Proposed Rules Title 34

TITLE 34. PUBLIC FINANCE

PART 1. COMPTROLLER OF PUBLIC ACCOUNTS

CHAPTER 5. FUNDS MANAGEMENT (FISCAL AFFAIRS)

SUBCHAPTER E. CLAIMS PROCESSING--PURCHASE VOUCHERS

34 TAC §5.51

The Comptroller of Public Accounts proposes an amendment to §5.51, concerning requirements for purchase documents. The proposed amendment changes the name of the purchase guide from "State of Texas Purchase Voucher Guide" to the "Purchase Policies and Procedures Guide." The amendment includes the definition of a mail code and changes the name of a payee identification number to its correct title, Texas identification number (TIN), as defined in the Government Code. Finally, the amendment clarifies the specific composition of a TIN.

John Heleman, Chief Revenue Estimator, has determined that for the first five-year period the rule will be in effect, there will be no significant revenue impact on the state or units of local government.

Mr. Heleman also has determined that for each year of the first five years the rule is in effect, the proposed amendment would benefit the public by improving the purchase voucher payment process. The proposed amendment would have no significant fiscal impact on small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.

Comments on the proposal may be submitted to Cheryl Scott, Fiscal Integrity Division, P.O. Box 13528 Austin, Texas 78711.

This amendment is authorized under Government Code, §2155.322 which provides the comptroller the authority to adopt the form or manner that state agencies must use to certify the receipt of goods and services along with the financial information and purchase information provided by the invoice and purchase voucher. It is also authorized under Government Code §2155.0012 which authorizes the comptroller to adopt rules to administer purchasing procedures under Chapter 2155.

The amendment implements Government Code, §403.039 and §403.071.

§5.51.Requirements for Purchase Documents.

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Appropriation year--The accounting period beginning on September 1st and ending the following August 31st.

(2) Chief administrative officer--The appointed or elected individual who is authorized by law to administer a state agency that is not headed by a governing body or the executive director or other individual with an equivalent title who administers a state agency headed by a governing body.

(3) Comptroller--The comptroller of public accounts for the State of Texas.

(4) Comptroller object code--The four-digit code that indicates in USAS the type of expenditure made.

(5) Delivery date--The date goods are delivered to a state agency.

(6) Governing body--The board, commission, committee, council, or other group of individuals that is collectively authorized by law to administer a state agency.

(7) 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) Institution of higher education--Has the meaning assigned by [~~the~~ ] Education Code, §61.003.

(9) May not--A prohibition. The term does not mean "might not" or its equivalents.

(10) Non-payment document--The paper or electronic document that a state agency submits to the comptroller for the purpose of requesting the comptroller to post or correct certain accounting information in USAS. The term does not include a payment document.

(11) Order date--The date that a state agency enters into a contract for goods or services.

(12) Texas [~~Payee~~] identification number--The 11-digit [~~14-digit~~] number that the comptroller assigns to each payee of a warrant issued or electronic funds transfer initiated [~~direct recipient of a payment made~~] by the comptroller [ ~~for the State of Texas~~].

(13) Mail code--The three digit number associated with a Texas identification number that documents disbursement instructions.

(14) [~~(13)~~] Payment document--The paper or electronic document that a state agency submits to the comptroller for the purpose of requesting the comptroller to make one or more payments on the agency's behalf. The term includes a document that uses the appropriated or other funds of a state agency to make a payment to another state agency. The term does not include a non-payment document.

(15) [~~(14)~~] Purchase document--The type of payment document that the comptroller requires a state agency to submit when requesting payment of certain claims against the agency.

(16) [~~(15)~~] Service date--The date the provision of services to a state agency ends.

(17) [~~(16)~~] 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.

(18) [~~(17)~~] Payment transaction--A state agency's request to the comptroller for the comptroller to make one payment to one payee on behalf of the agency. A payment document always contains at least one payment transaction or one adjusting entry to a payment transaction.

(19) [~~(18)~~] USAS--The uniform statewide accounting system.

(b) Submission of purchase documents to the comptroller.

(1) A state agency may submit a purchase document to the comptroller only by submitting the document to USAS.

(2) A state agency must submit a purchase document to USAS electronically unless the comptroller has specifically authorized the agency to submit the document on paper. A state agency may electronically submit a purchase document through on-line, direct entries into USAS or through reporting into USAS by a magnetic media device.

(1) The officers and employees of a state agency are responsible for:

(A) being knowledgeable about Texas laws and rules concerning expenditures;

(B) ensuring that the agency's expenditures comply with those laws and rules;

(C) determining the agency's legal authority for making each payment that would result from a purchase document before the document is submitted to the comptroller;

(D) ensuring that for each purchase document, the agency maintains necessary documentation for proving that each payment resulting from the document is legal, proper, and fiscally responsible; and

(E) ensuring that each purchase document complies with the processing requirements of USAS.

(2) An officer or employee of a state agency may not submit a purchase document 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 document.

(3) The chief administrative officer of a state agency is responsible for ensuring that the agency's officers and employees understand and comply with this subsection. However, the chief administrative officer's failure to fulfill this responsibility does not relieve those officers and employees from the obligation to comply.

(4) The comptroller's responsibility to audit a state agency's purchase documents does not relieve the agency's officers and employees from the responsibilities listed in paragraphs (1)-(3) of this subsection. Therefore, those officers and employees may not rely on the comptroller's audit to prevent a questionable payment from being made or to discover or reverse an invalid payment after it has occurred.

(d) Content of purchase documents and payment transactions. For each payment transaction included in a purchase document, the document must specify or contain:

(1) the Texas [~~payee~~] identification number and mail code of the individual or entity being paid or reimbursed;

(2) the amount of the payment or adjusting entry;

(3) the proper comptroller object code;

(4) the appropriation year to be charged for the payment or adjusting entry;

(5) the agency number of the agency whose funds are being used to make the payment or adjusting entry;

(6) the proper transaction code for crediting or debiting the appropriate general ledger accounts;

(7) the proper program cost account;

(8) the number of the fund from which the payment or adjusting entry will be made;

(9) the number of the appropriation from which the payment or adjusting entry will be made;

(10) the disbursement method for making the payment or adjusting entry;

(11) the service or delivery date, which must be entered into the service date field;

(12) the order date, which must be entered into the document date field;

(13) the approval and certification of the document; and

(14) any other information deemed necessary by the comptroller.

(e) Supporting documentation for purchase documents.

(1) The comptroller may require a state agency to make available to the comptroller documentation to support the legality and fiscal responsibility of each payment that results from a purchase document if the payment is made out of the agency's funds. Supporting documentation must be made available whenever:

(A) the comptroller's [~~State of Texas~~] Purchase Policies and Procedures [~~Voucher~~] Guide or a successor publication specifically requires the documentation to be made available; or

(B) the comptroller notifies the agency that the documentation must be made available.

(2) Supporting documentation must be made available to the comptroller in the manner required by the comptroller. The comptroller may require the documentation to be made available during a post-payment audit, a prepayment audit, or at any other time.

(3) The types of supporting documentation that the comptroller may require include purchase orders, requisitions, contracts, invoices, and receipts.

(4) A state agency must maintain documentation in its files to support the legality and fiscal responsibility of each payment resulting from a purchase document if the payment is made out of the agency's funds. The documentation must be maintained even if the comptroller does not require the agency to make it available to the comptroller.

(5) A state agency's supporting documentation must satisfy all the following requirements.

(A) The supporting documentation for a purchase document must be maintained in agency files at least until the end of the second appropriation year after the appropriation year in which the document is processed by USAS.

(B) This subparagraph applies to a purchase document only if the document contains only one payment transaction. Supporting documentation must be cross-referenced to the purchase document that the documentation supports. This cross-reference must consist of the document's USAS document key. A purchase document's USAS document key consists of the document agency, the document number, and the appropriation year during which the document was initiated. All supporting documentation for a particular purchase document must be grouped together.

(C) This subparagraph applies to a purchase document only if the document contains more than one payment transaction. Supporting documentation must be cross-referenced to the purchase document and payment transaction that the documentation supports. The cross-reference to the purchase document must consist of the document's USAS document key. A purchase document's USAS document key consists of the document agency, the document number, and the appropriation year during which the document was initiated. The cross-reference to the purchase transaction consists of the transaction's suffix number. All supporting documentation for a particular payment transaction must be grouped together.

(D) The state agency whose funds are used to make a payment is responsible for maintaining the supporting documentation for the payment.

(6) When the comptroller requires a state agency to make supporting documentation available to the comptroller, the agency is solely responsible for complying with this requirement. The comptroller is not required to search the agency's files for the documentation, determine which documentation corresponds with which purchase documents or payment transactions, or otherwise organize or sort the documentation. If the agency does not make supporting documentation for a particular purchase document or payment transaction available to the comptroller according to the comptroller's requirements, then the comptroller may reject the document or transaction or deem the payment resulting from the document or transaction to be unsubstantiated or erroneous.

(7) This subsection also applies to any supporting documentation that a state agency maintains electronically.

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 June 2, 2008.

TRD-200802846

Martin Cherry

General Counsel

Comptroller of Public Accounts

Earliest possible date of adoption: July 13, 2008

For further information, please call: (512) 475-0387

34 TAC §5.54

The Comptroller of Public Accounts proposes an amendment to §5.54, concerning consulting services contracts. This section is being amended to implement House Bill 3560, 80th Legislature, 2007. This bill transferred the procurement functions of the Texas Building and Procurement Commission (TBPC) to the comptroller's office. The proposed amendment implements this change in law by changing references to the old commission from "Texas Building and Procurement Commission" (TBPC) to "Texas Procurement and Support Services" (TPASS), a division of the comptroller's office. Other changes to the section are for clarity.

Mr. Heleman also has determined that for each year of the first five years the rule is in effect, the proposed amendment would benefit the public by conforming agency rules to current state law. The proposed amendment would have no significant fiscal impact on small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.

Comments on the proposal may be submitted to Macy Douglas, Statewide Fiscal Services Division, P.O. Box 13528 Austin, Texas 78711.

This amendment is authorized under Government Code, §2254.039, which provides the comptroller the authority to adopt rules for the administration of consulting services contracts.

The amendment implements Government Code, §2155.0011.

§5.54.Consulting Services Contracts.

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. [~~In this section:~~]

(1) "Consultant" has the meaning assigned by Government Code, §2254.021(3).

(2) "Consulting service" means a study conducted for a state agency or advice provided to a state agency under a contract that does not involve the traditional relationship of employer and employee. The term does not include a routine service that is necessary to the functioning of a state agency's programs.

(3) "Executive director" means the individual who is the chief administrative officer of a state agency. The term excludes a member of a governing body.

(4) "Institution of higher education" has the meaning assigned by Education Code, §61.003 except the term does not include a public junior college or a community college.

(5) "Major consulting services contract" has the meaning assigned by Government Code, §2254.021(2).

(6) "State agency" has the meaning assigned by Government Code, §2151.002(2).

(7) "USAS" means the uniform statewide accounting system.

(b) Applicability of this section. This section applies to a consulting service only to the extent Government Code, Chapter 2254, Subchapter B, applies to that service.

(1) If a state agency contracts for a consulting service or renews, amends, or extends a consulting services contract without complying with the requirements of subsection (d) of this section and Government Code, §§2254.029, 2254.030, 2254.0301, and 2254.033, then the contract, renewal, amendment, or extension is void.

(2) If a contract, renewal, amendment, or extension is void under paragraph (1) of this subsection, then the comptroller may not:

(A) draw a warrant or transmit funds to satisfy an obligation under the contract, renewal, amendment, or extension; or

(B) reimburse a state agency for a payment made under the contract, renewal, amendment, or extension.

(3) If a contract, renewal, amendment, or extension is void under paragraph (1) of this subsection, then 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.

(d) Renewals, amendments, or extensions of consulting services contracts.

(1) A state agency must comply with this paragraph when the agency intends to renew, amend, or extend a major consulting services contract.

(A) If the renewal contract itself is not a major consulting services contract or if the contract after the amendment or extension is no longer a major consulting service contract, then the agency shall file the information required by Government Code, §2254.030 with the secretary of state for publication in the Texas Register. The information must be filed not later than the 20th day after either the date the renewal contract is entered into or the date the original contract is amended or extended.

(B) If the renewal contract itself is a major consulting services contract or if the contract after the amendment or extension is still a major consulting services contract, then the agency shall comply with the requirements of Government Code, §2254.028(a) and §2254.029.

(2) A state agency that intends to renew, amend, or extend a consulting services contract that is not a major consulting services contract shall comply with the requirements of Government Code, §2254.028(a) and §2254.029 if the original contract and either the renewal contract, the amendment, or the extension have a reasonably foreseeable value totaling more than $15,000 if the agency is not an institution of higher education or $25,000 if the agency is an institution of higher education.

(e) Procurement of consulting services by the Texas [~~Building and~~ ] Procurement and Support Services (TPASS) division of the comptroller's office [~~Commission~~]. If TPASS [~~the Texas Building and Procurement Commission~~] procures a consulting service for a state agency under Government Code, §2254.040, then TPASS [~~the commission~~] must comply with any requirements of this section and Government Code, Chapter 2254, Subchapter B that would apply if the agency were procuring the consulting service directly.

(f) Purchase document requirements.

(1) In addition to the requirements of paragraph (2) of this subsection, the purchase document submitted to the comptroller that requests payment under a contract subject to that paragraph must be supported by the following documentation:

(A) a copy of the original contract and, if the contract has been renewed, amended, or extended, a copy of the renewal, amendment, or extension;

(B) a copy of any written notice provided to the Legislative Budget Board under Government Code, §2254.0301 if the amount of the contract, including any renewal, amendment, or extension, exceeds $14,000; and

(2) This paragraph applies when a purchase document is submitted to the comptroller that requests a payment under either a major consulting services contract (or a renewal, amendment, or extension of a major consulting services contract) or a contract that was not originally a major consulting services contract but whose value after renewal, amendment, or extension totals more than $15,000 if the payer is not an institution of higher education or $25,000 if the payer is an institution of higher education. In addition to the requirements of paragraph (1) of this subsection, the document must be supported by the following documentation:

(A) a reference to the volume and page numbers of the Texas Register in which the requirements of Government Code, §2254.029 and §2254.030, and, if applicable, Government Code, §2254.028(c) and §2254.033(b) were fulfilled; and

(B) a copy of the governor's finding of fact that the consulting services are necessary if the finding is required by Government Code, §§2254.028, 2254.031(a)(2), or 2254.031(c)(2), or by any combination of those statutes.

(3) A state agency that has received the governor's emergency waiver of the requirements of Government Code, Chapter 2254, Subchapter B must include a copy of the waiver in the supporting documentation for the contract for which the waiver was received.

(4) A state agency shall retain the supporting documentation required by this paragraph and provide that documentation to the comptroller as required by §5.51 of this title (relating to Requirements for Purchase Documents).

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 June 2, 2008.

TRD-200802847

Martin Cherry

General Counsel

Comptroller of Public Accounts

Earliest possible date of adoption: July 13, 2008

For further information, please call: (512) 475-0387

34 TAC §5.57

The Comptroller of Public Accounts proposes an amendment to §5.57, concerning use of payment cards by state agencies. This section is being amended to implement House Bill 3560, 80th Legislature, 2007. This bill transferred the procurement functions of the Texas Building and Procurement Commission (TBPC) to the comptroller's office. The proposed amendment implements this change in law by changing references to the old commission from "Texas Building and Procurement Commission" (TBPC) to "Texas Procurement and Support Services" (TPASS), a division of the comptroller's office. Other changes to the section are for clarity.

Comments on the proposal may be submitted to Macy Douglas, Statewide Fiscal Services Division, P.O. Box 13528 Austin, Texas 78711.

This amendment is authorized under Government Code, §403.023, which provides the comptroller the authority to adopt rules relating to the acceptance of credit, charge, and debit cards for the payment of fees, taxes, and other charges assessed by state agencies.

The amendment implements Government Code, §2155.0011.

§5.57.Use of Payment Cards by State Agencies.

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. [~~In this section:~~]

(1) "TPASS" [~~"Commission"~~] means the Texas [ ~~Building and~~] Procurement and Support Services division of the comptroller's office [~~Commission~~].

(2) "Consulting service" has the meaning assigned by §5.54 of this title (relating to Consulting Services Contracts).

(3) "Executive director" means the individual who is the chief administrative officer of a state agency. The term excludes a member of a governing body.

(4) "Executive head" means:

(A) the elected or appointed state official who is authorized by law to administer a state agency that is not headed by a governing body; or

(B) the executive director of a state agency that is headed by a governing body.

(5) "Institution of higher education" has the meaning assigned by [~~the~~ ] Education Code, §61.003, other than a public junior college.

(6) "Payment card" means a credit or charge card issued to an officer or employee of a state agency for the purpose of allowing the officer or employee to purchase goods or services for the agency.

(7) "Payment card purchase" means the use of a payment card to pay for the purchase of a good or a service.

(8) "State agency" means:

(A) a board, commission, department, 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;

(B) the legislature or a legislative agency; or

(b) Applicability of this section. Except as provided in subsection (c) of this section, this section applies to a state agency's use of a payment card regardless of the type of funds the agency uses to pay the payment card issuer.

(1) This section does not apply to a state agency if a law other than [~~the~~ ] Government Code, §403.023, specifically authorizes, requires, prohibits, or otherwise regulates the agency's use of a payment card.

(2) This section does not apply to the extent its application would affect a contract in which a state agency is a party. This paragraph applies only if the contract was in effect on September 1, 1993.

(3) This section does not apply to the extent its application would violate a constitutional prohibition against a law that impairs a contractual obligation.

(4) This section does not apply to the extent necessary to avoid an irreconcilable conflict with a federal law or regulation.

(5) This section does not apply to the use of a payment card to pay for a travel expense incurred by a state officer or employee while conducting official state business.

(d) Effect of noncompliance with this section. The comptroller may suspend or terminate a state agency's authority to use a payment card if the comptroller determines that the agency or an officer or employee of the agency has violated this section.

(e) Procurement of payment card services by TPASS [ ~~the commission~~] or an institution of higher education.

(1) TPASS [~~The commission~~] may contract with a payment card issuer on behalf of any state agency that chooses to participate in the contract.

(2) The comptroller may authorize an institution of higher education to contract with a payment card issuer on behalf of any state agency that chooses to participate in the contract. The institution may not enter into the contract without the comptroller's authorization.

(3) A state agency that is participating in a contract between TPASS [~~the commission~~] and a payment card issuer may start participating in a contract between an institution of higher education and a payment card issuer if:

(A) the comptroller approves of the agency's participation in the contract involving the institution; and

(B) the agency ceases participation in the contract involving TPASS [~~the commission~~].

(4) A state agency that is participating in a contract between an institution of higher education and a payment card issuer may start participating in a contract between TPASS [~~thecommission~~ ] and a payment card issuer if:

(A) the comptroller approves of the agency's participation in the contract involving TPASS [~~the commission~~]; and

(B) the agency ceases participation in the contract involving the institution.

(5) A state agency may not use a payment card to pay for a purchase unless the card was issued under a contract between a payment card issuer and either TPASS [~~the commission~~] or an institution of higher education.

(6) A state agency may begin making payment card purchases only after the agency has complied with the procedural requirements of:

(A) TPASS [~~the commission~~], if the agency is participating in a contract between TPASS [ ~~the commission~~] and a payment card issuer; or

(B) an institution of higher education, if the agency is participating in a contract between the institution and a payment card issuer.

(f) Adoption of procedures by state agencies. A state agency shall adopt reasonable procedures governing the issuance and security of payment cards and the use of those cards by the agency's officers and employees. Upon request, the agency shall make the procedures available to the comptroller for review.

(g) Prohibited uses of payment cards. A state agency may not use a payment card and may not reimburse an officer or employee for the use of a payment card for:

(1) a purchase of a personal nature or any other purchase not connected with official state business;

(2) a cash advance;

(3) a purchase of a consulting service;

(4) a purchase of a good or a service that may not be purchased without the prior approval of another state agency;

(5) a purchase that the comptroller audits before payment; or

(6) a purchase from a vendor if a payment to it is prohibited by:

(A) Government Code, §403.055 or §2107.008;

(B) Education Code, §57.48, or §57.482; or

(h) Applicability of purchasing requirements. The use of a payment card to pay for a purchase does not automatically exempt a state agency or its officers and employees from any purchasing requirement of state law or TPASS [~~the commission~~].

(i) Payments to payment card issuers. A state agency shall pay a payment card issuer through an electronic funds transfer.

(j) Refunds. A state agency may not accept a cash refund for a purchase if the agency paid for the purchase with a payment card.

(k) Lost or stolen payment cards. The state employee that had custody of a payment card immediately before it was lost or stolen shall report the loss or theft to the payment card issuer according to its requirements.

(l) Disputed charges. A state agency shall dispute any incorrect charge that appears on an invoice the agency receives from a payment card issuer. When disputing the charge, the agency shall comply with applicable law and the issuer's requirements.

(m) Taxes. A state agency or a state employee shall properly claim any available exemption from paying a state or federal tax that is assessed on a payment card purchase.

(n) Responsibilities and notification of state employees.

(1) A state employee shall ensure that each of the employee's payment card purchases comply with applicable state law and this section.

(2) The executive head of a state agency shall notify the agency's employees about the requirements of this section.

(o) Fiscal year determination. The fiscal year that must be charged for a purchase is not affected by the use of a payment card to pay for the purchase. For example, a state agency that pays a payment card issuer for a service purchased by the agency must charge the payment to the fiscal year in which the service was rendered.

(p) Prohibition against excess obligations. A state agency that uses a payment card to pay for a purchase should be careful not to violate any provision in the General Appropriations Act about the incurrence of excess obligations.

(q) Purchase document and receipt requirements.

(1) A purchase document that a state agency submits to the uniform statewide accounting system for a payment to a payment card issuer must comply with the comptroller's general requirements for the submission of those documents. In addition, the document must:

(A) provide the transaction charge and the appropriate Texas identification number on the detail lines;

(B) provide the Texas identification number and name of the payment card issuer on the remittance line; and

(2) A state agency shall keep in its files any receipt that a vendor issues to the agency for a payment card purchase. The receipt must contain a description of the good or service purchased that is sufficient to support the expenditure object code used by the agency. The agency shall make the receipt available to the comptroller upon request.

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 June 2, 2008.

TRD-200802848

Martin Cherry

General Counsel

Comptroller of Public Accounts

Earliest possible date of adoption: July 13, 2008

For further information, please call: (512) 475-0387

SUBCHAPTER F. CLAIMS PROCESSING--GENERAL REQUIREMENTS

34 TAC §5.61

The Comptroller of Public Accounts proposes an amendment to §5.61, concerning approval and certification of certain payment and USPS documents. This section is being amended to add another payroll system, the standardized payroll/personnel reporting system (SPRS), in addition to USPS. The amendment includes the definition of a mail code and changes the name of a Payee identification number to its correct title, Texas identification number (TIN), as defined in the Government Code. Finally, the amendment clarifies the specific composition of a TIN. Other changes to the section are for clarity.

Mr. Heleman also has determined that for each year of the first five years the rule is in effect, the proposed amendment would benefit the public by improving the approvals and certifications of payroll processing procedures. The proposed amendment would have no significant fiscal impact on small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.

Comments on the proposal may be submitted to Stacey Hassin, Statewide Fiscal Services Division, P.O. Box 13528 Austin, Texas 78711.

This amendment is authorized under Government Code, §2103.032, which provides the comptroller with the authority to prescribe, adopt and enforce rules relating to the approval and certification of vouchers that are submitted to the comptroller electronically.

The amendment implements Government Code, Chapter 403, §403.039, and §403.015, Chapters 2101 and 2103.

§5.61.Approval and Certification of Certain Payment , SPRS, and USPS Documents.

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Appropriation year--The accounting period beginning on September 1st and ending the following August 31st.

(2) Certification--A state agency's declaration to the comptroller that:

(A) the goods or services received by the agency comply with contract requirements; and

(B) the invoice received by the agency for the goods or services is correct.

(3) Chief deputy--For a state agency that is administered by an elected or appointed state official, the individual authorized by law to administer the agency during the official's absence or inability to act.

(4) Comptroller--The comptroller of public accounts for the State of Texas.

(5) Executive director--The individual who is the chief administrative officer of a state agency that is headed by a governing body. The term excludes a member of that body.

(6) Governing body--The board, commission, committee, council, or other group of individuals that is collectively authorized by law to administer a state agency.

(7) Head of agency--The elected or appointed state official who is authorized by law to administer a state agency.

(8) 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.

(9) Institution of higher education--Has the meaning assigned by [~~the~~] Education Code, §61.003.

(10) May not--A prohibition. The term does not mean "might not" or its equivalents.

(11) Non-payment document--The paper or electronic document that a state agency submits to the comptroller for the purpose of requesting the comptroller to post or correct certain accounting information in USAS. The term does not include a payment , SPRS, or USPS document.

(12) Texas [~~Payee~~] identification number--The 11 digit [~~14 digit~~] number that the comptroller assigns to each payee of a warrant issued or [an] electronic funds transfer initiated by the comptroller.

(13) Mail code--The three digit number associated with a Texas identification number that documents disbursement instructions.

(14) [~~(13)~~] Payment document--The paper or electronic document that a state agency submits to the comptroller for the purpose of requesting the comptroller to make a payment on the agency's behalf. The term includes a document that uses the appropriated or other funds of a state agency to make a payment to another state agency. The term does not include a USPS or SPRS document or a non-payment document.

(15) [~~(14)~~] Payroll document--The type of payment document that the comptroller requires a state agency to submit when requesting payment of the compensation of state officers and employees or certain other types of payments. The term does not include a USPS or SPRS document.

(16) [~~(15)~~] 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.

(17) [~~(16)~~] USAS--The uniform statewide accounting system.

(18) [~~(17)~~] USPS--The uniform statewide payroll/personnel system.

(19) [~~(18)~~] USPS document--The document that a state agency electronically submits to USPS for the purpose of requesting the comptroller to pay the compensation of state officers and employees or to make certain other types of payments. The term does not include a payment, SPRS, or non-payment document.

(20) SPRS--The standardized payroll/personnel reporting system.

(21) SPRS document--The document that a state agency electronically submits to SPRS for the purpose of requesting the comptroller to pay the compensation of state officers and employees or to make certain other types of payments. The term does not include a payment, USPS, or non-payment document.

(b) Required approval and certification of payment and USPS or SPRS documents.

(1) General Requirements. The comptroller may not make a payment on behalf of a state agency unless:

(A) the agency properly submits a payment or USPS or SPRS document to the comptroller requesting the payment;

(B) the document has been approved according to this section; and

(2) Certification of payment and USPS or SPRS documents. To the extent a payment, SPRS, or USPS document requests payment of anything other than the compensation of a state officer or employee, a certification concerning the document must be given to the comptroller according to this section.

(3) Multiple approvals of payment and USPS or SPRS documents.

(A) If a payment document is approved more than once, the individual who provides the last approval is responsible for the truth and accuracy of the statement in subsection (o)(2)(B) of this section.

(B) If a USPS or SPRS document is approved more than once, the individual who provides the last approval is responsible for the truth and accuracy of the statement in subsection (o)(4)(B) of this section.

(1) Automatic certification. When an individual approves a payment or USPS or SPRS document, the individual automatically provides its certification if the certification is required by subsection (b)(2) of this section. An individual may not approve a payment or USPS or SPRS document without also providing its required certification.

(2) Automatic approval. When an individual provides the required certification for a payment, SPRS, or USPS document, the individual automatically approves it. An individual may not provide the required certification for a payment , SPRS, or USPS document without also approving it.

(3) References. A specific reference in subsections (e) - (q) of this section to the approval of a payment , SPRS, or USPS document is also a reference to any required certification provided for that document.

(d) Fact findings concerning the electronic approval of payment and USPS or SPRS documents.

(1) Security. The comptroller has determined that the degree of security provided by the electronic approval of payment and USPS or SPRS documents under this section is at least equal to the degree of security that would be provided by the non-electronic approval of those documents.

(2) Operation and maintenance of USAS. The comptroller has determined that the electronic approval of payment and USPS orSPRS documents under this section would facilitate the operation and administration of USAS.

(e) Who may not approve payment and USPS or SPRS documents.

(1) State officers and employees.

(A) An officer or employee of a state agency may not approve and may not be designated to approve another agency's payment and USPS or SPRS documents.

(B) This subparagraph applies when a state agency submits a payment, SPRS, or USPS document that requests payment out of the funds of a second state agency. No officer or employee of the agency that submits the document may approve it.

(2) Individuals not employed by a state agency. An individual who is not employed by a state agency may not approve and may not be designated to approve a state agency's payment , SPRS, or USPS documents.

(f) Who may approve payment and USPS or SPRS documents.

(1) Generally. Only an individual who is described in paragraph (2) or (4) of this subsection may approve a payment, SPRS, or USPS document. When this section refers to an individual approving a payment, SPRS, or USPS document without further qualification or description, the reference is only to an individual who may approve a payment, SPRS, or USPS document under this paragraph.

(2) Individuals with inherent authority to approve payment and USPS or SPRS documents.

(A) The presiding officer of the governing body of a state agency may approve a payment , SPRS, or USPS document of the agency after:

(i) the comptroller has received a signature card that complies with subsection (l) of this section; and

(ii) the officer's security profile has been established according to:

(I) USAS security's procedures and requirements if the approval is of a payment document; or

(II) USPS or SPRS security's procedures and requirements if the approval is of a USPS document.

(B) This subparagraph applies only to a state agency that is headed by an elected or appointed state official. The agency's head of agency may approve a payment, SPRS, or USPS document of the agency after:

(i) the comptroller has received a signature card that complies with subsection (l) of this section; and

(ii) the head of agency's security profile has been established according to:

(I) USAS security's procedures and requirements if the approval is of a payment document; or

(II) USPS or SPRS security's procedures and requirements if the approval is of a USPS or SPRS document.

(C) Notwithstanding subparagraphs (A)(ii) and (B)(ii) of this paragraph, a presiding officer or a head of agency may provide non-electronic approval of a payment, SPRS, or USPS document without establishing a security profile. This subparagraph applies only if the comptroller does not require the approval to be provided electronically.

(3) USAS and USPS or SPRS security profile changes.

(A) This paragraph applies only when an individual ceases being either the presiding officer of a governing body or a head of agency.

(B) The individual's security profile in USAS, if any, 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. The individual's security profile in USPS or SPRS, if any, must be changed so that USPS or SPRS no longer recognizes the individual's user identification number as belonging to an individual who has authority to approve USPS or SPRS documents. The changes must take effect not later than the date the individual ceases being the presiding officer or head of agency.

(C) 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.

(D) If the comptroller determines that a security coordinator has not complied with subparagraph (C) of this paragraph, then the comptroller may unilaterally change the security profiles.

(E) This subparagraph applies to a payment, SPRS, or USPS document only if the comptroller determines that an individual approved the document after the individual ceased being a presiding officer or a head of agency. The comptroller may take any necessary steps to prevent a warrant from being issued or an electronic funds transfer from being initiated until the document is properly approved. If the comptroller is unable to prevent a warrant from being issued or an electronic funds transfer from being initiated, then the comptroller may take any necessary steps to prevent the warrant from being honored or to reverse the electronic funds transfer. The state agency whose payment, SPRS, or USPS document results in the warrant or electronic funds transfer shall cooperate fully with the comptroller.

(4) Individuals without inherent authority but who may be designated to approve payment documents. An officer or employee of a state agency who does not have inherent authority to approve the agency's payment and USPS or SPRS documents may be designated to approve those documents. A designation is valid only if it is made:

(A) by someone with the authority to make designations; and

(B) according to the procedures required by this section.

(g) Who may designate individuals to approve payment and USPS or SPRS documents.

(1) State agencies headed by a governing body.

(A) The governing body of a state agency may designate one or more individuals to approve its payment and USPS or SPRS documents.

(B) The governing body of a state agency may authorize the governing body's presiding officer or the agency's executive director, or both, to designate one or more individuals to approve the agency's payment and USPS or SPRS documents. The presiding officer or executive director may make a designation only if the authorization is effective according to subsection (h)(1) of this section.

(2) State agencies headed by an elected or appointed state official.

(A) The head of agency of a state agency may designate one or more individuals to approve the agency's payment and USPS or SPRS documents.

(B) The head of agency of a state agency may authorize the agency's chief deputy to designate one or more individuals to approve the agency's payment and USPS or SPRS documents. The chief deputy may make a designation only if the authorization is effective according to subsection (h)(2) of this section.

(h) How to authorize individuals to designate other individuals to approve payment and USPS or SPRS documents.

(1) State agencies headed by a governing body.

(A) The authorization of a presiding officer or executive director to designate individuals to approve payment and USPS or SPRS documents is effective only after the comptroller has received proper written notice of the authorization.

(B) Written notice to the comptroller is proper only if the notice satisfies the requirements of this subparagraph.

(i) The notice must be:

(I) a certified copy of the minutes of the meeting of the governing body during which it made the authorization; or

(II) a letter, memorandum, or other writing.

(ii) If the notice consists of a copy of the minutes, then the copy must be certified and signed by:

(I) the presiding officer of the governing body; or

(II) the member of the governing body who is responsible for keeping those minutes.

(iii) 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.

(iv) 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 or SPRS documents.

(v) The notice must state an effective date for the authorization.

(C) The authorization of a presiding officer or executive director to designate individuals to approve payment and USPS or SPRS documents may be of a named individual or, alternatively, anyone who holds the position of presiding officer or executive director.

(i) 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.

(ii) 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.

(D) The authorization of a presiding officer or executive director may not be limited to designating individuals to approve only payment documents or only USPS and SPRS 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.

(2) State agencies headed by an elected or appointed state official.

(A) The authorization of a chief deputy to designate individuals to approve payment and USPS or SPRS documents is effective only after the comptroller has received proper written notice of the authorization.

(B) Written notice to the comptroller is proper only if the notice:

(i) contains the head of agency's original signature;

(ii) states in substance that the head of agency has authorized the chief deputy to designate individuals to approve the agency's payment and USPS or SPRS documents; and

(iii) states an effective date for the authorization.

(C) The authorization of a chief deputy to designate individuals to approve payment and USPS or SPRS documents may be of a named individual or, alternatively, anyone who holds the position of chief deputy.

(i) If the comptroller receives notification that a head of agency has authorized the "chief deputy," then the head of agency is deemed to have authorized whoever holds the position of chief deputy.

(ii) If the comptroller receives notification that a head of agency has authorized a named individual, then the head of agency is deemed to have decided that the authorization terminates automatically upon the individual's leaving the position of chief deputy.

(D) The authorization of a chief deputy may not be limited to designating individuals to approve only payment documents or only USPS and SPRS documents. If the comptroller receives notification that a head of agency has authorized the chief deputy to designate individuals to approve only one type of document, then the head of agency is deemed to have authorized the designation of individuals to approve both types of documents.

(i) How to revoke authorizations of individuals to designate other individuals to approve payment and USPS or SPRS documents.

(1) State agencies headed by a governing body.

(A) The governing body of a state agency may revoke its authorization of a presiding officer or executive director to designate individuals to approve the agency's payment and USPS or SPRS documents.

(B) If a governing body revokes an authorization, then the body's presiding officer shall ensure that the comptroller receives written notice of the revocation not later than the tenth day after its effective date.

(C) If the comptroller determines that an individual made a designation after the effective date of the revocation of the individual's authority to make designations, then the comptroller may not recognize the designation.

(D) This subparagraph applies only if the governing body of a state agency has authorized a named individual to designate individuals to approve the agency's payment and USPS or SPRS documents.

(i) The comptroller shall stop recognizing the authorization of an individual who, at the time of the authorization, was the body's presiding officer if the comptroller determines that the individual no longer holds that position.

(ii) The comptroller shall stop recognizing the authorization of an individual who, at the time of the authorization, was the agency's executive director if the comptroller determines that the individual no longer holds that position.

(iii) A determination under clause (i) or (ii) of this subparagraph may be based on any information the comptroller deems credible.

(E) A change in the membership of a governing body does not automatically revoke an authorization made by that body. Whether an authorization would be revoked automatically by the abolishment of a governing body, the wholesale substitution of one governing body for another, or the transfer of a state agency from the jurisdiction of one governing body to another would depend on the legislation enacting the abolishment, substitution, or transfer.

(2) State agencies headed by an elected or appointed state official.

(A) The head of agency of a state agency may revoke the authorization of a chief deputy to designate individuals to approve the agency's payment and USPS or SPRS documents. The head of agency shall ensure that the comptroller receives written notice of the revocation not later than the tenth day after its effective date. If the comptroller determines that an individual made a designation after the effective date of the revocation of the individual's authority to make designations, then the comptroller may not recognize the designation.

(B) This subparagraph applies only if the head of agency of a state agency has authorized a named individual to designate individuals to approve the agency's payment and USPS or SPRS documents. The comptroller shall stop recognizing the authorization of an individual who, at the time of the authorization, was the chief deputy if the comptroller determines that the individual no longer holds that position. This determination may be based on any information the comptroller deems credible.

(C) When an individual stops being the head of agency of a state 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 abolishment, substitution, or transfer.

(j) How to designate individuals to approve payment and USPS or SPRS documents.

(1) State agencies headed by a governing body.

(A) An individual who has been designated to approve a state agency's payment and USPS or SPRS documents may approve one of those documents if:

(i) the comptroller has received proper written notice of the designation;

(ii) the comptroller has received a signature card that complies with subsection (l) of this section; and

(iii) the individual's security profile has been established according to:

(I) USAS security's procedures and requirements if the approval is of a payment document; or

(II) USPS or SPRS security's procedures and requirements if the approval is of a USPS or SPRS document.

(B) Written notice to the comptroller is proper only if the notice satisfies the requirements of this subparagraph.

(i) The notice must be:

(I) a certified copy of the minutes of the meeting of the governing body during which it made the designation; or

(II) a letter, memorandum, or other writing.

(ii) If the notice consists of a copy of the minutes, then the copy must be certified and signed by:

(I) the presiding officer of the governing body; or

(II) the member of the governing body who is responsible for keeping those minutes.

(iii) If the notice is in the form of a letter, memorandum, or other writing, then it must be signed by:

(I) the presiding officer of the governing body if it made the designation; or

(II) the individual who made the designation if the governing body did not.

(iv) The notice must:

(I) identify the governing body or individual who made the designation;

(II) list the legal name of the designated individual;

(III) state an effective date for the designation; and

(IV) say in substance that the individual has been designated to approve payment and USPS or SPRS documents.

(C) Notwithstanding subparagraph (A)(iii) of this paragraph, an individual may provide non-electronic approval of a payment ,SPRS, or USPS document without establishing a security profile. This subparagraph applies only if the comptroller does not require the approval to be provided electronically.

(D) The designation of an individual to approve payment, SPRS, or 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.

(E) The designation of an individual may not be limited to approving only payment documents or only USPS and SPRS 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.