34 TAC §5.56
The Comptroller of Public Accounts proposes amendments to §5.56,
concerning appropriation year determination. The purposes of the amendments
are as follows.
The primary purpose is to address legislative changes made during the 76th
and 77th regular sessions of the legislature.
Senate Bill 177, 76th Legislature, 1999, transferred the "Special Fiscal
Year Determination Procedures" from Article IX, §74 of the General Appropriations
Act (GAA) for the 1998-99 fiscal biennium to §2113.205, Government Code.
The legislature also substantively amended those procedures.
House Bill 2914, 77th Legislature, 2001, reenacted and substantively amended §2113.205
to clarify the statute and provide increased flexibility in the following
areas.
First, a state agency may use money appropriated for a particular appropriation
year to pay expenses related to conducting or attending a seminar or conference
that will occur partly or entirely during a different appropriation year,
if it is cost-effective to do so.
Second, a state agency may use money appropriated for a particular appropriation
year to pay the entire cost or amount of a periodical subscription, a maintenance
contract, a post office box rental, insurance, or a surety or honesty bond,
regardless of whether it covers more than one appropriation year.
Third, a state agency may use money appropriated for a particular appropriation
year to pay for a utility service provided during that appropriation year
and September of the next appropriation year. These amendments would define
"utility service" in accordance with §2113.205(e)(3)(C)'s directive for
that term to mean "any similar commodity or service that the comptroller considers
to be a utility service."
Fourth, §2113.205 now applies to any state governmental entity in
any branch of state government, including an institution of higher education
and the entire legislative branch.
The amendments of §5.56 also will reflect the following appropriation
year determination provisions in the GAA for the 2002-03 fiscal biennium.
First, Article II, §27 of the GAA says that if requested by the health
and human services commissioner and if approved by the Legislative Budget
Board and the governor's office of budget and planning, a health and human
services agency may use the funds appropriated by the GAA for: (1) appropriation
year 2002 to cover appropriation year 2001 expenditures; and (2) appropriation
year 2003 to cover appropriation year 2002 expenditures.
Second, Article IX, §9.06 of the GAA says that the required moving
and tenant finish-out costs incurred by an agency moving from leased space
to state-owned space after the passage of the GAA in appropriation year 2001
may be paid from 2002 appropriation year appropriations and the costs incurred
in 2002 may be paid from 2003 appropriation year appropriations as necessary
to facilitate the move.
The final purpose of the amendments of §5.56 is to make technical
and other non-substantive improvements.
James LeBas, Chief Revenue Estimator, has determined that for the first
five-year period the amendment will be in effect, there will be no foreseeable
implications relating to costs or revenues of the state or local governments.
Mr. LeBas also has determined that for each year of the first five years
the amendment is in effect, the public benefit anticipated as a result of
adopting the amendment will be in providing more accurate information about
appropriation year determination. The proposed amendment would not have an
adverse effect on small businesses or micro-businesses. There is no significant
anticipated economic cost to individuals who are required to comply with the
proposed amendment.
Comments on the proposal may be addressed to Joani Bishop, Manager of Claims
Division, P.O. Box 13528, Austin, Texas 78711. If a person wants to ensure
that the comptroller considers and responds to a comment made about this proposal,
then the person must ensure that the comptroller receives the comment not
later than the 30th day after the issue date of the Texas Register in which
this proposal appears. If the 30th day is a state or national holiday, Saturday,
or Sunday, then the first workday after the 30th day is the deadline.
The amendments are proposed under the Government Code, §2101.035(a),
which authorizes the comptroller to adopt rules for the effective operation
of the uniform statewide accounting system. The amendments also are proposed
under the Government Code, §2113.205(d), which authorizes the comptroller
to adopt rules to administer that section.
The amendments implement the General Appropriations Act and the Government
Code, §2101.035 and §2113.205.
§5.56.Appropriation Year Determination.
(a)
Definitions.
In
[
The following words and
terms, when used in
]this section
:
[
, shall have the following
meanings, unless the context clearly indicates otherwise.
]
(1)
"Appropriated money" means money that
the legislature has appropriated through the General Appropriations Act or
other law.
(2)
[
(1)
]
"Appropriation year" means
the
[
Appropriation year--The
] accounting period beginning
on September 1st and ending the following August 31st.
(3)
[
(2)
]
"Capital asset" means
a
[
Capital asset--A
] good other than a consumable that benefits
a state agency during more than one appropriation year.
(4)
[
(3)
]
"Comptroller" means the
[
Comptroller--The
] comptroller of public accounts for the
State of Texas.
(5)
[
(4)
]
"Consumable" means a
[
Consumable--A
]good that perishes with use and that, under ordinary
circumstances, will be entirely used during one appropriation year.
(6)
"Health and human services agency" has
the meaning assigned by the Government Code, § 531.001(4).
(7)
[
(5)
]
"Includes" and "including"
have the meaning assigned by the Code Construction Act, the Government Code, §
311.005(13)
[
Include --A term of enlargement and not of limitation
or exclusive enumeration. The use of the term does not create a presumption
that components not expressed are excluded
].
(8)
[
(6)
]
"Institution of higher
education" has
[
Institution of higher education--Has
] the
meaning assigned by the Education Code, §61.003.
(9)
[
(7)
]
"May not" has
[
May not--
]
the meaning assigned by the Code Construction Act, the
Government Code, § 311.016(5)
[
A prohibition. The term does
not mean "might not" or its equivalents
].
(10)
[
(8)
]
"State agency" means:
[
State agency--A department, board, commission, committee, council,
agency, office, or other entity in the executive, legislative, or judicial
branch of Texas state government, the jurisdiction of which is not limited
to a geographical portion of this state. The term includes an institution
of higher education.
]
(A)
a department, commission, board, office,
or other entity in the executive branch of state government, including an
institution of higher education;
(B)
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
(C)
the legislature or another entity in the
legislative branch of state government with statewide authority.
(11)
"Telecommunications service" includes
a corded telephone service, a cellular telephone service, a pager service,
an Internet connection service, a cable television service, and a satellite
television service. The term does not include a long distance charge, a prepaid
telephone calling card, a cellular telephone roaming charge, and any other
charge that is not imposed monthly as a flat rate.
(12)
"Utility service" means:
(A)
electricity, water, natural gas, or propane, if furnished
by a utility;
(B)
a telecommunications service; and
(C)
a wastewater treatment service, a well water service, or
a waste disposal service, if provided by a utility.
(b)
General requirements and exceptions.
(1)
A state agency must comply with this section when determining
the appropriation year to be charged for the agency's:
(A)
purchase of a good, service, or capital asset; or
(B)
payment of a grant.
(2)
The comptroller may require a state agency to make available
to the comptroller the documentation that supports the agency's classification
of a
purchase or
payment as a consumable, service, capital asset,
or grant.
(3)
This section does not apply to the extent it conflicts
with
state
[
Texas
] law, including a valid rider or other
provision of the General Appropriations Act.
(4)
This section does not apply to a purchase that is paid
with
money that is not appropriated money
[
non-appropriated
funds
].
(c)
Purchases of consumables.
(1)
Except as provided in paragraph (2) of this subsection,
a state agency must charge
its
[
a
] purchase of
a consumable
[
consumables
] to the appropriation year in which
[
their
] delivery
of the consumable
[
to the agency
]occurs.
(2)
Except as provided in paragraph (3) of this subsection,
a state agency may not charge
its
[
a
] purchase of
a consumable
[
consumables
] to a particular appropriation year
if
the agency could not reasonably
[
it would be unreasonable
to
]
have anticipated
[
anticipate
] that [
the agency will consume all
]the
consumable
[
consumables
]
would be consumed entirely
during that year.
(3)
A state agency may charge the appropriation year that immediately
precedes the appropriation year in which
a consumable is
[
consumables are
] delivered[
to the agency
] for
the
[
their
]purchase
of the consumable
if:
(A)
the agency
entered into a contract
[
contracted
]for the
consumable
[
consumables
] during the immediately
preceding appropriation year and, at the time of
entrance into
the
contract
[
contracting
], the agency reasonably anticipated
that the
consumable
[
consumables
] would be delivered
during that year;
(B)
[
the
]delivery of the
consumable
[
consumables
] was delayed until the next appropriation year for reasons
beyond the agency's reasonable control; and
(C)
the order quantity was no more than [
the agency
]
reasonably
could have
been
consumed before the end of the
immediately preceding appropriation year had[
the
] delivery occurred
as originally
anticipated
[
expected
].
(d)
Purchases of services.
(1)
A state agency must charge
its
[
a
]
purchase of
a service
[
services
] to the appropriation
year in which the
service is
[
services are
] rendered.
[
The agency may not charge a particular appropriation year for the payment
of a service contract that is performed during a different appropriation year.
]
(2)
A state agency must prorate its payments
[
Payments
] under a [
service
]contract that is performed over
more than one appropriation year [
must be prorated
]so that each
appropriation year is charged only
for
[
to the extent of
]
the services
that are rendered
[
performed
]during that
year.
(e)
Purchases of capital assets.
(1)
Except as provided in paragraphs (2)-(3) of this subsection,
a state agency must charge
its
[
the
] purchase of a capital
asset to the appropriation year in which the agency enters into a valid contract
for the purchase. The
delivery
date [
on which
]
of
the[
capital
] asset [
is delivered to the agency
]is
irrelevant.
(2)
A state agency may contract during a particular appropriation
year for the purchase of a capital asset in reliance on an existing appropriation
for a subsequent appropriation year so long as payment for the asset does
not occur
before
[
until after
] the start of the subsequent
year. For example, assume that the
governor signs the
General Appropriations
Act for appropriation years
2004
[
1998
] and
2005
[
1999 is signed by the governor
] on June 1,
2003
[
1997
]. A state agency may
enter into a
contract after May
31,
2003
[
1997
], for the purchase of a capital asset
and pay for the asset with appropriation year
2004 money
[
1998 funds
] so long as the payment is not made
before September
1, 2003
[
until after August 31, 1997
]. Similarly, the agency
may
enter into a
contract after May 31,
2003
[
1997
], for the purchase of a capital asset and pay for the asset with
appropriation year
2005 money
[
1999 funds
]so long as
the payment is not made
before September 1, 2004
[
until after
August 31, 1998
]. If the agency
enters into a contract
[
contracts
]before June 1,
2003
[
1997
], for the purchase
of a capital asset,
then
the agency may not use appropriation year
2004
[
1998
] or
2005 money
[
1999 funds
]
to pay for the asset because the appropriations for those years are not in
existence on the date the contract is entered into.
(3)
A payment [
made
]under a lease-purchase agreement
must be charged to the appropriation year in which the payment is made.
(f)
Grant payments.
(1)
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.
(2)
This subsection applies regardless of how the
grantee will use the grant
money
[
funds
].
(3)
This subsection [
also
]applies even
if the payments under a grant contract will be made over more than one appropriation
year.
(g)
Contracts for the purchase of a combination of consumables,
services, and capital assets.
(1)
This subsection applies only to:
(A)
a contract that involves the purchase of two or more of
the following: a consumable, a service, or a capital asset; or
(B)
two or more closely related contracts that together involve
the purchase of two or more of the following: a consumable, a service, or
a capital asset.
(2)
If the dominant purpose of one or more contracts is to
purchase a consumable, then subsection (c) of this section governs the determination
of the correct appropriation year to charge for the purchases.
(3)
If the dominant purpose of one or more contracts is to
purchase a service, then subsection (d) of this section
governs
[
would govern
] the determination of the correct appropriation year to
charge for the purchases.
(4)
If the dominant purpose of one or more contracts is to
purchase a capital asset, then subsection (e) of this section
governs
[
would govern
] the determination of the correct appropriation
year to charge for the purchases.
(h)
Purchase options. The appropriation year in which a state
agency exercises a contractual option to purchase a good,
a
service,
or
a
capital asset must be charged for the cost of exercising that
option, subject to this section's requirements for determining the correct
appropriation year to charge for the purchase.
(i)
Seminars and conferences.
(1)
Except as provided in paragraph (2) of this subsection,
a state agency may use money that is appropriated for a particular appropriation
year to pay expenses that relate to conduct or attendance at a seminar or
conference only to the extent that the seminar or conference occurs during
that year.
(2)
To the extent that the use is cost-effective, a state agency
may use money that is appropriated for a particular appropriation year to
pay expenses that relate to conduct or attendance at a seminar or conference
that will occur partly or entirely during a different appropriation year.
(3)
This subsection prevails over subsections (c)-(h) of this
section to the extent of any conflict.
(j)
Periodical subscriptions, maintenance
contracts, post office box rentals, insurance, and surety or honesty bonds.
(1)
A state agency may use money that is appropriated for a
particular appropriation year to pay the entire cost or amount of a periodical
subscription, a maintenance contract, a post office box rental, insurance,
or a surety or honesty bond, regardless of whether the use covers more than
one appropriation year.
(2)
This subsection prevails over subsections (c)-(h) of this
section to the extent of any conflict.
(k)
Utility services.
(1)
A state agency may use money that is appropriated for a
particular appropriation year to pay for a utility service that is provided
during that appropriation year and September of the next appropriation year.
(2)
This subsection prevails over subsections (c)-(h) of this
section to the extent of any conflict.
(l)
Health and human services agencies.
(1)
Upon request by the health and human services commissioner
and approval by the Legislative Budget Board and the governor's office of
budget and planning, a health and human services agency may use the money
that is appropriated by the General Appropriations Act for:
(A)
appropriation year 2002 to cover expenditures that must
otherwise be charged to appropriation year 2001; and
(B)
appropriation year 2003 to cover expenditures that must
otherwise be charged to appropriation year 2002.
(2)
This subsection prevails over subsections (c)-(h) of this
section to the extent of any conflict.
(m)
Moving and tenant finish-out costs.
(1)
A state agency that moves from leased space to state-owned
space after passage of the General Appropriations Act in appropriation year
2001 may pay the required moving and tenant finish-out costs that the agency
incurred in appropriation year 2001 from money that is appropriated for appropriation
year 2002 as necessary to facilitate the move.
(2)
A state agency that moves from leased space to state-owned
space after passage of the General Appropriations Act in appropriation year
2001 may pay the required moving and tenant finish-out costs that the agency
incurred in appropriation year 2002 from money that is appropriated for appropriation
year 2003 as necessary to facilitate the move.
(3)
This subsection prevails over subsections (c)-(h) of this
section to the extent of any conflict.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on May 30, 2002.
TRD-200203354
Martin Cherry
Deputy General Counsel for Taxation
Comptroller of Public Accounts
Earliest possible date of adoption: July 14, 2002
For further information, please call: (512) 475-0387