX. EDUC. CODE ANN. §�61.003 (Vernon Supp. 2004). Id.
6
For this purpose, “state agency” means: (1) a department, commission, board, office, or other agency in the
executive branch of state government created by the state constitution or a state statute; or (2) the Supreme
Court, the Court of Criminal Appeals, a Court of Appeals, or the Texas Judicial Council; or (3) a university
system or an institution of higher education as defined by TEX. EDUC. CODE ANN. §�61.003 (Vernon Supp. 2004),
except a public junior college. State Purchasing and General Services Act, TEX. TEX. GOV’T CODE ANN. §
2151.002(2) (Vernon Supp. 2004).
TEX. GOV’T CODE ANN. § 2251.026(b)-(c), (e)-(j) (Vernon Supp. 2004). These statutes are
in the chapter of the Government Code that is commonly known as the “prompt payment
law.” The Comptroller is required to issue a warrant or initiate an electronic funds transfer
(EFT) to pay any interest that a state agency7 must pay to a vendor8 under the prompt
payment law if the Comptroller is responsible for issuing a warrant or initiating an EFT to
pay the principal amount on behalf of the agency. The Comptroller is required to determine
the amount of interest that accrues on an overdue payment if the Comptroller is responsible
for issuing a warrant or initiating an EFT to pay the principal amount on behalf of the
agency. The Comptroller is required to submit the interest payment with the net amount
due for the goods or services. The Comptroller is prohibited from requiring a vendor to
request payment of the interest before the Comptroller pays it. The Comptroller may require
a state agency to submit any information the Comptroller determines necessary to
administer and comply with the Comptroller’s responsibilities under the prompt payment
law. The information must be submitted at the time and in the manner required by the
Comptroller. No interest accrues or may be paid under the prompt payment law if the total
amount of interest that would have accrued is $5 or less and the payment is made from the
institutional funds of an institution of higher education as defined by TEX. EDUC. CODE ANN.
§ 61.003 (Vernon Supp. 2004). The Comptroller may require a state agency to change its
accounting systems or procedure as the Comptroller determines necessary to administer and
comply with the Comptroller’s responsibilities under the prompt payment law. Any changes
must conform with the Comptroller’s requirements. The Comptroller may establish policies
and adopt rules to administer the preceding requirements.9
A state agency may purchase a good or service only if the agency has specific or
implied statutory authority for the purchase. A state agency has implied statutory
authority only if the purchase is necessary for the agency to fulfill its specific
statutory duties. A state agency is responsible for determining whether the agency
has implied statutory authority. “The mere absence in Texas law of a prohibition on
doing some act does not in itself furnish authority to perform that act.”10
A state agency should determine whether it has the statutory authority to
purchase a good or service before entering into a purchase contract. This
is very important because a state agency that does not have the statutory
authority to purchase a good or service may not pay for it, even if the
vendor has provided the good or service without actual knowledge of the
agency’s lack of authority.
7
For this purpose, “state agency” means: (1) a board, commission, department, office, or other agency in the
executive branch of state government that is created by the constitution or a statute of this state, including a
river authority and an institution of higher education as defined by TEX. EDUC. CODE ANN. §�61.003 (Vernon
Supp. 2004); or (2) the Legislature or a legislative agency; or (3) the Supreme Court, the Court of Criminal
Appeals, a Court of Appeals, a state judicial agency, or the State Bar of Texas. TEX. GOV’T CODE ANN. §
2251.001(8) (Vernon Supp. 2004).
8
For this purpose, “vendor” means a person who supplies goods or a service to a governmental entity or
another person directed by the entity. TEX. GOV’T CODE ANN. § 2251.001(10) (Vernon Supp. 2004). The term
does not include a state agency, except for Texas Correctional Industries. Id. The term includes an officer or
employee of a state agency when acting in a private capacity to supplies goods or a service. Id.
9
For more information about the prompt payment law, see Chapter 6: Prompt payment law.
10
Op. Tex. Att’y Gen. No. JC-332 (2001).
The officers and employees of a state agency are responsible for determining the
statutory authority for a payment before the agency submits a purchase voucher to
the Comptroller requesting the payment. During a pre-payment or a post-payment
audit, the Comptroller will request a state agency to cite the relevant statutory
authority for a payment unless the authority is obvious.
The Comptroller will occasionally process a purchase voucher that does not contain a
necessary citation of the relevant statutory authority. This does not, however,
obligate the Comptroller to process all subsequent vouchers for the same type of
purchase without the citation.
Sources for this subsection: Tex. Const. art. III, §�44; Golden v. Employers
Ins., 981 F.Supp. 467, 474 (S.D. Tex. 1997); City of Austin v. Southwestern Bell
Tel. Co., 92 S.W.3d 434, 441 (Tex. 2002); PUC of Texas v. City Pub. Serv. Bd. of
San Antonio, 53 S.W.3d 310, 315-6 (Tex., 2001); Public Utility Commission v.
GTE-Southwest, Inc., 901 S.W.2d 401, 417 (Tex. 1995); State v. Public Util.
Comm’n, 883 S.W.2d 190, 194 (Tex. 1994); Central Education Agency v. Upshur
County Comm’rs Court, 731 S.W.2d 559, 561 (Tex. 1987); Sherman v. Public
Utility Com., 643 S.W.2d 681, 686 (Tex. 1983); Bullock v. Calvert, 480 S.W.2d
367, 372 (Tex. 1972); State v. Jackson, 376 S.W.2d 341, 344 (Tex. 1964); Stauffer
v. City of San Antonio, 162 Tex. 13, 344 S.W.2d 158, 160 (1961); State v.
Ragland Clinic-Hospital, 138 Tex. 393, 159 S.W.2d 105, 107 (1942); Tex.
Advocates Supporting Kids with Disabilities/Tex. Educ. Agency v. Tex. Educ.
Agency, 112 S.W.3d 234, 238, 241 (Tex. App.—Austin 2003, no pet.); PUC of
Tex. v. Southwestern Bell Tel. Co., 112 S.W.3d 221, 226 (Tex. App.—Austin
2003, pet. filed); Patient Advocates of Tex. v. Tex. Workers’ Comp. Comm’n, 80
S.W.3d 66, 76 (Tex. App.—Austin 2002, pet. granted); State v. Exiga, 71 S.W.3d
429, 433 (Tex. App.—Corpus Christi 2002, no pet.); Eldercare Props., Inc. v.
Tex. Dep’t of Human Servs., 63 S.W.3d 551, 558 (Tex. App.—Austin 2001, pet.
denied); Reliant Energy v. P.U.C. of Tex., 62 S.W.3d 833, 837 (Tex.
App.—Austin 2001, no pet.); American Honda Motor Co. v. Texas DOT – Motor
Vehicle Div., 47 S.W.3d 614, 624 (Tex. App.—Austin 2001, pet. denied);
Sportscoach Corp. of Am., Inc. v. Eastex Camper Sales, Inc., 31 S.W.3d 730,
734 (Tex. App.—Austin 2000, no pet.); Ford Motor Co. v. Motor Vehicle Bd. of
the Texas DOT, 21 S.W.3d 744, 757 (Tex. App.—Austin 2000, pet. denied);
David McDavid Nissan v. Subaru of Am., 10 S.W.3d 56, 64 (Tex. App.—Dallas
1999), aff’d in part and rev’d in part, 84 S.W.3d 212 (Tex. 2002); GTE
Southwest, Inc. v. PUC, 10 S.W.3d 7, 12 (Tex. App.—Austin 1999, no pet.);
Trevino v. Transportation Ins. Co., 1 S.W.3d 294, 295 (Tex. App.—Corpus
Christi 1999, no pet.); 6th & Neches v. Aldridge, 992 S.W.2d 684, 687 (Tex.
App.—Austin 1999, pet. denied); McDaniel v. Texas Natural Resource
Conservation Comm’n, 982 S.W.2d 650, 651 (Tex. App.—Austin 1998, pet.
denied); Texas Parks & Wildlife Dep’t v. Callaway, 971 S.W.2d 145, 148-9 (Tex.
App.—Austin 1998, no pet.); State v. Montgomery, 957 S.W.2d 581, 583 (Tex.
App.—Houston [14th Dist.] 1997, pet. ref’d); Montgomery v. Blue Cross & Blue
Shield, 923 S.W.2d 147, 150 (Tex. App.— Austin 1996, writ denied); Hunter
Indus. Facilities v. Texas Natural Resource Conservation Comm’n, 910
S.W.2d 96, 105 (Tex. App.—Austin 1995, writ denied); Cole v. Texas Army Nat’l
Guard, 909 S.W.2d 535, 539 (Tex. App.—Austin 1995, writ denied); Employees
Retirement Sys. v. Foy, 896 S.W.2d 314, 317 (Tex. App.—Austin 1995, writ
denied); Brushy Creek Mun. Util. Dist. v. Texas Water Comm’n, 887 S.W.2d 68,
70 (Tex. App.—Austin 1994, writ denied); Texas Utils. Elec. Co. v. Public Util.
Comm’n, 881 S.W.2d 387, 393 (Tex. App.—Austin 1994, aff’d, 935 S.W.2d 109
(Tex. 1996); City of Alvin v. Public Util. Comm’n, 876 S.W.2d 346, 361 (Tex.
vouchers.
• A purchase and the resulting payment for that purchase must be made in
accordance with the Texas and United States constitutions, applicable statutes
and regulations, and the Comptroller’s rules.
• The Comptroller may require a state agency to make available to the
Comptroller proper supporting documentation to support the legality and fiscal
responsibility of any payment that results from a purchase voucher if the
payment is made out of the agency’s funds. The types of documentation that the
Comptroller may require are not limited to the documentation specified in the
guide. The Comptroller may require the documentation to be made available
during a pre-payment audit, a post-payment audit, or at any other time.
• If required by the Comptroller, a citation of the relevant statutory authority
must be listed in the supporting documentation unless the authority for the
purchase is obvious. The Comptroller may ask a state agency to cite the
relevant statutory authority when necessary to audit a voucher.
• A state officer or employee may not submit a purchase voucher to the
Comptroller if the officer or employee has any doubts about the legality,
propriety, or fiscal responsibility of any payment that would result from the
voucher. The officer or employee may not rely on the Comptroller’s audit to
prevent a questionable payment from being made or to reverse an invalid
payment after it has occurred.
• If a state agency’s voucher is subject to payment review by the Texas
Building and Procurement Commission (TBPC), then the agency must
submit the voucher in the correct document type to ensure a pre-payment
or a post-payment review by TBPC.
When a state agency is required to provide a statement, the agency may not make
the statement unless it is true. The required statements are not boilerplate or pro
forma. They are vital to supporting the legality of payments.
Source for this subsection: 34 TEX. ADMIN. CODE §�5.51(c)(1)(B), (2), (4),
(e)(1)-(2) (2003).
• A state agency may pay rent for leased space a maximum of seven days before
the payment due date.
• A state agency may pay the cost of a periodical subscription a maximum of six
weeks before it begins.
• The Comptroller will process a purchase voucher for the purchase of real
property anytime during the seven days before the closing date if the agency
submitting the voucher agrees to deliver the warrant to the seller not earlier
than the closing date.
• A state agency may pay in advance the entire cost of a maintenance contract.
• A state agency may make an advance payment to a federal agency or another
state agency for goods purchased from the agency if the advance payment will
expedite the delivery of the goods.
• A state agency may make an advance payment if significant cost savings would
result from making the payment in advance.
• A state agency may make an advance payment to a vendor who is selling
specialized or proprietary goods or services to the agency if the vendor requires
the payment to be made in advance.
• A state agency may pay tuition directly to an institution of higher education
not earlier than the 42nd day before the class begins. A state agency, however,
may not reimburse a state employee for tuition before the class begins.
• An institution of higher education may pay for books and other published
library materials before receiving them if reasonably necessary for the efficient
operation of the institution’s libraries.
• The Texas Building and Procurement Commission (TBPC) may make an
advance payment of rent for a distribution center, an office space, or another
facility that is required to accomplish TBPC’s functions under Subchapter G of
Chapter 2175, Government Code.8
The Education Code specifically prohibits the expenditure of money in the higher
education fund to pay for goods or services before their delivery. Of the preceding
exceptions, only the exception concerning books and other published library materials
A state agency that needs to make an advance payment for a reason not listed above may
do so only if the agency determines before making the payment that making the payment
in advance is necessary and would serve a proper public purpose.
The Comptroller may request additional information to justify any advance payment,
including an advance payment that would be made under the circumstances listed
above.
8
That subchapter is entitled “FEDERAL SURPLUS PROPERTY.”
A state agency that makes an advance payment to a vendor is responsible for ensuring
that the vendor provides the good or service to the agency. The agency is responsible for
pursuing appropriate legal remedies to recover the payment if the vendor fails to
provide the good or service.
A state agency that needs assistance in determining whether an advance payment may
be made should contact the Expenditure Research and Assistance section of the
Comptroller’s Claims Division.
Sources: TEX. EDUC. CODE ANN. §�62.021(a) (Vernon Supp. 2004); TEX. GOV’T CODE
ANN. §�2113.001(2) (Vernon Supp. 2004); State Purchasing and General Services
Act, TEX. GOV’T CODE ANN. §§�2155.383, 2155.386, 2175.368(2) (Vernon 2000). See
Act of May 27, 2001, 77th Leg., R.S., ch. 1422, §�1.18(a)-(b), (d), 2001 Tex. Sess.
Law Serv. 4735, 4739 (Vernon) (establishing the dates on which the Texas
Building and Procurement Commission is created and the General Services
Commission is abolished). Op. Tex. Att’y Gen. No.�MW-55 (1979).
Cross references: Chapter 6: Utility services; Chapter 8: Appropriation year
determination.
A state agency must retain in its files documentation that explains the necessity and proper
public purpose of an advance payment. Upon request, the agency must make the
documentation available to the Comptroller during a pre-payment or a post-payment audit.
§�2.004 Alcohol
A. Constitutional prohibition
State moneys may not be used to purchase alcohol or alcoholic beverages for
personal consumption or entertainment. This prohibition applies regardless of the
source for the moneys used to purchase the alcohol or beverages.
Sources for this subsection: TEX. CONST. art. III, §�51; art. VIII, §�3; art. XVI, §�6(a).
B. Statutory prohibition
In this subsection:
• “Appropriated money” means money appropriated by the Legislature
through the General Appropriations Act (GAA) or other law.
• “State agency” means:
– a department, commission, board, office, or other entity in the executive
branch of state government; or
– the Supreme Court, the Court of Criminal Appeals, another entity in the
judicial branch of state government with statewide authority, or a Court of
Appeals; or
– a university system or an institution of higher education as defined by
TEX. EDUC. CODE ANN. §�61.003 (Vernon Supp. 2004).
A state agency may not use appropriated money to purchase an alcoholic beverage
except for authorized law enforcement purposes.
A state agency may not use appropriated money to compensate an officer or
employee who uses alcoholic beverages on active duty.
entertainment, then a state agency must state the statutory authority for the purchase
9
Id.
A state agency may use appropriated money to finance a supplemental audit of payments
received from the government of the United States if the audit is required as a condition of
receipt of the money and an amount for the audit is provided by the federal grant,
allocation, aid, or other payment.
The restrictions described in this section do not affect the authority of an institution of
higher education to collect, account for, and control local funds and institutional funds in
the manner authorized by Subchapter A of Chapter 51, Education Code.
The information provided in this section applies only to an expenditure made after
August 31, 1999.
Sources: TEX. GOV’T CODE ANN. §�2113.001 (Vernon Supp. 2004),
§�2113.102(a)-(b), (d) (Vernon 2000); Act of May 29, 1999, 76th Leg., R.S.,
ch. 1498, §§�9-10, 1999 Tex. Gen. Laws 5153, 5163; Op. Tex. Att’y Gen.
Nos. MW-192 (1980), H-1063 (1977), M-1199 (1972).
A state agency that purchases beef or a beef product shall keep records to produce upon
demand for at least two years from date of purchase. The records must indicate the
following for each purchase and delivery:
• the common or usual name and amount of each beef product; and
• the date of purchase and the date of delivery; and
• the name of the vendor; and
• the product certification.
Sources: TEX. AGRIC. CODE ANN. §§�150.011(2), 150.012(a)-(b) (Vernon Supp. 2004);
25 TEX. ADMIN. CODE §§�229.31(1), 229.32 (2003). See, generally, Op. Tex. Att’y Gen.
No. JC-531 (2002).
A child support obligor who is more than six months delinquent in paying child support
is ineligible to receive student financial assistance paid directly to the obligor by the
• a sworn affidavit from the obligor or obligee stating that the obligor is current
on the obligor’s child support payments; and
• a written statement from the obligor stating that the obligor has made a request
to the Title IV-D agency10 to correct the errors in the obligor’s payment record.11
A child support obligor or business entity that is ineligible to receive payments remains
ineligible until:
• all arrearages have been paid; or
• the obligor is in compliance with a written repayment agreement or court order
as to any existing delinquency or
• the court of continuing jurisdiction over the child support order has granted the
obligor an exemption from the ineligibility as part of a court-supervised effort
to improve earnings and child support payments.
An individual’s or sole proprietor’s bid or application for a contract, grant, or loan paid
from state funds must include the name and social security number of the individual or
sole proprietor.
A business entity’s bid or application for a contract, grant, or loan paid from state funds
must include the name and social security number of each partner, shareholder, or
owner with an ownership interest of at least 25 percent of the entity.
A state agency may accept a bid that does not include the information required by the
two preceding paragraphs if the agency collects the information before the contract,
A contract, bid, or application that is subject to the requirements of TEX. FAM. CODE ANN.
§�231.006 (Vernon 2002) must include the following statement:
Under Section 231.006, Family Code, the vendor or applicant certifies
that the individual or business entity named in the contract, bid, or
application is not ineligible to receive the specified grant, loan, or
payment and acknowledges that this contract may be terminated and
payment may be withheld if this certification is inaccurate.
Sources: TEX. FAM. CODE ANN. §�231.302(c)(2)-(3) (Vernon 2002) §�231.006(a)-(b),
(d), (j) (Vernon Supp. 2004); Op. Tex. Att’y Gen. No. DM-379 (1996).
Sources: TEX. CONST. art. III, §�51; art. VIII, §�3; art. XVI, §�6(a); Op. Tex. Att’y Gen.
No. MW-36 (1979). See Ethics Advisory Opinion No. 190 (1994).
10
The “office of the attorney general” is the state’s Title IV-D agency. TEX. FAM. CODE ANN. §�231.001
(Vernon 2002).
11
This ineligibility applies only to student financial assistance paid after August 31, 2003. Act of May 26, 2003,
78th Leg., R.S., ch. 437, §�2(b), 2003 Tex. Gen. Laws 1684, 1684.
A state agency that pays a deposit must retain in its files documentation showing how the
payment is necessary to prevent harm to the state. Upon request, the agency must make this
documentation available to the Comptroller, during a pre-payment or a post-payment audit.
117 S.Ct. 1295 (1997); Vernonia School District 47J v. Acton, 515 U.S. 646
(1995); National Treasury Employees Union v. Von Raab, 489 U.S. 656 (1989);
Aubrey v. School Bd. of Lafayette Parish, 148 F.3d 559, 562 (5th Cir. 1998);
United Teachers of New Orleans v. Orleans Parish Sch. Bd., 142 F.3d 853,
856-7 (5th Cir. 1998); Wilcher v. Wilmington, 139 F.3d 366 (3rd Cir. 1998);
National Treasury Employees Union v. Yeutter, 918 F.2d 968 (D.C. Cir. 1990);
Bluestein v. Skinner, 908 F.2d 451, 456-7 (9th Cir. 1990), cert. denied, 111
S.Ct. 954 (1991); Taylor v. O’Grady, 888 F.2d 1189, 1199 (7th Cir. 1989);
(D.C. Cir. 1989), cert. denied, 110 S.Ct. 864 (1990); Harmon v. Thornburgh,
878 F.2d 484, 489, 492 (D.C. Cir. 1989), cert. denied, 493 U.S. 1056 (1990); Op.
Tex. Att’y Gen. No. DM-121 (1992).
(9th Cir. 1993); AFGE, Local 2391 v. Martin, 969 F.2d 788, 792-3 (9th Cir. 1992);
The following USAS purchase voucher requirements apply only when a state agency’s drug
testing program is subject to the requirements described in this subsection.
1. The agency must retain documentation in its files that cites the statutory authority for
the drug testing program. In addition, the documentation must contain the following
statement:
The invasion of privacy caused by these drug tests is warranted by a compelling
governmental objective. The objective is ________________________________. The
objective cannot be achieved by a less intrusive, more reasonable means.
The drug tests serve special governmental needs beyond the normal need for
law enforcement. The special governmental needs are ______________________.
After balancing the agency’s interests against the infringement on employee’s
reasonable privacy expectations, the agency has determined it is impractical to
require a warrant or probable cause before the drug tests occur.
2. Upon request, the agency must make the documentation available to the Comptroller
during a pre-payment or a post-payment audit.
The following USAS purchase voucher requirements apply only when a state agency’s drug
testing program is subject to the requirements described in this subsection.
1. The agency must retain documentation in its files that cites the statutory authority for
the drug testing program. In addition, the documentation must contain the following
statement:
The drug testing program for which this voucher requests a payment does not
require any state employee or prospective state employee to submit to drug
testing as a term or condition of employment.
2. Upon request, the agency must make the documentation available to the Comptroller
during a pre-payment or a post-payment audit.
4. If the drug testing program requires state employees to submit to drug testing as a term or
condition of employment, then the agency must retain documentation in its files that
contains the following additional statement.
The drug tests serve special governmental needs beyond the normal need for law
enforcement. The special governmental needs are ______________________. After
balancing the agency’s interests against the infringement on employee’s
reasonable privacy expectations, the agency has determined it is impractical to
require a warrant or probable cause before the drug tests occur.
5. Upon request, the agency must make the documentation available to the Comptroller
during a pre-payment or a post-payment audit.
The following USAS purchase voucher requirements apply only when a state agency’s drug
testing program is subject to the requirements described in this subsection.
1. The agency must retain documentation in its files that cites the statutory authority for the
drug testing program. In addition, the documentation must contain the following statement:
The invasion of privacy caused by these drug tests is warranted by a compelling
governmental objective. The objective is _____________________________. The
objective cannot be achieved by a less intrusive, more reasonable means.
The drug tests serve special governmental needs beyond the normal need for law
enforcement. The special governmental needs are ______________________. After
balancing the agency’s interests against the infringement on prospective employee’s
reasonable privacy expectations, the agency has determined it is impractical to
require a warrant or probable cause before the drug tests occur.
2. Upon request, the agency must make the documentation available to the Comptroller
during a pre-payment or a post-payment audit.
Cross references for this section: Chapter 2: Polygraph testing; Chapter 3:
Physical and psychological examinations or treatments.
1. When a state agency purchases equipment related to food preparation or storage, the
agency must document how the purchase is necessary to the accomplishment of a public
purpose that is related to the agency’s legal authority or duties. The agency must retain
that documentation in its files and, upon request, make the documentation available to
the Comptroller during a pre-payment or a post-payment audit.
2. This voucher requirement applies when a state agency purchases food for individuals
who are not employees of or visitors to the agency. The agency must retain in its files
documentation of how the purchase is necessary to the accomplishment of a public
purpose that is related to the agency’s legal authority or duties. The agency must
make this documentation available to the Comptroller during a pre-payment or a
post-payment audit.
B. Department of Agriculture
State statutory law says that the Department of Agriculture may use the funds
received under Chapter 46, Agriculture Code, to purchase food or refreshments at
“Go Texan” promotional events. Not more than $5,000 in those funds per fiscal year,
however, may be used for that purpose.
Sources for this subsection: TEX. AGRIC. CODE ANN. §�46.009(a) (Vernon Supp. 2004).
See TEX. AGRIC. CODE ANN. §§�46.001, 46.003, 46.005 (Vernon Supp. 2004)
(Vernon Supp. 2004); TEX. FAM. CODE ANN. §�231.007(k) (Vernon 2002);
Code Construction Act, TEX. GOV’T CODE ANN. §�311.005(2) (Vernon 1998);
TEX. GOV’T CODE ANN. §§�403.055(l), 2107.008(k), 2252.903(e)(2)-(3) (Vernon Supp. 2004).
12
This statute prohibits TGSLC from reporting a person to the Comptroller as being in default on a loan
guaranteed under Chapter 57, Education Code, unless TGSLC first provides the person an opportunity to
exercise any due process or other constitutional or statutory protection that must be accommodated before
TGSLC may begin a collection action or procedure. The statute specifically prohibits the Comptroller from
The prohibitions described at the beginning of this subsection do not apply if:
• the warrant or EFT would result in a payment being made in whole or in part
with money paid to the state by the United States; and
• the state agency that administers the money certifies to the Comptroller that
federal law either requires the payment to be made or conditions the state’s
receipt of the money on the payment being made.
Source for this subsection: TEX. EDUC. CODE ANN. §�57.48(b), (d)-(h)
(Vernon Supp. 2004).
state treasury to pay a person if TEX. EDUC. CODE ANN. §�57.48 (Vernon Supp.
the person.
agency also is prohibited from paying any part of that payment to:
having a tax delinquency if the state agency responsible for collecting the person’s
• TEX. GOV’T CODE ANN. §�403.055 (Vernon Supp. 2004) prohibits the
Comptroller from issuing a warrant or initiating an EFT to the person; or
• (a) the person is indebted to the state or has a tax delinquency; and
(b)�the agency is responsible for collecting that indebtedness or
delinquency; and (c) Section 403.055, Government Code, does not
prohibit the Comptroller from issuing a warrant or initiating an EFT to
the person.14
13
This statute prohibits a state agency from reporting a person to the Comptroller as being indebted to the
state or having a tax delinquency unless the agency first provides the person an opportunity to exercise any
due process or other constitutional or statutory protection that must be accommodated before the agency or
the state may begin a collection action or procedure. The statute specifically prohibits the Comptroller from
investigating or determining whether the agency has complied with this prohibition.
14
The agency, however, may not refuse to make the payment before the agency has provided the person
with an opportunity to exercise any due process or other constitutional or statutory protection that
must be accommodated before the agency or the state may begin a collection action or procedure.
15
The “Office of the Attorney General” is the state’s Title IV-D agency. TEX. FAM. CODE ANN. §�231.001
(Vernon 2002).
This paragraph (and the seven bullets that follow) applies only to a case where the
judgment of the trial court was entered or a settlement agreement was entered into after
August 31, 1995. The funds appropriated by the GAA may be used to pay a settlement or
judgment against the state for a cause of action brought in federal court or a Texas state
court under specific statutory authority if:
• the payment is approved by the governor; and
• the payment is approved by the attorney general according to the second
paragraph following this paragraph; and
• in the case of a judgment, the judgment is rendered in a federal or Texas
state court for which an appeal or rehearing, or an application therefore, is
not pending and for which the time limitations for appeal or rehearing have
expired; and
• the payment of a settlement or judgment does not exceed $250,000; and
• the payment of a settlement or judgment would not cause the total amount of
payments made by the payer agency for that fiscal year to exceed 10 percent
of the total amount of funds available for expenditure by that agency for that
year; and
• the payee executes a complete release from any and all related claims and
causes against the state; and
• in the case of a judgment, the payment would constitute a full satisfaction of
the judgment.
The GAA says that a state agency shall report a claim for property damage to the
attorney general not later than the second working day after the date the agency
receives the claim. The GAA also says that a state agency shall prepare a voucher to
pay a claim not later than the tenth working day after the date an agreement to settle
the claim has been reached.
This paragraph applies only if the attorney general prosecuted or defended a
judgment or settlement. The payment of a judgment or settlement is subject to the
attorney general’s approval as to form, content, and amount. The funds appropriated
by the GAA may not be used to pay the judgment or settlement unless the attorney
general certifies that it is a legally enforceable obligation of the state. This
paragraph applies to all appropriated funds, regardless of whether the funds are in
or outside the state treasury.
When the state auditor determines that a state agency has paid a judgment or settlement
without obtaining the attorney general’s prior approval, the state auditor may certify this
determination to the Comptroller. The Comptroller may then withhold all appropriations
for administrative expenses to the agency until the Legislative Audit Committee notifies
the Comptroller that the agency’s non-compliance has been reviewed and necessary
recommendations or changes made.
Sources for this subsection: TEX. CIV. PRAC. & REM. CODE ANN. §�105.004
(Vernon 1997); Article IX, Section 6.24(a)-(d), (f) of the General Appropriations Act.
D. Settlements of causes of action arising under the Texas Tort Claims Act
In this subsection, “governmental unit” means this state and all the several agencies
of government that collectively constitute the government of this state. The term
includes other agencies bearing different designations and all departments, bureaus,
boards, commissions, offices, agencies, councils, and courts.
A governmental unit may not settle and compromise a cause of action arising under
the Texas Tort Claims Act (TTCA) unless the governor determines that the
compromise is in the best interests of the unit. The preceding sentence does not
apply to a governmental unit that has acquired insurance under the TTCA.
Sources for this subsection: Texas Tort Claims Act,TEX. CIV. PRAC. & REM.
CODE ANN. §�101.001(3)(A) (Vernon Supp. 2004), §�101.105 (Vernon 1997).
• CLEOSE certifies that the agency is in the process of achieving compliance with
those rules.
§�2.030 Legislators
A state agency may not enter into or perform a contract if:
• a legislator or a former legislator is directly or indirectly interested in the contract;
and
• the contract was authorized by any law passed during the term for which the
legislator or former legislator was elected; and
• the contract is entered into while the legislator or former legislator held office.
An appropriation that is used to fund a contract is one type of authorizing law for the
purpose of the preceding prohibition.
A contract is illegal, void, and unenforceable if a state agency enters into the contract in
violation of the prohibitions described in this section. No payments may be made under
the contract, even if the payments would be made after a legislator has left office.
Sources: TEX. CONST. art. III, §§�18, 44, 51; Damon v. Cornett, 781 S.W.2d 597,
599 (Tex. 1989); Op. Tex. Att’y Gen. Nos. JM-847 (1988), JM-782 (1987), JM-162
(1984), H-696 (1975), M-801 (1971), M-625 (1970), O-1519 (1939), 2411 (1922);
Tex. Att’y Gen. LO-95-33 (1995), LO-89-72 (1989). See Washington v. Walker
County, 708 S.W.2d 493, 496 (Tex. App.—Houston [1st Dist.] 1986, no writ).
Cross reference: Chapter 6: Honoraria and speaking fees.
§�2.032 Lobbying
A. Definitions
In this section:
• “Appropriated money” means money appropriated by the Legislature
through the General Appropriations Act (GAA) or other law. The term
includes money received from the federal government if the money is
appropriated by the Legislature.
• “Institution of higher education” and “university system” have the
meanings assigned by TEX. EDUC. CODE ANN. §�61.003
(Vernon Supp. 2004).
• “State agency” means:
– a department, commission, board, office, or other agency in the executive
branch of state government, created under the constitution or a statute, with
statewide authority; or
– an institution of higher education or a university system; or
– the Supreme Court, the Court of Criminal Appeals, another entity in the
judicial branch of state government with statewide authority, or a Court of
Appeals; or
– a regional planning commission, council of governments, or similar regional
planning agency created under Chapter 391, Local Government Code; or
– a local workforce development board created under Subchapter F of Chapter
2308, Government Code; or
– a community center created under Subchapter A of Chapter 534, Health and
Safety Code.
General Appropriations Act for the biennium following the biennium in which the
violation occurs. The reduction may be any amount not exceeding $100,000 for
each violation.
A state agency may not use appropriated money to compensate a state officer or
Sources for this subsection: TEX. GOV’T CODE ANN. §§�556.005(a), (c), 556.008
(Vernon Supp. 2004).
Sources for this subsection: TEX. GOV’T CODE ANN. §§�556.002(b), 556.005(b),
556.008 (Vernon Supp. 2004).
1. Upon request, a state agency must make available to the Comptroller, during a
pre-payment or a post-payment audit, documentation that shows the services the
agency has been receiving from the chamber of commerce.
1. When a state agency purchases paper supplies that exceed 8 1/2 inches by 11 inches
in size, the agency, upon request, must make available to the Comptroller, during a
pre-payment or a post-payment audit, documentation that shows which exception to
the legal prohibition against purchasing those supplies applies.
2. When a state agency purchases a filing cabinet, the agency, upon request, must make
available to the Comptroller, during a pre-payment or a post-payment audit,
documentation that shows whether the cabinet is designed to store completed
documents that exceed 8 1/2 inches by 11 inches in size.
§�2.044 Penalties
A. Prohibition
A state agency may not use state funds, appropriated or otherwise, to pay a
penalty to any person or entity unless a valid federal law or regulation requires
the payment.
§�2.046 Plants
A. Indoor plants
In this subsection:
• “Appropriated money” means money appropriated by the Legislature
through the General Appropriations Act (GAA) or other law.
• “State agency” means:
– a department, commission, board, office, or other entity in the executive
branch of state government; or
– the Supreme Court, the Court of Criminal Appeals, another entity in
the judicial branch of state government with statewide authority, or a
Court of Appeals; or
– a university system or an institution of higher education as defined by
TEX. EDUC. CODE ANN. §�61.003 (Vernon Supp. 2004), except that a
public junior college is excluded from the meaning of the term.
A state agency may not use appropriated money to purchase, lease, or maintain a
live or artificial indoor plant unless:
• the agency is an institution of higher education; and
• the plant is used for educational or research purposes.
The restrictions described in this subsection do not affect the authority of an
institution of higher education to collect, account for, and control local funds and
Education Code.
The restrictions described in this subsection apply only to an expenditure made after
August 31, 1999.
Sources for this subsection: TEX. GOV’T CODE ANN. §�2113.001 (Vernon Supp. 2004),
§�2113.105 (Vernon 2000); Act of May 29, 1999, 76th Leg., R.S., ch. 1498, §§�9-10, 1999
Tex. Gen. Laws 5153, 5163; Act of May 29, 1999, 76th Leg., R.S., ch. 1498, §§�9-10, 1999
Tex. Gen. Laws 5153, 5163.
B. Xeriscaping
In the next paragraph, “xeriscape” means a landscaping method that maximizes
the conservation of water by using plants that are appropriate to the site and
efficient water-use techniques. The term includes:
• planning and design; and
• appropriate choice of plants; and
• soil analysis; and
• soil improvement using compost; and
• efficient and appropriate irrigation; and
• practical use of turf; and
• appropriate use of mulches; and
• proper maintenance.
The Texas Building and Procurement Commission (TBPC) by rule shall adopt
guidelines for the required use of xeriscape on state property associated with the
construction of a new state building, structure, or facility that begins on or after
January 1, 1994, including a project exempt from Chapter 2166, Government Code,
because of the State Purchasing and General Services Act, TEX. GOV’T CODE ANN.
§�2166.003 (Vernon 2000). The guidelines must contain the elements listed in the State
Purchasing and General Services Act, TEX. GOV’T CODE ANN. §�2166.404(b)
(Vernon 2000).
TBPC shall develop a five-year program for phasing in the use of xeriscape on state
property associated with a state-owned building, structure, or facility on which
construction began before January 1, 1994.
Sources for this subsection: State Purchasing and General Services Act,
See Act of May 27, 2001, 77th Leg., R.S., ch. 1422, §�1.18(a)-(b), (d),
2001 Tex. Sess. Law Serv. 4735, 4739 (Vernon) (establishing the dates on which
the Texas Building and Procurement Commission is created and the General
governmental objective.” For example, the Court ruled that the Department of
Mental Health and Mental Retardation (MHMR) did not have a compelling
§�2.050 Publications
A. Requirements of Chapter 2113, Government Code
In this subsection:
• “Appointed officer” has the meaning assigned by TEX. GOV’T CODE ANN.
§�572.002 (Vernon Supp. 2004).
• “Appropriated money” means money appropriated by the Legislature
through the General Appropriations Act (GAA) or other law.
• “State agency” means:
– a department, commission, board, office, or other entity in the executive
branch of state government; or
– the Supreme Court, the Court of Criminal Appeals, another entity in the
judicial branch of state government with statewide authority, or a Court of
Appeals; or
– a university system or an institution of higher education as defined by
TEX. EDUC. CODE ANN. §�61.003 (Vernon Supp. 2004), except that a public
junior college is excluded from the meaning of the term.
A state agency may not use appropriated money to publish a periodical or other
publication the cost of which is not reimbursed through revenue attributable to its
publication and sale if the publication is:
• intended for use by the general public; and
• generally informational, promotional, or educational; and
• not essential to the achievement of a statutory objective of the agency.
The restrictions described in this subsection apply only to an expenditure made after
August 31, 1999.
Sources for this subsection: TEX. GOV’T CODE ANN. §§�2113.001, 2113.107
(Vernon Supp. 2004), Act of May 29, 1999, 76th Leg., R.S., ch. 1498,
§§�9-10, 1999 Tex. Gen. Laws 5153, 5163. See Article IX, Section 6.16 of the
General Appropriations Act.
Cross reference for this subsection: Chapter 2: Publicity of individuals.
When the executive head of a state agency considers it necessary or in the public
interest, the executive head may issue through agency channels oral or written
information relating to the activities or legal responsibilities of the agency. The
information must be issued in the name of the state agency and include the name of
the individual authorized to issue the information.
An institution of higher education may operate a news and information service for
the benefit of the public if the operation has been authorized and approved by the
institution’s governing body.
The limitations described above do not prohibit the use of appropriated money for
publicity functions authorized under Chapter 204, Transportation Code.
The restrictions described in this subsection do not affect the authority of an
institution of higher education to collect, account for, and control local funds and
institutional funds in the manner authorized by Subchapter A of Chapter 51,
Education Code.
The information provided in this subsection applies only to an expenditure made
after August 31, 1999.
Sources for this subsection: TEX. GOV’T CODE ANN. §�2113.001
(Vernon Supp. 2004),§�2113.011 (Vernon 2000); Act of May 29, 1999, 76th Leg.,
R.S., ch. 1498, §§�9-10, 1999 Tex. Gen. Laws 5153, 5163; Op. Tex. Att’y Gen. Nos.
JC-350 (2001), MW-323 (1981).
Cross reference for this subsection: Chapter 2: Publications.
1. A state agency that uses funds appropriated by the GAA to pay for a publication or
advertisement must retain in its files an original of the item. Upon request, the agency
must make the original available to the Comptroller during a pre-payment or a
post-payment audit. The preceding two sentences do not apply to an entity or
appropriation in Article X of the GAA.
2. Comptroller object code 7218 must be used for the printing of a publication.
3. Comptroller object code 7273 must be used for other printing services.
4. Comptroller object code 7281 must be used for advertising services.
B. Criminal law
In this subsection:
• “Misuse” means to deal with property contrary to:
– an agreement under which the public servant holds the property; or
– a contract of employment or oath of office of a public servant; or
– a law, including provisions of the General Appropriations Act specifically
relating to government property, that prescribes the manner of custody or
disposition of the property; or
– a limited purpose for which the property is delivered or received.
• “Public servant” means a person elected, selected, appointed, employed, or
otherwise designated as one of the following, even if the person has not yet
qualified for office or assumed the person’s duties:
– an officer, employee, or agent of government; or
– a juror or grand juror; or
– an arbitrator, referee, or other person who is authorized by law or private
written agreement to hear or determine a cause or controversy; or
– an attorney at law or notary public when participating in the performance of a
governmental function; or
– a candidate for nomination or election to public office; or
– a person who is performing a governmental function under a claim of right
although the person is not legally qualified to do so.
Criminal penalties are possible when a public servant intentionally or knowingly
belonging to the government that has come into the public servant’s custody or
Sources for this subsection: TEX. PEN. CODE ANN. §§�1.07(41), 39.01(2), 39.02(a)(2),
(c) (Vernon 2003).
The district may impose a 9-1-1 emergency service fee on each person that is
provided local exchange access lines, or the equivalent, in the district. A state
agency may not pay the fee, however, because state law prohibits the fee from
being imposed on or collected from the state.
Sources for this subdivision: TEX. HEALTH & SAFETY CODE ANN. §�771.074
(Vernon 2003); Emergency Telephone Number Act, TEX. HEALTH & SAFETY CODE
ANN. §§�772.304(a), §�772.305, 772.314(a) (Vernon 2003). See TEX. HEALTH & SAFETY
CODE ANN. §�772.001(17) (Vernon 2003) (definition of “service user”).
prohibits the fee from being imposed on or collected from the state.
Source for this subsection: TEX. HEALTH & SAFETY CODE ANN. §�771.074
(Vernon 2003).
In this subsection:
Sources for this subdivision: State Employee Bonding Act, TEX. GOV’T CODE ANN.
§�653.003 (Vernon 1994); Act of May 27, 2001, 77th Leg., R.S., ch. 1017, §�1.11,
2001 Tex. Gen. Laws 2226, 2231-2 (codified effective September 1, 2002, as an
amendment to TEX. GOV’T CODE ANN. §�653.003); Section 3.01(a) of Chapter 1017,
2001 Tex. Gen. Laws at 2233.
18
This definition expired September 1, 2002, because the terms used in the definition (faithful performance
blanket position bond and honesty blanket position bond) expired on that date. Act of May 27, 2001,
77th Leg., R.S., ch. 1017, §§ 1.11, 3.01(a), 2001 Tex. Gen. Laws 2226, 2231-3.
19
This definition expired September 1, 2002. Id.
20
This definition expired September 1, 2002. Id.
21
This definition expired September 1, 2002. Id.
22
This definition expired September 1, 2002. Id.
23
This definition expired September 1, 2002. Id.
24
This definition took effect September 1, 2002. Act of May 27, 2001, 77th Leg., R.S., ch. 1017, §§ 1.11, 3.01(a),
2. Discussion of the law that was in effect through August 31, 2002
This subdivision’s discussion of the law that was in effect through
August 31, 2002, applies to payments made under an agreement to purchase a
surety bond entered into by a state agency before September 1, 2002, even if
the payments are made on or after that date.25
The intent of the Legislature in enacting the State Employee Bonding Act
(the “Act”) is to prescribe:
• uniform standards for the bonding of officers and employees of state
agencies to provide protection against loss; and
• a uniform bond to cover those officers and employees.
The Act authorizes a state agency to purchase certain kinds of bonds. Any bond
purchased under the Act must be on a form approved by the commissioner of
insurance. The bond may be purchased only from an insurance company
authorized to act as surety in this state.
The head of a state agency may not contract for coverage of the same office or
position under more than one type of bond, other than for specific excess indemnity.
Any bond purchased under the Act must be written in triplicate originals. One
original must be filed with the secretary of state and another original must be
filed with the Comptroller. The remaining original must be kept by the agency
covered by the bond.
The state, as beneficiary, shall pay the premiums on bonds purchased under the
Act from:
• money of a state agency that is outside the state treasury and that may be used
by the agency for operational expenses of the agency; or
• money appropriated by the Legislature for that purpose; or
• money appropriated by the Legislature to a state agency that may be used for:
– administration or administration expenses; or
– operation expense; or
– general operation expense; or
– maintenance; or
– miscellaneous expense; or
– contingencies.
The Act repealed all laws in effect in 1959 that authorized or required a state
agency to purchase faithful performance bonds, faithful performance blanket
position bonds, position schedule honesty bonds, or honesty blanket position bonds.
a. Position schedule honesty bonds
The head of a state agency may contract for a position schedule honesty
bond if:
• the bond will not cover all the agency’s officers and employees; and
• fewer than eleven of the agency’s offices or positions will be covered by
the bond.
25
The definitions of “surety bond” and “state agency” in subdivision (1) of this subsection do not apply
directly to this paragraph.
Sources for this subdivision: Act of May 4, 1993, 73rd Leg., R.S., ch. 268,
§�1, 1993 Tex. Gen. Laws 583, 688-90 (formerly codified at TEX. GOV’T CODE ANN.
§§�653.002, 653.004-653.005), amended by Act of May 27, 2001, 77th Leg., R.S.,
ch. 1017, §§�1.10, 1.12-1.13, 2001 Tex. Gen. Laws 2226, 2231-2 (effective
September 1, 2002); State Employee Bonding Act, TEX. GOV’T CODE ANN.
§§�653.001, 653.006-653.008 (Vernon 1994), §�653.009 (Vernon Supp. 2004),
§�653.011 (Vernon 1994); TEX. INS. CODE ANN. §�31.007 (Vernon 2002)
(a reference in law to the State Board of Insurance often means the
commissioner of insurance); Act of May 27, 2001, 77th Leg., R.S., ch. 1017,
§�3.01(e), 2001 Gen. Laws 2226, 2233; State Employee Bonding Act, 56th Leg.,
R.S., ch. 383, §�8, 1959 Tex. Gen. Laws 855, 857. See Act of May 28, 1993,
73rd Leg., R.S., ch. 685, §�1.23(b)-(d), 1993 Tex. Gen. Laws 2559, 2572-2573
(transferring certain authority from the State Board of Insurance to the
commissioner of insurance).
26
The definitions of “surety bond” and “state agency” in subdivision (1) of this subsection do not apply directly to this
paragraph.
– operation expense; or
A. Constitutionality
An employee assistance program is constitutional if it:
• constitutes compensation to the employees who are eligible to participate in
the program; or
• the program benefits the state.
Only an institution of higher education may justify the constitutionality of an employee
assistance program by saying that the program constitutes compensation to state
employees. Institutions of higher education have substantial discretion to determine the
amount and types of compensation for their employees. Other state agencies are limited
to the amount and types of compensation specifically provided by law. No law specifically
authorizes any state agency to sponsor an employee assistance program as part of
employee compensation.
Any state agency may justify the constitutionality of an employee assistance program as
benefiting the state if:
• the agency determines that the program would serve a valid governmental
purpose; and
• the agency determines that the state will receive adequate consideration for
the expenditures made under the program; and
• the agency implements controls to ensure that the valid governmental purpose
is achieved.
Sources for this subsection: TEX. CONST. art. III, §�51; art. VIII, §�3; art. XVI,
§�6(a). But see Tex. Att’y Gen. ORD-660 (1999) (questioning whether the
adequate consideration test merely duplicates the public purpose test).
B. Statutory authority
1. Specific statutory authority
No state law specifically authorizes any state agency to sponsor an employee
assistance program.
Nevertheless, the specific authorization in the State Employees Health
Fitness and Education Act of 1983 for state agencies to sponsor health fitness
programs would authorize certain features of an employee assistance
program. For example, if an employee assistance program provides
counseling, physical activities, educational programs, or anything else that
promotes the physical and mental well-being of state administrators and
employees, the Act probably would provide authority for the program. In this
paragraph, “state agency” means a department, institution, commission, or
other agency of the state.
1. A state agency must retain in its files documentation that shows the statutory
authority for its employee assistance program, how the program is constitutional,
and the services provided under the program. Upon request, the documentation
must be made available to the Comptroller during a pre-payment or a
post-payment audit.
2. If the State Employees Health Fitness and Education Act of 1983 is cited as the
statutory authority for an employee assistance program, then a state agency must
retain in its files a copy of the written approvals of the program from the Department
of State Health Services and the governor or the governor’s designee. Upon request,
the agency must make the copy available to the Comptroller during a pre-payment or
a post-payment audit.
C. Routine training
Each state agency shall provide to employees of the agency an employment
discrimination training program that complies with the requirements described in
this subsection.
The program must provide the employee with information regarding the agency’s
policies and procedures relating to employment discrimination, including
employment discrimination involving sexual harassment.
Each employee shall attend the program not later than the 30th day after the date
the employee is hired by the agency and shall attend supplemental training every
two years.
Source for this subsection: TEX. LAB. CODE ANN. §�21.010(a)-(c)
(Vernon Supp. 2004).
A state agency must retain in its files documentation that provides a copy of the invoice
from the vendor providing the service, along with proof of the specific statutory authority
and the specific appropriation to pay for the funeral expenses of a deceased officer or
employee. The agency also must retain the invoices for the expenses. The agency must make
the documentation or invoices available to the Comptroller during a pre-payment or a
post-payment audit.
A state agency may not implement a health fitness program unless the agency has
developed a plan. The plan must address the purpose, nature, duration, costs,
participants in, and expected results of the program. The Department of State Health
Services must provide written approval of the plan before the agency may implement
the program. The department’s approval is required regardless of whether the program
requires the expenditure of public funds. If the program requires the expenditure of
public funds, then the agency may not implement the program until the governor or the
governor’s designee has provided written approval of the plan. The governor’s designee
currently is the Governor’s Office of Budget and Planning.
Sources: State Employees Health Fitness and Education Act of 1983, TEX.
GOV’T CODE ANN. §§�664.001-664.006 (Vernon 1994); Tex. Gov. Exec. Order No.
GWB-00-3, 25 TEX. REG. 2723 (2000). See 25 TEX. ADMIN. CODE §§�1.61-1.62 (2003).
27
The definition of “include” in Section 1.002 does not apply here.
B. General discussion
This subsection does not apply to a state employee if Subsection (C) applies to the
employee.
A state agency may use appropriated money to pay the reasonable and necessary
expenses incurred in moving the household property for a state employee if:
• the employee is being reassigned from one designated headquarters to another
designated headquarters of that agency; and
• the agency determines that the best interests of the state will be served by the
reassignment; and
• the distance between the current and future designated headquarters is at
least 25 miles.
A state agency may pay or reimburse the following costs if the agency determines
that they are reasonable and necessary and if the costs are otherwise payable:
• loss of a deposit because of the breaking of a lease; and
• lease payments that become immediately due because of the breaking of a lease;
and
• expenses incurred while looking for a new residence.
A transaction fee or sales commission for the sale of real property may not be paid or
reimbursed under the statutes described in this subsection.
A state agency shall use state-owned equipment for the move if the equipment is
available to the agency. If the equipment is unavailable, the agency may pay for the
services of a commercial transportation company or for self-service vehicles to make
the move. The agency may directly pay a commercial transportation company or the
owner of a self-service vehicle instead of reimbursing a state employee.
A state employee who transfers from one designated headquarters to another
because the employee is transferring from one state agency to another state agency
does not qualify for moving expense reimbursements from either agency.
institution of higher education to collect, account for, and control local funds and
Education Code.
Sources for this subsection: TEX. GOV’T CODE ANN. §�2113.204(a)(1), (b)-(f)
(Vernon 2000); Act of May 29, 1999, 76th Leg., R.S., ch. 1498, §§�9-10,
1999 Tex. Gen. Laws 5153, 5163.
C. State employees of facilities being closed or undergoing a reduction in force
A state agency may use appropriated money to pay the reasonable and necessary
expenses incurred in moving the household property for a state employee if:
• the employee is employed at a facility that is being closed or is undergoing a
reduction in force; and
• the employee accepts a position with the agency at another designated
headquarters that is at least 25 miles from the facility being closed or
undergoing a reduction in force.
A state agency may pay or reimburse the following costs if the agency determines
that they are reasonable and necessary and if the costs are otherwise payable:
• loss of a deposit because of the breaking of a lease; and
• lease payments that become immediately due because of the breaking of a
lease; and
• expenses incurred while looking for a new residence.
A transaction fee or sales commission for the sale of real property may not be paid or
reimbursed under the statutes described in this subsection.
A state agency shall use state-owned equipment for the move if the equipment is
available to the agency. If the equipment is unavailable, the agency may pay for the
services of a commercial transportation company or for self-service vehicles to make
the move. The agency may directly pay a commercial transportation company or the
owner of a self-service vehicle instead of reimbursing a state employee.
A state employee is entitled to be reimbursed for reasonable and necessary expenses
incurred in traveling by personally owned or leased motor vehicle for a move described
in this subsection. The reimbursement must be paid at the rate provided by the GAA for
business-related travel by a state employee.
A state agency may pay for or reimburse a state employee for storage expenses
incurred if the employee is required to live in state-owned housing and the housing
is not available when the agency requires the move to be made.
Reimbursement or payment of an expense described in this subsection is
institution of higher education to collect, account for, and control local funds and
Education Code.
Sources for this subsection: TEX. GOV’T CODE ANN. §�2113.204(a)(2), (b)-(f)
(Vernon 2000); Act of May 29, 1999, 76th Leg., R.S., ch. 1498, §§�9-10,
1999 Tex. Gen. Laws 5153, 5163.
TxDOT may not under TEX. TRANSP. CODE ANN. §�201.406 (Vernon 1999):
• provide reimbursement for more than five employees per fiscal year; or
• pay a sum of more than $15,000 to any employee; or
• purchase or pay any part of the purchase price of any employee’s home; or
• provide reimbursement for the purchase or financing of a house if the employee
did not own and occupy existing housing at the time of the transfer; or
• provide reimbursement when the distance between the two designated
headquarters of a transferred employee is less than 25 miles.
TxDOT may pay the reasonable, necessary, and resulting costs of moving the
• TxDOT’s executive director determines that the transfer will enhance TxDOT’s
ability to accomplish its goals and missions; and
• the distance between the two designated headquarters of a transferred
employee is at least 25 miles.
The authority discussed in this subsection is in addition to any authority granted by
other law.
Source for this subsection: TEX. TRANSP. CODE ANN. §�201.406 (Vernon 1999).
1. When a state agency reimburses a state employee for moving costs, the reimbursement
must be paid on a purchase voucher. For this purpose, “moving costs” does not include
meals, lodging, mileage, or transportation by rented or public conveyance, which must
be paid or reimbursed on a travel voucher.
4. Upon request, the agency must make the documentation available to the Comptroller
during a pre-payment or a post-payment audit.
1. A state agency must retain in its files documentation that states whether the employee
for whom the notary license fees or notary bond fees are paid provides notary services
as part of the employee’s official duties. Upon request, the agency must make the
documentation available to the Comptroller during a pre-payment or a post-payment
audit.
2. Comptroller object code 7205 must be used for the payment of a notary bond fee.
Comptroller object code 7210 must be used for the payment of a notary license fee.
Comptroller object code 7334 must be used for the purchase of a notary stamp or a
notary record book.
A state agency may not, however, make an expenditure under Section 659.061
unless it has a specific appropriation for that purpose. The following agencies have a
specific appropriation:
• the Department of Aging and Disability Services (limited to $500 per employee
per incident for the repair or replacement of medically prescribed equipment
that is damaged or destroyed in the course and scope of employment); and
• the Department of State Health Services (limited to $500 per employee per
incident for the repair or replacement of medically prescribed equipment that
is damaged or destroyed in the course and scope of employment); and
• the Texas Youth Commission (limited to paying necessary medical expenses,
including the cost of broken eyeglasses and other health aids); and
• the Texas School for the Blind and Visually Impaired (limited to medically
prescribed equipment like eyeglasses and a hearing aid); and
• the Texas School for the Deaf (limited to medically prescribed equipment like
eyeglasses and a hearing aid); and
• the Department of Public Safety of the State of Texas.
Sources for this subsection: TEX. GOV’T CODE ANN. §�659.061 (Vernon 1994);
Op. Tex. Att’y Gen. No. C-706 (1966); Article II, Section 2 of the General
Appropriations Act (Special Provisions Relating to All Health and Human Services
Agencies); Rider 17 in the appropriations to the Department of Public Safety in the
General Appropriations Act; Rider 8 in the appropriations to the Youth Commission
in the General Appropriations Act; Rider 1 in the Special Provisions for the Texas
School for the Blind and Visually Impaired and Texas School for the Deaf in Article
III of the General Appropriations Act.
Cross reference for this section: Chapter 3: Funeral expenses.
A state agency must retain in its files documentation that shows how the requirements
described in this section have been satisfied. Upon request, the documentation must be
made available to the Comptroller during a pre-payment or a post-payment audit.
• who are injured, become ill, or develop signs or symptoms because of possible
overexposure involving hazardous substances or health hazards from an
emergency response or hazardous waste operation; or
• who are expected to handle and control actual or potential leaks or spills of
hazardous substances requiring possible close approach to the substance, i.e.,
HAZMAT employees.
A state agency should consult 29 C.F.R. §�1910.120(f)(3) (LEXIS through the
January 21, 2004, issue of the Federal Register) for important information about the
required frequency and other matters relating to the physical examinations.
A state agency may pay for any periodic physical examination of an employee that
OSHA regulations require.
Sources for this subsection: TEX. LAB. CODE ANN. §§�412.001(4), 412.011(b)(4),
412.041(j)(2) (Vernon Supp. 2004); 28 TEX. ADMIN. CODE §�251.402 (2003);
29 C.F.R. §�1910.120(a)(1), (3), (f), (q)(9) (LEXIS through the January 21, 2004,
issue of the Federal Register). But see 25 TEX. REG. 4197 (2000) (public notice
of the Risk Management Board’s decision to allow Section 251.402 of Title 28
of the Texas Administrative Code to “expire by operation of law”).
D. Aircraft pilots
The information provided in this subsection applies only to a state agency that has
the statutory authority to employ an aircraft pilot.
A state agency has implied statutory authority to pay for the physical or
psychological examination of an aircraft pilot if the agency determines that the
payment is necessary to protect the health and safety of the pilot or the officers and
employees who travel on state aircraft.
E. Peace officers
1. Pre-licensing physical and psychological examinations
In this subsection, “peace officer” means a person elected, employed, or
appointed as a peace officer under TEX. CODE CRIM. PROC. ANN. art. 2.12
(Vernon Supp. 2004) or other law.
A person may not appoint a person to serve as a peace officer unless the person
appointed holds an appropriate license issued by the Commission on Law
Enforcement Officer Standards and Education (CLEOSE). CLEOSE may not
issue a license to a person as a peace officer unless the person is examined by:
• a licensed psychologist or by a psychiatrist who declares in writing that the
person is in satisfactory psychological and emotional health to serve as a peace
officer; and
• a licensed physician who declares in writing that the person does not show any
trace of drug dependency or illegal drug use after a physical examination, blood
test, or other medical test.
An agency hiring a person for whom a license as a peace officer is sought shall
select the examining psychologist or psychiatrist and the examining physician.
The agency may pay the fee of the psychologist, psychiatrist, or physician if:
• the agency has specific or implied statutory authority to employ peace
officers; and
• the agency has specific or implied statutory authority to make the payment.
Sources for this subdivision: TEX. OCC. CODE ANN. §§�1701.001(4), 1701.301,
1701.306(a)-(b) (Vernon 2002).
• the disease is not an “ordinary disease of life” as that term is used in the
context of a workers’ compensation claim; and
• the exposure to the disease occurs during the course of the employment; and
• the employee requires preventative medical treatment because of exposure to
the disease.
A public safety employee who is entitled to reimbursement of medical expenses
under the statutes described in this subsection also is entitled to choose the
In this subdivision:
In this subdivision:
survivors of a covered employee who died in the course of the employee’s duty as a
result of exposure to a risk that is inherent in the duty or to which the public is not
customarily exposed.
Protection (TCFP) or whose principal duties are aircraft crash and rescue fire fighting.
the line of duty in the individual’s position as described by Section 615.003, Government
Code, if the individual died while actually performing an activity that the individual
was certified to perform by TCFP, without regard to whether the individual was
actually performing the activity during the individual’s compensable hours at work.
Sources: TEX. CONST. art. III, §�51-d; TEX. GOV’T CODE ANN. §§�615.003(1),
28 29
(11)-(14) , 615.021(c) , 615.042 (Vernon Supp. 2004). See TEX. GOV’T CODE ANN.
§§�615.021(a), 615.022, 615.0225, 615.023(b) (Vernon Supp. 2004); 34 TEX. ADMIN.
CODE §�75.1 (2003).
28
Section 615.003(12), Government Code, was amended in 2003. For applicability of the amendments, see Act of
June 1, 2003, 78th Leg., R.S., ch. 1111, §�44(e), 2003 Tex. Gen. Laws 3178, 3187-8.
Section 615.003(14), Government Code, was amended in 2003. For applicability of the amendments, see Act of
May 31, 2003, 78th Leg., R.S., ch. 842, §�7(a), 2003 Tex. Gen. Laws 2633, 2636.
29
Section 615.021(c), Government Code, was amended in 2003. For applicability of the amendments, see Id. at
§�7(b), 2003 Tex. Gen. Laws at 2636.
2. Upon request, the agency must make the preceding items available to the
Comptroller during a pre-payment or a post-payment audit.
3. A payment from one state agency to another state agency for training or education
must be made on an interagency transaction voucher if the funds used to make the
payment are in the state treasury and will be deposited in the state treasury by the
receiving agency.
4. Comptroller object code 7202 must be used for a payment of tuition to an institution
of higher education. Comptroller object code 7203 must be used for the payment of a
registration fee for a conference or seminar. Comptroller object code 7243 must be
used for educational services, including professionally conducted training.
court in which the judgment is rendered. It contains certain information about the
judgment, such as the amount of the judgment and the names of the plaintiff and
constitutes a lien on all real property owned or subsequently purchased by the person
against whom the judgment was obtained if the judgment is not dormant.
The state may pay a fee to a county clerk but not to a district clerk for preparing an
abstract of judgment.
Sources: TEX. GOV’T CODE ANN. §�51.318(b)(5) (Vernon 1998); TEX. LOC. GOV’T
CODE ANN.§�118.052(1)(C)(i) (Vernon Supp. 2004), §�154.004 (Vernon 1999);
TEX. PROP. CODE ANN. §§�52.001, 52.003 (Vernon 1995), §§�52.002, 52.004
(Vernon Supp. 2004).
Comptroller object code 7222 must be used to pay for the preparation or filing of an
abstract of judgment.
30
For the purpose of the definition of “contested case,” “state agency” has the meaning assigned by the
Administrative Procedure Act, TEX. GOV’T CODE ANN. §�2001.003(7) (Vernon 2000).
– a local workforce development board created under TEX. GOV’T CODE ANN.
§�2308.253 (Vernon 2000); or
– the governing body of a nonprofit corporation organized under Chapter 67,
Water Code, that provides a water supply or wastewater service, or both,
and is exempt from ad valorem taxation under TEX. TAX CODE ANN.
§�11.30 (Vernon Supp. 2004); or
– the part, section, or portion of an organization, corporation, commission,
committee, institution, or agency that spends or is supported in whole or in
part by public funds; or
– a nonprofit corporation that is eligible to receive funds under the federal
community services block grant program and that is authorized by this state
to serve a geographic area of the state.
• “Governmental Dispute Resolution Act” means Chapter 2009, Government
Code.
• “Institution of higher education” has the meaning assigned by TEX. EDUC.
CODE ANN. §�61.003 (Vernon Supp. 2004).
• “License” includes the whole or part of a state agency31 permit, certificate,
approval, registration, or similar form of permission required by law.
• “Licensing” includes a state agency32 process relating to granting, denial, renewal,
revocation, suspension, annulment, withdrawal, or amendment of a license.
• “Party” means a person or state agency33 named or admitted as a party.
• “Person” means an individual, partnership, corporation, association, governmental
subdivision, or public or private organization that is not a state agency.
• “Public funds” means funds of the state or of a governmental subdivision of the state.
• “Rule”:
– means a state agency34 statement of general applicability that implements,
interprets, or prescribes law or policy or describes the procedure or practice
requirements of a state agency35; and
– includes the amendment or repeal of a prior rule; and
– does not include a statement regarding only the internal management or
organization of a state agency36 and not affecting private rights or procedures.
• “State agency” means an officer, board, commission, department, or other
agency in the executive branch of state government with statewide
jurisdiction that makes rules or determines contested cases. The term
includes an institution of higher education, the State Office of Administrative
Hearings, and the Attorney General.
31
For the purpose of the definition of “license,” “state agency” has the meaning assigned by the
Administrative Procedure Act, TEX. GOV’T CODE ANN. §�2001.003(7) (Vernon 2000).
32
For the purpose of the definition of “licensing,” “state agency” has the meaning assigned by the
Administrative Procedure Act, TEX. GOV’T CODE ANN. §�2001.003(7) (Vernon 2000).
33
For the purpose of the definition of “party,” “state agency” has the meaning assigned by the
Administrative Procedure Act, TEX. GOV’T CODE ANN. §�2001.003(7) (Vernon 2000).
34
For the purpose of the definition of “rule,” “state agency” has the meaning assigned by the Administrative
35
Id.
36
Id.
The policy of this state is that disputes before governmental bodies be resolved as fairly
and expeditiously as possible and that each governmental body support this policy by
developing and using alternative dispute resolution procedures in appropriate aspects of
the body’s operations and programs.
A governmental body may pay for costs necessary to meet the objectives of the
Governmental Dispute Resolution Act (GDRA), including reasonable fees for training,
policy review, system design, evaluation, and the use of impartial third parties. To the
extent allowed by the General Appropriations Act (GAA), a state agency may use
money budgeted for legal services, executive administration, or any other appropriate
aspect of the agency’s operations to pay for the costs.
A governmental body may contract with another governmental body with an
alternative dispute resolution system created under Chapter 152, Civil Practice and
Remedies Code, or with a private entity for any service necessary to meet the objectives
of the GDRA. This contracting authority specifically includes the Center for Public
Policy Dispute Resolution at The University of Texas School of Law (the “Center”).
A governmental body may appoint a governmental officer or employee or a private
individual to serve as an impartial third party in an alternative dispute resolution
procedure. With two exceptions, the appointment is subject to the approval of the
parties. First, when a State Office of Administrative Hearings (SOAH)
administrative law judge has issued an order referring a case involving a state
agency to an alternative dispute resolution procedure under TEX. GOV’T CODE ANN.
§�2003.042(a)(5) (Vernon 2000), the judge may appoint the impartial third party for
the parties if they cannot agree on an impartial third party within a reasonable
period. Second, a governmental body’s appointment of the impartial third party is not
subject to the approval of the parties if the alternative dispute resolution procedure
concerns victim-offender mediation by the Texas Department of Criminal Justice as
described in TEX. CODE. CRIM. PROC. ANN. art. 56.13 (Vernon Supp. 2004).
A governmental body may obtain the services of a qualified impartial third party
through an agreement with the Center, an alternative dispute resolution system
created under Chapter 152, another governmental body, or a federal agency or
through a pooling agreement with several governmental bodies. The agreements may
provide that the using governmental body or the parties will reimburse the furnishing
entity, in kind or monetarily, for the full or partial cost of providing the qualified
impartial third party.
A state agency may also obtain the services of a qualified third party through an
agreement with SOAH.
The GDRA does not require a party to a dispute to participate in an alternative
dispute resolution procedure and does not preclude a party from seeking another
remedy, including litigation, that otherwise is available.
The information provided in this subsection applies only to an alternative dispute
resolution proceeding that begins after August 31, 1999.
Sources for this subsection: TEX. GOV’T CODE ANN. §�552.003(1), (5)
(Vernon Supp. 2004); Administrative Procedure Act, TEX. GOV’T CODE ANN.
§�2001.003 (Vernon 2000); Governmental Dispute Resolution Act, TEX. GOV’T
CODE ANN. §§�2009.001-2009.004 (Vernon 2000), §�2009.053(a)-(c)
(Vernon Supp. 2004); Act of May 30, 1999, 76th Leg., R.S., ch. 1352, §§�10-11,
1999 Tex. Gen. Laws 4578, 4587.
A state agency must retain in its files documentation that shows the agency’s compliance
with the requirements described in this subsection. Upon request, the agency must make the
documentation available to the Comptroller during a pre-payment or a post-payment audit.
If the court refers a pending dispute for resolution by an alternative dispute resolution
procedure, the court may appoint one or more impartial third parties to facilitate the
procedure. The court may set a reasonable fee for the services of an impartial third
party appointed under Subchapter C of Chapter 154. Unless the parties agree to a
method of payment, the court shall tax the fee as other costs of suit.
Sources for this subsection: TEX. CIV. PRAC. & REM. CODE ANN. §§�154.001-154.002,
154.021(a), 154.051(a), (c), 154.054 (Vernon 1997). See, generally, In re Acceptance
Ins. Co., 33 S.W.3d 443, 451-3 (Tex. App.—Fort Worth 2000, no pet.); In re Daley,
29 S.W.3d 915, 918 (Tex. App.—Beaumont 2000, pet. filed); Texas Parks & Wildlife
Dept. v. Davis, 988 S.W.2d 370, 376 (Tex. App.—Austin 1999, no pet.).
complaint issued by a state agency against a small business under the agency’s
A small business may not recover under Subchapter B if the parties have executed a
settlement agreement that, while not stipulating liability or violation, requires the
business to take corrective action or pay a monetary sum.
To recover under Subchapter B, a small business must file a written motion that
complies with certain requirements not later than the 30th day after the date of the
filing of the administrative adjudicatory proceeding or civil action.
The hearings officer in an administrative adjudicatory proceeding or the court in a
civil action shall determine whether the proceeding or action is groundless and
brought in bad faith or for purposes of harassment.
Sources for this subsection: TEX. GOV’T CODE ANN. §§�2006.011-2006.013,
2006.014(a), 2006.015(a) (Vernon 2000).
PRAC. & REM. CODE ANN. §§�37.002(a), 37.009 (Vernon 1997); see, e.g., John G. &
Marie Stella Kenedy Mem. Found. v. Dewhurst, 90 S.W.3d 268, 289 (Tex. 2002);
Texas Educ. Agency v. Leeper, 893 S.W.2d 432, 446 (Tex. 1994); Texas State Bd.
of Texas, Inc., 31 S.W.3d 750, 753 (Tex. App.—Austin 2000, pet. dism’d by agr.);
Brush v. Reata Oil and Gas Corp., 984 S.W.2d 720, 730 (Tex. App.—Waco 1998,
pet. denied); Southwest Guaranty Trust Company v. Hardy Road 13.4 Joint
1998, pet. denied); McRae Exploration & Prod. v. Reserve Petroleum Co.,
962 S.W.2d 676, 684 (Tex. App.—Waco 1998, pet. denied); Ely v. Briley, 959
S.W.2d 723, 727 (Tex. App.—Austin 1998, no writ); Bexar County Appraisal
(Tex. App.—San Antonio 1993, writ denied), cert. denied, 114 S.Ct. 1221 (1994);
Barfield v. Holland, 844 S.W.2d 759, 771 (Tex. App.—Tyler 1992, writ denied).
A party to a civil suit brought by or against a state agency in which the agency
asserts a cause of action against the party is entitled to recover reasonable
attorney’s fees incurred by the party in defending against the agency’s action if:
• the suit is in a court of this state; and
• the court finds that the action is frivolous, unreasonable, or without
foundation; and
• the action is dismissed or judgment is awarded to the party.
The agency shall pay the fees from:
• funds appropriated for operation of the agency; or
• funds appropriated for the payment of fees under Chapter 105, Civil Practice
and Remedies Code; or
Sources for this subsection: TEX. CIV. PRAC. & REM. CODE ANN. §§�105.001(2)-(3),
105.002, 105.004 (Vernon 1997).
• are based on an act or omission by the person in the course and scope of the
person’s office, employment, or contractual performance for or service on behalf
of the agency, institution, or department; and
• one of the following is true:
– the damages arise out of a cause of action for negligence, except a willful or
wrongful act or an act of gross negligence; or
– the damages arise out of a cause of action for deprivation of a right, privilege,
or immunity secured by the constitution or laws of this state or the United
States, except when the court in its judgment or the jury in its verdict finds
that the person acted in bad faith, with conscious indifference, or reckless
disregard; or
– indemnification is in the interest of the state as determined by the attorney
general or the attorney general’s designee.
The state is liable for indemnification of attorney’s fees under Chapter 104,
• the person is liable for the damages solely because the person signed an
industrial solid waste or hazardous waste manifest or other record required by
TEX. HEALTH & SAFETY CODE ANN. §�361.036 (Vernon 2001); and
• the person signed the manifest or record in the course and scope of the person’s
office, employment, or contractual performance or service on behalf of the
agency, institution, or department; and
• the person or company who signed the manifest did not increase or aggravate
circumstances of contamination by grossly negligent acts or willful misconduct.
In a cause of action based on conduct described above, the state shall indemnify38
the following persons, without regard to whether the persons performed their
services for compensation, for attorney’s fees adjudged against:
• an employee, a member of the governing board, or any other officer of a state
agency, institution, or department; or
• a former employee, former member of the governing board, or other former
officer of a state agency, institution, or department who was an employee or
officer when the act or omission on which the damages are based occurred; or
• a physician or psychiatrist licensed in this state who was performing services
under a contract with any state agency, institution, or department when the
act or omission on which the damages are based occurred; or
• a racing official performing services under a contract with the Texas Racing
Commission when the act or omission on which the damages or based
occurred; or
37
For limitations on appropriations made by the legislature to pay attorney's fees under Chapter 104, Civil
Practice and Remedies Code, see TEX. CIV. PRAC. & REM. CODE ANN. § 109.001 (Vernon 1997), § 109.002
(Vernon Supp. 2004), § 109.003 (Vernon 1997), § 109.004 (Vernon Supp. 2004), §§ 109.006-109.007 (Vernon
1997).
38
There are monetary limits on and certain exceptions concerning this indemnification requirement. See TEX.
CIV. PRAC. & REM. CODE ANN. § 104.003 (Vernon Supp. 2004).
In this subsection:
39
This paragraph took effect June 15, 2001, but applies only to a cause of action that accrues after June 14,
2001. Act of May 23, 2001, 77th Leg., R.S., ch. 1082, §§ 2-3, 2001 Tex. Gen. Laws 2384, 2384.
40
The state's liability may not exceed $10,000 for the prosecution of a criminal offense or the prosecution of two
or more offenses prosecuted in a single criminal action. TEX. CIV. PRAC. & REM. CODE ANN. § 104.0035(b)
(Vernon 1997). Certain types of criminal prosecutions are not covered by this indemnification requirement.
See TEX. CIV. PRAC. & REM. CODE ANN. § 104.0035(c) (Vernon 1997).
The indemnification is payable out of funds appropriated for that purpose. TEX. CIV. PRAC. & REM. CODE
ANN. § 104.0035(e) (Vernon 1997).
41
Chapter 110, however, does not “affect the grant or denial of an appropriation or other grant of money or
benefits to a religious organization, nor does it affect the grant or denial of a tax exemption to a religious
organization.” TEX. CIV. PRAC. & REM. CODE ANN. §�110.012 (Vernon Supp. 2004).
A private real property owner may file a contested case with a state agency to
determine whether a governmental action of the agency results in a taking under
the Private Real Property Rights Preservation Act (PRPRPA),42 which is codified in
Chapter 2007, Government Code. If the person is aggrieved by a final decision or
order in the case, the person may seek judicial review after the person has
exhausted all administrative remedies available within the agency.
The court or the state agency shall award a private real property owner who prevails in
a suit or contested cased filed under PRPRPA reasonable and necessary attorney’s fees.
Sources for this subsection: Private Real Property Rights Preservation Act,
TEX. GOV’T CODE ANN. §§�2007.001, 2007.002(2), (4), (5), 2007.022(a), 2007.025(b),
2007.026(a) (Vernon 2000); Code Construction Act, TEX. GOV’T CODE ANN.
§�311.005(2) (Vernon 1998).
In this subsection:
42
The definition of “include” in Section 1.025 does not apply here. See Subdivision (1) of this subsection for
definitions of “witness” and “state agency.” PRPRPA is codified in Chapter 2007, Government Code.
Source for this subsection: Op. Tex. Att’y Gen. No. JC-495 (2002).
In this subdivision:
This subdivision does not apply to representation of the Legislature before the
Texas Supreme Court in violation of TEX. CONST. art. IV, §�22.
Source for this subdivision: TEX. GOV’T CODE ANN. §�301.061 (Vernon 1998).
43
The definition of “include” in Section 1.002 does not apply here.
100 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 4 – Expenditures Relating to Legal Proceedings
44
The definition of “include” in Section 1.002 does not apply here.
State of Texas Purchase Policies and Procedures Guide July 2004 101
Chapter 4 – Expenditures Relating to Legal Proceedings
The GAA says that the funds appropriated by the GAA may not be expended to
pay the legal fees or expenses of an attorney or law firm that represents the state
or any state agency in any contested matter if the attorney or firm is
representing a plaintiff in a proceeding seeking monetary damages from the
state or any state agency.
The preceding paragraph does not apply to an entity or appropriation in
Article X of the GAA.
Sources for this subsection: Article IX, Section 6.23(a)-(e), (g)-(j) and Article X,
Section 2(a) of the General Appropriations Act. See Op. Tex. Att’y Gen.
102 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 4 – Expenditures Relating to Legal Proceedings
elected or appointed officer who governs the entity approves and signs the
contract.
Unless the governor approves and signs the contract, the attorney general may
enter into a contingent fee contract for legal services in the name of the state in
relation to a matter that has been referred to the attorney general under law by
another state governmental entity only if the other entity approves and signs the
contract in accordance with the preceding paragraph (including its two bullets).
Before approving a contingent fee contract for legal services, a governing body,
the elected or appointed officer, or the governor (as appropriate) must find that:
• there is a substantial need for the legal services; and
• the legal services cannot be adequately performed by the attorneys and
supporting personnel of the state governmental entity or by the attorneys and
supporting personnel of another state governmental entity; and
• the legal services cannot reasonably be obtained from attorneys in private
practice under a contract providing only for the payment of hourly fees,
without regard to the outcome of the matter, because of the nature of the
matter for which the services will be obtained or because the entity does not
• Before entering into a contingent fee contract for legal services in which the
estimated amount that may be recovered exceeds $100,000, a state
governmental entity that proposes to enter into the contract in its own name or
in the name of the state must also:
– notify the Legislative Budget Board (LBB) that the entity proposes to enter
into the contract; and
– send the LBB copies of the proposed contract; and
– send the LBB information demonstrating that the conditions required in the
last bullet, above, exist.
If a state governmental entity finds that the entity does not have appropriated
funds available to pay the estimated amounts required under a contract for the
legal services providing only for the payment of hourly fees, the entity may not
enter into the proposed contract in its own name or in the name of the state
unless the LBB finds that the entity’s finding with regard to available
appropriated funds is correct. The contract is void if the LBB does not make
this finding.
State of Texas Purchase Policies and Procedures Guide July 2004 103
Chapter 4 – Expenditures Relating to Legal Proceedings
Except as described in this paragraph (and the two bullets following this
paragraph), a contingent fee and a reimbursement of an expense under a
contract with a state governmental entity is payable only from funds the
Legislature specifically appropriates to pay the fee or reimburse the expense. An
appropriation to pay the fee or reimburse the expense must specifically describe
the individual contract, or the class of contracts classified by subject matter, on
account of which the fee is payable or expense is reimbursable. A general
reference to contingent fee contracts for legal services or to contracts subject to
Subchapter C of Chapter 2254, Government Code, or a similar general
description is insufficient. If the Legislature has not specifically appropriated
funds for paying the fee or reimbursing the expense, the entity may pay the fee
or reimburse the expense from other available funds only if:
• the Legislature is not in session; and
• the LBB gives its prior approval for that payment or reimbursement under
TEX. CONST. art. XVI, §�69 after examining the statement required under
TEX. GOV’T CODE ANN. §�2254.104(c) (Vernon 2000) and determining that the
requested payment and the contract under which payment is requested meet
all the requirements of Subchapter C of Chapter 2254, Government Code.
A payment or reimbursement under a contingent fee contract may not be made
until:
• final and unappealable arrangements have been made for depositing all
recovered funds to the credit of the appropriate fund or account in the state
treasury; and
• the state governmental entity and the state auditor have received from the
contracting attorney or law firm the statement required under
Section 2254.104(c).
Litigation and other expenses payable under a contingent fee contract, including
expenses attributable to attorney, paralegal, accountant, expert, or other
professional work performed by a person who is not a contracting attorney or a
partner, shareholder, or employee of a contracting attorney or law firm, may be
reimbursed only if the state governmental entity and the state auditor determine
that the expenses were reasonable, proper, necessary, actually incurred on
behalf of the entity, and paid for by the contracting attorney or law firm. The
contingent fee may not be paid until the state auditor has reviewed the relevant
time and expense records and verified that the hours of work on which the fee
computation is based were actually worked in performing reasonable and
necessary services for the entity under the contract.
All funds recovered by a state governmental entity in litigation or in settlement
of a matter that could have resulted in litigation are public funds of the state or
the entity and shall be deposited in the state treasury to the credit of the
appropriate fund or account. For this purpose, “funds” includes money
designated as damages, amounts adjudged or awarded, attorney’s fees, costs,
interest, settlement proceeds, and expenses. Legal fees or expenses may be paid
from recovered funds under a contingent fee contract for legal services only:
• after the funds are deposited as described in this paragraph; and
• in accordance with Subchapter C of Chapter 2254, Government Code, if that
subchapter applies to the contract.
104 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 4 – Expenditures Relating to Legal Proceedings
A state officer, employee, or governing body (including the attorney general) may
not waive the requirements of Subchapter C of Chapter 2254, Government Code,
or prejudice the interests of the state under that subchapter.
The GAA says that none of the money appropriated by the GAA may be expended by
a state governmental entity for payment of legal fees or expenses under a contingent
fee contract for legal services without the prior approval of the LBB in accordance
with TEX. CONST. art. XVI, §�69. In this paragraph, “state governmental entity”
means a board, commission, department, office, or other agency in the executive
branch of state government created under the constitution or a statute, including an
institution of higher education. The restrictions described in this paragraph apply to
all contingent fee contracts for legal services entered into by a state governmental
entity, including legal services relating to a parens patriae action or proceeding
brought by a state governmental entity in the name of the state. Those restrictions
do not apply to a contingent fee contract for legal services performed for a state
governmental entity in relation to the entity’s actions as a receiver, special deputy
receiver, liquidator, or liquidating agent in connection with the administration of the
assets of an insolvent entity, including actions under TEX. INS. CODE ANN. art. 21.28
(Vernon Supp. 2004) or Chapter 36, 66, 96, or 126, Finance Code. Those restrictions
also do not apply to a contingent fee contract under which recoveries from more than
one entity are contemplated and the expected amount of each recovery and the
actual amount of each recovery do not exceed $100,000.
Sources for this subdivision: TEX. GOV’T CODE ANN. §�404.097 (Vernon Supp. 2004),
§§�2254.101, 2254.102(a)-(b), 2254.103, 2254.108, 2254.109(c) (Vernon 2000); Act of
May 30, 1999, 76th Leg., R.S., ch. 1499, §�3.04, 1999 Tex. Gen. Laws 5164, 5185;
Article IX, Section 6.23(k) of the General Appropriations Act. See Tex. Att’y Gen.
LO-96-124 (1996).
education
State of Texas Purchase Policies and Procedures Guide July 2004 105
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106 July 2004 State of Texas Purchase Policies and Procedures Guide
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State of Texas Purchase Policies and Procedures Guide July 2004 107
Chapter 4 – Expenditures Relating to Legal Proceedings
In this subdivision:
45
Subtitle D of Title 10, Government Code, is commonly known as the State Purchasing and General Services
Act. State Purchasing and General Services Act, TEX. GOV’T CODE ANN. §�2151.001 (Vernon 2000).
108 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 4 – Expenditures Relating to Legal Proceedings
The following USAS purchase voucher requirements apply only to a purchase voucher
submitted to pay the witness fees and expenses of a witness in an administrative hearing
that is covered by the Administrative Procedure Act.
1. A state agency must retain in its files documentation that explains the type of
proceeding the witness attended. Upon request, the agency must make the
documentation available to the Comptroller during a pre-payment or a
post-payment audit.
2. A state agency that has adopted a rule to increase the mileage or fee rate must retain in
its files a copy of the rule. Upon request, the agency must make the documentation
available to the Comptroller during a pre-payment or a post-payment audit.
3. Comptroller object code 7224 must be used.
State of Texas Purchase Policies and Procedures Guide July 2004 109
Chapter 4 – Expenditures Relating to Legal Proceedings
proceeding that the witness attended. Upon request, the agency must make the
post-payment audit.
2. The agency must retain in its files documentation that cites the statutory authority to
pay the fee or reimburse the meal, lodging, incidental, mileage, or other transportation
expense. Upon request, the agency must make the documentation available to the
Comptroller during a pre-payment or a post-payment audit.
3. Comptroller object code 7224 must be used.
In this subsection:
46
See Subdivision (1) for definitions of “witness” and “state agency.”
110 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 4 – Expenditures Relating to Legal Proceedings
The following USAS purchase voucher requirements apply only to a purchase voucher
submitted to pay the witness fees and expenses of a witness in a civil court proceeding.
1. A state agency must retain in its files documentation that explains the type of
proceeding that the witness attended. Upon request, the agency must make the
documentation available to the Comptroller during a pre-payment or a post-payment
audit.
2. Comptroller object code 7254 must be used.
In this subdivision:
State of Texas Purchase Policies and Procedures Guide July 2004 111
Chapter 4 – Expenditures Relating to Legal Proceedings
When the state is required to reimburse a witness for transportation and lodging
expenses, the state may instead directly pay a commercial transportation company
for the transportation and a commercial lodging establishment for the lodging.
In addition to reimbursement or payment for transportation, meal, and lodging
expenses, the Comptroller is required to pay other expenses required by the laws of
Texas or the laws of the state where the witness resides if those expenses are
properly requested by the attorney for the state.
A reimbursement may be paid to an assignee of a witness only if the assignment is
made under oath and is acknowledged, certified, and sealed by someone authorized
to administer oaths. A county that has advanced funds to enable a witness to
attend a criminal proceeding in the county is entitled to be reimbursed as an
assignee of the witness.
The Comptroller may pay the transportation, meal, and lodging expenses of a
witness only if the Comptroller receives the witness’s court-approved claim for
the expenses.
If a court certifies that travel, living, and other expenses must be paid to a
witness to obtain the attendance of the witness at a trial in the court, then the
Comptroller is required to pay the expenses into the registry of the court.
A person reimbursed by the state for travel and expenses for attendance as a
witness as provided by TEX. CODE CRIM. PROC. ANN. art. 35.27
(Vernon 1989 & Supp. 2004) is not entitled to an amount that exceeds the
amount appropriated for that purpose by the General Appropriations Act.
Sources for this subdivision: Uniform Act to Secure the Attendance of Witnesses
from Without the State in Criminal Proceedings, TEX. CODE CRIM. PROC. ANN.
art. 24.28, §�4(b) (Vernon 1989); TEX. CODE CRIM. PROC. ANN. art. 35.27
(Vernon 1989 & Supp. 2004); Act of May 29, 2003, 78th Leg., R.S., ch. 315,
§�22, 2003 Tex. Gen. Laws 1337, 1342.
The following USAS purchase voucher requirements apply only to a purchase voucher
submitted to pay the witness fees and expenses of a witness who resides outside Texas.
1. A state agency must retain in its files documentation that explains the type of
proceeding that the witness attended and specifies the state in which the witness
resided at the time the witness attended the proceeding. Upon request, the agency must
make the documentation available to the Comptroller during a pre-payment or a
post-payment audit.
112 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 4 – Expenditures Relating to Legal Proceedings
2. Witnesses who reside in Texas but outside the county where the proceeding
occurs
In this subdivision:
State of Texas Purchase Policies and Procedures Guide July 2004 113
Chapter 4 – Expenditures Relating to Legal Proceedings
A person reimbursed by the state for travel and expenses for attendance as a
witness as provided by TEX. CODE CRIM. PROC. ANN. art. 35.27
(Vernon 1989 & Supp. 2004) is not entitled to an amount that exceeds the
amount appropriated for that purpose by the General Appropriations Act.
Sources: TEX. CODE CRIM. PROC. ANN. art. 35.27 (Vernon 1989 & Supp. 2004);
Act of May 29, 2003, 78th Leg., R.S., ch. 315, §�22, 2003 Tex. Gen. Laws 1337,
1342; Op. Tex. Att’y Gen. Nos. H-107 (1973), C-579 (1966).
114 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 4 – Expenditures Relating to Legal Proceedings
A witness shall be paid an attendance fee of $40 for each day’s attendance:
• at any court of the United States; or
• before a United States magistrate; or
• before any person authorized to take the deposition of the witness pursuant
to any rule or order of a court of the United States.
The witness shall also be paid the $40 per day fee for the time necessarily used in
going to and returning from the place of attendance at the beginning and end of the
attendance or at any time during the attendance.
A witness who travels by common carrier shall be paid for the actual expenses of
travel on the basis of the means of transportation reasonably utilized and the distance
necessarily traveled to and from the witness’s residence by the shortest practical route
in going to and returning from the place of attendance. The witness must use a
common carrier at the most economical rate reasonably available. A receipt or other
evidence of actual cost must be furnished.
A travel allowance equal to the mileage allowance that the administrator of the
General Services Administration has prescribed for official travel of employees of the
federal government shall be paid to a witness who travels by privately owned vehicle.
Computation of mileage shall be made on the basis of a uniformed table of distances
adopted by the administrator.
The following expenses shall be paid in full to a witness incurring them: toll charges
for toll roads, bridges, tunnels, and ferries; taxicab fares between places of lodging and
carrier terminals; and parking fees (upon presentation of a valid parking receipt).
A subsistence allowance shall be paid to a witness when an overnight stay is required at
the place of attendance because the place is so far removed from the residence of the
witness as to prohibit return thereto from day to day. The amount of the allowance may
not exceed the maximum per diem allowance prescribed by the administrator for official
travel in the area of attendance by employees of the federal government. The amount of
the allowance for a witness attending in an area designated by the administrator as a
high-cost area may not exceed the maximum actual subsistence allowance prescribed by
the administrator for official travel in the area by employees of the federal government.
Sources for this subsection: Fed. R. Civ. P. 45(b)(1); 5 U.S.C.A. §§�5704(a),
5707(b)(2) U.S.C.S. §§�5704(a), 5707(b)(2) (Law. Co-op. LEXIS through Pub. L.
No. 108-98, approved December 19, 2003 (with a gap of Pub. L. No.�108-173));
28 U.S.C.S. §�1821(a)-(d) (Law. Co-op. LEXIS through Pub. L. No. 108-98,
approved December 19, 2003 (with a gap of Pub. L. No.�108-173)); Op. Tex.
Att’y Gen. No.�C-786 (1966).
State of Texas Purchase Policies and Procedures Guide July 2004 115
Chapter 5 – Expenditures Under Particular Contracts
§�5.002 Automated information systems
In this section:
• “Automated information system” includes:
– the computers and computer devices on which an information system is
automated, including computers and computer devices that the Texas
Building and Procurement Commission (TBPC) identifies in guidelines
developed by TBPC in consultation with the Department of Information
Resources and in accordance with Chapter 2054, Government Code, and
rules adopted under that chapter; and
– a service related to the automation of an information system, including
computer software or computers; and
– a telecommunications apparatus or device that serves as a component of a
voice, data, or video communications network for transmitting, switching,
routing, multiplexing, modulating, amplifying, or receiving signals on the
network, and services related to telecommunications that are not covered
under the following bullet; and
– for the Department of Information Resources, as telecommunications
provider for the state, the term includes any service provided by a
telecommunications provider, as that term is defined by TEX. UTIL. CODE
ANN. §�51.002 (10) (Vernon Supp. 2004).
• “State agency” means:
– a department, commission, board, office, or other agency in the executive
branch of state government created by the state constitution or a state
statute; or
– the Supreme Court, the Court of Criminal Appeals, a Court of Appeals, or
the Texas Judicial Council; or
– a university system or an institution of higher education as defined by
TEX. EDUC. CODE ANN. §�61.003 (Vernon Supp. 2004), except a public
junior college.
State funds may not be expended in the purchase of an automated information system
unless the contract contains a technology access clause to read as follows:
The vendor expressly acknowledges that state funds may not be expended in
connection with the purchase of an automated information system unless that
system meets certain statutory requirements relating to accessibility by persons
with visual impairments. Accordingly, the vendor represents and warrants to
(name of state agency) that the technology provided to (name of state agency) for
purchase is capable, either by virtue of features included within the technology or
because it is readily adaptable by use with other technology, of:
(1) providing equivalent access for effective use by both visual and
nonvisual means;
(2) presenting information, including prompts used for interactive
communications, in formats intended for both visual and nonvisual use; and
(3) being integrated into networks for obtaining, retrieving, and
disseminating information used by individuals who are not blind or
visually impaired.
116 July 2004 State of Texas Purchase Policies and Procedures Guide
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§�2054.002 (Vernon 2000); State Purchasing and General Services Act, TEX.
47
Subtitle D of Title 10, Government Code, is commonly known as the State Purchasing and General Services
Act. State Purchasing and General Services Act, TEX. GOV’T CODE ANN. §�2151.001 (Vernon 2000).
State of Texas Purchase Policies and Procedures Guide July 2004 117
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48
Those requirements are not discussed in the guide. The information provided in this subdivision applies only
to a major consulting services contract that is entered into after August�31, 1999. A major consulting services
contract that is entered into before September 1, 1999, is governed by the law in effect on the date the
contract is entered into, and the former law is continued in effect for that purpose. Act of May 31, 1999, 76th
Leg., R.S., ch. 1467, §�4.05, 1999. A reference in law to the Texas Natural Resource Conservation Commission
(TNRCC) is a reference to the Texas Commission on Environmental Quality. Act of May 28, 2001, 77th Leg.,
R.S., ch. 965, §�18.01(b), 2001 Tex. Gen. Laws 1933, 1985 (House Bill No. 2912). TNRCC is required to adopt
a timetable for phasing in the name change. Section 4996, 5036. The former law may be found at Act of May
28, 1997, 75th Leg., R.S., ch.�1035, §�10, 199718.01(c) of House Bill No. 2912, 2001 Tex. Gen. Laws at 1985.
118 July 2004 State of Texas Purchase Policies and Procedures Guide
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TBPC may waive, suspend, or modify a provision described in this subsection that conflicts
with a federal statute or a rule or administrative procedure of a federal agency if a waiver,
suspension, or modification is essential to receive federal money for a project. If a project is
wholly financed with federal money, a standard required by an enabling federal statute or
required by a rule of the administering federal agency controls.
Money appropriated by the Legislature may not be used for a capital construction project for
which a project analysis described by the State Purchasing and General Services Act, TEX.
GOV’T CODE ANN. §�2166.152 (Vernon 2000) is required until the analysis is filed with the
Legislative Budget Board, the Budget Division of the Governor’s Office, and the Comptroller.
A state agency may not spend more than the amount authorized for the cost of a project
unless the governor and the Legislative Budget Board (LBB) approve the expenditure.
Once the cost of a project reaches the amount authorized for the project, each change to
approved project plans must be approved by the governor and the LBB.
Sources: State Purchasing and General Services Act, TEX. GOV’T CODE ANN.
§§�2151.002(2), �2166.001(1)-(2), (4)-(5), (7), (10) (Vernon Supp. 2004), §§�2166.002,
2166.003(a), 2166.004, 2166.051, 2166.063, 2166.152(e) §�2166.260 (Vernon Supp. 2004).
State of Texas Purchase Policies and Procedures Guide July 2004 119
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120 July 2004 State of Texas Purchase Policies and Procedures Guide
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The requirements49 in the consulting services law that was in effect before
September�1, 1991, apply to:
• a consulting services contract that was entered into before that date;
or
• the amendment, extension, or renewal of a consulting services
contract if the amendment, extension, or renewal was entered into
before that date.
The requirements described in this section do not apply to the extent they
conflict with federal laws or regulations about the expenditure of federal funds.
The requirements described in this section do not apply to a consulting service
provided by:
• a practitioner of a professional service as defined under the Professional
Services Procurement Act, TEX. GOV’T CODE ANN. §�2254.002(2)
(Vernon Supp. 2004); or
• a private legal counsel; or
• an investment counselor; or
• an actuary; or
• a medical service provider; or
• a dental service provider.
Sources for this subdivision: TEX. GOV’T CODE ANN. §§�2254.023,
C.S., ch. 8, §§�7.05, 8.01, 1991 Tex. Gen. Laws 137, 176-7.
(Vernon 2000).
49
Those requirements are not discussed in the guide.
State of Texas Purchase Policies and Procedures Guide July 2004 121
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The Comptroller, the governor, and the Texas Building and Procurement
Commission may jointly decide to subject the procurement of a particular
consulting service to the procedures required by Chapters 2155-2158,
Government Code, instead of the procedures described in this section. Before
they may make that decision:
• they must conclude that using the procedures required by those chapters would
be more advantageous to the state; and
• they must each adopt by rule a memorandum of understanding that states the
substance of their decision.
Sources for this subdivision: State Purchasing and General Services Act, TEX.
GOV’T CODE ANN. §�2151.003 (Vernon Supp. 2004) (a statutory reference to the
General Services Commission (GSC) means the Texas Building and
Procurement Commission (TBPC)); TEX. GOV’T CODE ANN. §�2254.024(b)
(Vernon 2000).
D. Selection of consultants
1. Criteria for selection
2. Prohibited selection
A state agency may not accept a bid or award a contract that includes proposed
financial participation by a person who received compensation from the agency to
participate in preparing the specifications or request for proposals on which the bid or
contract is based.
Source for this subdivision: State Purchasing and General Services Act,
TEX. GOV’T CODE ANN. §�2155.004(a) (Vernon Supp. 2004).
122 July 2004 State of Texas Purchase Policies and Procedures Guide
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Source for this subsection: TEX. GOV’T CODE ANN. §�2254.029 (Vernon 2000).
State of Texas Purchase Policies and Procedures Guide July 2004 123
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contract
50
The information provided in this subdivision applies only to a major consulting services contract that is
entered into after August 31, 1999. A major consulting services contract that is entered into before
September 1, 1999, is governed by the law in effect on the date the contract is entered into, and the former
law is continued in effect for that purpose. Act of May 31, 1999, 76th Leg., R.S., ch. 1467, §�4.05, 1999 Tex.
Gen. Laws 4996, 5036. The former law may be found at Act of May 28, 1997, 75th Leg., R.S., ch. 1035, §�10,
1997 Tex. Gen. Laws 3845, 3848.
51
As in the original. “The entity” in this context probably means “the agency.”
52
This paragraph applies only to a major consulting services contract that is renewed after August 31, 1999. A
major consulting services contract that is renewed before September 1, 1999, is governed by the law in effect
on the date the contract is renewed, and the former law is continued in effect for that purpose. Act of
May 31, 1999, 76th Leg., R.S., ch. 1467, §�4.05, 1999 Tex. Gen. Laws 4996, 5036. The former law may be
found at Act of May 28, 1997, 75th Leg., R.S., ch. 1035, §�11, 1997 Tex. Gen. Laws 3845, 3848.
124 July 2004 State of Texas Purchase Policies and Procedures Guide
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53
This paragraph applies only to a major consulting services contract that is extended or amended after
August�31, 1999. A major consulting services contract that is extended or amended before September 1, 1999,
is governed by the law in effect on the date the contract is extended or amended, and the former law is
continued in effect for that purpose. Act of May 31, 1999, 76th Leg., R.S., ch. 1467, §�4.05, 1999 Tex. Gen.
Laws 4996, 5036. The former law may be found at Act of May 28, 1997, 75th Leg., R.S., ch. 1035, §�11, 1997
Tex. Gen. Laws 3845, 3848.
State of Texas Purchase Policies and Procedures Guide July 2004 125
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In this subdivision:
(Vernon Supp. 2004); Act of May 30, 1999, 76th Leg., R.S., ch. 1499, §�1.46,
126 July 2004 State of Texas Purchase Policies and Procedures Guide
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J. Dividing contracts
A state agency may not divide a consulting services contract or a renewal,
amendment, or extension of a consulting services contract into more than one
contract, renewal, amendment, or extension to avoid the requirements described in
this section.
Source for this subsection: TEX. GOV’T CODE ANN. §�2254.035 (Vernon 2000).
K. Reporting of financial interests
The information provided in this subsection applies only to an officer or employee of a
state agency who has a financial interest or who is related within the second degree of
consanguinity or affinity to an individual who has a financial interest in a consultant
that submits an offer to provide consulting services to the agency. Degrees of
relationship must be determined in compliance with Chapter 573, Government Code.
The officer or employee shall report the financial interest to the chief executive of the
agency not later than the 10th day after the date on which the consultant submits the
offer. The information provided in this subsection applies to all consulting services
contracts and renewals, amendments, and extensions of those contracts.
Source for this subsection: TEX. GOV’T CODE ANN. §�2254.032 (Vernon 2000).
L. Archives
On request, a state agency shall, after the agency’s contract with a consultant has
ended, supply the Legislative Budget Board and the Governor’s Budget and Planning
Office with a copy of each document, film, recording, or report compiled by the
consultant under the contract.
A state agency shall file with the Texas State Library a copy of each document, film,
recording, or report compiled by the consultant.
Source for this subsection: TEX. GOV’T CODE ANN. §�2254.036(a)-(b)
(Vernon 2000).
M. Actions by state agencies on recommendations from consultants
As part of the biennial budgetary hearing process conducted by the Legislative Budget
Board and the Governor’s Budget and Planning Office, a state agency shall report to
each of them on any actions taken in response to the recommendations of any
consultant with whom the agency contracts during the previous biennium.
Source for this subsection: TEX. GOV’T CODE ANN. §�2254.037 (Vernon 2000).
N. Emergency procurements of consulting services
A state agency that needs consulting services before compliance with the
requirements described in this section can be completed because of an unforeseen
emergency shall comply with the governor’s rules about emergency waivers of those
requirements.
In this subsection, “unforeseen emergency” means a situation that suddenly
and unexpectedly causes a state agency to need the services of a consultant. The
term includes the issuance of a court order, an actual or imminent natural
disaster, and new state or federal legislation. An emergency is not unforeseen if a
state agency was negligent in foreseeing the occurrence of the emergency.
Source for this subsection: TEX. GOV’T CODE ANN. §�2254.025 (Vernon 2000).
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O. Mixed contracts
When a contract involves both consulting services and other services, the
requirements described in this section apply if the primary objective of the contract
is the acquisition of consulting services.
Source for this subsection: TEX. GOV’T CODE ANN. §�2254.038 (Vernon 2000).
P. Competitive bidding
The requirements described in this section neither require nor prohibit the use of
competitive bidding procedures to purchase consulting services.
Sources for this subsection: Op. Tex. Att’y Gen. Nos. JM-940 (1988),
H-1173 (1978).
R. Consequences of non-compliance
If a state agency contracts for consulting services or renews, amends, or extends a
consulting services contract without complying with the requirements described in
Subsections (F), (G)(1), and (H) of this section, then the contract, renewal,
amendment, or extension is void.
A major consulting services contract that a state agency enters into without first
obtaining a finding of fact from the Governor’s Budget and Planning Office in
compliance with the requirements described in Subsection (E) of this section is void.
If a consultant contracts with a state agency without complying with the requirements
described in Subsection (I)(2)-(3) of this section, then the contract is void.
When a contract, renewal, amendment, or extension is void, the Comptroller may not:
• draw a warrant or transmit money to satisfy an obligation under the contract,
renewal, amendment, or extension; or
• reimburse a state agency for a payment made under the contract, renewal,
amendment, or extension.
When a contract, renewal, amendment, or extension is void, a state agency may not
make any payments under the contract, renewal, amendment, or extension from any
state or federal funds held in or outside the state treasury.
Source for this subsection: TEX. GOV’T CODE ANN. §�2254.034 (Vernon 2000).
Cross references for this section: Chapter 5: Professional services; Chapter 5:
State employees, contracting with former (generally); Chapter 5: State
employees, contracting with retired; Chapter 5: State officers and employees,
contracting under Chapter 572, Government Code with former.
128 July 2004 State of Texas Purchase Policies and Procedures Guide
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A. Consulting services contracts that are not major consulting services contracts
These requirements do not apply if the contract has been renewed, extended, or
amended.
The voucher must contain the following information in the descriptive legal text
The voucher must contain the following information in the descriptive legal text
State of Texas Purchase Policies and Procedures Guide July 2004 129
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C. Original contract is a major consulting services contract, but the renewal contract is
not a major consulting services contract
These requirements apply to a purchase voucher if: (1) the voucher requests a payment under
a consulting services contract that was originally a major consulting services contract; and
(2) the contract has been renewed; and (3) the renewal contract itself is not a major
consulting services contract.
The voucher must contain the following information in the descriptive legal text
D. Original contract was a major consulting services contract, and the renewal contract
also is a major consulting services contract
These requirements apply to a purchase voucher if: (1) the voucher requests a
consulting services contract; and (2) the contract has been renewed; and (3) the
130 July 2004 State of Texas Purchase Policies and Procedures Guide
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The voucher must contain the following information in the descriptive legal text
screen and be supported by the following documentation:
(1) the reasonably foreseeable value of the original contract; and
(2) the reasonably foreseeable value of the renewal contract; and
(3) the cumulative total of prior payments made under the original contract;
and
(4) the cumulative total of prior payments made under the renewal contract;
and
(5) a copy of the original contract if the copy has not already been provided to
the Comptroller; and
(6) a copy of the renewal contract if the copy has not already been provided to
the Comptroller; and
(7) the volume and page number of the Texas Register in which the
requirements described in Subsections (F), (G)(1), and, if applicable,
(I)(3) of this section were fulfilled when the original contract was
entered into; and
(8) the volume and page number of the Texas Register in which the
requirements of Subsection (F) of this section were fulfilled when the
renewal contract was entered into; and
(9) a copy of the governor’s finding of fact that the consulting services
under the original contract are necessary if the copy has not already
been provided to the Comptroller; and
(10) a copy of the governor’s finding of fact that the consulting services under
the renewal contract are necessary if the copy has not already been
provided to the Comptroller; and
(11) a statement that the payment complies with the requirements described in
Subsections (C), (D), and (I) of this section.
(12) For an institution of higher education other than a public junior
college a copy of the finding in the invitation by the CEO of the
institution that the consulting services are necessary and an
explanation of that finding.
Comptroller object code 7240 must be used for an institution of higher education
other than a public junior college. Comptroller object code 7239 must be used for
state agencies other than those of higher education.
E. Original contract was not a major consulting services contract, and the original
contract and the renewal contract have a reasonably foreseeable value totaling more
than $15,000, or $25,000 for an institution of higher education, other than a public
junior college
These requirements apply to a purchase voucher if: (1) the voucher requests a payment
under a consulting services contract that was originally not a major consulting services
contract; and (2) the contract has been renewed; and (3) the original contract and the
renewal contract have a reasonably foreseeable value totaling more than $15,000, or
$25,000 for an institution of higher education other than a public junior college.
State of Texas Purchase Policies and Procedures Guide July 2004 131
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The voucher must contain the following information in the descriptive legal text
F. Original contract was not a major consulting services contract, and the original contract
and the renewal contract have a reasonably foreseeable value totaling $15,000, or $25,000
for an institution of higher education, other than a public junior college, or less
These requirements apply to a purchase voucher if: (1) the voucher requests a payment
under a consulting services contract that was originally not a major consulting services
contract; and (2) the contract has been renewed; and (3) the original contract and the
renewal contract have a reasonably foreseeable value totaling $15,000, or $25,000 for an
institution or higher education, other than a public junior college, or less.
The voucher must contain the following information in the descriptive legal text
132 July 2004 State of Texas Purchase Policies and Procedures Guide
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G. Original contract was a major consulting services contract and is still a major
consulting services contract after being extended or amended
These requirements apply to a purchase voucher if: (1) the voucher requests a payment
under a consulting services contract that was originally a major consulting services
contract; and (2) the contract has been extended or amended; and (3) the contract after
the extension or amendment is still a major consulting services contract.
The voucher must contain the following information in the descriptive legal text
H. Original contract was a major consulting services contract but is no longer a major
consulting services contract after being extended or amended
These requirements apply to a purchase voucher if: (1) the voucher requests a
consulting services contract; and (2) the contract has been extended or amended;
and (3) the contract after the extension or amendment is no longer a major
State of Texas Purchase Policies and Procedures Guide July 2004 133
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The voucher must contain the following information in the descriptive legal text
screen and be supported by the following documentation:
(1) the reasonably foreseeable value of the original contract; and
(2) the reasonably foreseeable value of the contract after the extension or
amendment; and
(3) the cumulative total of prior payments made under the original
contract; and
(4) the cumulative total of prior payments made under the contract after the
extension or amendment took effect; and
(5) a copy of the original contract if the copy has not already been provided to
the Comptroller; and
(6) a copy of the extension or amendment if the copy has not already been
provided to the Comptroller; and
(7) the volume and page number of the Texas Register in which the
requirements described in Subsections (F), (G)(1), and, if applicable,
(I)(3) of this section were fulfilled when the original contract was entered
into; and
(8) the volume and page number of the Texas Register in which the
requirements described in Subsection (G)(1) of this section were fulfilled
when the extension or amendment was entered into; and
(9) a copy of the governor’s finding of fact that the consulting services under the
original contract are necessary if the copy has not already been provided to
the Comptroller; and
(10) a statement that the payment complies with the requirements described in
Subsections (C), (D), and (I) of this section.
(11) For an institution of higher education other than a public junior college
a copy of the finding in the invitation by the CEO of the institution that
the consulting services are necessary and an explanation of that finding.
Comptroller object code 7240 must be used for both state agencies and institutions
of higher education other than a public junior college.
I. Original contract is not a major consulting services contract, and the original
contract and the extension or amendment have a reasonably foreseeable value
totaling more than $15,000, or $25,000 for an institution of higher education
other than a public junior college
These requirements apply to a purchase voucher if: (1) the voucher requests a
payment under a consulting services contract that was originally not a major
consulting services contract; and (2) the contract has been extended or amended;
and (3) the original contract and the extension or amendment have a reasonably
foreseeable value totaling more than $15,000, or $25,000 for an institution of
higher education other than a public junior college.
134 July 2004 State of Texas Purchase Policies and Procedures Guide
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The voucher must contain the following information in the descriptive legal text
screen and be supported by the following documentation:
(1) the reasonably foreseeable value of the original contract; and
(2) the reasonably foreseeable value of the extension or amendment; and
(3) the cumulative total of prior payments made under the original contract;
and
(4) the cumulative total of prior payments made under the contract after the
extension or amendment took effect; and
(5) a copy of the original contract if the copy has not already been provided to
the Comptroller; and
(6) a copy of the extension or amendment if the copy has not already been
provided to the Comptroller; and
(7) the volume and page number of the Texas Register in which the
requirements described in Subsections (F) of this section were fulfilled
when the extension or amendment was entered into; and
(8) a copy of the governor’s finding of fact that the consulting services under
the extension or amendment are necessary if the copy has not already been
provided to the Comptroller; and
(9) a statement that the payment complies with the requirements described in
Subsections (C), (D), and (I) of this section.
(10) For an institution of higher education other than a public junior college
a copy of the finding in the invitation by the CEO of the institution that
the consulting services are necessary and an explanation of that finding.
Comptroller object code 7240 must be used for an institution of higher education
other than a public junior college. Comptroller object code 7239 must be used for
state agencies other than those of higher education.
J. Original contract is not a major consulting services contract, and the original
contract and the extension or amendment have a reasonably foreseeable value
totaling $15,000, or $25,000 for an institution of higher education other than a
public junior college, or less
These requirements apply to a purchase voucher if: (1) the voucher requests a
payment under a consulting services contract that was originally not a major
consulting services contract; and (2) the contract has been extended or amended; and
(3) the original contract and the extension or amendment have a reasonably
foreseeable value totaling $15,000, or $25,000 for an institution of higher education
other than a public junior college, or less.
State of Texas Purchase Policies and Procedures Guide July 2004 135
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The voucher must contain the following information in the descriptive legal text
136 July 2004 State of Texas Purchase Policies and Procedures Guide
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Chapter 2260, Government Code, applies only to a claim pending or arising after
August 29, 1999, without regard to the date on which the contract was entered into.
Chapter 2260 does not apply to: (1) a claim for personal injury or wrongful death
arising from the breach of a contract; or (2) a contract executed or awarded before
August 31, 1999. Chapter 2260 does not apply to a claim or dispute with respect to
which the 76th Legislature or a previous Legislature has enacted a concurrent
resolution granting permission to the contractor to bring a suit against the state or a
unit of state government.54
A contractor may make a claim against a unit of state government for breach of a
contract between the contractor and the unit. The unit may assert a counterclaim
against the contractor. The contractor must provide written notice to the unit not later
than the 180th day after the date of the event giving rise to the claim.55 The unit must
assert in a writing delivered to the contractor any counterclaim not later than the 90th
day after the date of notice under the preceding sentence.
The total amount of money recoverable on a claim for breach of contract under
Chapter 2260 may not, after deducting the amount specified in the next sentence,
exceed an amount equal to the sum of: (1) the balance due and owing on the contract
price; and (2) the amount or fair market value of orders or requests for additional
work made by a unit of state government to the extent that the orders or requests for
additional work were actually performed. Any amount owed the unit of state
government for work not performed under a contract or in substantial compliance
with its terms shall be deducted from the amount described in the preceding sentence.
An award of damages under Chapter 2260 may not include consequential or similar
damages, exemplary damages, any damages based on an unjust enrichment theory,
attorney’s fees, or home office overhead.
Each unit of state government that enters into a contract to which Chapter 2260
applies shall include as a term of the contract a provision stating that the dispute
resolution process used by the unit under Chapter 2260 must be used to attempt to
resolve a dispute arising under the contract.
A unit of state government may pay a claim resolved in accordance with Subchapter�B
of Chapter 2260 only from money appropriated to it for payment of contract claims or
for the payment of the contract that is the subject of the claim. If money previously
appropriated for payment of contract claims or payment of the contract is insufficient to
pay the claim or settlement, the balance of the claim may be paid only from money
appropriated by the Legislature for payment of the claim.
54
The definitions of “contractor” and “unit of state government” set forth at the beginning of this section do not
specifically apply in this sentence.
55
There is an important exception to this deadline. If the claim was pending before August 30, 1999, the
claimant must have provided written notice to the unit not later than February 26, 2000. See Act of
May�30, 1999, 76th Leg., R.S., ch. 1352, §�12(b), 1999 Tex. Gen. Laws 4578, 4587.
State of Texas Purchase Policies and Procedures Guide July 2004 137
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If a contractor is dissatisfied with the result of negotiation with a unit of state government
under Section 2260.052, Government Code, the contractor may file a request for hearing with
the unit. Upon receipt of the request, the unit shall refer the claim to the State Office of
Administrative Hearings (SOAH). The unit shall pay the amount of the claim or part of the
claim if the SOAH administrative law judge finds, by a preponderance of the evidence, that
under the laws of this state the claim or part of the claim is valid and the total amount of
damages, after considering any counterclaim, is less than $250,000. The unit shall pay the
claim from money appropriated to it for payment of contract claims or for payment of the
contract that is the subject of the claim. If money previously appropriated for payment of
contract claims or payment of the contract is insufficient to pay the claim, the balance of the
claim may be paid only from money appropriated by the Legislature for payment of the claim.
Chapter 304, Finance Code, applies to a judgment awarded to a claimant under Chapter 2260
except that the applicable rate of interest may not exceed six percent.
The chief administrative law judge of SOAH may set a fee for the hearing in an amount
not less than $250 and that allows SOAH to recover all or a substantial part of its costs
in holding hearings. SOAH may assess the fee against the party that does not prevail in
the hearing or may apportion the fee against the parties in an equitable manner.
Sources: TEX. GOV’T CODE ANN. §§�2260.001, 2260.004(a), 2260.006,
2260.051(a)-(b), (d), 2260.054, 2260.102(a), (c), 2260.103, 2260.105-2260.106
(Vernon 2000), §§�2260.002-2260.003 (Vernon Supp. 2004); Act of May 30, 1999,
76th Leg., R.S., ch. 1352, §§�12(a), 13, 1999 Tex. Gen. Laws 4578, 4587.
138 July 2004 State of Texas Purchase Policies and Procedures Guide
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Nos. JM-969 (1988), JM-709 (1987), JM-394 (1985), MW-512 (1982), MW-70 (1979),
M-656 (1970), M-89 (1967), C-206 (1964), C-134 (1963), WW-424 (1958),
O-5962 (1945).
State of Texas Purchase Policies and Procedures Guide July 2004 139
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State of Texas Purchase Policies and Procedures Guide July 2004 141
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The prohibition in the Local Government Code against the state paying a fee to a county
officer who is paid an annual salary does not apply to these fees.
Sources: TEX. LOC. GOV’T CODE ANN. §�118.011 (Vernon Supp. 2004), §�154.004(b)
(Vernon 1999); Act of May 20, 2003, 78th Leg., R.S., ch. 1275, §�2(105), 2003 Tex.
Gen. Laws 4140, 4146; Op. Tex. Att’y Gen. Nos. DM-360 (1995), M-134 (1967).
Cross reference: Chapter 4: Abstracts of judgment.
Except as described in the next paragraph, a state agency shall request the attorney
general to collect an obligation before the agency may employ, retain, or contract with a
person other than a full-time employee of the agency to collect the obligation. The
attorney general may authorize the requesting agency to employ, retain, or contract with
a person other than a full-time employee of the agency to collect an obligation that the
attorney general cannot collect.
The Comptroller may employ, retain, or contract with a person other than a full-time state
employee to collect delinquent obligations that are owed the Comptroller in the Comptroller’s
official capacity, are not collected through normal collection procedures, and do not meet the
guidelines adopted for collection by the attorney general. A proposed contract shall be
reviewed by the attorney general and may include a collection fee computed on the amounts
collected under the contract.
An obligation reported to the attorney general for collection under Chapter 2107,
Government Code, is subject to a collection fee for the use and benefit of the attorney
general as provided by legislative appropriation. The attorney general may retain the
amount of the fee from the amount of the obligation collected. A collection fee may not be
retained from amounts collected for the unemployment compensation fund established
under Subchapter B of Chapter 203, Labor Code.
Sources: TEX. GOV’T CODE ANN. §§�2107.001, 2107.003, 2107.007 (Vernon 2000);
Code Construction Act, TEX. GOV’T CODE ANN. §�311.005(2) (Vernon 1998).
See 1 TEX. ADMIN. CODE §�59.2(a)(5), (7), (c)(3) (2003); Rider 6 in the
appropriations for the Office of the Attorney General in the General
Appropriations Act. See also TEX. GOV’T CODE ANN. §�403.019 (Vernon 1998)
(concerning the Comptroller ).
142 July 2004 State of Texas Purchase Policies and Procedures Guide
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144 July 2004 State of Texas Purchase Policies and Procedures Guide
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B. Reimbursements
A state agency that receives services or resources under the Interagency Cooperation Act
shall reimburse each state agency providing the services or resources the actual cost or
nearest practicable estimate of the cost of providing the services or resources. A
reimbursement is not required, however, if the services or resources are provided:
• for national defense or disaster relief; or
• in cooperative efforts, proposed by the governor, to promote the economic
development of the state.
When a reimbursement is required, a receiving agency may authorize the providing
agency to access the receiving agency’s appropriations for the reimbursement.
A receiving agency may advance funds to a providing agency if necessary for the
providing agency to provide services, materials, or equipment to the receiving
agency. If an advance of funds is made, then the receiving agency and the providing
agency must ensure after the services, materials, or equipment are provided that
the providing agency has received only enough funds to reimburse it for its costs.
An advance or reimbursement must be paid on an interagency transaction voucher if
the advance or reimbursement will be deposited in the state treasury. An advance or
reimbursement must be paid on a purchase voucher if the advance or reimbursement
will be deposited in a local account.
This paragraph applies only if the services or resources are provided under a written
contract or agreement. The receiving agency shall reimburse the providing agency
within 30 days after the date by which the services or resources are provided and an
invoice is received. If the receiving agency does not accept the services or resources or
finds an error in the invoice, then it shall notify the providing agency of the fact in
writing as soon as possible within the 30-day period and make payment within ten days
after the date the agencies agree the problems are corrected or the error resolved. If the
agencies cannot agree on the amount of the reimbursement, then the Comptroller shall
determine the appropriate amount. If the receiving agency does not, within the 30-day
period, reimburse the providing agency or give the providing agency written notice of a
problem or error, the Comptroller on request of the providing agency may transfer from
amounts appropriated to the receiving agency the appropriate amount in accordance
with TEX. GOV’T CODE ANN. §�771.008 (Vernon Supp. 2004).
State of Texas Purchase Policies and Procedures Guide July 2004 145
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A state agency must retain in its files a copy of an interagency contract if the contract must
be in writing. If the contract is not required to be in writing, then the agency must retain in
its files the informal letters of agreement or memoranda that documented the contract.
Upon request, the agency must make this documentation available to the Comptroller
during a pre-payment or a post-payment audit.
146 July 2004 State of Texas Purchase Policies and Procedures Guide
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§�2254.002 (Vernon Supp. 2004); State Purchasing and General Services Act,
TEX. GOV’T CODE ANN. §�2155.001(2)(A) (Vernon 2000); Op. Tex. Att’y Gen. Nos.
56
Subtitle D of Title 10, Government Code, is commonly known as the State Purchasing and General Services
Act. State Purchasing and General Services Act, TEX. GOV’T CODE ANN. §�2151.001 (Vernon 2000).
State of Texas Purchase Policies and Procedures Guide July 2004 147
Chapter 5 – Expenditures Under Particular Contracts
A state agency may not enter into a professional services contract under the PSPA with a
former or retired employee of the agency before the first anniversary of the last date on
which the individual was employed by the agency, if appropriated money will be used to
make payments under the contract. The agency, however, is not prohibited from entering
into a professional services contract with a corporation, firm, or other business entity that
employs a former or retired employee of the agency within one year of the employee’s
leaving the agency, provided that the former or retired employee does not perform services
on projects for the corporation, firm, or other business entity that the employee worked on
while employed by the agency.
Chapter 1499, 76th legislature, regular session, 1999, does not affect the authority
of an institution of higher education to collect, account for, and control local funds
and institutional funds in the manner authorized by Subchapter A of Chapter 51,
Education Code. Section 1.36 of that chapter amended Section 2252.901,
Government Code, which is the primary basis for this subsection.
Sources for this subsection: TEX. GOV’T CODE ANN. §§�2252.901(a), (d)(2)-(3)
(Vernon Supp. 2004); Act of May 30, 1999, 76th Leg., R.S., ch. 1499, §�1.46,
1999 Tex. Gen. Laws 5164, 5176.
Cross references for this subsection: Chapter 5: Consulting services;
Chapter 5: State employees, contracting with former (generally);
Chapter 5: State employees, contracting with retired; Chapter 5: State officers
and employees, contracting under Chapter 572, Government Code with
former.
A state agency must retain in its files documentation that shows the type of services
performed and how the agency’s award of a contract for those services complied with
the PSPA. Upon request, the documentation must be made available to the
Comptroller during a pre-payment or a post-payment audit.
B. Prohibition of contracts
A state agency may not enter into an employment contract with a former employee
of the agency before the first anniversary of the last date on which the individual
was employed by the agency, if appropriated money will be used to make payments
under the contract.
148 July 2004 State of Texas Purchase Policies and Procedures Guide
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Chapter 1499, 76th legislature, regular session, 1999, does not affect the authority
of an institution of higher education to collect, account for, and control local funds
B. Prohibition of contracts
A state agency may not enter into an employment contract with a retired employee of
the agency before the first anniversary of the last date on which the individual was
employed by the agency, if appropriated money will be used to make payments under
the contract. The agency, however, is not prohibited from entering into a professional
services contract with a corporation, firm, or other business entity that employs a
retired employee of the agency within one year of the employee’s leaving the agency,
provided that the retired employee does not perform services on projects for the
corporation, firm, or other business entity that the employee worked on while
employed by the agency.
Source for this subsection: TEX. GOV’T CODE ANN. §�2252.901(a)
(Vernon Supp. 2004).
State of Texas Purchase Policies and Procedures Guide July 2004 149
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150 July 2004 State of Texas Purchase Policies and Procedures Guide
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by the governing body or highest officer of the state agency to act as the chief
or similar action.
agency that:
authorized to receive a salary for state service but not a per diem or other form
of compensation.
employed by:
– a state agency; or
– the Supreme Court, the Court of Criminal Appeals, a Court of Appeals, or
the Texas Judicial Council; or
– either house of the Legislature or a legislative agency, council, or
committee, including the Legislative Budget Board, the Texas Legislative
Council, the state auditor’s office, and the Legislative Reference Library.
• “State officer” means an elected officer, an appointed officer, a salaried
Sources for this subsection: TEX. GOV’T CODE ANN. §§�572.002(1)-(2), (4)-(5),
(7)-(12), 572.003(c) (Vernon Supp. 2004), §�572.054(g)-(h) (Vernon 1994).
State of Texas Purchase Policies and Procedures Guide July 2004 151
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B. Prohibition
A former state officer or employee of a regulatory agency who ceases service or
employment with the agency after December 31, 1991, may not represent any person
or receive compensation for services rendered on behalf of any person regarding a
particular matter in which the former officer or employee participated during the
period of state service or employment, either through personal involvement or because
the case or proceeding was a matter within the officer’s or employee’s official
responsibility.
An individual commits an offense if the individual violates this prohibition. The
offense is a Class A misdemeanor.
Sources for this subsection: TEX. GOV’T CODE ANN. §�572.054(b), (f) (Vernon 1994).
See Op. Tex. Ethics Comm’n Nos. 364 (1997), 353 (1996), 285 (1995), 232 (1994),
212 (1994), 167 (1993).
152 July 2004 State of Texas Purchase Policies and Procedures Guide
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A state agency may, to the extent permitted under federal law, enter into an
57
A reference in law to the Texas Department of Economic Development means the Texas Economic
Development and Tourism Office. Act of May 29, 2003, 78th Leg., R.S., ch. 814, §�1.66(2), 2003 Tex. Gen.
Laws 2372, 2391.
58
But see Act of June 1, 1997, 75th Leg., R.S., ch. 1171, §�8.01(a), 1997 Tex. Gen. Laws 4427, 4490 (abolishing
the Texas Turnpike Authority and creating the Texas Turnpike Authority division of the Texas Department
of Transportation).
State of Texas Purchase Policies and Procedures Guide July 2004 153
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154 July 2004 State of Texas Purchase Policies and Procedures Guide
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• “Authorized state entity” means The Texas A & M University System, the
Texas Department of Criminal Justice, the Texas Department of
Transportation, the Parks and Wildlife Department, the Department of Public
Safety of the State of Texas, The University of Texas System, the Texas State
Technical College, the Texas Forest Service, or the State Aircraft Pooling Board.
• “Person” includes an individual, a corporation, an organization, a government
or governmental subdivision or agency, a business trust, an estate, a trust, a
partnership, an association, and any other legal entity.
• “SAPB” means the State Aircraft Pooling Board.
• “State agency” means an office, department, board, commission, institution,
or other agency to which a legislative appropriation is made.
Sources for this subsection: State Aircraft Pooling Act, TEX. GOV’T CODE ANN.
§�2205.002(2) (Vernon 2000); Code Construction Act, TEX. GOV’T CODE ANN.
§�311.005(2) (Vernon 1998); Article IX, Section 5.08(b) of the General
Appropriations Act.
51
The information provided in this paragraph applies only to a travel expense incurred after August�31, 1999.
Act of May 11, 1999, 76th Leg., R.S., ch. 280, §�22, 1999 Tex. Gen. Laws 1170, 1175.
State of Texas Purchase Policies and Procedures Guide July 2004 155
Chapter 6 – Miscellaneous Expenditures or Requirements
Unless the GAA specifically provides otherwise, only an authorized state entity may
expend funds appropriated by the GAA to maintain or operate state-owned aircraft.
A state agency that operates an aircraft may not use a facility in Austin other than a
facility operated by SAPB for the storage, parking, fueling, or maintenance of the
aircraft. This prohibition applies regardless of whether the aircraft is based in Austin. If
SAPB determines that there is an emergency, then SAPB may authorize a state agency
to use a facility in Austin other than a SAPB facility for the storage, parking, fueling, or
maintenance of an aircraft.
Sources for this subsection: State Aircraft Pooling Act, TEX. GOV’T CODE ANN.
§�2205.032(a) (Vernon Supp. 2004), §§�2205.034(b), 2205.035(c) (Vernon 2000);
Article IX, Section 5.08(b) of the General Appropriations Act.
52
The definition of “state agency” in Subsection (A) of this section does not apply to this paragraph or the
bullets that follow. The law does not specifically define “state agency” for this purpose.
156 July 2004 State of Texas Purchase Policies and Procedures Guide
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When a state agency is reimbursed for authorized aircraft services provided to another
state agency, the reimbursement is appropriated to the first agency’s appropriation item
from which the cost of aircraft operation is paid.53
Sources for this subsection: State Aircraft Pooling Act, GOV’T CODE ANN.
§§�2205.031(b), 2205.040(a), 2205.041(a)(1) (Vernon 2000); Article IX, Section 5.08(f)
of the General Appropriations Act. See 1 TEX. ADMIN. CODE §�181.8 (2003).
SAPB shall give an officer normally elected by statewide election priority in the
scheduling of aircraft. SAPB may, by rule, require a 12-hour notice by the officer to
obtain the priority in scheduling.
Source for this subsection: State Aircraft Pooling Act, GOV’T CODE ANN.
§�2205.038(d) (Vernon 2000).
A state agency54 may pay or reimburse a travel expense for the rental, lease, or
operation of aircraft only if the transportation under the rental, lease, or operation
satisfies the criteria described in the remainder of this subsection.
SAPB shall provide aircraft transportation, to the extent that its aircraft are
available, to:
• state officers and employees who are traveling on official business according to
the coordinated passenger scheduling system and the priority scheduling
system developed as part of the aircraft operations manual under the State
Aircraft Pooling Act, TEX. GOV’T CODE ANN. §�2205.038 (Vernon 2000); and
• persons in the care or custody of the state officers or employees described in the
preceding bullet; and
• persons whose transportation furthers official state business.
SAPB may not provide aircraft transportation to a passenger if the passenger is to
be transported to or from a place where the passenger:
• will make or has made a speech not related to official state business; or
• will attend or has attended an event sponsored by a political party; or
• will perform a service or has performed a service for which the passenger is to
receive an honorarium, unless the passenger reimburses SAPB for the cost of
transportation; or
• will attend or has attended an event at which money is raised for private or
political purposes; or
• will attend or has attended an event at which an audience was charged an
admission fee to see or hear the passenger.
53
The definition of “state agency” in Subsection (A) of this section does not apply to this paragraph. The law
does not specifically define “state agency” for this purpose.
54
In this paragraph, “state agency” means a unit of state government that uses appropriated funds to pay or
reimburse a travel expense of a state employee, the Teacher Retirement System of Texas, or the Employees
Retirement System of Texas. Travel Regulations Act, TEX. GOV’T CODE ANN. §�660.002(19)
(Vernon Supp. 2002). See Travel Regulations Act, TEX. GOV’T CODE ANN. §�660.002(1), (20)-(22)
(Vernon Supp. 2002) (definitions of “appropriated funds,” “state employee,” “travel expense,” and “unit
of state government”).
State of Texas Purchase Policies and Procedures Guide July 2004 157
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H. Interagency Contract
The Texas Department of Transportation may enter into an interagency contract
with the State Aircraft Pooling Board. The existing interagency contract, as
amended on September 30, 2003, remains in effect until the governor, the lieutenant
governor, and the speaker of the house of representatives have all approved a new
interagency contract entered into under this subsection.
The Texas Department of Transportation shall operate under the interagency contract
on a full cost recovery basis and may not allow differential rates for any reason.
158 July 2004 State of Texas Purchase Policies and Procedures Guide
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B. Authority to assign
A person generally may assign the right to receive a payment from the state in the same
way that a person may assign the right to receive a payment from a private person.
The notice of assignment must be delivered to the state agency whose payment has
been assigned. The Comptroller accepts an assignment notice only for a payment
made by the Comptroller’s Claims Division on behalf of the Comptroller. An
assignment notice concerning a payment made by the Claims Division on behalf of
another state agency must be delivered to that agency.
55
“Assignor” means the person who was legally entitled to receive the warrant or EFT before the person
160 July 2004 State of Texas Purchase Policies and Procedures Guide
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56
This statute prohibits TGSLC from reporting an assignee to the comptroller as being in default on a loan
guaranteed under Chapter 57, Education Code, unless TGSLC first provides the assignee an opportunity to
exercise any due process or other constitutional or statutory protection that must be accommodated before
TGSLC may begin a collection action or procedure. The statute specifically prohibits the comptroller from
investigating or determining whether TGSLC has complied with this prohibition.
State of Texas Purchase Policies and Procedures Guide July 2004 161
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defaults
57
This statute prohibits TGSLC from reporting an assignor to the comptroller as being in default on a loan
guaranteed under Chapter 57, Education Code, unless TGSLC first provides the assignor an opportunity to
exercise any due process or other constitutional or statutory protection that must be accommodated before
TGSLC may begin a collection action or procedure. The statute specifically prohibits the comptroller from
investigating or determining whether TGSLC has complied with this prohibition.
162 July 2004 State of Texas Purchase Policies and Procedures Guide
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The Comptroller may not reimburse a state agency for a payment that the
Comptroller determines was made in violation of the prohibitions described above.
Source for this subsection: TEX. EDUC. CODE ANN. §�57.482 (Vernon Supp. 2004).
The Comptroller may not issue a warrant or initiate an EFT to an assignee if:
• a state agency has properly reported the assignee to the Comptroller as being
indebted to the state; or
• a state agency has properly reported the assignee to the Comptroller as having
a tax delinquency; or
• a state agency has properly reported the assignor to the Comptroller as being
indebted to the state and the assignment became effective after the assignor
became indebted; or
• a state agency has properly reported the assignor to the Comptroller as having
a tax delinquency and the assignment became effective after the assignor
incurred the delinquency.
Whenever the Comptroller is prohibited from issuing a warrant or initiating an EFT
to an assignee, the Comptroller also is prohibited from issuing a warrant or
initiating an EFT to:
• the assignee’s estate; or
• the distributees of the assignee’s estate; or
• the assignee’s surviving spouse.
The prohibitions described above do not apply when the Comptroller issues a
warrant or initiates an EFT to pay:
• the compensation of a state officer or employee; or
• the remuneration of an individual if the remuneration is being paid by a
private person through a state agency.
The Comptroller is not prohibited from issuing a warrant or initiating an EFT to an
assignee properly reported to the Comptroller as being indebted to the state or
having a tax delinquency if the state agency responsible for collecting the assignee’s
debt or delinquency subsequently and properly reports to the Comptroller that:
• the assignee is complying with an installment payment agreement or
similar agreement to pay or eliminate the debt or delinquency, unless the
agency subsequently and properly reports to the Comptroller that the
assignee no longer is complying with the agreement; or
• the assignee’s debt or delinquency has been eliminated; or
• the report of indebtedness or delinquency was prohibited by TEX. GOV’T CODE
ANN. §�403.055(g) (Vernon Supp. 2004)58 or was otherwise erroneous.
58
This statute prohibits a state agency from reporting an assignee to the comptroller as being indebted to the
state or having a tax delinquency unless the agency first provides the assignee an opportunity to exercise
any due process or other constitutional or statutory protection that must be accommodated before the agency
or the state may begin a collection action or procedure. The statute specifically prohibits the Comptroller
State of Texas Purchase Policies and Procedures Guide July 2004 163
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from investigating or determining whether the agency has complied with this prohibition.
59
This statute prohibits a state agency from reporting an assignor to the comptroller as being indebted to the
state or having a tax delinquency unless the agency first provides the assignor an opportunity to exercise
any due process or other constitutional or statutory protection that must be accommodated before the agency
or the state may begin a collection action or procedure. The statute specifically prohibits the comptroller
from investigating or determining whether the agency has complied with this prohibition.
164 July 2004 State of Texas Purchase Policies and Procedures Guide
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A state agency, as a ministerial duty, may not use funds inside or outside the state
treasury to pay an assignee if:
• Section 403.055, Government Code, prohibits the Comptroller from issuing a
warrant or initiating an EFT to the assignee; or
• (a) the assignor is indebted to the state or has a tax delinquency; and (b)�the
agency is responsible for collecting that indebtedness or delinquency; and (c)
Section 403.055, Government Code, does not prohibit the Comptroller from
issuing a warrant or initiating an EFT to the assignor;60 and (d) the
assignment became effective after the assignor became indebted to the state or
incurred a tax delinquency; or
• (a) the assignee is indebted to the state or has a tax delinquency; and (b)�the
agency is responsible for collecting that indebtedness or delinquency; and (c)
Section 403.055, Government Code, does not prohibit the Comptroller from
issuing a warrant or initiating an EFT to the assignee.61
Whenever a state agency is prohibited from making a payment to an assignee, the
agency also is prohibited from paying any part of that payment to:
• the assignee’s estate; or
• the distributees of the assignee’s estate; or
• the assignee’s surviving spouse.
The prohibitions described in the second and third bullets at the beginning of this
subsection do not apply when a state agency pays:
• the compensation of a state officer or employee; or
• the remuneration of an individual if the remuneration is being paid by a
private person through a state agency.
A state agency is not prohibited from paying an assignor who is subject to the second
bullet at the beginning of this subsection if the agency determines that the assignor
is complying with an installment payment agreement or similar agreement between
the agency and the assignor to eliminate the debt or delinquency.
A state agency is not prohibited from paying an assignee who is subject to the third
bullet at the beginning of this subsection if the agency determines that the assignee
is complying with an installment payment agreement or similar agreement between
the agency and the assignee to eliminate the debt or delinquency.
60
The agency, however, may not refuse to make the payment before the agency has provided the assignor with
an opportunity to exercise any due process or other constitutional or statutory protection that must be
accommodated before the agency or the state may begin a collection action or procedure. TEX. GOV'T CODE
ANN. §�2107.008(j) (Vernon Supp. 2004).
61
The agency, however, may not refuse to make the payment before the agency has provided the assignee with
an opportunity to exercise any due process or other constitutional or statutory protection that must be
accommodated before the agency or the state may begin a collection action or procedure. TEX. GOV'T CODE
ANN. §�2107.008(j) (Vernon Supp. 2004).
State of Texas Purchase Policies and Procedures Guide July 2004 165
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The prohibitions described in the second and third bullets at the beginning of this
subsection do not apply to a payment by a state agency if:
• the payment would be made in whole or in part with money paid to the state by
the United States; and
• the agency determines that federal law either requires the payment to be made
or conditions the state’s receipt of the money on the payment being made.
The Comptroller may not reimburse a state agency for a payment that the
Comptroller determines was made in violation of the prohibitions described above.
Source for this subsection: TEX. GOV’T CODE ANN. §�2107.008(a)-(j), (m)
(Vernon Supp. 2004).
the Attorney General62 is providing services under Chapter 231, Family Code,
and who does not pay the support is “indebted to the state” if the office has
The Office of the Attorney General is the sole assignee of all payments,
including payments of compensation, by the state to a person who is “indebted
to the state” because of a child support delinquency. On request of the Office of
the Attorney General:
• the Comptroller shall make payable and deliver to the office any payments
for which the office is the sole assignee, if the Comptroller is responsible for
issuing warrants or initiating EFTs to make those payments; and
• a state agency shall make payable and deliver to the office any payments for
which the office is the sole assignee, if the Comptroller is not responsible for
issuing warrants or initiating EFTs to make those payments.
Source for this subsection: TEX. FAM. CODE ANN. §�231.007(a), (c)-(d)
(Vernon 2002).
Cross reference for this section: Chapter 2: Indebted to the state, persons.
62
The “office of the attorney general” is the state's Title IV-D agency. TEX. FAM. CODE ANN. §�231.001
(Vernon 2002).
166 July 2004 State of Texas Purchase Policies and Procedures Guide
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168 July 2004 State of Texas Purchase Policies and Procedures Guide
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§�6.016 Discounts
In this section:
• “Goods” includes supplies, materials, or equipment.
• “Payment” means money owed to a vendor.
• “Person” includes an individual, a corporation, an organization, a government
or governmental subdivision or agency, a business trust, an estate, a trust, a
partnership, an association, and any other legal entity.
• “Service” includes gas and water utility service.
• “State agency” means:
– a board, commission, department, 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 TEX. EDUC. CODE ANN. §�61.003 (Vernon Supp.
2004); or
– the Legislature or a legislative agency; or
– the Supreme Court, the Court of Criminal Appeals, a Court of Appeals, a
state judicial agency, or the State Bar of Texas.
• “Vendor” means a person who supplies goods or a service to a state agency
or another person directed by the agency. The term does not include a state
agency except for Texas Correctional Industries. The term includes an officer
or employee of a state agency when acting in a private capacity to supply
goods or a service.
A state agency shall, when possible, negotiate a prompt payment discount with a
vendor.
A state agency, when paying for the goods or service purchased under an agreement
that includes a prompt or early payment discount, shall submit the necessary payment
documents or information to the Comptroller sufficiently in advance of the prompt or
early payment deadline to allow the Comptroller or the agency to pay the vendor in time
to obtain the discount.
Sources: TEX. GOV’T CODE ANN. §§�2251.001(2), (4), (7)-(8), (10), 2251.030(a), (d)
(Vernon Supp. 2004); Code Construction Act, TEX. GOV’T CODE ANN. §�311.005(2)
(Vernon 1998).
State of Texas Purchase Policies and Procedures Guide July 2004 169
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170 July 2004 State of Texas Purchase Policies and Procedures Guide
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Neither the Texas Building and Procurement Commission nor a state agency may
purchase an electrical item that does not meet the applicable safety standards of the
federal Occupational Safety and Health Administration.
Sources: State Purchasing and General Services Act, TEX. GOV’T CODE ANN.
§�2151.002(2) (Vernon Supp. 2004), §�2158.181 (Vernon 2000).
A state agency must retain in its files documentation that the item meets the safety
standards of the Occupational Safety and Health Administration. Upon request, the
agency must make this documentation available to the Comptroller during a pre-payment
or a post-payment audit.
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A state agency may enter into an energy savings performance contract only with a
person who is experienced in the design, implementation, and installation of the
energy or water conservation measures addressed by the contract. The person must
guarantee the amount of savings to be realized by the contracting agency under the
contract.
An energy savings performance contract may cover a period of more than one year if
the contracting state agency finds that the amount the agency would spend on
energy or water conservation measures will not exceed the amount to be saved in
energy, water, wastewater, and operating costs over fifteen years from the date of
installation. The agency’s contractual obligation, including costs of design,
engineering, installation, and anticipated debt service, in any year during the term
of the contract beginning after the final date of installation may not exceed the total
energy, water, wastewater, and operating cost savings, as determined by the agency,
divided by the number of years in the contract term.
A contract authorized under Chapter 2166, Government Code, may include the
installation or implementation of the items listed in State Purchasing and General
Services Act, TEX. GOV’T CODE ANN. §�2166.406(a) (Vernon Supp. 2004).
TBPC shall give preference to energy efficient products in purchases made under
Subtitle D of Title 10, Government Code,63 if:
• the products meet state specifications regarding quantity and quality; and
• the cost of the product is equal to or less than the cost of other similar products
that are not energy efficient.
Sources for this subsection: State Purchasing and General Services Act,
TEX. GOV’T CODE ANN. §§�2151.002(2), 2166.406(a)-(b), (d), (f), (h)
(Vernon Supp. 2004), §�2155.442 (Vernon 2000).
63
Subtitle D of Title 10, Government Code, is commonly known as the State Purchasing and General Services
Act. State Purchasing and General Services Act, TEX. GOV’T CODE ANN. §�2151.001 (Vernon 2000).
172 July 2004 State of Texas Purchase Policies and Procedures Guide
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for a state facility purpose, the agency must determine in accordance with
TEX. GOV’T CODE ANN. §�2113.301(e) (Vernon Interim Supp. 2004) whether the
contract. If practicable to do so, the agency must finance the expenditure with
money generated by the contract. If it is not practicable to do so, then the agency
higher education.
State of Texas Purchase Policies and Procedures Guide July 2004 173
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The governing board of an institution of higher education may enter into an energy
savings performance contract in accordance with TEX. EDUC. CODE ANN. §�51.927
(Vernon Supp. 2004). The contract may include installation or implementation of the
items listed in Section�51.927(a), Education Code.
The governing board of an institution of higher education may enter into an energy
savings performance contract for a period of more than one year only if the board
finds that the amount the institution would spend on the energy or water
conservation measures will not exceed the amount to be saved in energy, water,
wastewater, and operating costs over 15 years from the date of installation. The
institution’s contractual obligation during any particular year may not exceed the
total energy, water, wastewater, and operating cost savings as determined by the
board, divided by the number of years in the contract term.
Any energy savings performance contract involving an institution of higher
education must include a guarantee, from the provider of the energy or water
conservation measures, of the amount of savings to be realized by the institution
under the contract.
Any contract under Section 51.927, Education Code, must be let according to the
procedures established for professional services by TEX. GOV’T CODE ANN. §�2254.004
(Vernon 2000).64
Sources for this subsection: TEX. EDUC. CODE ANN. §�51.927(a)-(b), (f), (h)-(i)
65
(Vernon Supp. 2004).
64
This requirement was added by Chapter 1319 of the 77th regular legislative session. See the immediately
preceding footnote.
65
Section 51.927, Education Code, was amended by Chapter 1319 of the 77th regular legislative session.
See the two immediately preceding footnotes above about the contracts covered by Chapter 1319.
174 July 2004 State of Texas Purchase Policies and Procedures Guide
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§�6.024 Entertainment
In this section, “entertainment expenses” means expenses for items like food,
traveling, theatre tickets, and parties for persons who are not state officers or
employees. The term does not include alcohol or alcoholic beverages.
A state agency may constitutionally pay for entertainment expenses if the payment
furthers a state purpose that is connected with the agency’s statutory responsibilities.
Source: Op. Tex. Att’y Gen. No. MW-206 (1980).
Cross reference: Chapter 2: Alcohol.
State of Texas Purchase Policies and Procedures Guide July 2004 175
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A state agency must retain in its files documentation showing that the price of goods
purchased from the federal government does not exceed their fair market value. Upon
request, the agency must make the documentation available to the Comptroller during a
pre-payment or a post-payment audit.
176 July 2004 State of Texas Purchase Policies and Procedures Guide
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State of Texas Purchase Policies and Procedures Guide July 2004 177
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The rules shall govern all aspects of conduct of the agency and its employees in the
relationship, including:
• administration and investment of funds received by the organization for the
benefit of the agency; and
• use of an employee or property of the agency by the donor or organization; and
• service by an officer or employee of the agency as an officer or director of the
donor or organization; and
• monetary enrichment of an officer or employee of the agency by the donor or
organization.
The rules may not conflict with or supersede a requirement of a statute regulating:
• the conduct of an employee of a state agency; or
• the procedures of a state agency.
In this subsection, “state agency” means a department, commission, board, office,
or other agency in the executive branch of state government created by the
constitution or a statute of this state, including a university system or an institution
of higher education as defined by TEX. EDUC. CODE ANN. §�61.003
(Vernon Supp. 2004).
Source for this subsection: TEX. GOV’T CODE ANN. §�2255.001 (Vernon 2000).
178 July 2004 State of Texas Purchase Policies and Procedures Guide
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66
The definition of “include” in Section 1.002 does not apply here.
State of Texas Purchase Policies and Procedures Guide July 2004 179
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A state agency may not transfer a gift or bequest to a private or public development
fund or foundation unless the donor or the representative of the donor’s estate gives
written permission for the transfer.
Source for this subsection: Article IX, Section 8.01(a), (c)-(d) of the General
Appropriations Act.
Cross reference for this section: Chapter 6: Federal funds.
§�6.034 Grants
A. General discussion
A “grant” is an expenditure of funds from the state treasury to a person or entity
that does not directly provide consideration or a benefit to the state in exchange for
the funds. In this section, “grant” includes a “grant-in-aid.”
The state may impose limitations and requirements on a grant recipient’s expenditure of
grant money without necessarily converting the grant into a service contract or some
other type of agreement. The test for determining whether an expenditure is a grant is
not whether any strings are attached to the expenditure. Rather, the test is whether the
state directly receives any consideration or benefits from the person or entity receiving
the money.
The appropriation year determination procedures apply to grants unless the funds
used to pay the grants are not appropriated.
180 July 2004 State of Texas Purchase Policies and Procedures Guide
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A state agency must retain in its files a copy of the Department of Information Resources’
approval of each major information resource project of the agency. Upon request, the
agency must make the copy available to the Comptroller during a pre-payment or a
post-payment audit.
State of Texas Purchase Policies and Procedures Guide July 2004 181
Chapter 6 – Miscellaneous Expenditures or Requirements
The General Appropriations Act (GAA) says that a state agency may not expend
funds appropriated by the GAA for a major information resources project unless it
has been reviewed and approved by the quality assurance team (QAT). QAT is
composed of representatives of the Legislative Budget Board and the state auditor.
QAT may waive the project review requirements for a project.
None of the preceding in this subsection applies to an entity or appropriation in
Article�X of the GAA.
Sources for this subsection: Article IX, Section 9.02(a)-(b) and Article X,
Section 2(a) of the General Appropriations Act.
Cross reference for this section: Chapter 6: Information Resources,
Department of.
182 July 2004 State of Texas Purchase Policies and Procedures Guide
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§�6.042 Insurance
A. Insurance as part of compensation
Under the Texas constitution, a state agency may purchase any type of insurance
that names an officer or employee as the insured and that does not directly benefit
the state if the agency provides the insurance as part of the officer’s or employee’s
compensation.
A state agency, however, must have specific statutory authority to provide
insurance as part of compensation unless the agency has complete statutory
discretion to determine the types and amount of compensation for its officers
and employees.
The group health insurance plans for state officers and employees are the best
examples of insurance being part of compensation.
Sources for this subsection: Op. Tex. Att’y Gen. Nos. MW-276 (1980), MW-156
(1980), H-602 (1975), WW-731 (1959), O-2469 (1940).
B. Liability insurance
In this subsection, a liability insurance policy is a contract between an insurer
(usually an insurance company) and an insured (the state or a state employee). The
contract obligates the insurer to pay the amount of money that the insured is legally
required to pay to a third person because of the occurrence of a specified event. The
amount that the insurer would be obligated to pay under the policy is always
specified in the policy and may be expressed in various ways, e.g., $100,000 per
occurrence, $50,000 per person. The events that trigger an insurer’s obligation to
pay depend upon the terms of the policy and may cover a wide range of occurrences,
such as an automobile accident.
1. General discussion
Except as discussed later in this subsection, a state agency may not purchase
any type of liability insurance unless:
• the agency has specific statutory authority for the purchase; and
• the agency has a specific appropriation for the purchase; and
• the agency could be held liable under Texas law for the occurrences against
which the insurance would protect the agency.
These requirements apply regardless of whether money in or outside the state
treasury is used to purchase the insurance.
State of Texas Purchase Policies and Procedures Guide July 2004 183
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Sources for this subdivision: TEX. CONST. art. III, §�51; TEX. LAB. CODE ANN.
§�412.011(c)(2), (d)-(e) (Vernon Supp. 2004); Act of May 27, 2001, 77th Leg., R.S.,
ch. 1017, §�3.01(a), (b)(1), 2001 Tex. Gen. Laws 2226, 2233; Senate Concurrent
Resolution No. 3, 37th Leg., 2d C.S., 1921; Op. Tex. Att’y Gen. Nos. JM-625 (1987),
JM-547 (1986), MW-276 (1980), H-1318 (1978), H-742 (1975), H-70 (1973), C-193
(1963), V-722 (1948), O-5824 (1944), O-4315 (1942), O-1418 (1939), O-1100A (1940),
O-1100 (1939). See Op. Tex. Att’y Gen. No. DM-346 (1995) (opinion “temporarily”
withdrawn by the attorney general on July 31, 1996, to give the legislature the
opportunity to enact general legislation about liability insurance purchases by
state agencies).
67
See TEX. LAB. CODE ANN. §�501.001(6) (Vernon Supp. 2004) (definition of “state agency” for purposes of
Chapter�501, Labor Code).
68
The institutions subject to TEX. LAB. CODE ANN. §�501.022 (Vernon 1996) are the agencies subject to the
direction and control of the board of regents of Texas Tech University and Texas Tech University Health
Sciences Center.
184 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 6 – Miscellaneous Expenditures or Requirements
A unit of state government may purchase insurance policies to protect the unit
and the unit’s employees against claims under the Texas Tort Claims Act (TTCA)
only to the extent that the unit is authorized or required to do so under law. The
state may not require an employee to purchase liability insurance as a condition
of employment if the state is insured by a liability insurance policy.
Sources for this subdivision: Texas Tort Claims Act, TEX. CIV. PRAC. &
REM. CODE ANN. §§�101.001(6), 101.027(a), (c) (Vernon Supp. 2004); Op. Tex. Att’y
Gen. Nos. JM-889 (1988), JM-625 (1987), JM-552 (1986), H-900 (1976), H-681 (1975),
H-158 (1973), M-1257 (1972). See Texas Tort Claims Act, TEX. CIV. PRAC. & REM.
State of Texas Purchase Policies and Procedures Guide July 2004 185
Chapter 6 – Miscellaneous Expenditures or Requirements
A state agency probably will have difficulty purchasing a liability insurance policy
that covers only the insurable items and liabilities mentioned in Section 612.002.
A state agency that incidentally receives coverage beyond that specified in Section
612.002 at no cost to the agency is not prohibited from receiving the coverage.
Section 612.002 authorizes a state agency to purchase liability insurance to cover
the operation of state-owned or leased insurable items. A state agency may not,
however, purchase insurance under those sections to cover insurable items used
by the agency (not leased) but owned by an outside entity.
A state agency may use funds appropriated by the GAA for operations to
purchase insurance under Section 612.002 without the necessity for a specific
appropriation. A state agency may not, however, purchase an unreasonable
amount of insurance.
Insurance purchased under Section 612.002 must be approved by the
commissioner of insurance as to form and the attorney general as to liability
before a state agency may purchase the insurance.
A state agency may not purchase insurance under Section 612.002 from a
company that is not authorized to do business in this state.
The SORM is required to purchase insurance coverage for a state agency subject to
Chapter 501, Labor Code,69 except for an institution subject to TEX. LAB. CODE ANN.
§�501.022 (Vernon 1996),70 under any line of insurance other than health or life
insurance, including the insurance discussed in this subdivision. A state agency
subject to Chapter 501, except for an institution subject to Section 501.022, may not
purchase property, casualty, or liability insurance coverage without the approval of
the RMB. The RMB is required, by rule adopted not later than December 1, 2002, to
develop an implementation schedule for the purchase of insurance by the SORM as
described in this paragraph. In addition, the RMB is required to phase in, by line of
insurance, the requirement that a state agency purchase coverage only through the
SORM. The requirements discussed in this paragraph took effect September 1, 2002.
Sources for this subdivision: TEX. GOV’T CODE ANN. §�612.002 (Vernon 1994);
TEX. LAB. CODE ANN. §�412.011(c)(2), (d)-(e) (Vernon Supp. 2004); Act of
May 27, 2001, 77th Leg., R.S., ch. 1017, §�3.01(a), (b)(1), 2001 Tex. Gen. Laws 2226,
2233; Act of May 28, 1993, 73rd Leg., R.S., ch. 685, §§�1.23, 1993 Tex. Gen. Laws
2559, 2572-2573 (transferring certain duties from the State Board of Insurance to
the commissioner of insurance and the Texas Department of Insurance); Op. Tex.
Att’y Gen. Nos. JM-889 (1988), JM-551 (1986), H-158 (1973), M-1257 (1972), M-1215
(1972), M-559 (1970), M-501 (1969).
69
See TEX. LAB. CODE ANN. §�501.001(6) (Vernon Supp. 2004) (definition of “state agency” for purposes of
Chapter�501, Labor Code).
70
The institutions subject to TEX. LAB. CODE ANN. §�501.022 (Vernon 1996) are the agencies subject to the
direction and control of the board of regents of Texas Tech University and Texas Tech University Health
Sciences Center.
186 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 6 – Miscellaneous Expenditures or Requirements
The following USAS purchase voucher requirements apply when a state agency purchases
insurance or provides extra compensation to its employees so they may purchase insurance
under Section 612.002.
1. If Section 612.002 applies, then a state agency must retain in its files documentation
that provides the statutory authority for the purchase. Upon request, the agency must
make this documentation available to the Comptroller during a pre-payment or a post-
payment audit.
2. Approval from the attorney general and the commissioner of insurance is required for
payment. The attorney general must electronically approve the voucher submitted to the
Comptroller for payment of the insurance. The approval letter from the commissioner of
insurance must be maintained in the agency’s files and, upon request, must be made
available to the Comptroller during a pre-payment or a post-payment audit.
3. A state agency that provides extra compensation to its employees so they may purchase
insurance must retain in its files documentation showing that those employees:
a. are employed by the agency; and
b. are required as a regular part of their duties to operate state-owned motor
vehicles, aircraft, motorboats, or watercraft; and
c. are required by the agency to maintain liability insurance as a prerequisite to
the operation of the state-owned motor vehicles, aircraft, motorboats, or
watercraft.
4. Upon request, the documentation required by voucher requirement #3 must be made
available to the Comptroller during a pre-payment or a post-payment audit.
5. Comptroller object code 7216 must be used.
State of Texas Purchase Policies and Procedures Guide July 2004 187
Chapter 6 – Miscellaneous Expenditures or Requirements
insurance to protect its officers and employees from liability arising out of the use,
1. If Section 201.106 applies, then TxDOT must retain in its files documentation that
provides the statutory authority for the purchase. Upon request, TxDOT must make this
documentation available to the Comptroller during a pre-payment or a post-payment audit.
2. Approval from the attorney general and the commissioner of insurance is required for
payment. The attorney general must electronically approve the voucher submitted to the
Comptroller for payment of the insurance. The approval letter from the commissioner of
insurance must be maintained by TxDOT in its files and, upon request, made available to
the Comptroller during a pre-payment or a post-payment audit.
3. Comptroller object code 7216 must be used.
In this subdivision:
• “Motor vehicle” means any motor vehicle for which motor vehicle automobile
insurance is written under Subchapter A of Chapter 5, Insurance Code.
• “Person” includes an individual, a corporation, an organization, a government
or governmental subdivision or agency, a business trust, an estate, a trust, a
partnership, an association, and any other legal entity.
The state is required to provide for insuring peace officers and fire fighters in the
employ of the state against liability to third persons arising out of the operation,
maintenance, or use of any motor vehicle owned or leased by the state. To satisfy this
requirement, the state may self-insure or reimburse peace officers and fire fighters for
the actual cost of extended automobile liability insurance endorsements obtained by
them. The extended endorsements must cover the operation and use of vehicles by
peace officers and fire fighters in the scope of their employment. The amount of the
insurance must be at least the amount required by the Texas Motor Vehicle Safety
Responsibility Act to provide evidence of financial responsibility.
The SORM is required to purchase insurance coverage for a state agency subject to
Chapter 501, Labor Code, 71 except for an institution subject to TEX. LAB. CODE ANN.
§�501.022 (Vernon 1996),72 under any line of insurance other than health or life
insurance, including the insurance discussed in this subdivision. A state agency
subject to Chapter 501, except for an institution subject to Section 501.022, may not
purchase property, casualty, or liability insurance coverage without the approval of
the RMB. The RMB is required, by rule adopted not later than December 1, 2002, to
develop an implementation schedule for the purchase of insurance by the SORM as
described in this paragraph. In addition, the RMB is required to phase in, by line of
insurance, the requirement that a state agency purchase coverage only through the
SORM. The requirements discussed in this paragraph took effect September 1, 2002.
71
See TEX. LAB. CODE ANN. §�501.001(6) (Vernon Supp. 2004) (definition of “state agency” for purposes of
Chapter�501, Labor Code).
72
The institutions subject to TEX. LAB. CODE ANN. §�501.022 (Vernon 1996) are the agencies subject to the
direction and control of the board of regents of Texas Tech University and Texas Tech University Health
Sciences Center.
188 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 6 – Miscellaneous Expenditures or Requirements
Sources for this subdivision: TEX. GOV’T CODE ANN. §�612.001 (Vernon Supp.
2004); Code Construction Act, TEX. GOV’T CODE ANN. §�311.005(2) (Vernon 1998);
TEX. LAB. CODE ANN. §�412.011(c)(2), (d)-(e) (Vernon Supp. 2004); Act of May 27,
2001, 77th Leg., R.S., ch. 1017, §�3.01(a), (b)(1), 2001 Tex. Gen. Laws 2226, 2233.
The following USAS purchase voucher requirements apply when a state agency reimburses a
peace officer or fire fighter for the purchase of automobile liability insurance to protect from
liability to third persons arising out of the operation, maintenance, or use of motor vehicles
owned or leased by the state.
1. If Section 612.001 applies, then a state agency must retain in its files documentation
that provides the statutory authority for the purchase. Upon request, the agency must
make this documentation available to the Comptroller during a pre-payment or a post-
payment audit.
2. Comptroller object code 7204 must be used.
The SORM is required to purchase insurance coverage for a state agency subject
to Chapter 501, Labor Code, 73 except for an institution subject to TEX. LAB.
CODE ANN. §�501.022 (Vernon 1996), 74 under any line of insurance other than
health or life insurance, including the insurance discussed in this subdivision. A
state agency subject to Chapter 501, except for an institution subject to Section
501.022, may not purchase property, casualty, or liability insurance coverage
without the approval of the RMB. The RMB is required, by rule adopted not later
than December 1, 2002, to develop an implementation schedule for the purchase
of insurance by the SORM as described in this paragraph. In addition, the RMB
is required to phase in, by line of insurance, the requirement that a state agency
purchase coverage only through the SORM. The requirements discussed in this
paragraph took effect September 1, 2002.
Sources for this subdivision: TEX. GOV’T CODE ANN. §�612.003(b)
(Vernon Supp. 2004); Act of May 27, 2001, 77th Leg., R.S., ch. 1017, §�3.01(a),
73
See TEX. LAB. CODE ANN. §�501.001(6) (Vernon Supp. 2004) (definition of “state agency” for purposes of
Chapter�501, Labor Code).
74
The institutions subject to TEX. LAB. CODE ANN. §�501.022 (Vernon 1996) are the agencies subject to the
direction and control of the board of regents of Texas Tech University and Texas Tech University Health
Sciences Center.
State of Texas Purchase Policies and Procedures Guide July 2004 189
Chapter 6 – Miscellaneous Expenditures or Requirements
agency purchases insurance to protect against liability arising from the department’s or
1. If required by the Comptroller, the state department or agency must retain in its files
documentation that provides the statutory authority to operate an integrated day care
program for children. Upon request, the department or agency must make this
audit.
(Vernon Supp. 2004); Act of May 27, 2001, 77th Leg., R.S., ch. 1017, §�3.01(a),
aircraft
The State Aircraft Pooling Board (SAPB) shall purchase liability insurance to
protect officers and employees of each state agency from loss arising from the
operation of state-owned aircraft. The insurance must be on a form approved by
the State Board of Insurance.
75
See TEX. LAB. CODE ANN. §�501.001(6) (Vernon 1996) (definition of “state agency” for purposes of
Chapter 501, Labor Code).
76
The institutions subject to TEX. LAB. CODE ANN. §�501.022 (Vernon Supp. 2002) are the agencies subject to
the direction and control of the board of regents of Texas Tech University and Texas Tech University Health
Sciences Center.
190 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 6 – Miscellaneous Expenditures or Requirements
The GAA says the following. The cost of the insurance purchased under the
preceding paragraph must be prorated according to SAPB’s instructions among the
appropriations to each agency operating a state-owned aircraft. The Comptroller is
required to transfer necessary amounts from agencies operating aircraft to SAPB for
the purchase of the insurance.
Sources for this subdivision: State Aircraft Pooling Act, TEX. GOV’T CODE ANN.
§�2205.045 (Vernon 2000); Article IX, Section 5.08(e) of the General Appropriations
Act. See TEX. INS. CODE ANN. §�31.007 (Vernon 2002) (a reference in law to the State
Board of Insurance often means the commissioner of insurance)
State of Texas Purchase Policies and Procedures Guide July 2004 191
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11. Members, appointees, and employees of the Texas Water Development Board
The Texas Water Development Board (TWDB) may purchase for its members,
appointees, and employees liability insurance in any amounts and from any
insurers TWDB considers advisable. TWDB may pay the premiums on the
insurance.
Source for this subdivision: TEX. WATER CODE ANN. §�6.108 (Vernon 2000).
The following USAS purchase voucher requirements apply when the TWDB purchases
liability insurance for its members, appointees, and employees.
1. If Section 6.108 applies, then the TWDB must retain in its files documentation that
provides the citation of the section as the statutory authority for the purchase; a
description of the type of insurance purchased; and the names of the persons who will
be covered by the insurance. Upon request, TWDB must make this documentation
available to the Comptroller during a pre-payment or post-payment audit.
192 July 2004 State of Texas Purchase Policies and Procedures Guide
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12. Atomic energy reactors and experiments in the field of nuclear science
The governing board of a state institution of higher education that is or will be
constructing and operating an atomic energy reactor or otherwise performing
experiments in the field of nuclear science in cooperation with and licensed by
the Atomic Energy Commission or its successor in function, or any other
governmental agency, may purchase liability insurance in any amount not to
exceed $250,000 and pay the premium from funds appropriated for that purpose.
Source for this subdivision: TEX. EDUC. CODE ANN. §�51.901(a) (Vernon 1996).
The following USAS purchase voucher requirements apply when a state institution of
higher education purchases liability insurance for its operation of an atomic energy
reactor or its performance of experiments in the field of nuclear science.
1. If Section 51.901(a) applies, then the institution must retain in its file
documentation that provides a citation of the section as the statutory authority for
the purchase and a description of the type of insurance purchased. Upon request,
the institution must make this documentation available to the Comptroller during a
pre-payment or a post-payment audit.
The following USAS purchase voucher requirements apply when the board of regents
of the TSTCS procures liability insurance to protect the United States and its
agencies.
1. If Section 135.57 applies, then TSTCS must retain in its files documentation
that provides a citation of the section as the authority for the procurement and
a description of the type of insurance purchased. Upon request, TSTCS must
make this documentation available to the Comptroller during a pre-payment
or a post-payment audit.
2. Comptroller object code 7204 must be used.
State of Texas Purchase Policies and Procedures Guide July 2004 193
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194 July 2004 State of Texas Purchase Policies and Procedures Guide
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77
The addition of a court of appeals to the definition of “state agency” was effective September 1, 1999.
Act of May 25, 1999, 76th Leg., R.S., ch. 1251, §�3, 1999 Tex. Gen. Laws 4329.
78
This paragraph was effective September 1, 1999. Id.
State of Texas Purchase Policies and Procedures Guide July 2004 195
Chapter 6 – Miscellaneous Expenditures or Requirements
The SORM is required to purchase insurance coverage for a state agency subject to
Chapter 501, Labor Code,79 except for an institution subject to TEX. LAB. CODE ANN.
§�501.022 (Vernon 1996),80 under any line of insurance other than health or life
insurance, including the insurance discussed in this subdivision. A state agency subject
to Chapter 501, except for an institution subject to Section 501.022, may not purchase
property, casualty, or liability insurance coverage without the approval of the RMB.
The RMB is required, by rule adopted not later than December 1, 2002, to develop an
implementation schedule for the purchase of insurance by the SORM as described in
this paragraph. In addition, the RMB is required to phase in, by line of insurance, the
requirement that a state agency purchase coverage only through the SORM. The
requirements discussed in this paragraph took effect September 1, 2002.
Sources for this subdivision: TEX. GOV’T CODE ANN. §�612.004 (Vernon Supp. 2004);
Code Construction Act, TEX. GOV’T CODE ANN. §�311.005(2) (Vernon 1998);
TEX. LAB. CODE ANN. §�412.011(c)(2), (d)-(e) (Vernon Supp. 2004); Act of May 27, 2001,
77th Leg., R.S., ch. 1017, §�3.01(a), (b)(1), 2001 Tex. Gen. Laws 2226, 2233.
TEX. CIV. PRAC. & REM. CODE ANN. §�104.002 (Vernon 1997) and other conduct
customarily covered under directors’ and officers’ liability insurance policies for
institution, or department; or
79
See TEX. LAB. CODE ANN. §�501.001(6) (Vernon Supp. 2004) (definition of “state agency” for purposes of
Chapter�501, Labor Code).
80
The institutions subject to TEX. LAB. CODE ANN. §�501.022 (Vernon 1996) are the agencies subject to the
direction and control of the board of regents of Texas Tech University and Texas Tech University Health
Sciences Center.
81
As added by Act of May 28, 1997, 75th Leg., R.S., ch. 1035, §�78, 1997 Tex. Gen. Laws 3845, 3863-4.
196 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 6 – Miscellaneous Expenditures or Requirements
Sources for this subdivision: TEX. GOV’T CODE ANN. §§�404.101(1), (4),
State of Texas Purchase Policies and Procedures Guide July 2004 197
Chapter 6 – Miscellaneous Expenditures or Requirements
agency purchases insurance to protect the person and property of foster grandparents.
1. The department or agency must retain in its files documentation that provides its
82
See TEX. LAB. CODE ANN. §�501.001(6) (Vernon Supp. 2004) (definition of “state agency” for purposes of
Chapter�501, Labor Code).
83
The institutions subject to TEX. LAB. CODE ANN. §�501.022 (Vernon 1996) are the agencies subject to the
direction and control of the board of regents of Texas Tech University and Texas Tech University Health
Sciences Center.
198 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 6 – Miscellaneous Expenditures or Requirements
The SORM is required to purchase insurance coverage for a state agency subject
to Chapter 501, Labor Code,84 except for an institution subject to TEX. LAB. CODE
ANN. §�501.022 (Vernon 1996),85 under any line of insurance other than health or
life insurance. A state agency subject to Chapter�501, except for an institution
subject to Section 501.022, may not purchase property, casualty, or liability
insurance coverage without the approval of the RMB. The RMB is required, by
rule adopted not later than December 1, 2002, to develop an implementation
schedule for the purchase of insurance by the SORM as described in this
paragraph. In addition, the RMB is required to phase in, by line of insurance, the
requirement that a state agency purchase coverage only through the SORM. The
requirements discussed in this paragraph took effect September 1, 2002.
Sources for this subdivision: TEX. LAB. CODE ANN. §�412.011(c)(2),
(d)-(e) (Vernon Supp. 2004); Act of May 27, 2001, 77th Leg., R.S., ch. 1017, §�3.01(a),
(b)(1), 2001 Tex. Gen. Laws 2226, 2233; Senate Concurrent Resolution No. 3, 37th
Leg., 2d C.S., 1921; Senate Concurrent Resolution No. 102, 62nd Leg., 1971 Tex. Gen.
Laws 3889; Op. Tex. Att’y Gen. Nos. DM-197 (1993), JM-551 (1986), JM-547 (1986),
H-681 (1975), M-1257 (1972), O-6246 (1944), O-4207 (1941), O-3000 (1941), O-2325
84
See TEX. LAB. CODE ANN. §�501.001(6) (Vernon Supp. 2004) (definition of “state agency” for purposes of
Chapter�501, Labor Code).
85
The institutions subject to TEX. LAB. CODE ANN. §�501.022 (Vernon 1996) are the agencies subject to the
direction and control of the board of regents of Texas Tech University and Texas Tech University Health
Sciences Center.
State of Texas Purchase Policies and Procedures Guide July 2004 199
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The following USAS purchase voucher requirements apply when the governing board of an
institution of higher education purchases buildings and contents insurance or property
damage insurance.
1. An institution must retain in its files documentation that provides the statutory
authority and specific appropriation for the purchase of the insurance. The University
of Texas System, however, is not required to cite a specific appropriation for the
purchase. Upon request, the institution must make this documentation available to the
Comptroller during a pre-payment or post-payment audit.
(Vernon Supp. 2004); Act of May 27, 2001, 77th Leg., R.S., ch. 1017, §�3.01(a), (b)(1),
2001 Tex. Gen. Laws 2226, 2233; Gen. Nos. V-1423 (1952), O-3000 (1941), O-2130
86
See TEX. LAB. CODE ANN. §�501.001(6) (Vernon Supp. 2004) (definition of “state agency” for purposes of
Chapter�501, Labor Code).
87
The institutions subject to TEX. LAB. CODE ANN. §�501.022 (Vernon 1996) are the agencies subject to the
direction and control of the board of regents of Texas Tech University and Texas Tech University Health
Sciences Center.
200 July 2004 State of Texas Purchase Policies and Procedures Guide
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The following USAS purchase voucher requirements apply when a state agency purchases
insurance on property other than buildings and their contents, aircraft owned or leased by
the state, and freight and mail in transit.
1. A state agency must retain in its files documentation that provides the statutory
authority and specific appropriation for the purchase. An institution of higher
education, however, is not required to cite a specific appropriation for a purchase of
fidelity, burglary, theft, or hold-up insurance if local funds are used. Upon request, the
agency must make this documentation available to the Comptroller during a pre
payment or post-payment audit.
2. Comptroller object code 7204 must be used.
The following USAS purchase voucher requirements apply when the SAPB or the Texas
Board of Criminal Justice purchases insurance to protect the respective board from loss
due to damage, loss, theft, or destruction of aircraft.
1. The approval letter from the commissioner of insurance must be maintained in the
agency’s files and, upon request, must be made available to the Comptroller during a
pre-payment or a post-payment audit.
88
This sentence applies only to a travel expense incurred after August 31, 1999. Act of May 11, 1999,
76th Leg., R.S., ch. 280, §�22, 1999 Tex. Gen. Laws 1170, 1175.
State of Texas Purchase Policies and Procedures Guide July 2004 201
Chapter 6 – Miscellaneous Expenditures or Requirements
The following USAS purchase voucher requirements apply when a state agency purchases
insurance from the carrier of freight or mail to protect those items while in transit.
1. A state agency must retain in its files documentation that states the insurance is for
freight or mail in transit. Upon request, the agency must make this documentation
available to the Comptroller during a pre-payment or a post-payment audit.
4. Property loaned to the Texas State Technical College System by the United States
The board of regents of the TSTCS may procure the property insurance required
by the United States to protect the United States and its agencies against the
possibility of loss in connection with property owned by the United States and
loaned to the system under the National Industrial Reserve Act of 1948.
Source for this subdivision: TEX. EDUC. CODE ANN. §�135.57
The following USAS purchase voucher requirements apply when the TSTCS purchases insurance
to protect the United States and its agencies from the loss of property loaned to TSTCS.
1. TSTCS must retain in its files documentation that states the insurance is to protect the
United States and its agencies against the loss of property loaned to TSTCS under the
National Industrial Reserve Act of 1948. Upon request, TSTCS must make this
documentation available to the Comptroller during a pre-payment or post-payment audit.
In this subdivision:
202 July 2004 State of Texas Purchase Policies and Procedures Guide
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The following USAS purchase voucher requirements apply when a state agency or an
1. An agency or institution must retain in its files documentation that proves compliance
with the requirements described in this subsection. Upon request, the agency or
institution must make this documentation available to the Comptroller during a pre
payment or post-payment audit.
G. Volunteers
In this subsection, “governmental entity” means a state agency or other
governmental entity supported in whole or in part by funds received from the state.
A governmental entity may establish a volunteer program in compliance with TEX.
GOV’T CODE ANN. §�2109.001-2109.006 (Vernon 2000) that provides for an insurance
program to protect volunteers in the performance of volunteer services.
The SORM is required to purchase insurance coverage for a state agency subject to
Chapter 501, Labor Code, 89 except for an institution subject to TEX. LAB. CODE ANN.
§�501.022 (Vernon 1996),90 under any line of insurance other than health or life
insurance. A state agency subject to Chapter�501, except for an institution subject to
Section 501.022, may not purchase property, casualty, or liability insurance
coverage without the approval of the RMB. The RMB is required, by rule adopted
not later than December 1, 2002, to develop an implementation schedule for the
purchase of insurance by the SORM as described in this paragraph. In addition, the
RMB is required to phase in, by line of insurance, the requirement that a state
agency purchase coverage only through the SORM. The requirements discussed in
this paragraph took effect September 1, 2002.
Sources for this subsection: TEX. GOV’T CODE ANN. §§�2109.001(1),
2109.004(b)(2) (Vernon 2000); TEX. LAB. CODE ANN. §�412.011(c)(2), (d)-(e)
(Vernon Supp. 2004); Act of May 27, 2001, 77th Leg., R.S., ch. 1017, §�3.01(a),
(b)(1), 2001 Tex. Gen. Laws 2226, 2233.
89
See TEX. LAB. CODE ANN. §�501.001(6) (Vernon Supp. 2004) (definition of “state agency” for purposes of
Chapter�501, Labor Code).
90
The institutions subject to TEX. LAB. CODE ANN. §�501.022 (Vernon 1996) are the agencies subject to the
direction and control of the board of regents of Texas Tech University and Texas Tech University Health
Sciences Center.
State of Texas Purchase Policies and Procedures Guide July 2004 203
Chapter 6 – Miscellaneous Expenditures or Requirements
services.
1. The governmental entity must retain in its files documentation that completely
describes the type of insurance purchased and name the insured and beneficiaries.
2. The governmental entity must retain in its files documentation that cites the statutory
91
See TEX. LAB. CODE ANN. §�501.001(6) (Vernon Supp. 2004) (definition of “state agency” for purposes of
Chapter�501, Labor Code).
92
The institutions subject to TEX. LAB. CODE ANN. §�501.022 (Vernon 1996) are the agencies subject to the
direction and control of the board of regents of Texas Tech University and Texas Tech University Health
Sciences Center.
204 July 2004 State of Texas Purchase Policies and Procedures Guide
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93
See TEX. LAB. CODE ANN. §�501.001(6) (Vernon Supp. 2004) (definition of “state agency” for purposes of
Chapter�501, Labor Code).
94
The institutions subject to TEX. LAB. CODE ANN. §�501.022 (Vernon 1996) are the agencies subject to the
direction and control of the board of regents of Texas Tech University and Texas Tech University Health
Sciences Center.
State of Texas Purchase Policies and Procedures Guide July 2004 205
Chapter 6 – Miscellaneous Expenditures or Requirements
(Vernon 1996); TEX. LAB. CODE ANN. §�412.011(c)(2), (d)-(e) (Vernon Supp. 2004);
Act of May 27, 2001, 77th Leg., R.S., ch. 1017, §�3.01(a), (b)(1), 2001 Tex. Gen.
95
See TEX. LAB. CODE ANN. §�501.001(6) (Vernon Supp. 2004) (definition of “state agency” for purposes of
Chapter�501, Labor Code).
96
The institutions subject to TEX. LAB. CODE ANN. §�501.022 (Vernon 1996) are the agencies subject to the
direction and control of the board of regents of Texas Tech University and Texas Tech University Health
Sciences Center.
206 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 6 – Miscellaneous Expenditures or Requirements
(Vernon Supp. 2004); Act of May 27, 2001, 77th Leg., R.S., ch. 1017, §�3.01(a), (b)(1),
2001 Tex. Gen. Laws 2226, 2233; Rider 21 in the appropriations to the Department
97
See TEX. LAB. CODE ANN. §�501.001(6) (Vernon Supp. 2004) (definition of “state agency” for purposes of
Chapter�501, Labor Code).
98
Id.
State of Texas Purchase Policies and Procedures Guide July 2004 207
Chapter 6 – Miscellaneous Expenditures or Requirements
The SORM is required to purchase insurance coverage for a state agency subject to
Chapter 501, Labor Code,99 under any line of insurance other than health or life
insurance. A state agency subject to Chapter 501 may not purchase property, casualty, or
liability insurance coverage without the approval of the RMB. The RMB is required, by
rule adopted not later than December 1, 2002, to develop an implementation schedule for
the purchase of insurance by the SORM as described in this paragraph. In addition, the
RMB is required to phase in, by line of insurance, the requirement that a state agency
purchase coverage only through the SORM. The requirements discussed in this
paragraph took effect September 1, 2002.
Sources for this subsection: TEX. GOV’T CODE ANN. §§�481.001(4), 481.021(a)(5)
(Vernon Supp. 2004); TEX. LAB. CODE ANN. §�412.011(c)(2), (d)-(e)
(Vernon Supp. 2004); Act of May 27, 2001, 77th Leg., R.S., ch. 1017, §�3.01(a), (b)(1),
2001 Tex. Gen. Laws 2226, 2233.
99
Id.
208 July 2004 State of Texas Purchase Policies and Procedures Guide
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Government Code; or
State of Texas Purchase Policies and Procedures Guide July 2004 209
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The ICA authorizes a local government to contract or agree with another local
the ICA.
performing party for the services or functions performed under the contract.
A governmental entity of this state or another state that makes purchases or provides
purchasing services under an interlocal contract for a state agency must comply with
Chapter 2161, Government Code,101 in making the purchases or providing the services.
100
There is one exception that is not relevant here.
101
Chapter 2161, Government Code, relates to historically underutilized businesses.
210 July 2004 State of Texas Purchase Policies and Procedures Guide
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§�6.050 Investments
A. General discussion
A state agency may not invest state funds in any investment vehicle unless the
agency has specific constitutional or statutory authority to do so. Any investment of
state funds must comply with applicable constitutional provisions and statutes.
3. Upon request, the state agency must make documentation available to the
Comptroller during a pre-payment or a post-payment audit to prove compliance with
the requirements described in this subsection and with all applicable constitutional
provisions and statutes.
State of Texas Purchase Policies and Procedures Guide July 2004 211
Chapter 6 – Miscellaneous Expenditures or Requirements
invest its funds or the funds under its control. The PFIA applies to a state agency
only if the agency has statutory authority outside the PFIA to invest funds.
212 July 2004 State of Texas Purchase Policies and Procedures Guide
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A state agency may invest its funds and funds under its control through an
investment pool only if the governing body of the agency authorizes investment in
the pool. The pool may not accept the agency’s funds or invest them unless the
pool has furnished the agency’s investment officer or other authorized
representative an offering circular or similar disclosure instrument that complies
with TEX. GOV’T CODE ANN. §�2256.016(b) (Vernon 2000). The pool may maintain
its eligibility to accept the agency’s funds and invest them only if the pool
complies with TEX. GOV’T CODE ANN. §�2256.016(c) (Vernon 2000).
The governing body of a state agency or of an investment pool may purchase, sell, and
invest its funds and funds under its control in investments authorized under
Subchapter A of Chapter 2256, Government Code. The investments must be in
compliance with investment policies approved by the governing body and according to
the standard of care prescribed by TEX. GOV’T CODE ANN. §�2256.006 (Vernon 2000).
The body may contract with an investment management firm registered under the
Investment Advisers Act of 1940 or with the State Securities Board to provide for the
investment and management of the body’s public funds or other funds under its control.
The contract may not be for a term longer than two years. A renewal or extension of the
contract must be made by order or resolution of the body. The PFIA does not prohibit
the governing body of a state agency or investment officer from using the agency’s
employees or the services of a contractor of the agency to aid the officer in the execution
of the officer’s duties under the PFIA.
The governing body of a state agency or of an investment pool shall adopt a written
policy regarding the investment of its funds and the funds under its control. The
policy must comply with TEX. GOV’T CODE ANN. §�2256.005 (Vernon Supp. 2004). A
copy of the investment policy must be presented to: (1) any person offering to engage
in an investment transaction with the agency or pool; or (2) an investment
management firm under contract with the body to invest or manage the body’s
investment portfolio. The qualified representative of the business organization
offering to engage in an investment transaction with the agency or pool must execute
a written instrument in a form acceptable to the agency or pool substantially to the
effect that the organization has: (1) received and reviewed the investment policy; and
(2)�acknowledged that the organization has implemented reasonable procedures and
controls in an effort to preclude investment transactions conducted between the
agency or pool on the one hand and the organization on the other hand that are not
authorized by the agency’s or pool’s investment policy, except to the extent that this
authorization is dependent on an analysis of the makeup of the agency’s or pool’s
entire portfolio or requires an interpretation of subjective investment standards. The
investment officer of the agency or pool may not acquire or otherwise obtain any
authorized investment described in the investment policy of the agency or pool from a
person that has not delivered to the agency or pool the instrument that complies with
this paragraph.
The governing body of a state agency or of an investment pool shall designate one or
more officers or employees of the agency or pool as its investment officer. If the body
has contracted with another investing entity to invest the body’s funds, then the
investment officer of the other entity is considered to be the body’s investment officer.
The investment officer is responsible for the investment of the agency’s or pool’s funds
consistent with the agency’s or pool’s investment policy. Unless authorized by law, a
person who is not the investment officer for a state agency or investment pool may not
deposit, withdraw, invest, transfer, or manage in any other manner the funds of the
agency or pool.
State of Texas Purchase Policies and Procedures Guide July 2004 213
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Each member of the governing board of a state agency and its investment officer shall
attend at least one training session relating to the person’s responsibilities under the
PFIA. The training must cover the subjects required by TEX. GOV’T CODE ANN.
§�2256.007(c) (Vernon 2000). The training session must occur within six months after the
person takes office or assumes the person’s duties. The Texas Higher Education
Coordinating Board is required to provide the training.
In addition to attending the training session described in the preceding paragraph, an
investment officer must attend a training session not less than once in a two year period. The
training may be provided by an independent source approved by the governing body of the
state agency that employs the officer.
The Comptroller or the disbursing officer of an agency that has the power to invest assets
directly may pay for authorized securities purchased from or through a member in good
standing of the National Association of Securities Dealers or from or through a national or
state bank on receiving an invoice from the seller of the securities showing that the
securities have been purchased by the board or agency and that the amount to be paid for
the securities is just, due, and unpaid. A purchase of securities may not be made at a price
that exceeds the existing market value of the securities.
Sources for this subsection: Public Funds Investment Act, TEX. GOV’T CODE ANN.
§§�2256.001-2256.004 (Vernon 2000), §�2256.005 (Vernon Supp. 2004), §§�2256.006-
2256.007 (Vernon 2000), §§�2256.008-2256.010 (Vernon Supp. 2004), §�2256.011
(Vernon 2000), §�2256.0115 (Vernon Supp. 2004), §§�2256.012-2256.021 (Vernon 2000),
§�2256.022 (Vernon Supp. 2004), §§�2256.023-2256.055 (Vernon 2000); Op. Tex. Att’y
Gen. No. DM-489 (1998).
Cross reference for this subsection: Chapter 7: Training for members of
governing boards.
214 July 2004 State of Texas Purchase Policies and Procedures Guide
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§�6.056 Mail
In this section, “state agency” means:
• a department, commission, board, office, or other agency in the executive
branch of state government created by the state constitution or a state
statute; or
• the Supreme Court, the Court of Criminal Appeals, a Court of Appeals, or the
Texas Judicial Council; or
• a university system or an institution of higher education as defined by
TEX. EDUC. CODE ANN. §�61.003 (Vernon Supp. 2004), except a public
junior college.
The requirements described in this section apply only to the outgoing first-class mail
practices of a state agency located in Travis County.
A state agency must consult with the Texas Building and Procurement Commission
before the agency may:
• purchase, upgrade, or sell mail processing equipment; or
• contract with a private entity for mail processing; or
• take actions that significantly affect the agency’s first-class mail practices.
Sources: State Purchasing and General Services Act, TEX. GOV’T CODE
ANN. §�2151.002(2) (Vernon Supp. 2004), §§�2176.101, 2176.104
(Vernon 2000).
Cross reference: Chapter 2: Mail, interagency.
State of Texas Purchase Policies and Procedures Guide July 2004 215
Chapter 6 – Miscellaneous Expenditures or Requirements
1. This voucher requirement applies when a state agency wants to pay a membership fee
to a private entity so that the agency may purchase goods or services at a discount. The
agency must retain in its files documentation to show that the total of the membership
fee plus the cost of goods or services purchased from the private entity is less than the
lowest cost of those goods or services from any other source. Upon request, the agency
must make the documentation available to the Comptroller during a pre-payment or a
post-payment audit.
2. A state agency must retain in its files documentation that shows the proper public
purpose that is served by paying the membership fee and how the payment relates to
the statutory duties of the agency. Upon request, the agency must make the
documentation available to the Comptroller during a pre-payment or a post-payment
audit.
216 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 6 – Miscellaneous Expenditures or Requirements
B. Statutory requirements
In this subsection:
• “Appropriated money” means money appropriated by the Legislature
through the General Appropriations Act (GAA) or other law.
• “State agency” means:
– a department, commission, board, office, or other entity in the executive
branch of state government; or
– the Supreme Court, the Court of Criminal Appeals, another entity in the
judicial branch of state government with statewide authority, or a Court
of Appeals; or
– a university system or an institution of higher education as defined by
TEX. EDUC. CODE ANN. §�61.003 (Vernon Supp. 2004), except that a
public junior college is excluded from the meaning of the term.
A state agency may not use appropriated money to pay for membership in or dues for
a professional organization unless the administrative head of the agency, or that
person’s designee, first reviews and approves the expenditure. A state library is
exempt from this prohibition.
The restrictions described in this subsection do not affect the authority of an
institution of higher education to collect, account for, and control local funds and
Education Code.
The restrictions described in this subsection apply only to an expenditure made after
August 31, 1999.
Sources for this subsection: TEX. GOV’T CODE ANN. §�2113.001 (Vernon Supp. 2004),
§�2113.104 (Vernon 2000); Act of May 29, 1999, 76th Leg., R.S., ch. 1498, §�9-10,
1999 Tex. Gen. Laws 5153, 5163.
Cross references for this section: Chapter 2: Membership fees paid to a chamber of
commerce; Chapter 6: Membership fees paid to non-professional organizations.
State of Texas Purchase Policies and Procedures Guide July 2004 217
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218 July 2004 State of Texas Purchase Policies and Procedures Guide
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C. General Requirements
The requirements discussed in this subsection do not apply to a notice to which the
State of Texas Purchase Policies and Procedures Guide July 2004 219
Chapter 6 – Miscellaneous Expenditures or Requirements
A newspaper that publishes a notice shall submit a bill for the publication with a
clipping of the published notice and a verified statement of the publisher that:
• states the rate charged; and
• certifies that the rate charged is the newspaper’s lowest published rate for
classified advertising; and
• certifies the number and dates of the publication.
The Texas Building and Procurement Commission (TBPC) may cancel a contract
executed by TBPC for the publication of a notice if TBPC determines that the
newspaper charges a rate higher than the legal rate.
The governmental entity or representative required to publish a notice in a
newspaper shall select, in accordance with the requirements described above, one
or more newspapers to publish the notice.
Sources for this subsection: TEX. GOV’T CODE ANN. §�2051.043 (Vernon 2000),
§�2051.044 (Vernon Supp. 2004), §§�2051.045, 2051.049-2051.052 (Vernon 2000);
TEX. GOV’T CODE ANN. §�2151.003 (Vernon Supp. 2004) (a statutory reference to
the General Services Commission (GSC) means the Texas Building and
Procurement Commission (TBPC)).
220 July 2004 State of Texas Purchase Policies and Procedures Guide
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State of Texas Purchase Policies and Procedures Guide July 2004 221
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222 July 2004 State of Texas Purchase Policies and Procedures Guide
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§�6.070 Pharmaceuticals
In this section:
• “Council” means the Interagency Council on Pharmaceuticals Bulk
Purchasing.
• “State agency” means the Department of State Health Services, the
Department of Aging and Disability Services, the Correctional Managed
Health Care Committee, the Employees Retirement System of Texas, the
Teacher Retirement System of Texas, or any other agency that purchases
pharmaceuticals designated by the commissioner of health and human
services.
The council shall develop procedures that each state agency must follow in purchasing
pharmaceuticals. The council shall designate one of those agencies to be the central
purchasing agency for purchasing pharmaceuticals. An agency may elect not to follow the
council’s procedures if the agency can purchase the pharmaceuticals for a lower price than
through the council. An agency that does not follow the council’s procedures shall report
to the council the purchase price for the pharmaceuticals and the name of the wholesaler,
retailer, or manufacturer selling the pharmaceuticals.
Sources: TEX. HEALTH & SAFETY CODE ANN. §§�110.001-110.002, 110.006(a)-(b)
(Vernon Supp. 2004).
State of Texas Purchase Policies and Procedures Guide July 2004 223
Chapter 6 – Miscellaneous Expenditures or Requirements
An agency other than an institution of higher education that spends for postage in a
fiscal year an amount that exceeds the dollar amount set by the GAA as the maximum
expenditure for postage shall purchase or rent a postage meter machine and record all
purchases of postage on the machine except purchases of postage for employees in field
offices and traveling employees.
The rental of a postage meter machine by a state agency, the Legislature, or an agency
in the legislative branch of state government must be from a company approved by
TBPC. TBPC is required to adopt by rule procedures for the renting entity to pay for
postage.
A state agency should use the most cost-effective means of postal service available.
A state agency may use appropriated money to purchase any form of mailing service
available from USPS that results in a lower cost to the agency and affords service
comparable in quality to other available postal services. TBPC is required to assist state
agencies in determining the types and comparability of postal services available from
USPS.
The restrictions described in this section do not affect the authority of an institution of
higher education to collect, account for, and control local funds and institutional funds
in the manner authorized by Subchapter A of Chapter 51, Education Code.
The information provided in this section applies only to an expenditure made after
August 31, 1999.
Sources: TEX. GOV’T CODE ANN. §�2113.001 (Vernon Supp. 2004), §�2113.103
(Vernon 2000); State Purchasing and General Services Act, TEX. GOV’T
CODE ANN. §�2151.003 (Vernon Supp. 2004) (a statutory reference to the
General Services Commission (GSC) means the Texas Building and
Procurement Commission (TBPC); Act of May 29, 1999,
76th Leg., R.S., ch. 1498, §§�9-10, 1999 Tex. Gen. Laws 5153, 5163.
See TEX. GOV’T CODE ANN. §�2203.002 (Vernon 2000).
1. An agency other than an institution of higher education must retain in its files
documentation that demonstrates why the agency is not required to purchase or rent a
postage meter machine. Upon request, the documentation must be made available to
the Comptroller during a pre-payment or a post-payment audit.
224 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 6 – Miscellaneous Expenditures or Requirements
higher education.
State Purchasing and General Services Act, TEX. GOV’T CODE ANN. §�2151.003
State of Texas Purchase Policies and Procedures Guide July 2004 225
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226 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 6 – Miscellaneous Expenditures or Requirements
B. Payment deadline for contracts executed after June 30, 1986, but before
September�1, 1987
A state agency’s payment under a contract executed after June 30, 1986, but
before September 1, 1987, is overdue on the 46th day after the later of:
• the date the agency receives the goods under the contract; or
• the date the vendor completes performing its service; or
• the date the agency receives an invoice for the goods or service.
Source for this subsection: TEX. GOV’T CODE ANN. §�2251.021(a), (c)
(Vernon Supp. 2004).
• the date the agency receives the goods under the contract; or
• the date the vendor completes performing its service; or
• the date the agency receives an invoice for the goods or service.
For purposes of this subsection, the renewal, amendment, or extension of a contract
executed before September 2, 1993, is considered to be the execution of a new contract.
Sources for this subsection: TEX. GOV’T CODE ANN. §�2251.021(a), (d)
(Vernon Supp. 2004).
State of Texas Purchase Policies and Procedures Guide July 2004 227
Chapter 6 – Miscellaneous Expenditures or Requirements
The Comptroller shall determine the amount of interest that accrues on an overdue
payment by a state agency under the prompt payment law, if the Comptroller is
responsible for issuing a warrant or initiating an EFT to pay the principal amount
on behalf of the agency. Otherwise, the agency shall determine the amount of the
interest.
This paragraph applies only to a payment that becomes overdue before September 1, 2004.
An overdue payment bears interest at the rate of one percent per month.
This paragraph and the bullets that follow apply only to a payment that becomes
overdue after August 31, 2004. An overdue payment bears interest at the rate in
effect on September�1 of the fiscal year in which the payment becomes overdue. The
rate in effect on September 1 is equal to the sum of:
• one percent; and
• the prime rate as published in The Wall Street Journal on the first day of July
of the preceding fiscal year that does not fall on a Saturday or Sunday.
Interest starts accruing under the prompt payment law on the date the payment
becomes overdue.
Interest stops accruing on an overdue payment under the prompt payment law on:
• the date the state agency mails or electronically transmits the payment, if the
Comptroller is not responsible for issuing a warrant or initiating an EFT to pay
the principal amount owed by the agency; or
• the payment’s distribution date, if the Comptroller is responsible for issuing a
warrant or initiating an EFT to pay the principal amount owed by the agency.102
The interest that accrues under the prompt payment law must be submitted with
the net amount due for the goods or services. Neither the Comptroller nor a state
agency may require a vendor to request payment of the interest that accrues under
the prompt payment law before the interest is paid to the vendor.
The Comptroller may require a state agency to submit any information that the
Comptroller determines necessary to comply with the Comptroller’s duties as described
in this subsection and to administer the laws imposing those duties. The information
must be submitted at the time and in the manner required by the Comptroller.
The Comptroller may require a state agency to change its accounting systems or
procedure as the Comptroller determines necessary to comply with the Comptroller’s
duties as described in this subsection and to administer the laws imposing those duties.
Any changes must conform with the Comptroller’s requirements.
Sources for this subsection: TEX. GOV’T CODE ANN. §§�2251.025-2251.026
(Vernon Supp. 2004); Act of May 29, 2003, 78th Leg., R.S., ch. 1310, §�122(f),
2003 Tex. Gen. Laws 4748, 4794.
102
The information provided in this bullet applies only to a payment whose distribution date is after June 15,
2001. Act of May 26, 2001, 77th Leg., R.S., ch. 1158, §�97(b), 2001 Tex. Gen. Laws 2570, 2617. A payment
whose distribution date is before June 16, 2001, is governed by the law in effect on the date the payment
becomes overdue under Chapter 2251, Government Code, and the prior law is continued in effect for that
purpose. Id. For this purpose, ”payment” and “distribution date” have the meanings set forth in Subsection
(A). Id. at §�97(d). The prior law is not discussed in this guide. The prior law, however, is not necessarily
different from the law that forms the basis for this bullet. Id. at §�66(b), 2001 Tex. Gen. Laws at 2607-8.
228 July 2004 State of Texas Purchase Policies and Procedures Guide
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the vendor not later than the 21st day after the date the agency receives the
invoice.
If a dispute between a state agency and a vendor is resolved in the vendor’s favor,
then the agency is liable to the vendor for interest on all invoices for which the
vendor has not received payment. This interest must be calculated from the original
due date of the payment, as if no dispute ever existed.
If a dispute between a state agency and a vendor is resolved in the agency’s favor,
then the vendor that submitted the original invoice must submit a corrected invoice
to the agency. Interest starts accruing if the corrected invoice is not paid by the
appropriate date.
Source for this subsection: TEX. GOV’T CODE ANN. §�2251.042 (Vernon 2000).
State of Texas Purchase Policies and Procedures Guide July 2004 229
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G. Exemptions
Except as provided in Subchapter B or D of Chapter 2251, Government Code, the
requirements described in this section do not apply to a payment made by a state
agency if:
• the terms of a contract entered into before September 1, 1993, between the
agency and the vendor specify another time or method of payment or method of
resolving disputes; or
• the terms of a contract entered into before September 1, 1993, between the
agency and the vendor specify a different interest owed on overdue payments;
or
• the terms of a federal contract, grant, regulation, or statute prevent the agency
from making a timely payment with federal funds; or
• the invoice is not mailed to the agency in strict compliance with the
instructions, if any, on the purchase order relating to the payment.
No interest accrues or may be paid under Section 2251.026, Government Code (Vernon
Supp. 2004), on a payment if:
• the total amount of interest that otherwise would have accrued is equal to or less
than $5; and
• the payment is made from the institutional funds of an institution of higher
education.
103
Sources for this subsection: TEX. GOV’T CODE ANN. §§�2251.002(a)(3)-(4),
2251.026(j) (Vernon Supp. 2004). See 1 TEX. ADMIN. CODE §�114.7 (2003) (rule of
the Texas Building and Procurement Commission); 16 TEX. ADMIN. CODE
§�25.480(c) (2003) (rule of the Public Utility Commission of Texas about interest
payable to certain retail electric providers); 40 TEX. ADMIN. CODE §�19.2604(h)
(2003) (rule of the Texas Department of Human Services (TDHS) saying that
TDHS, under certain circumstances, owes no interest on payments not made by
the deadline provided in the prompt payment law).
H. Waiver
A person may not waive any right or remedy described in this section if the right or
remedy is granted by Chapter 2251, Government Code. A purported waiver of any
right or remedy granted by that chapter is void.
Source for this subsection: TEX. GOV’T CODE ANN. §�2251.004
104
(Vernon Supp. 2004).
103
This statute was amended by Act of May 28, 2003, 78th Leg., R.S., ch. 286, §�1, 2003 Tex. Gen. Laws 1252,
1252-3. The changes in law made by that Act apply only to a contract executed after August 31, 2003. A
contract executed before September 1, 2003, is governed by the law as it existed on the date the contract is
executed, and the former law is continued in effect for that purpose. Id. at §�4(b), 2003 Tex. Gen. Laws at
1255.
104
Id.
230 July 2004 State of Texas Purchase Policies and Procedures Guide
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A state agency that has specific statutory authority to purchase land may purchase
the land under that authority without the governor’s involvement.
Sources for this subsection: TEX. GOV’T CODE ANN. §�2204.001(a) (Vernon 2000);
Op. Tex. Att’y Gen. No. WW-526 (1958).
Cross reference for this subsection: Chapter 2: Advance payments.
State of Texas Purchase Policies and Procedures Guide July 2004 231
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232 July 2004 State of Texas Purchase Policies and Procedures Guide
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State of Texas Purchase Policies and Procedures Guide July 2004 233
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TBPC may not enter a lease contract under Chapter 2167, Government Code, unless
it complies with the architectural barriers law, TEX. REV. CIV. STAT. ANN. art. 9102
(Vernon Supp. 2004).
TBPC may delegate to a state agency, including an institution of higher education,
the authority to enter into lease contracts for space. The agency may not enter a
lease contract under delegated authority from TBPC unless the institution complies
with the architectural barriers law, Article 9102, Revised Statutes.
An institution of higher education may not lease classroom and instructional space
unless the portion of the building to be used by the institution complies with the
applicable standards and specifications under the architectural barriers law, Article 9102,
Revised Statutes.
In leasing space for the use of a state agency, TBPC or the private brokerage or real
estate firm assisting TBPC shall give first consideration to a building that is
designated as a historic structure under TEX. GOV’T CODE ANN. §�442.001
(Vernon Supp. 2004) or to a building that has been designated a landmark by a local
governing authority if:
• the building meets requirements and specifications; and
• the cost is not substantially higher than the cost for other available buildings
that meet requirements and specifications.
Notwithstanding any provision of Chapter 2167, Government Code, or of Subchapter
C of Chapter 2165, Government Code, TBPC may not lease office space to serve the
needs of any health and human services agency unless the Health and Human
Services Commission has approved the office space for the agency. In this
paragraph, “health and human services agency” has the meaning assigned by TEX.
GOV’T CODE ANN. §�531.001 (Vernon Supp. 2004).
TBPC may lease space for a state agency under a contract that contains an option
for TBPC to purchase the space subject to the Legislature’s appropriation of money
for the purchase. A lease contract containing the option must indicate:
• the amount that will accumulate and be credited toward the purchase at
various times during the lease term; and
• the purchase price of the property at the beginning of each fiscal biennium
during the lease term.
In leasing space under Chapter 2167, Government Code, TBPC shall, whenever
possible, enter into a lease contract that allows for subleasing space to a child care
provider.
Sources for this subsection: State Purchasing and General Services Act,
TEX. GOV’T CODE ANN. §�2151.003 (Vernon Supp. 2004) (a statutory reference to
the General Services Commission (GSC) means the Texas Building and
Procurement Commission (TBPC)); State Purchasing and General Services
Act, TEX. GOV’T CODE ANN. §§�2151.002(2), 2167.001 (Vernon Supp. 2004),
§�2167.002 (Vernon 2000), §�2167.003(a) (Vernon Supp. 2004), §�2167.004(a), (c)
(Vernon 2000), §�2167.005(a) (Vernon Supp. 2004), §�2167.0051(a) (Vernon 2000),
§�2167.006 (Vernon Supp. 2004), §�2167.056 (Vernon 2000), §�2167.104(f)
(Vernon Supp. 2004).
234 July 2004 State of Texas Purchase Policies and Procedures Guide
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1. A state agency that intends to use funds appropriated by the General Appropriations Act
(GAA) to purchase real property must cite the specific statutory authority for the
purchase. A state agency that intends to use other funds also must cite the specific or
implied statutory authority for the purchase.
State of Texas Purchase Policies and Procedures Guide July 2004 235
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The Texas Building and Procurement Commission (TBPC) or a state agency shall
give preference to a recycled, remanufactured, or environmentally sensitive
product105 in a purchase made under Subtitle D of Title 10, Government Code,106 if
the product meets state specifications regarding quantity and quality.
TBPC shall contract for paper containing the highest proportion of recycled fibers
for all purposes for which paper with recycled fibers may be used and to the extent
that the paper is available at a reasonable price through normal commercial sources
to supply the state’s needs. A state agency that purchases through TBPC shall place
orders for papers containing recycled fibers to the highest extent of its needs and to
the extent that the paper is available through TBPC’s purchasing procedures.
105
The Texas Building and Procurement Commission (TBPC) is required to define by rule ”recycled,
remanufactured, or environmentally sensitive products.” State Purchasing and General Services Act,
TEX. GOV'T CODE ANN. §�2155.445(a) (Vernon 2000). In addition, TBPC is required to regularly review and
revise its procurement procedures and specifications for the purchase of goods to: (1) eliminate procedures
and specifications that explicitly discriminate against recycled, remanufactured, or environmentally
sensitive products; and (2) encourage the use of recycled, remanufactured, or environmentally sensitive
products. State Purchasing and General Services Act, TEX. GOV'T CODE ANN. §�2155.445(b) (Vernon 2000).
In developing new procedures and specifications, TBPC is required to encourage the use of recycled products
and products that may be recycled or reused or that are remanufactured or environmentally sensitive.
State Purchasing and General Services Act, TEX. GOV'T CODE ANN. §�2155.445(c) (Vernon 2000).
106
Subtitle D of Title 10, Government Code, is commonly known as the State Purchasing and General Services
Act. State Purchasing and General Services Act, TEX. GOV'T CODE ANN. §�2151.001 (Vernon 2000).
236 July 2004 State of Texas Purchase Policies and Procedures Guide
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Each fiscal year, TBPC, in coordination with the Recycling Market Development
Board, 107 by rule may identify recycled, remanufactured, or environmentally
sensitive commodities or services and designate purchasing goals for the
procurement of those commodities and services by state agencies for that year. A
state agency that intends to purchase a commodity or service that accomplishes the
same purpose as a commodity or service identified by TBPC that does not meet
TBPC’s definition of “recycled product” or “remanufactured or environmentally
sensitive” shall include with the procurement file a written justification signed by
the agency’s executive head stating the reasons for the determination that the
commodity or service identified by TBPC will not meet the agency’s requirements.
The requirements described in this paragraph do not apply to an institution of
higher education or a university system.
Sources for this subsection: State Purchasing and General Services Act,
TEX. GOV’T CODE ANN. §�2151.002(2) (Vernon Supp. 2004), §§�2155.445(a),
2155.446 (Vernon 2000), §�2155.448(a)-(b), (d) (Vernon Supp. 2004).
In this subsection:
• “Hazardous waste” has the meaning assigned by the Solid Waste Disposal
Act, TEX. HEALTH & SAFETY CODE ANN. §�361.003(12) (Vernon 2001).
• “Postconsumer waste” has the meaning assigned by the Solid Waste
Disposal Act, TEX. HEALTH & SAFETY CODE ANN. §�361.421(4) (Vernon 2001).
• “Recyclable material” has the meaning assigned by the Solid Waste Disposal
Act, TEX. HEALTH & SAFETY CODE ANN. §�361.421(5) (Vernon 2001).
• “Recycled material” means materials, goods, or products that consist of
recyclable material or materials derived from postconsumer waste,
industrial waste, or hazardous waste which may be used in place of a raw or
virgin material in manufacturing a new product.
• “State agency” means a department, commission, board, office, council, or
other agency in the executive branch of government that is created by the
constitution or a statute of this state and has authority not limited to a
geographical portion of the state. The term does not include a university
system or institution of higher education as defined by TEX. EDUC. CODE ANN.
§�61.003 (Vernon Supp. 2004).
• “State governmental entity” means a state agency, state court, or judicial
agency that is not subject to the State Purchasing and General Services Act.
A state governmental entity shall give preference in purchasing to products made
of recycled materials if the products meet applicable specifications as to quantity
and quality.
Sources for this subsection: Solid Waste Disposal Act, TEX. HEALTH & SAFETY
CODE ANN. §§�361.003(12), 361.421(4)-(6), (10), 361.426(a) (Vernon 2001).
Cross reference for this section: Chapter 6: Motor oil and automotive lubricants.
107
The Recycling Market Development Board is governed by TEX. HEALTH & SAFETY CODE ANN. §�361.423
(Vernon Supp. 2004).
State of Texas Purchase Policies and Procedures Guide July 2004 237
Chapter 6 – Miscellaneous Expenditures or Requirements
§�6.084 Refunds
A. Requirements of general law
In this subsection, “person” includes an individual, a corporation, an organization,
a government or governmental subdivision or agency, a business trust, an estate, a
trust, a partnership, an association, and any other legal entity.
The Comptroller may refund the amount of money collected or received by a state
agency through mistake of fact or law and deposited in the state treasury. Money
subject to refund includes money not due the state and money collected or received
that exceeds the amount required to be collected or received.
For example, an individual who pays a licensing fee to a state agency on the
assumption that the individual will use the license or be eligible to receive the
license commits a mistake of fact if the individual does not actually use the license
or is ineligible to receive the license.
Unless a law specifically provides otherwise, a refund claim may not be paid if:
• the claim was made after four years from the latest date on which the amount
collected or received by the state was due if the amount was required to be paid
on or before a particular date; or
• the claim was made after four years from the date the amount was collected
or received if the amount was not required to be paid on or before a particular
date.
A person who fails to make a refund claim within the period provided above is not
eligible to receive payment of the claim.
The requirements described in this subsection do not apply to a refund of a tax;
Subchapter C of Chapter 111, Tax Code; or to any statute that requires the payment of
unrefundable fees.
Sources for this subsection: TEX. GOV’T CODE ANN. §�403.077 (Vernon 1998);
Code Construction Act, TEX. GOV’T CODE ANN. §�311.005(2) (Vernon 1998);
Op. Tex. Att’y Gen. No. WW-834 (1960).
238 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 6 – Miscellaneous Expenditures or Requirements
A person who fails to make a refund claim within the period provided by law is not
eligible to receive payment of the claim out of funds appropriated by the GAA.
The preceding information in this subdivision does not apply to an entity or
appropriation in Article X of the GAA.
employee housing.
The preceding three paragraphs (including the bullets attached to the first
Sources for this subsection: Article IX, Sections 6.19(a)-(b) and 11.09(e) of the
General Appropriations Act; Article X, Section 2(a) of the General
Appropriations Act.
expend any funds appropriated by the GAA for the purchase, construction, or
State of Texas Purchase Policies and Procedures Guide July 2004 239
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240 July 2004 State of Texas Purchase Policies and Procedures Guide
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caretaker’s residence as set forth in Article IX, Section 11.09 of the GAA.
Sources for this subsection: Rider 19 in the appropriations to the Texas Building
and Procurement Commission (TBPC) in the General Appropriations Act.
State of Texas Purchase Policies and Procedures Guide July 2004 241
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If more than $25,000 in funds appropriated by the GAA is being expended to purchase,
remodel, or repair a personal residence or living quarters, then a copy of the approval
provided by the Legislative Budget Board (LBB) or the director of the LBB must be
retained in the agency’s files and, upon request, made available to the Comptroller during
a pre-payment or a post-payment audit. The preceding sentence does not apply to an entity
or appropriation in Article X of the GAA.
§�6.088 Retainage
A. Accrual and payment of interest on retainage
In this subsection:
• “Governmental entity” means the state; a department, board, or agency of
the state; or any other governmental or quasi-governmental authority
authorized by statute to make a public works contract.
• “Person” includes an individual, a corporation, an organization, a government
or governmental subdivision or agency, a business trust, an estate, a trust, a
partnership, an association, and any other legal entity.
• “Prime contractor” means a person or persons, firm, or corporation that
contracts with a governmental entity for the construction, alteration, or repair
of a public building or for the construction or completion of any public work.
• “Public works” includes the construction, alteration, or repair of a public
building or the construction or completion of a public work.
• “Public works contract payment” means a payment by a governmental
entity for the value of labor, material, machinery, fixtures, tools, power, water,
fuel, or lubricants that are used or consumed, ordered and delivered for use or
consumption, or specially fabricated for use or consumption but not yet
delivered, in the direct performance of a public works contract.
• “Retainage” means the part of a public works contract payment withheld by a
governmental entity to secure performance of the contract.
242 July 2004 State of Texas Purchase Policies and Procedures Guide
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State of Texas Purchase Policies and Procedures Guide July 2004 243
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appropriated money to lease private facilities for these purposes unless state
institution of higher education to collect, account for, and control local funds and
Education Code.
244 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 6 – Miscellaneous Expenditures or Requirements
The restrictions described in this subsection apply only to an expenditure made after
August 31, 1999.
Sources for this subsection: TEX. GOV’T CODE ANN. §�2113.001
(Vernon Supp. 2004), §�2113.106 (Vernon 2000); Act of May 29, 1999, 76th Leg.,
R.S., ch. 1498, §§�9-10, 1999 Tex. Gen. Laws 5153, 5163.
C. Secretary of State
Any registration fee collected by the secretary of state to pay the expenses of a
conference, seminar, or meeting in excess of the actual cost of the conference,
seminar, or meeting may be used to pay the expenses of a different conference,
seminar, or meeting for which:
• no registration fees were collected; or
• the registration fees collected were insufficient to cover the total expenses.
Source for this subsection: Rider 6 in the appropriations to the secretary of
state in the General Appropriations Act.
State of Texas Purchase Policies and Procedures Guide July 2004 245
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246 July 2004 State of Texas Purchase Policies and Procedures Guide
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D. Taxes imposed under the Limited Sales, Excise, and Use Tax Act
A taxable item sold, leased, or rented to this state or a taxable item stored, used, or
consumed by this state is exempt from the taxes imposed by the Limited Sales,
Excise, and Use Tax Act, Chapter 151, Tax Code. These taxes are commonly known
as the state sales and use tax.
State of Texas Purchase Policies and Procedures Guide July 2004 247
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E. Taxes imposed under the Municipal Sales and Use Tax Act
A taxable item sold, leased, or rented to this state or a taxable item stored, used, or
consumed by this state is exempt from the taxes imposed by the Municipal Sales
and Use Tax Act, Chapter 321, Tax Code. These taxes are commonly known as the
city sales and use tax.
Sources for this subsection: TEX. TAX CODE ANN. §§�151.309(4), 321.208 (Vernon 2002).
F. Taxes imposed under the County Sales and Use Tax Act
A taxable item sold, leased, or rented to this state or a taxable item stored, used, or
consumed by this state is exempt from the taxes imposed by the County Sales and Use
Tax Act, Chapter 323, Tax Code. These taxes are commonly known as the county sales
and use tax and the crime control and prevention district sales and use tax.
Sources for this subsection: TEX. TAX CODE ANN. §§�151.309(4), 323.207 (Vernon 2002).
A taxable item sold, leased, or rented to this state or a taxable item stored, used, or
consumed by this state is exempt from the taxes imposed by Chapter 324, Tax Code.
These taxes are commonly known as the county health services sales and use tax.
Sources for this subsection: TEX. TAX CODE ANN. §§�151.309(4), 323.207, 324.001
(Vernon 2002).
H. Sales and use taxes imposed for landfills and criminal detention centers
A taxable item sold, leased, or rented to this state or a taxable item stored, used, or
consumed by this state is exempt from the taxes imposed by Chapter 325, Tax Code.
These taxes are commonly known as the county sales and use tax for landfills and
criminal detention centers.
Sources for this subsection: TEX. TAX CODE ANN. §§�151.309(4), 323.207, 325.001
(Vernon 2002).
108
Please contact the comptroller's tax administration division for any needed interpretation of this rule.
248 July 2004 State of Texas Purchase Policies and Procedures Guide
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K. Sales and use taxes imposed on the sale, use, or rental of a motor vehicle
The sales and use taxes imposed by Chapter 152, Tax Code, do not apply to the sale
of a motor vehicle to a department, commission, board, office, institution, or other
agency of this state if the vehicle is operated with an exempt license plate. Likewise,
the taxes imposed by Chapter 152 do not apply to the use of a motor vehicle by a
department, commission, board, office, institution, or other agency of this state if the
vehicle is operated with an exempt license plate. Finally, the taxes imposed by
Chapter 152 do not apply to the rental of a motor vehicle to a department,
commission, board, office, institution, or other agency of this state.
Sources for this subsection: Tex. Tax Code Ann. §§�152.001(7)(A), 152.082,
152.084 (Vernon 2002).
(Vernon Supp. 2004); TEX. TAX CODE ANN. §§�151.309(4), 323.101(f), 323.207
(Vernon 2002). See TEX. HEALTH & SAFETY CODE ANN. §�285.002 (Vernon Supp. 2004).
109
This surcharge expires September 30, 2008. TEX. TAX CODE ANN. §�151.0515(d) (Vernon 2002).
110
This surcharge expires September 30, 2008. TEX. TAX CODE ANN. §�152.0215(c) (Vernon 2002).
State of Texas Purchase Policies and Procedures Guide July 2004 249
Chapter 6 – Miscellaneous Expenditures or Requirements
M. Sales and use taxes imposed emergency services districts under Chapter
775, Health & Safety Code
A taxable item sold, leased, or rented to this state or a taxable item stored, used, or
consumed by this state is exempt from the sales and use taxes imposed by an
emergency services district under Chapter 775, Health & Safety Code. In this
subsection, “emergency services district” means an emergency services district
created under Chapter 775.
Sources for this subsection: TEX. HEALTH & SAFETY CODE ANN. §�775.0751(b)
(Vernon 2003); TEX. TAX CODE ANN. §§�151.309(4), 323.101(f), 323.207
(Vernon 2002). See TEX. HEALTH & SAFETY CODE ANN. §�775.001(2)
(Vernon 2003).
N. Sales and use taxes imposed by emergency services districts under Chapter
776, Health & Safety Code
A taxable item sold, leased, or rented to this state or a taxable item stored, used, or
consumed by this state is exempt from the sales and use taxes imposed by an
emergency services district under Chapter 776, Health & Safety Code. In this
subsection, “emergency services district” means an emergency services district
created under Chapter 776.
Sources for this subsection: TEX. HEALTH & SAFETY CODE ANN. §�776.0751(b)
(Vernon 2003); TEX. TAX CODE ANN. §§�151.309(4), 323.101(f), 323.207
(Vernon 2002). See TEX. HEALTH & SAFETY CODE ANN. §�776.001(2)
(Vernon 2003).
250 July 2004 State of Texas Purchase Policies and Procedures Guide
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111
As added by Act of May 26, 1999, 76th Leg., R.S., ch. 1283, §�1, 1999 Tex. Gen. Laws 4401, 4401-4403.
State of Texas Purchase Policies and Procedures Guide July 2004 251
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252 July 2004 State of Texas Purchase Policies and Procedures Guide
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Y. Sales and use taxes levied under the Development Corporation Act of 1979
A taxable item sold, leased, or rented to this state or a taxable item stored, used, or
consumed by this state is exempt from the sales and use taxes levied by a city under
the Development Corporation Act of 1979.
Sources for this subsection: Development Corporation Act of 1979, TEX. REV.
CIV. STAT. ANN. art. 5190.6, §�4A(d)-(e), 4B(d), (f) (Vernon Supp. 2004); TEX. TAX
CODE ANN. §�151.309(4), 321.208 (Vernon 2002).
Cross references for this section: Chapter 2: Telephone emergency service
fee; Chapter 2: Telephone 9-1-1 equalization surcharge.
§�6.098 Telecommunications
A. Definitions
In this section:
• “Consolidated telecommunications system” means the network of
telecommunications services serving the state government.
• “State agency” means:
– a department, commission, board, office, or other agency in the executive
branch of state government created by the state constitution or a state
statute; or
– the Supreme Court, the Court of Criminal Appeals, a Court of Appeals, or
the Texas Judicial Council; or
– a university system or an institution of higher education as defined by
TEX. EDUC. CODE ANN. §�61.003 (Vernon Supp. 2004), except a public
junior college.
• “Telecommunications services” means intercity communications facilities
or services. The term does not include single agency point-to-point radio
systems or facilities or services of criminal justice information communication
systems.
For the purposes of this section, any dedicated circuits included as part of the
consolidated telecommunications system are considered to begin and end at the main
connecting frame.
Sources for this subsection: State Purchasing and General Services Act,
TEX. GOV’T CODE ANN. §§�2151.002(2), 2170.001(a)(1)-(2), (b) (Vernon Supp. 2004).
B. Telecommunications services
The Department of Information Resources (DIR) is the state agency responsible for
obtaining telecommunications services. DIR may contract for use of the consolidated
telecommunications system with each house of the Legislature, a legislative agency,
and an agency that is not a state agency.
DIR shall manage the operation of a system of telecommunications services for all state
agencies. A state agency shall use the consolidated telecommunications system to the
fullest extent possible. A state agency may not acquire telecommunications services
unless the Telecommunications Planning and Oversight Council (TPOC) determines
that the agency’s requirement for telecommunications services cannot be met at a
comparable cost by the consolidated telecommunications system.
State of Texas Purchase Policies and Procedures Guide July 2004 253
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A state agency may not enter into or renew a contract with a carrier or other provider of
telecommunications services without obtaining a waiver from TPOC certifying that the
requested telecommunications services cannot be provided at a comparable cost on the
consolidated telecommunications system. A waiver may be granted only for a specific
period. Any contract obtained under the waiver may not extend beyond the expiration
date of the waiver.
If TPOC becomes aware of any state agency receiving telecommunications services
without a waiver, TPOC shall notify the agency and the Comptroller. The agency
has 60 days after notification by TPOC in which to submit a waiver request to TPOC
documenting the agency’s reasons for bypassing the consolidated
telecommunications system and otherwise providing all information required by the
waiver application form.
DIR shall develop a system of billings and charges for services provided in operating
and administering the consolidated telecommunications system. The billings and
charges system must allocate the total state cost to each entity served by the
consolidated telecommunications system based on proportionate usage.
To provide an adequate cash flow as necessary for the purposes of Chapter 2170,
Government Code, using state agencies and other entities, on proper notification,
shall make monthly payments into the telecommunications revolving fund account
from appropriated or other money. DIR shall maintain in the account sufficient
amounts to pay the bills of the consolidated telecommunications system and the
centralized capitol complex telephone system.
In consideration of the duties and responsibilities given DIR under Chapter 2170,
Government Code, it is the policy of this state that a state agency or unit of state
government may not provide telecommunications products or services to the public
in competition with private enterprise unless there is a finding that providing the
products or services is in the public interest. This policy does not prohibit students
who reside in housing for which institutions of higher education provide telephone
service from using service provided under TEX. GOV’T CODE ANN. §�2170.058
(Vernon Supp. 2004)..
DIR shall provide centralized telephone service for state agencies, each house of the
Legislature, and legislative agencies in the capitol complex. State agencies in the capitol
complex shall use the service. Each house of the Legislature and each legislative agency
shall use the service at the discretion of the Legislature. DIR may provide the service to
other state agencies that subscribe to it. Each using entity shall make monthly payments
to DIR when billed by DIR. Each using entity may arrange for its own terminal
telephone equipment so long as the equipment is compatible with the centralized
telephone service. DIR shall make terminal equipment available for using entities that
choose to use that equipment.
Sources for this subsection: State Purchasing and General Services Act, TEX.
GOV’T CODE ANN. §§�2170.002, 2170.004(1)-(3), 2170.051(a), (c)-(d), 2170.057 (a),
(c)-(d), 2170.058(c), 2170.059(a)-(c) (Vernon Supp. 2004).
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B. Purchases of goods
The Texas Building and Procurement Commission (TBPC) and each state agency
making purchases of goods shall give preference to those produced or grown in this
state or offered by Texas bidders as follows:
• Goods produced in this state or offered by Texas bidders shall equally be given
preference if the cost to the state and quality are equal.
• Agricultural products grown in this state shall be given first preference and
agricultural products offered by Texas bidders shall be given second preference,
if the cost to the state and quality are equal.
If goods produced or grown in this state or offered by Texas bidders are not equal in cost
and quality to other products, then goods produced or grown in other states of the United
States shall be given preference over foreign products if the cost to the state and quality
are equal.
Sources for this subsection: State Purchasing and General Services Act,
TEX. GOV’T CODE ANN. §�2155.444(a)-(b) (Vernon 2000). See Act of May 27, 2001,
77th Leg., R.S., ch. 1422, §�1.18(a)-(b), (d), 2001 Tex. Sess. Law Serv. 4735, 4739
(Vernon) (establishing the dates on which the Texas Building and Procurement
Commission is created and the General Services Commission is abolished).
D. Purchases of services
TBPC and each state agency purchasing services shall give preference to services
• the services meet state requirements regarding the service to be performed and
expected quality; and
• the cost of the service does not exceed the cost of other similar services of
similar expected quality that are not offered by a Texas bidder.
A state agency that contracts for services shall require the contractor, in performing the
contract, to purchase products and materials produced in this state when they are
available at a price and time comparable to products and materials produced outside
this state.
Sources for this subsection: State Purchasing and General Services Act,
TEX. GOV’T CODE ANN. §�2155.444(e) (Vernon Supp. 2004), §�2155.4441
(Vernon 2000).
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E. Purchases of vehicles
A state agency authorized to purchase passenger vehicles or other ground
vehicles assembled in the United States unless such a purchase would have a
significant detrimental effect on the use to which the vehicles will be put. This
Institute for the purpose of performing crash tests and related research.
Sources for this subsection: State Purchasing and General Services Act,
TEX. GOV’T CODE ANN. §§�2158.002, 2158.0031 (Vernon 2000).
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A gas utility or a municipally owned utility may not bill or otherwise require the
state or a state agency or institution to pay for service before the service is provided.
This does not prohibit a gas utility or a municipally owned utility from entering into
an agreement with the state or a state agency to establish a level or average
monthly service billing plan. The agreement must require quarterly reconciliation of
the leveled or equalized bills.
Sources for this subsection: Gas Utility Regulatory Act, TEX. UTIL. CODE ANN.
§�101.003(7)-(8), (14)-(15) (Vernon Supp. 2004), §�104.255(a), (c) (Vernon 1998).
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In this subsection:
• “Gas utility” has the meaning assigned by the Gas Utility Regulatory Act,
TEX. UTIL. CODE ANN. §�101.003(7) (Vernon Supp. 2004).
• “Municipally owned utility” means a utility owned, operated, and
controlled by a municipality or by a nonprofit corporation the directors of
which are appointed by one or more municipalities.
• “State agency” has the meaning assigned by TEX. GOV’T CODE ANN.
§�572.002(10) (Vernon Supp. 2004) to the extent the agency must obtain the
approval described by TEX. NAT. RES. CODE ANN. §�31.401(a) (Vernon 2001).
The Railroad Commission of Texas is required to adopt rules concerning the
payment of bills by the state or a state agency to a gas utility or a municipally
owned utility. The rules must be consistent with the prompt payment law.
Sources for this subsection: Gas Utility Regulatory Act, TEX. UTIL. CODE ANN.
§�101.003(7)-(8), (15) (Vernon Supp. 2004), §�104.255(b) (Vernon 1998).
The Public Utility Regulatory Act prohibits a telecommunications utility that provides
service to the state, including service to an agency in any branch of state government,
from imposing a fee, a penalty, interest, or any other charge for delinquent payment of a
bill for that service.
Sources for this subsection: Public Utility Regulatory Act, TEX. UTIL. CODE ANN.
§�55.010 (Vernon 1998).
112
A reference in law to the Texas Natural Resource Conservation Commission (TNRCC) is a reference to the
Texas Commission on Environmental Quality. Act of May 28, 2001, 77th Leg., R.S., ch. 965, §�18.01(b), 2001
Tex. Gen. Laws 1933, 1985 (House Bill No. 2912). TNRCC is required to adopt a timetable for phasing in the
name change. Section 18.01(c) of House Bill No. 2912, 2001 Tex. Gen. Laws at 1985.
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An audit must be funded from refunds received as a result of the audit. A state
any refunds due. The attorney general may assist in recovering a refund. The
amount of any refund shall be deposited in the state treasury to the credit of the
general revenue fund. The costs of the audit shall be paid from amounts
During January and June of each year during which an audit is being conducted, a
state agency or an institution of higher education shall submit to the Legislative
Budget Board (LBB) and the Comptroller a report on the status of the audit. The
report must include a summary of the costs of the audit, current audit activity, a
schedule of future activity, audit recommendations and results, pending refunds,
and recovered refunds. Not later than the 30th day after the date an audit is
completed, the agency or institution shall submit to the LBB and the Comptroller a
report on:
• the savings resulting from the audit, including their source; and
• the costs of the audit.
Sources for this subsection: TEX. GOV’T CODE ANN. §§�2112.001,
2112.003-2112.005 (Vernon 2000).
service fund assessment from a retail customer who is not subject to tax under
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Except as otherwise provided in this subsection, a state agency may not purchase or
lease a vehicle designed or used primarily for the transportation of persons,
including a station wagon, that has a wheelbase longer than 113 inches or that has
more than 160 SAE net horsepower. The vehicle may have a wheelbase of up to 116
inches or SAE net horsepower of up to 280 if the vehicle will be converted so that it
is capable of using an alternative fuel.
This subsection does not apply to the purchase or lease of a vehicle to be used
primarily for criminal law enforcement or a bus, motorcycle, pickup, van, truck,
three-wheel vehicle, tractor, or ambulance. In addition, this subsection does not
apply to vehicles acquired by the Texas Transportation Institute for the purpose of
performing crash tests and related research.
Sources for this subsection: State Purchasing and General Services Act,
TEX. GOV’T CODE ANN. §�2151.002(2) (Vernon Supp. 2004), §§�2158.002-2158.003
(Vernon 2000).
B. Alternative fuels
In this subsection:
• “Alternative fuel” means compressed natural gas, liquefied natural gas,
liquefied petroleum gas, methanol or methanol/gasoline blends of at least 85
percent, ethanol or ethanol/gasoline blends of at least 85 percent, or electricity.
• “State agency” means:
– a department, commission, board, office, or other agency in the
executive branch of state government created by the state constitution
or a state statute; or
– the Supreme Court, the Court of Criminal Appeals, a Court of Appeals,
or the Texas Judicial Council; or
– a university system or an institution of higher education as defined by
TEX. EDUC. CODE ANN. §�61.003 (Vernon Supp. 2004), except a public
junior college.
A state agency that operates a fleet of more than 15 vehicles, excluding law
enforcement and emergency vehicles, may not purchase or lease a motor vehicle
unless the vehicle is capable of using an alternative fuel. The preceding sentence
does not apply to a purchase or lease by the Railroad Commission of Texas except for
the purchase or lease of a motor vehicle for use in a nonattainment area designated
under Section 107(d) of the federal Clean Air Act.
A state agency may obtain equipment or refueling facilities necessary to operate
vehicles using alternative fuels:
• by purchase or lease as authorized by law; or
• by gift or loan of the equipment or facilities; or
• by gift or loan of the equipment or facilities or by another arrangement under a
service contract for the supply of an alternative fuel.
If the equipment or facilities are donated, loaned, or provided through another
arrangement with the supplier of an alternative fuel, the supplier is entitled to
recoup its actual cost of donating, loaning, or providing the equipment or facilities
through its fuel charges under the supply contract. The Texas Building and
Procurement Commission (TBPC) may waive the requirements described in this
paragraph for a state agency on receipt of certification supported by evidence
acceptable to TBPC that certain facts exist.
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In this subsection:
113
A reference in law to the Texas Natural Resource Conservation Commission (TNRCC) is a reference to the
Texas Commission on Environmental Quality. Act of May 28, 2001, 77th Leg., R.S., ch. 965, §�18.01(b), 2001
Tex. Gen. Laws 1933, 1985 (House Bill No. 2912). TNRCC is required to adopt a timetable for phasing in the
name change. Section 18.01(c) of House Bill No. 2912, 2001 Tex. Gen. Laws at 1985.
114
The definition of “include” in Section 1.002 does not apply here.
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D. Fuel-saving technologies
• “Cost-effective” means resulting in fuel consumption reduction with a
projected savings in fuel cost over a one-year period that exceeds the cost of
purchasing and using a technology.
• “Fuel-saving technology” has the meaning assigned by
TEX. GOV’T CODE ANN. §�447.010(a)(2) (Vernon Interim Supp. 2004).
• “Institution of higher education” has the meaning assigned by
TEX. EDUC. CODE ANN. §�61.003 (Vernon Supp. 2004).
• “Motor vehicle” has the meaning assigned by
TEX. HEALTH & SAFETY CODE ANN. §�386.101(3) (Vernon Supp. 2004).
• “Non-road diesel” has the meaning assigned by
TEX. HEALTH & SAFETY CODE ANN. §�386.101(4) (Vernon Supp. 2004).
• “Proven fuel-saving technologies” has the meaning assigned by
TEX. GOV’T CODE ANN. §�447.010(a)(4) (Vernon Interim Supp. 2004).
A state agency with at least ten motor vehicles or non-road diesels is required to
reduce the total fuel consumption of the vehicles or diesels by at least five percent
from fiscal year 2002 consumption levels through the use of cost-effective proven
fuel-saving technologies. The agency may delay reducing fuel use as described in the
preceding sentence until a list of proven fuel-saving technologies is provided by the
state energy conservation office under TEX. GOV’T CODE ANN. §�447.011
(Vernon Interim Supp. 2004).
A state agency may not purchase or use as a fuel-saving technology a technology
that:
• is known to increase oxides of nitrogen emissions or toxic air contaminants; or
• may be reasonably concluded to degrade air quality or human health or to
negatively impact the environment; or
• is known to affect negatively the manufacturer’s warranty of a motor vehicle or
a non-road diesel.
A state agency may purchase cost-effective proven fuel-saving technologies out of
the agency’s fuel budget.
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A state agency may use fuel-saving technologies that the agency determines are
cost-effective and may use a fuel-saving technology in applications that provide
other benefits, including emissions reductions.
The requirements described and information provided in this subsection do not
apply to an institution of higher education.
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The following USAS purchase voucher requirements apply when a governmental entity
purchases
volunteer awards and other necessary expenses.
1. Upon request, a governmental entity must make documentation available to the
Comptroller during a pre-payment or a post-payment audit that shows:
a. for whom the awards were purchased; and
b. the statutory authority for the entity to have volunteers.
c. the following statement:
The governmental entity has established a volunteer program that
complies with TEX. GOV’T CODE ANN. §§�2109.001-2109.006
(Vernon 2000). The program provides for the entity to give awards
to its volunteers.
2. Comptroller object code 7211 must be used.
3. Comptroller object code 7299 must be used for other necessary expenses.
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adopted about the approval and certification of certain payment and USPS
documents. The rule prevails over this section to the extent of conflict.
This section uses the term “document” instead of the term “voucher.” The terms,
however, have the same meaning for the purposes of this section.
C. Combined approval and certification of payment and USPS documents
The information provided in this subsection applies to a payment or USPS document
only to the extent the document requests payment of something other than the
compensation of a state officer or employee.
When an individual approves a payment or USPS document, the individual
automatically provides its certification. An individual may not approve a payment or
USPS document without also providing its certification.
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When an individual provides the certification for a payment or USPS document, the
individual automatically approves it. An individual may not provide the certification
for a payment or USPS document without also approving it.
A specific reference in the remainder of this section to the approval of a payment or
USPS document is also a reference to any certification that must be provided for
that document.
115
But see Norris v. Bullock, 580 S.W.2d 812, 813 (Tex. 1979); S. & G. Constr. Co. v. Bullock, 545 S.W.2d 953,
954 (Tex. 1977) (holding that the comptroller must issue a warrant to pay a final judgment against a state
agency even if the agency refuses to submit a voucher to the comptroller, at least when the comptroller and
the agency acknowledge the debt, the judgment, and the availability of funds to pay it).
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of the funds of a second state agency, then no officer or employee of the agency that
An individual who is not employed by a state agency may not approve and may not
• the Comptroller has received a signature card that complies with the rule; and
• the officer’s security profile has been established according to applicable
procedures and requirements.
For a state agency that is headed by an elected or appointed state official, the
head of agency may approve a payment document of the agency after:
• the Comptroller has received a signature card that complies with the rule; and
• the head of agency’s security profile has been established according to
applicable procedures and requirements.
USAS security’s procedures and requirements apply if the approval is of a
payment document. USPS security’s procedures and requirements apply if the
approval is of a USPS document.
A presiding officer or a head of agency may provide non-electronic approval of a
payment document without establishing a security profile. This paragraph applies
only if the Comptroller does not require the approval to be provided electronically.
The USAS security profile, if any, of an individual who has ceased being the
presiding officer or the head of agency must be changed so that USAS no longer
recognizes the individual’s user identification number as belonging to an
individual who has authority to approve payment documents. In addition, the
USPS security profile, if any, of an individual who has ceased being the presiding
officer or the head of agency must be changed so that USPS no longer recognizes
the individual’s user identification number as belonging to an individual who has
authority to approve USPS documents. These changes must take effect not later
than the date the individual ceases being the presiding officer or head of agency.
The security coordinator of the state agency with which the individual serves as
presiding officer or head of agency is responsible for requesting the Comptroller
to change the individual’s security profiles. If the Comptroller determines that a
security coordinator has not complied with these requirements, then the
Comptroller may unilaterally change the profiles.
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An officer or employee of a state agency who does not have inherent authority to
approve the agency’s payment and USPS documents may be designated to
approve those documents. A designation is valid only if it is made:
• by someone with the authority to make designations; and
• according to the procedures required by the rule.
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Written notice to the Comptroller is proper only if the notice satisfies all the
following requirements. The notice must be: (1) a certified copy of the minutes of
the meeting of the governing body during which it made the authorization; or (2)
a letter, memorandum, or other writing. If the notice consists of a copy of the
minutes, then the copy must be certified and signed by: (1) the presiding officer
of the governing body; or (2) the member of the governing body who is
responsible for keeping those minutes. If the notice is in the form of a letter,
memorandum, or other writing, then it must be signed by the presiding officer of
the governing body. The notice must state in substance that the governing body
has authorized the presiding officer or executive director, as applicable, to
designate individuals to approve the agency’s payment and USPS documents.
The notice must state an effective date for the authorization.
The authorization of a presiding officer or executive director to designate
individuals to approve payment documents may be of a named individual or,
alternatively, anyone who holds the position of presiding officer or executive
director. If the Comptroller receives notification that a governing body has
authorized the “presiding officer” or the “executive director,” then the body is
deemed to have authorized whoever holds the position of presiding officer or
executive director. If the Comptroller receives notification that a governing body
has authorized a named individual, then the body is deemed to have decided that
its authorization terminates automatically upon the individual’s leaving the
position of presiding officer or executive director.
The authorization of a presiding officer or executive director may not be limited
to designating individuals to approve only payment documents or only USPS
documents. If the Comptroller receives notification that a governing body has
authorized the presiding officer or executive director to designate individuals to
approve only one type of document, then the body is deemed to have authorized
the designation of individuals to approve both types of documents.
payment and USPS documents is effective only after the Comptroller has
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When an individual stops being the head of agency, all authorizations made by
that individual are revoked automatically. Whether an authorization would be
revoked automatically by the transfer of a state agency from the jurisdiction of
one head of agency to another would depend on the legislation enacting the
transfer.
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• the Comptroller has received proper written notice of the designation; and
• the Comptroller has received a signature card that complies with the rule; and
• the individual’s security profile has been established according to applicable
procedures and requirements.
USAS security’s procedures and requirements apply if the approval is of a
payment document. USPS security’s procedures and requirements apply if the
approval is of a USPS document.
Written notice to the Comptroller is proper only if the notice:
• is signed by the individual who made the designation; and
• lists the legal name of the designated individual; and
• says who made the designation; and
• states an effective date for the designation; and
• says in substance that the individual has been designated to approve payment
documents.
An individual may provide non-electronic approval of a payment or USPS
document without establishing a security profile. This paragraph applies only if
the Comptroller does not require the approval to be provided electronically.
The designation of an individual to approve payment and USPS documents must be of
a named individual. The designation may not be of just anyone who holds a particular
office or position. If the Comptroller receives notification that a particular office or
position has been designated, then the designation will be deemed to have been of the
individual who holds the office or position as of the date the designation is made. The
Comptroller’s failure to specifically refuse to recognize the designation of an office or
position does not constitute the Comptroller’s acceptance of the designation of the
office or position.
The designation of an individual may not be limited to approving only payment
documents or only USPS documents. If the Comptroller receives notification that
an individual has been designated to approve only one type of document, then
the designation will be deemed to include approval of both types of documents.
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This paragraph applies only if the presiding officer of the governing body of a state
agency is authorized to designate individuals to approve the agency’s payment and
USPS documents. The presiding officer may revoke the designation of an individual
only if:
• the presiding officer made the designation; or
• an individual who previously held the position of presiding officer made the
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individual to approve payment and USPS documents is valid only if the card:
individuals to approve payment and USPS documents if the limit is stricter than
required by state law and the rule. Enforcement of that decision is solely the
agency’s responsibility.
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subdivision.
documents only by releasing the batch on-line according to the rule and the
A batch that a state agency has released must be released again by the agency if:
• a transaction within the batch is altered after its original release; or
• a transaction is added to the batch after its original release.
An individual may approve a USPS document only if:
• the individual begins an on-line session in USPS by entering the individual’s
user identification number and password; and
• USPS determines that the user identification number and password belong to
an individual who USPS recognizes as authorized to approve the agency’s
USPS documents.
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The online release of a batch of USPS documents into USPS for processing
An individual who releases a batch of USPS documents into USPS for processing
is responsible for the truth and accuracy of the following statement with respect
to each document and transaction in the batch:
I approve each document in this batch. Employees at my state agency have
determined that each document complies with applicable law, including the
General Appropriations Act (GAA) and the rules of the Comptroller of Public
Accounts. For each document that involves the payment of compensation to a
state officer or employee, employees at my state agency have determined
that: (1) the payroll is correct and unpaid; and (2) any salary
supplementation report required by the GAA to be filed with the Comptroller
of Public Accounts and the secretary of state has been filed. For each
document that does not involve the payment of compensation to a state officer
or employee, employees at my state agency have determined that: (1) the
goods and services covered by the document comply with the requirements
under which they were purchased; and (2) the invoices for the goods or
services are correct. For each transaction that involves the reimbursement of
a meal expense incurred during non-overnight travel, employees at my state
agency have determined that the information included in the transaction has
been approved by the claimant. My state agency has authorized me to make
this statement for the agency, and I accept responsibility for it.
An individual who does not want to be responsible for this statement about a
batch may not release the batch. An individual may not both release a batch and
avoid responsibility for the statement.
The chief fiscal officer of a state agency shall ensure that each individual who is
authorized or designated to approve the agency’s USPS documents understands the
legal significance of a release. The agency’s executive director or head of agency, as
applicable, shall ensure that the chief fiscal officer satisfies this requirement. The
failure of the chief fiscal officer, the executive director, or the head of agency to
comply with these requirements, however, does not relieve any individual from
responsibility for the truth and accuracy of the preceding statement.
A state agency may not adopt a policy, procedure, or rule that conflicts with this
subdivision.
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enter into a contract described in the first paragraph of this subdivision is with
information and legal arguments the Comptroller deems necessary to satisfy the
The Comptroller must be kept informed about who is authorized to release the payment
or USPS documents of a state agency that has entered into a contract described in the
first paragraph of this subdivision. The authorized individuals may not appear on the
agency’s signature cards or, if adopted by the Comptroller, the form used in lieu of the
cards. The officer or employee of the agency who has the authority to enter into
accounting services contracts is responsible for complying with this paragraph.
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General Services Act, TEX. GOV’T CODE ANN. §�2155.322 (Vernon 2000);
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§�7.002 Advanced research program
In this section, “eligible institution” means an institution of higher education as
defined by TEX. EDUC. CODE ANN. §�61.003(8) (Vernon Supp. 2004).
The Legislature has established the advanced research program to encourage and provide
support for basic research conducted by faculty members in certain fields at eligible
institutions. The Texas Higher Education Coordinating Board (THECB) administers the
program.
An eligible institution may not expend funds appropriated for the advanced research
program to provide general support of ongoing research at the institution or to construct
or remodel a facility.
Supplies, materials, services, and equipment purchased with funds appropriated for
the advanced research program are not subject to the authority of the Texas Building
and Procurement Commission.
An eligible institution or state agency that needs assistance regarding the advanced
research program should contact THECB.
Sources: TEX. EDUC. CODE ANN. §§�142.001-142.007 (Vernon Supp. 2004);
State Purchasing and General Services Act, TEX. GOV’T CODE ANN. §�2151.003
(Vernon Supp. 2004) (a statutory reference to the General Services
Commission (GSC) means the Texas Building and Procurement
Commission (TBPC)).
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116
The definition of “include” in Section 1.002 does not apply here.
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Care and Treatment Act, TEX. HEALTH & SAFETY CODE ANN. §§�61.001-61.005
§�61.0285 (Vernon Supp. 2004), §�61.031 (Vernon 2001), §�61.032 (Vernon Supp.
(Vernon 2001); Article III, Sections 22-25 of the General Appropriations Act
Op. Tex. Att’y Gen. No. JM-626 (1987). But see Tex. Att’y Gen. ORD-660 (1999)
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§�7.020 Museums
Except as provided in the next paragraph, none of the educational and general funds
appropriated by Article III of the General Appropriations Act (GAA) may be used for the
establishment of additional museums or for the maintenance and operation of museums
unless the language of the GAA or of another act or resolution of the Legislature specifically
authorizes the use of those funds for those purposes.
To encourage and promote gifts, grants, and donations to institutions of higher education, an
institution of higher education that receives a gift, grant, or donation for the construction or
establishment of a museum that is added to the institution’s building inventory after
September 1, 1997, may use educational and general funds appropriated by Article III of the
GAA for the maintenance and operation of the museum.
Source: Article III, Section 10 of the General Appropriations Act (Special
Provisions Relating Only to State Agencies of Higher Education).
§�7.024 Scholarships
A. Texas Public Educational Grants Program
Out of the funds appropriated by Article III of the General Appropriations Act
(GAA) in the informational items described as “Other Educational and General
Income,” the respective governing boards of the general academic teaching
institutions and of the health centers, health science centers, or technical colleges
may allocate and expend the actual receipts in the informational items for student
scholarships under the Texas Public Educational Grants Program.
Sources for this subsection: Article III, Section 11(1) of the General Appropriations
Act (Special Provisions Relating Only to State Agencies of Higher Education).
See TEX. EDUC. CODE ANN. §§�56.031-56.032, 56.034-56.038 (Vernon 1996), §�56.033
(Vernon Supp. 2004), §�56.039 (Vernon Supp. 2004).
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C. Reports to the Comptroller and the Texas Higher Education Coordinating Board
A state agency of higher education may not expend any funds appropriated by the
GAA for scholarships until the agency has filed a copy of its approved allocations
and a copy of its rules and regulations about the award of scholarships with the
Comptroller and the Texas Higher Education Coordinating Board (THECB). The
agency must file a copy of each subsequent change in its allocations or rules with the
Comptroller and THECB.
Source for this subsection: Article III, Section 11(2) of the General
Appropriations Act (Special Provisions Relating Only to State Agencies of
Higher Education).
State of Texas Purchase Policies and Procedures Guide July 2004 289
Chapter 7 – Provisions Relating Only to Institutions or Agencies of Higher Education
Sources: TEX. EDUC. CODE ANN. §§�51.852(4)-(8), 51.857(a) (Vernon Supp. 2004).
290 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 7 – Provisions Relating Only to Institutions or Agencies of Higher Education
State of Texas Purchase Policies and Procedures Guide July 2004 291
Chapter 8 – Fiscal Matters
Not later than November 20 of each year, a state agency shall submit an annual
financial report regarding the agency’s use of appropriated money during the preceding
fiscal year. The report must be submitted to the Comptroller, the governor, the state
auditor, the Legislative Budget Board, and the Legislative Reference Library. The
report must include the items listed in TEX. GOV’T CODE ANN. §�2101.011(c)
(Vernon Supp. 2004).
The Comptroller may require the reporting of the financial information for any entity
that the Comptroller determines is a component unit of a statewide reporting entity in
accordance with generally accepted accounting principles as prescribed or modified by
the Governmental Accounting Standards Board or its successors.
Sources: TEX. GOV’T CODE ANN. §�2101.001 (Vernon 2000), §�2101.011(a)-(b), (d)
(Vernon Supp. 2004).
292 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 8 – Fiscal Matters
§�8.004 Appropriations
A. Money kept in the state treasury
Generally, the State Funds Reform Act requires a state agency to deposit in the
state treasury all money it receives. The Comptroller is the trustee of the money in
the state treasury and has important investment responsibilities for that money.
The Texas constitution prohibits a state agency from expending money in the state
treasury unless the constitution itself or the Legislature has appropriated the
money.
Constitutional appropriations are relatively uncommon. An example is the
The most common method for the Legislature to appropriate money is through the
biennial General Appropriations Act (GAA). A less common method is for the
Legislature to appropriate money through other legislation.
B. Money kept outside the state treasury
Not all state moneys are kept in the state treasury. Some state agencies have specific
authority, either constitutional or statutory, to keep state moneys outside the state
treasury.
Although the Legislature frequently exercises its right to appropriate money kept
outside the state treasury, a state agency may expend that money without an
appropriation. An example of an appropriation of money kept outside the state
treasury is the Legislature’s usual appropriation of certain local moneys maintained
by institutions of higher education. If money kept outside the state treasury is
appropriated, then the money may be expended only in compliance with the limits and
restrictions imposed by that appropriation.
C. Appropriations
1. Enactment of appropriations
The GAA contains appropriations and limits and restrictions on those
appropriations. The Legislature enacts a GAA once each biennium. The GAA covers
virtually all state agencies and is the primary method for funding their operations.
Besides the GAA, the Legislature occasionally enacts appropriations in other
bills. Sometimes those bills are passed to amend the GAA. At other times, the
appropriations in those bills stand on their own.
2. Encumbrances of appropriations
The Texas constitution limits an appropriation’s life to a maximum of two years
from its effective date. If the Legislature does not specify an expiration date for
an appropriation, then the expiration date is two years after the appropriation’s
effective date. For example, assume the governor signs an appropriation into law
on July 1, 2003, the appropriation takes effect on October 1, 2003, and the
appropriation does not have a specific expiration date. Because of the Texas
constitution, the appropriation will expire on September 30, 2005.
The appropriations by the GAA usually are effective for only one fiscal year.
This represents the Legislature’s long-standing policy and is not a
constitutional requirement. The life of appropriations in bills other than the
GAA vary from bill to bill, but never may exceed two years.
State of Texas Purchase Policies and Procedures Guide July 2004 293
Chapter 8 – Fiscal Matters
294 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 8 – Fiscal Matters
Sources for this section: TEX. CONST. art. VIII, §�6; Dallas County v. McCombs, 135
Tex. 272, 140 S.W.2d 1109 (1940); Pickle v. Finley, 91 Tex. 484, 44 S.W. 480, 482 (1898);
TEX. GOV’T CODE ANN. §§�403.071(b), 404.032, 404.041 (Vernon 1998); State Funds
Reform Act, TEX. GOV’T CODE ANN. §§�404.091-404.092, 404.095-404.096 (Vernon 1998),
§§�404.093-404.094, 404.097 (Vernon Supp. 2004).; Article IX, Section 6.07 of the General
Appropriations Act; Op. Tex. Att’y Gen. Nos. M-31 (1967), WW-1518 (1962), WW-978
(1961), WW-312 (1957), WW-40 (1957), MS-10 (1953), V-316 (1947), O-5266 (1943), O-3651
(1941), O-3639 (1941), O-3621 (1941), O-2941 (1940), unnumbered opinion to the
Railroad Commission of Texas dated February 3, 1932; Tex. Att’y Gen. LA-104 (1975).
must designate the appropriation year to be charged for the purchase. This is
charged for any purchase. A state agency, however, does not have complete
discretion to designate the appropriation year. There are certain legal principles
1. Consumables
Except as discussed in the next paragraph, a state agency must charge a purchase
of consumables to the appropriation year in which the delivery of the consumables
occurred.
This paragraph applies only if it was unreasonable for a state agency to expect to
entirely consume a purchase of consumables during the appropriation year in which
delivery of the consumables occurred. A state agency must prorate a purchase of
consumables over the appropriation years in which the agency reasonably expects to
consume the consumables.
A state agency may charge the immediately preceding appropriation year for a
purchase of consumables even though the consumables were delivered during the
current appropriation year if:
• the contract for the consumables was entered into during the immediately
preceding appropriation year, and, at the time the contract was entered into, the
delivery of the consumables was reasonably expected to occur during that year; and
• the delivery of the consumables was delayed until the current appropriation
year for reasons beyond the reasonable control of the agency; and
• the order quantity was no more than the agency could have consumed before the
end of the immediately preceding appropriation year had the delivery occurred as
originally expected.
State of Texas Purchase Policies and Procedures Guide July 2004 295
Chapter 8 – Fiscal Matters
2. Services
A state agency must charge a purchase of services to the appropriation year in
which the services were rendered. In other words, a state agency may not charge
an appropriation year for the purchase of services if the services were rendered
If services are provided during two or more appropriation years, then a state
agency must prorate the payment for the services so that each appropriation
year is charged only to the extent of the services provided during the year. Here
• Tuition for classes at an institution of higher education that extend over more
than one appropriation year must be prorated.
3. Capital assets
Capital assets are real or personal property that have an estimated life of greater than
one year. Capital assets may or may not be capitalized for financial reporting purposes.
When a state agency purchases a capital asset, the agency may charge the
are in existence on the date that the agency enters into the purchase contract.
The following example will illustrate this principle. Assume that a state agency enters
into a purchase contract for a capital asset on July 1, 2003. Assume also that the
governor signed the General Appropriations Act (GAA) for appropriation years 2004 and
2005 on June 1, 2003. Given these facts, the agency may charge the purchase to
appropriation year 2003, 2004, or 2005 or a combination of the preceding. If the agency
had entered into the purchase contract on May 1, 2003, instead of July 1, 2003, then the
agency would have been able to charge the purchase only to appropriation year 2003.
The appropriations for appropriation years 2004 and 2005 were not in existence on the
date that the contract was entered into.
The delivery date of a capital asset is never a relevant factor when determining
the appropriation year that must be charged for the purchase of the asset.
4. Mixed purchases
Many purchase contracts involve the purchase of a combination of consumables,
services, and capital assets. If the dominant purpose of a mixed contract is to purchase
consumables, then the appropriation year determination principles about
consumables would govern the entire purchase. Similarly, if the dominant purpose of
a mixed contract is to purchase services, then the appropriation year determination
principles about services would govern the entire purchase. Finally, if the dominant
purpose of a mixed contract is to purchase capital assets, then the appropriation year
determination principles about capital assets would govern the entire purchase.
The best example of a mixed purchase is the purchase of a computer. Paper supplies
and maintenance services are often included in the purchase contract for a computer.
If the dominate purpose of the contract is to purchase the computer, then the entire
purchase would be governed by the appropriation year determination principles for
capital assets.
296 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 8 – Fiscal Matters
In this subsection:
State of Texas Purchase Policies and Procedures Guide July 2004 297
Chapter 8 – Fiscal Matters
6. Non-appropriated funds
Non-appropriated funds are not subject to the appropriation year determination
procedures.
7. Grant payments
A state agency’s payment of a grant to an individual or entity must be charged to
the appropriation year in which the agency contracts, awards, or otherwise legally
commits to pay the grant if an appropriation for that year and purpose is available.
Otherwise, the payment must be charged to the first appropriation year for which
an appropriation is available. The information provided in this subdivision applies
regardless of how the grantee will use the grant funds. The information also applies
even if the payments under a grant contract will be made over more than one
appropriation year.
298 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 8 – Fiscal Matters
State of Texas Purchase Policies and Procedures Guide July 2004 299
Chapter 8 – Fiscal Matters
Sources: TEX. CONST. art. XVI, §�10; Article IX, Section 6.04 and Article X,
Section 2(a) of the General Appropriations Act; TEX. GOV’T CODE ANN.
§�2254.024(b) (Vernon 2000). But see Op. Tex. Att’y Gen. No. WW-96 (1957).
Cross reference: Chapter 5: Contracts that extend beyond the life of
appropriations.
300 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 8 – Fiscal Matters
A state agency may establish a petty cash account only in the manner provided by law
and the Comptroller’s rules.
A state agency may disburse money from a petty cash account only if the disbursement
would be a proper expenditure from the corresponding fund if the fund itself, instead of
the petty cash account, were being directly used to make the disbursement.
Disbursements from a petty cash account must comply with the purchasing laws and
rules of the state.
When a state agency requests the Comptroller to replenish a petty cash account, the
agency must submit the following documentation to the Comptroller, in the content,
method, and format required by the Comptroller:
• the name of and a proper Texas identification number for each person who
received a disbursement from the petty cash account; and
• invoices or receipts from each person who received a disbursement from the
petty cash account or canceled checks proving that total disbursements from
the account equal the amount of the requested replenishment; and
• any other documentation the Comptroller considers necessary.
State of Texas Purchase Policies and Procedures Guide July 2004 301
Chapter 9 – Reference Information
302 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 9 – Reference Information
Government Code,115 but have been designated for post-payment audit by TBPC’s
Document type 3 represents purchases that are subject to the Subtitle D and will be
pre-payment audited by TBPC’s Procurement Audit Program.
Document type 9 represents purchases that are not subject to Subtitle D. Although
Subtitle D does not apply to document type 9 purchases, TBPC’s Procurement Audit
Program. may elect to conduct post-payment audits on an agency’s payments in this
document type to ensure that the purchases are not subject to Subtitle D.
Refer to Volume II, Reference Guide of the USAS User Manual to determine what
document type to use for purchases of goods and services.
State agencies must use the correct document type for their purchases of goods and services
as instructed by TBPC. It is not necessary to state why a purchase is exempt from Subtitle
D (document type 9) or pre-payment audit by TBPC (document type 3).
115
Subtitle D of Title 10, Government Code, is commonly known as the State Purchasing and General Services
Act. State Purchasing and General Services Act, TEX. GOV’T CODE ANN. §�2151.001 (Vernon 2000).
State of Texas Purchase Policies and Procedures Guide July 2004 303
Chapter 10 – Comptroller Object Codes
§�10.002 Definitions
In the title of a Comptroller object code listed in this chapter:
• “Client” means an individual who is dependent on the state for some aspect of the
individual’s overall care.
• “Ward” means an individual who is totally dependent on the state for all the
individual’s needs.
All questions regarding Expenditure Codes should be directed to the Claims Division,
Comptroller of Public Accounts, prior to voucher submission. This index does not include payroll,
benefits, travel, higher education reporting, special accounting or summary allocation codes.
Abstract of Judgment......................................7222
Advertising (television) ..................................7281
Accounting Services.........................................7245
Aerial Surveying ...............................................7253
Acetylene ..............................................................7310
* Air Conditioner (portable).............................7374
Acids .......................................................................7310
Air Conditioner (window unit
maintenance)...................................................7367
Actuarial Services.............................................7245
* Air Conditioning System (purchase) ........7374
* Adapter..................................................................7374
Air Express (freight)........................................7286
Adapters (computer)........................................7335
Air Filter (auto)..................................................7330
Adapters (pipe)...................................................7328
Air Filter (other)................................................7300
Administrative Support
Aircraft (fuels and�lubricants).....................7307
Advertising (classifieds).................................7281
Advertising (newspaper)................................7281
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
304 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
beverage tax)....................................................7683
Appraisal Services ............................................7253
beverage tax)....................................................7684
(for employees) ................................................7243
Alterations ............................................................7299
Aprons ....................................................................7333
Aluminum Foil....................................................7300
Architectural/Engineering Service ............7256
Ammonia ...............................................................7310
Artificial Limbs (grants to clients) ............7666
Ammunition .........................................................7300
Arts and Crafts (wards of the state) .........7300
Analyzing Data...................................................7299
Ash Tray ...............................................................7334
* Anchor ....................................................................7374
Asphalt ...................................................................7328
Anesthetic .............................................................7312
* Asphalt Heater ...................................................7374
Animal Feed.........................................................7328
Auditing Services ..............................................7245
Animal Supplies.................................................7328
– repairs .............................................................7368
* Animals (research)............................................7384
Automobile (rental – long or
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 305
Chapter 10 – Comptroller Object Codes
Autopsy – pathologist......................................7248
Beads (wards of the state).............................7322
Awards (volunteers).........................................7211
Bed Pans ...............................................................7312
* Ax .............................................................................7374
Bedding Plants...................................................7331
* Backboard.............................................................7374
Beepers (rental) .................................................7522
* Backhoe .................................................................7374
Bees .........................................................................7384
Badges....................................................................7300
Benzene .................................................................7310
Bait (other)...........................................................7328
Benzol.....................................................................7310
Balancing of Tires.............................................7368
* Binders ..................................................................7374
Ballasts..................................................................7328
Birds .......................................................................7384
Balloons .................................................................7300
Birth Certificate (certified copy) ................7210
* Band Uniforms...................................................7374
Blades (razors) ...................................................7300
Bandages ..............................................................7312
Blades (saw) ........................................................7330
Band-Aids .............................................................7312
Blankets ................................................................7333
* Barge ......................................................................7374
Block Salt (animals) .......................................7328
Bath Mats.............................................................7333
Blood (other)........................................................7328
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
306 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
Bolts.........................................................................7328
* Bulldozer ...............................................................7374
Bookbinding .........................................................7273
* Burglar Alarm System (purchase).............7374
Expensed ...........................................................7382
Business Cards ...................................................7273
Materials – Cap...............................................7389
Cable (computer)................................................7335
Boxes (storage)....................................................7300
Racing .................................................................7687
Cable (telephone) ...............................................7510
Breeding Fees......................................................7210
Cadavers for Research ....................................7384
* Bridle ......................................................................7374
* Calculator .............................................................7374
* Briefcases ..............................................................7374
Calendars ..............................................................7300
* Broom......................................................................7334
Caliche....................................................................7328
* Brush (animal)....................................................7334
* Camcorder (video camera).............................7374
* Brush-Hog.............................................................7334
Car Stops for Parking Lots ...........................7328
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 307
Chapter 10 – Comptroller Object Codes
Cars (other)..........................................................7372
* Chairs.....................................................................7334
Cars (purchase/passengers)..........................7371
Chalk ......................................................................7300
Cartridges (printer)..........................................7335
Chapel Services..................................................7299
Cassette Mailers................................................7300
Check Printing (bank service).....................7210
Catching Poles....................................................7328
Chicks.....................................................................7384
Catheters ..............................................................7312
Child Support (non-Title IV-D)...................7640
Cement...................................................................7328
Citation (filing fee) – not a penalty ...........7222
Purchase of.......................................................7717
Classroom Space (rental)...............................7470
Purchase of.......................................................7716
* Clean Air Machine............................................7374
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
308 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
* Clipboard...............................................................7334
Computer Printer Cartridge (recharge) ..7267
* Clocks......................................................................7374
Computer Consumables .................................7300
Coloring Books....................................................7300
Computer Locks .................................................7335
Commode...............................................................7328
Computer Manual .............................................7382
information) .....................................................7276
Computer Software (maintenance) ...........7262
service)................................................................7276
@ Computer Software License Fees –
Hardware ..........................................................7378
Concrete.................................................................7328
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 309
Chapter 10 – Comptroller Object Codes
* Condenser.............................................................7374
Corp. Securities – Short-Term,
Condiments – Wards of the State..............7316
Purchase of.......................................................7725
Purchase of.......................................................7722
Constitutional Amendments
Purchase of.......................................................7721
(published)........................................................7273
Construction of Highways.............................7347
Costumes (cleaning).........................................7277
Construction/Improvements of
Grounds .............................................................7346
Counseling Services (wards of
Governor's Office)..........................................7239
Countertop ...........................................................7328
Consumables .......................................................7300
Coupon Books (printing service) ................7273
Controllers – Computer..................................7377
Court Reporter Fee (contracted) ...............7299
building..............................................................7266
Wards) ................................................................7324
Copper Tubing....................................................7328
Credit Reporting (hard copy
information) .....................................................7303
Corks.......................................................................7300
Criminal Investigation Expense ................7295
Purchase of.......................................................7715
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
310 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
# CRT (purchase)...................................................7379
Deposition, Copy of ...........................................7223
* Curtains.................................................................7374
* Diagnostic Equipment (animals)................7374
Decals......................................................................7300
Directory Service – Ads ..................................7281
Obligations........................................................7735
Degreaser ..............................................................7304
Deicer ......................................................................7304
* Dishes .....................................................................7374
Deionization .........................................................7524
* Dishwasher ..........................................................7374
Disinfectant..........................................................7300
Demineralizing ...................................................7524
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 311
Chapter 10 – Comptroller Object Codes
Diskettes ...............................................................7300
Earthworms.........................................................7384
* Dissectors .............................................................7374
Editing Services – Non-professional ........7299
Dogs.........................................................................7384
Elastic ....................................................................7300
Doors.......................................................................7328
Electrical Repairs (buildings) ......................7266
Drano......................................................................7300
* Electronic Mail Service ..................................7276
* Drapes (purchase).............................................7374
Electronic Monitoring Service.....................7299
Drawing (artistic)..............................................7299
Electronic Subscription Service..................7276
Drayage .................................................................7286
* Elevators ...............................................................7374
* Drills .......................................................................7374
Embossed Printing ...........................................7273
Dry Ice....................................................................7310
Employment Social Services .......................7678
Duplication Rights............................................7210
Engine (auto) ......................................................7330
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
312 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
Envelopes ..............................................................7300
Fabrication of Equipment – Higher
Education ..........................................................7388
Envelopes (printing).........................................7273
* Equipment (beauty)..........................................7374
* Equipment (expensed).....................................7334
FAX Cards (computer) ...................................7335
Evidence ................................................................7295
FAX Machine (rental) .....................................7406
Exams (grading).................................................7299
FAXed Information – Transmitted............7276
equipment)........................................................7267
Fees (court reporter – contracted)..............7299
equipment)........................................................7367
Fees (membership)............................................7201
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 313
Chapter 10 – Comptroller Object Codes
Fees (parking).....................................................7470
Filters (coffee) .....................................................7300
refugee) ..............................................................7643
* Ferry .......................................................................7374
Fertilizer ...............................................................7328
* Fire Extinguisher..............................................7334
* Fire Hose...............................................................7334
* Firearms................................................................7374
Fish .........................................................................7384
* Flag .........................................................................7334
Flares .....................................................................7328
Flash Bulbs..........................................................7300
Film (microfilm).................................................7300
* Flashlight .............................................................7334
* Flask .......................................................................7334
* Flatware ................................................................7374
* Floating Dock......................................................7374
Floppy Disk..........................................................7300
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
314 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
Foil ...........................................................................7300
Freon .......................................................................7310
Folders....................................................................7300
Fruit Trees............................................................7331
Food (promotional)............................................7309
* Furnishings (appliances)................................7374
* Forceps ...................................................................7334
Furnishings (maintenance)...........................7367
* Forklift ...................................................................7374
Furnishings and Equipment
(capitalized) ......................................................7373
Fuse .........................................................................7330
Formaldehyde .....................................................7310
* Fossils .....................................................................7374
Foster Care...........................................................7672
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 315
Chapter 10 – Comptroller Object Codes
Gases ......................................................................7310
Grants (judicial districts) ..............................7622
Gasoline.................................................................7304
Grants (junior colleges) ..................................7603
* Gauge .....................................................................7374
Grants (public incentive programs) ..........7697
Gauze......................................................................7312
Grants (school apportionment) ...................7602
* Generators ...........................................................7374
Grants (secondary schools) ..........................7601
* Glassware .............................................................7334
Grants-in-Aid (aged, blind,�disabled).......7673
* Gloves .....................................................................7334
Grants-in-Aid (clothing).................................7675
Glue .........................................................................7300
Grants-in-Aid (services for children)........7674
* Glue Gun...............................................................7334
Grass.......................................................................7331
* Goggles ..................................................................7334
Gravel.....................................................................7328
Gowns (disposable)...........................................7300
Grounds (construction) ...................................7346
Grain.......................................................................7328
Guardrails ............................................................7328
Grants (counties)...............................................7612
* Guns........................................................................7374
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
316 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
Halters (animals)...............................................7328
* Heavy Equipment (tractor) ...........................7373
* Hammer.................................................................7374
* Hedge Clippers ...................................................7374
the state)............................................................7322
Harvesting ............................................................7299
Highways (construction) ................................7347
Hauling Services................................................7299
Highways (maintenance) ...............................7270
Hay...........................................................................7328
* Historical Artifacts ..........................................7369
* Head-Phones........................................................7334
Honesty Bonds ....................................................7205
by SOA) ..............................................................7247
* Heater.....................................................................7374
Horse Shoes..........................................................7328
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 317
Chapter 10 – Comptroller Object Codes
Hydrogen ..............................................................7310
Installation Charges (phone equip.
move)...................................................................7514
Ice.............................................................................7300
Insurance Premiums
* Incubator ..............................................................7334
Insurance Premiums (vehicles) ..................7216
wards) .................................................................7325
Interest (lease/purchase) ...............................7802
electronic) .........................................................7276
Internship.............................................................7299
Ink............................................................................7300
Interpreter (court costs) .................................7223
Insecticides ..........................................................7328
Investment Counseling Service ..................7255
Insects ....................................................................7384
* Irrigation Pumps...............................................7374
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
318 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
Journals .................................................................7303
Labor (computer equipment) ......................7267
Expenses ............................................................7226
Labor (laboratory equipment)......................7367
Kerosene ................................................................7304
Labor (medical equipment) ...........................7367
agency)................................................................7274
* Ladder ....................................................................7334
Keys .........................................................................7328
Lamination ...........................................................7273
* Lamps (furniture)..............................................7374
Keytones ................................................................7310
Kits (computer)...................................................7300
Land (rental)........................................................7461
Kleenex ..................................................................7300
Landfill (construction).....................................7346
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 319
Chapter 10 – Comptroller Object Codes
Lands (maintenance).......................................7271
Library Books .....................................................7389
Landscaping ........................................................7338
License Fee (professional) ............................7210
* Laser .......................................................................7374
License Fee (software) – expensed
# Laser Printer.......................................................7378
annually.............................................................7380
Lavatory ................................................................7328
(capitalized) .....................................................7373
Light Fixtures.....................................................7328
(controlled) .......................................................7374
Linen Service ......................................................7277
(expensed) .........................................................7334
Liquid Nitrogen .................................................7310
* Lawnmowers .......................................................7374
Livestock ...............................................................7384
Ledger ....................................................................7300
Loans (medical students – rural) ...............7704
Legal Services.....................................................7246
Loans (non-governmental entities) ...........7705
hearings) ...........................................................7257
* Letter Trays.........................................................7334
Letterhead............................................................7273
Lettering Service...............................................7299
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
320 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
Lumber...................................................................7328
Maintenance (highways) ................................7270
Mailers ...................................................................7300
Maintenance (minor equipment)................7367
Mailing Service...................................................7299
Maintenance (motor vehicles)......................7368
pools) ...................................................................7338
Maintenance (automobiles)...........................7368
Maintenance (roofing) .....................................7266
Maintenance (buildings).................................7266
Maintenance (security system) ...................7266
Maintenance (electrical).................................7266
Maintenance (word processor,
Mammals ..............................................................7384
Maintenance (equipment)..............................7367
Manhole Covers..................................................7328
Manuscript Covers............................................7300
Maintenance (furnishings)............................7367
Mapping.................................................................7253
Maps........................................................................7382
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 321
Chapter 10 – Comptroller Object Codes
Markers .................................................................7300
Mice (rodents) .....................................................7384
Material.................................................................7333
Microfiche (production) ..................................7273
Matting ..................................................................7300
Microfiche (reproduction) ..............................7273
* Mattress ................................................................7374
Microfiche Jackets ............................................7300
* Measuring Tape.................................................7374
Microfilm (reference) .......................................7382
* Mediation Fees...................................................7253
Microfilm (reproduction)................................7273
compensation) .................................................7231
Misc. Inv. – Short-Term .................................7713
(other) .................................................................7666
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
322 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
* Modular Furniture............................................7374
Muzak Service.....................................................7299
Monkeys.................................................................7384
Muzzles ..................................................................7328
Monogramming ..................................................7299
Nails ........................................................................7328
* Mop ..........................................................................7374
* Name Plate (desk) .............................................7334
Mop Handles........................................................7330
Name Tags............................................................7300
Mop Heads............................................................7330
National Park Usage Fee...............................7210
Motorcycle.............................................................7372
Notary License Fee ........................................7210
Movies (rental)....................................................7421
Notary Service ....................................................7299
* Musical Instruments........................................7374
Office Supplies ....................................................7300
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 323
Chapter 10 – Comptroller Object Codes
* Orchestra Instruments...................................7374
Paper Plates ........................................................7300
(Purchase).........................................................7720
Parcel Service .....................................................7286
(Purchase).........................................................7719
Otolaryngology Services.................................7248
Oxygen ...................................................................7310
* Padlocks ................................................................7374
Pagers (purchased)...........................................7517
Participants in Experiments........................7299
Pagers (rental)....................................................7522
* Partitions ..............................................................7374
Paint .......................................................................7328
Parts (equipment and furnishings)...........7330
* Paint Roller..........................................................7334
Higher Education local fund) ...................7634
* Paintings (decorations)...................................7374
Peace Officer Bond ...........................................7205
Pamphlets ............................................................7218
Peat Moss .............................................................7328
Panelists ...............................................................7299
Penalty/Interest on Delayed Payments ..7806
* Pans ........................................................................7334
* Pencil Sharpener...............................................7334
Paper (FAX).........................................................7300
Pens.........................................................................7300
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
324 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
Periodicals ............................................................7303
Pilot Services .......................................................7299
Perlite .....................................................................7328
Pipes (parts).........................................................7330
Pesticides ..............................................................7328
* Planters..................................................................7374
Reimbursements ............................................7282
Plastic Forks and Spoons...............................7300
Pharmacist ...........................................................7248
Plasticware ...........................................................7300
Photographers.....................................................7299
* Pliers .......................................................................7334
Photographic Chemicals.................................7310
Plotter Pens..........................................................7300
Pianist ....................................................................7299
Polygraph Testing .............................................7299
* Piano .......................................................................7374
Ponds (maintenance) .......................................7271
Pillows ....................................................................7333
* Postal Scales ........................................................7374
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 325
Chapter 10 – Comptroller Object Codes
* Posthole Digger..................................................7334
Printwheels (other) ..........................................7330
Posts (fence).........................................................7328
Proctor Services .................................................7299
* Pots (cooking)......................................................7334
Production Services .........................................7299
* Power Magnet.....................................................7374
Prof. Serv. (financial and acct.) ..................7245
Obligations .......................................................7734
Prof. Serv. (legal services).............................7246
Investments .....................................................7731
Obligations .......................................................7735
Programs (printed) ...........................................7218
Prescriptions .......................................................7312
Prompt Pay (interest)......................................7806
Note .....................................................................7807
Psychiatric Services ........................................7248
Printing (customized)......................................7273
Pullets ....................................................................7384
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
326 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
* Pylons .....................................................................7374
Re-inking Ribbons (copy machines) ..........7367
* Rake.........................................................................7334
Remote Entry Equipment (rental).............7411
Rats..........................................................................7384
Rental (aircraft – exempt) .............................7443
* Recorder.................................................................7374
Rental (copy machine) .....................................7406
Refrigerant Gases..............................................7310
Rental (disk drive) ............................................7411
* Refrigerator..........................................................7374
Rental (dumpster) .............................................7406
Re-Ink Toner........................................................7267
Rental (helicopters) .........................................7445
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 327
Chapter 10 – Comptroller Object Codes
Rental (modem)..................................................7522
Rental (warehouse) ..........................................7468
Rental (pagers)...................................................7522
Reptiles..................................................................7384
Rental (plays)......................................................7421
Respite Care (client) ........................................7674
Rental (software)...............................................7415
Ribbon (typewriter) ..........................................7300
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
328 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
Rivets ......................................................................7330
Sanding Belts ......................................................7300
Rocks .......................................................................7328
Sanitation Services (dishwashers).............7367
Rodents ..................................................................7384
Satellite (usage charges) ................................7276
* Rolodex Finder....................................................7334
Savings Bond (purchase)................................7902
Root Cube..............................................................7331
* Scientific Equipment .......................................7374
* Rope .........................................................................7334
* Scissors...................................................................7334
* Router .....................................................................7374
Scooter (motorized) ...........................................7372
Rubber Bands......................................................7300
Screen (CRT, rental) .......................................7411
* Rulers......................................................................7334
Screens (doors)....................................................7328
* Saddle .....................................................................7374
* Screens (equipment).........................................7374
employees).........................................................7374
Sealing Compound ............................................7300
Safety Pins............................................................7300
Secretary (temporary employment
* Safety Shoes.........................................................7374
agency)................................................................7274
Salt (other)............................................................7315
Securities Lending (Agent Fees).................7741
Sand.........................................................................7328
Security System (installation) .....................7266
* Sander ....................................................................7334
Security System (maintenance) ..................7266
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 329
Chapter 10 – Comptroller Object Codes
Sediment Sampling..........................................7299
Settlements, Attorney’s Fees .......................7225
Seed Tags..............................................................7328
Settlements, Claimant and Attorney .......7229
Seeds.......................................................................7331
+ Settlements, Claimant/Other Legal
Services (advertising)......................................7281
Sheet Protectors ................................................7300
Services (cleaning)............................................7277
Shingles .................................................................7328
Services (extermination)................................7299
Shoe Repair .........................................................7299
Services (mortuary)..........................................7299
* Shovel .....................................................................7334
Services (postal).................................................7291
Shower Curtains ...............................................7333
amendments)...................................................7273
Shrubs ....................................................................7331
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
330 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
Siding ......................................................................7328
Special Shoes (wards of the state) .............7322
Signs (repair).......................................................7367
Speech Therapist ...............................................7248
* Silverware.............................................................7374
Sponge ....................................................................7300
Soap .........................................................................7300
Stadium (construction) ...................................7341
* Sofa ..........................................................................7374
Stamps (postage) ...............................................7291
@ Software (purchase)..........................................7380
* Staple Remover ..................................................7334
Software (rental)................................................7415
* Staplers ..................................................................7334
warranty)...........................................................7262
Stationary (printed) ........................................7273
Soil ...........................................................................7328
Steno Supplies ....................................................7300
* Sound Covers.......................................................7374
Stepping Stones..................................................7328
* Spades ....................................................................7334
* Stereo Equipment .............................................7374
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 331
Chapter 10 – Comptroller Object Codes
* Stethoscope ..........................................................7374
Survivors Payments.........................................7681
Stock Forms.........................................................7300
Swimming Pool (maintenance) ...................7271
Stopper...................................................................7328
Swimming Pools (construction) ..................7346
Storage Tank.......................................................7374
Syringes.................................................................7312
Street Clean-Up.................................................7271
Tampons for Resale..........................................7393
Subpoena ..............................................................7223
* Tapes (blank) ......................................................7334
Subscriptions (retained).................................7382
* Tarpaulin ..............................................................7334
Telecommunications (TEX-AN
Surety Bond.........................................................7205
Telecommunications (other services) .......7516
Surgery Gowns...................................................7312
Telecommunications Equipment
* Surgical Masks...................................................7312
Telecommunications Equipment (lease/
purchase)...........................................................7519
Telecommunications Equipment
Surveying..............................................................7253
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
332 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
(rental) ................................................................7522
Temporary Classroom Instructor
Telecommunications Equipment
(higher ed) .........................................................7252
(repair parts)....................................................7510
Temporary Employees (agencies)...............7274
Telecommunications Equipment
Temporary Employees (individuals) .........7299
(supplies) ...........................................................7510
Telegraph Service..............................................7276
Telephone (pre-wiring)....................................7520
Earnings ............................................................7639
Telephone (wats)................................................7503
Thermal Utility ..................................................7530
Telephone Jacks.................................................7510
* Thimble ..................................................................7334
maintenance) ...................................................7262
* Tire Chains...........................................................7334
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 333
Chapter 10 – Comptroller Object Codes
Tires ........................................................................7330
Training (clients of the state) ......................7643
Toner (computer)...............................................7300
* Transformer ........................................................7374
* Tool Box.................................................................7334
Transportation (wards of state)..................7325
* Tools........................................................................7334
Transportation (WIN program) ..................7676
Top Soil..................................................................7328
* Trash Cans...........................................................7334
Topography ..........................................................7299
Trash Pick-Up (roads and highways).......7270
Towels ....................................................................7333
Travel Information ...........................................7276
Towing ...................................................................7286
Tree Surgery .......................................................7271
* Tractor ...................................................................7373
Truck (concrete) .................................................7372
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
334 July 2004 State of Texas Purchase Policies and Procedures Guide
Chapter 10 – Comptroller Object Codes
Twine ......................................................................7300
Valves .....................................................................7330
Typesetting...........................................................7273
* Vaporizer ...............................................................7374
* Typewriter ............................................................7334
Velcro ......................................................................7300
Typing Elements................................................7330
Vermiculite...........................................................7328
(purchase)..........................................................7724
* Video Cassette Recorder (VCR)...................7334
(purchase)..........................................................7723
Undertaker ...........................................................7299
Vinegar...................................................................7316
Uniform Rental...................................................7277
* Walking Cane......................................................7374
Wallpaper..............................................................7328
* Utensils ..................................................................7334
Wastewater ..........................................................7526
Water (bottled)....................................................7315
(highway)...........................................................7348
* Water Cooler........................................................7374
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
State of Texas Purchase Policies and Procedures Guide July 2004 335
Chapter 10 – Comptroller Object Codes
Water Softening.................................................7524
# Word Processor (purchase, computer
based)..................................................................7378
* Water Sprinkler.................................................7374
WATS Line...........................................................7503
computer-based).............................................7411
WD-40 ....................................................................7304
Word Processor (rental, stand-alone).......7406
* Weedeaters ..........................................................7334
Word Processor Operator ..............................7274
Westlaw .................................................................7276
Worker's Compensation (medical
services) .............................................................7231
Wheel Casters.....................................................7330
Worker's Compensation
* Wheelbarrow .......................................................7334
(self-insurance) ...............................................7232
Wrecker Service.................................................7286
* Wrenches ..............................................................7334
Window Frames.................................................7328
Yarn ........................................................................7300
Wire.........................................................................7328
Witness (expert).................................................7254
* – Please review object codes 7373 (capitalized), 7374 (controlled), and 7334 (expensed) to determine accurate coding for
Personal Property – Furnishings and Equipment.
# – Please review object codes 7379 (capitalized), 7378 (controlled), and 7377 (expensed) to determine accurate coding for
Personal Property – Computer Equipment.
@ – Personal Property – Computer Software (7380). Software whose costs exceeds $5,000 must be capitalized (7387).
+ – Expenditure Code change.
336 July 2004 State of Texas Purchase Policies and Procedures Guide
Index
(Text in capital letters denotes a term that is defined in Chapter 1, § 1.002 Definitions.)
Alcohol ......................................................15
Contracts
APPROPRIATION YEAR........................3
ATTORNEY GENERAL
Contracting with former state
OPINION....................................................3
officers and employees under
Attorney’s fees..........................................91
employees ........................................149
Attorneys, retention or
employment of ..........................................99
Deposits to secure
performance of .................................20
imported....................................................17
life of appropriations .............................139
Bonds, surety............................................58
County clerks .........................................141
NUMBER ....................................................3
Charitable organizations........................18
Damage or destruction of
Child support
personal property of employees..............73
Delinquencies ...................................32
Debt collection.........................................142
Delinquents .......................................18
Christmas cards......................................19
COMPTROLLER........................................3
contracts ...................................................20
Comptroller, statutory
Destruction or damage of
authority of .................................................6
personal property of employees..............73
Condemnation proceedings..................106
Discrimination.........................................64
State of Texas Purchase Policies and Procedures Guide July 2004 i.1
Index
Dispute resolution....................................87
Food and equipment related to
Drug testing..............................................20
mandatory.........................................26
certain employees ............................68
Of state employees,
volunteers..........................................68
federally-required ............................25
individualized suspicion,
ACT .............................................................4
mandatory.........................................21
General Provisions ....................................3
Education programs
GOVERNOR ...............................................4
GUIDE.........................................................5
Proceedings ...............................................87
Historically underutilized
Expenditures Under..............................116
or employees, expenditures that
provide.......................................................66
INCLUDE ...................................................4
Fees
Attorney's..........................................91
Information systems, automated ........116
Bond ...................................................73
Interagency contracts ...........................144
taxes...................................................67
Notary ................................................73
and surcharge..................................54
Legislators ................................................37
benefits ....................................................107
FISCAL YEAR...........................................3
Lobbying ....................................................37
i.2 July 2004 State of Texas Purchase Policies and Procedures Guide
Index
Mail .........................................................215
Personal property of employees,
Interagency.......................................41
damage or destruction of ........................73
MAINTENANCE CONTRACT................4
Pharmaceuticals ...................................223
MAY NOT...................................................4
Plants ........................................................44
Non-professional organizations...216
Indoor ................................................44
Miscellaneous Expenditures or
Post office box rentals, postage, and
Requirements.........................................155
mailing services.....................................223
money or property....................................53
office box rentals ....................................223
Moving expenses......................................69
Attorney's fees..................................98
Museums................................................288
Property transfers, interagency...........231
awards to...................................................41
Publications..............................................47
PAYEE ........................................................4
State of Texas Purchase Policies and Procedures Guide July 2004 i.3
Index
Reference Information..........................302
State officers and employees,
Refunds...................................................238
Government Code, with former...........150
specifications, payments to
Services Act, applicability of.................108
Residences, personal.............................239
SUBDIVISION...........................................4
Retainage ................................................242
SUBSECTION.............................................5
Retention requirements
concerning supporting
Supporting documentation,
documentation .........................................13
Retention requirements concerning .....13
Scholarships...........................................288
Surety Bonds .............................................58
SECTION ....................................................4
Taxes
agencies ..................................................244
And fees ...........................................246
programs ................................................290
Telecommunications.............................253
SIGNATURE CARD..................................4
Appropriation year
Speaking fees and honoraria ...............180
determination .................................298
and surcharge..........................................54
STATE AGENCY.......................................4
esting
STATE AUDITOR......................................4
Drug ...................................................20
Physical examinations or
State employees, contracting with
treatments .........................................75
former (generally)..................................148
Polygraph..........................................46
retired......................................................149
treatments .........................................75
i.4 July 2004 State of Texas Purchase Policies and Procedures Guide
Index
TEXAS IDENTIFICATION
Vouchers
NUMBER ....................................................5
Approval and certification ............266
Resubmittal of.................................284
boards ......................................................291
Retention requirements
concerning supporting
United Mexican States, contracts
documentation ..................................13
USAS ...........................................................5
review of ............................................12
Vehicles,
proceeding.......................................114
passenger........................................260
In administrative hearings or
state ....................................................81
proceedings.....................................108
VOUCHER ..................................................5
Xeriscaping ..............................................45
State of Texas Purchase Policies and Procedures Guide July 2004 i.5
Comptroller of Public Accounts
Publication #96-427
Revised July 2004
For additional copies write:
Fiscal Management
Claims Information Support
111 E. 17th Street
Austin, Texas 78774-0100
Fax number: 512-475-0378