Part 1. OFFICE OF THE GOVERNOR

Chapter 5. BUDGET AND PLANNING OFFICE

Subchapter A. FEDERAL AND INTERGOVERNMENTAL COORDINATION

3. STATE PLANNING ASSISTANCE GRANTS

1 TAC §§5.81-5.90

The Office of the Governor adopts the amendments to §5.81 and §5.82 and new §§5.84-5.90 without changes to the proposed text published in the March 17, 2000 issue of the Texas Register (25 TexReg 2233). The amendment to §5.83, Financial Audit Requirements, is adopted with changes and will be republished.

The revisions clarify existing provisions and add new reporting and compliance requirements enacted by the 76th Texas Legislature in 1999 for regional councils in the areas of financial management, travel, nepotism, lobbying and procurement.

A public hearing was not requested nor held on these rules. In response to written comments from the Texas Association of Regional Councils, the 60 day prior notification requirement in §5.83(b), Financial Audit Requirements, was changed to 120 days to better ensure that regional councils receive adequate notification before they start the audit engagement process, and the language of §5.83(g) now makes clear that audit costs may be allocated among all funding sources, in accordance with OMB Circular A-133 and the Uniform Grant Management Standards (Chapter 783, Texas Government Code). No other comments were received. The remaining sections are adopted without change and will not be republished.

The amendment is adopted pursuant to the authority contained in §391.009 and §391.0095, Local Government Code, as amended, which direct the governor to issue rules relating to the operation and oversight of regional planning commission.

§5.83.Financial Audit Requirements.

(a)

Not later than nine months after the close of each regional planning commission's fiscal year, each regional planning commission shall submit to the Office of the Governor a complete financial audit prepared by a certified public accountant, in accordance with generally accepted financial auditing procedures and the provisions of OMB Circular A-133 and the State Single Audit Circular, if applicable.

(b)

The annual audit will be commissioned by the governing body of the regional planning commission unless the governor notifies each affected regional planning commission in writing at least 120 days prior to the end of the regional planning commission's fiscal year for which the audit would be performed that the Governor's Office intends to commission the audit.

(c)

In lieu of commissioning the audit, the Office of the Governor may require specific elements to be included in the annual audit.

(d)

The governor will place primary reliance upon state single audit coordinating agencies to review regional planning commission audits. However, the governor may require planning commission audits to be reviewed by Office of the Governor auditors or by a third party or parties.

(e)

The audit shall include:

(1)

the amount and source of funds received by the regional planning commission;

(2)

the amount and source of funds expended by the regional planning commission;

(3)

an explanation of any method used by the regional planning commission to compute an expense of the regional planning commission, including computation of any indirect cost of the regional planning commission; and

(4)

a statement of indirect costs which compares actual indirect cost allocations with the proposed indirect cost allocation plan used to establish an indirect cost rate.

(f)

The Office of the Governor may, by rule, establish standards and guidelines which regional planning commissions must use in selecting independent auditors.

(g)

Audit costs are allowable costs as identified in the Uniform Grant Management Standards (Chapter 783, Texas Government Code) and are allocable to the various programs administered by a regional planning commission.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 28, 2000.

TRD-200003038

Kevin Van Oort

Assistant General Counsel

Office of the Governor

Effective date: May 18, 2000

Proposal publication date: March 17, 2000

For further information, please call: (512) 463-1788

1 TAC §5.84, §5.85

The Office of the Governor adopts the repeal of §5.84, concerning the State Application Package, and §5.85, concerning Copies without changes to the proposal as published in the March 17, 2000 issue of the Texas Register (25 TexReg 2237).

The provisions of these two sections were combined into a new §5.84, concerning the State Planning Assistance Package.

A public hearing was not requested nor held on the repeal, and no comments, written or otherwise, were received.

The repeal is adopted pursuant to the authority contained in §391.009 and §391.0095, Local Government Code, as amended, which direct the governor to issue rules relating to the operation and oversight of regional planning commission.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 28, 2000.

TRD-200003037

Kevin Van Oort

Assistant General Counsel

Office of the Governor

Effective date: May 18, 2000

Proposal publication date: March 17, 2000

For further information, please call: (512) 463-1788

1. INTRODUCTION AND GENERAL PROVISIONS OF THE TEXAS REVIEW AND COMMENT SYSTEM

1 TAC §5.195

The Governor's Office adopts amendments to §5.195 concerning the Texas Review and Comment System (TRACS), without changes to the proposed text published in the March 17, 2000 issue of the Texas Register (25 TexReg 2237).

The proposed changes added 33 new programs for review, deleted 27 programs no longer in existence or no longer of widespread interest and conform program numbers to current listings in the Catalog of Federal Domestic Assistance. The programs added and deleted are based on responses to mailout questionnaires to all twenty-four regional councils of governments and all state agencies with TRACS coordinators.

A public hearing was not requested nor held on these rules. No comments, written or otherwise, were received regarding the amendments. The revised list of covered programs is adopted without change and will not be republished.

The amendments are adopted under the Government Code, Title 7, §772.004 and §772.005, and the Local Government Code, Chapter 391, which authorizes the Governor's Office to provide for review of state and local applications for grant and loan assistance and to establish policies and guidelines for review and comment. Chapter 391 of the Local Government Code requires certain applicants for state or federal assistance to submit their applications for review to the appropriate regional planning commissions and directs the governor to issue guidelines for carrying out such reviews.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 28, 2000.

TRD-200003036

Kevin Van Oort

Assistant General Counsel

Office of the Governor

Effective date: May 18, 2000

Proposal publication date: March 17, 2000

For further information, please call: (512) 463-1788

Chapter 117. CENTRALIZED SERVICES DIVISION

Subchapter C. CENTRAL STORE

1 TAC §117.51

The General Services Commission adopts amendments to Title 1, T.A.C., Chapter 117, Subchapter C, §117.51, concerning the Central Supply Store Program, and complying with the requirements of the Texas Government Code, §2001.039 (relating to Agency Review of Existing Rules). The amendments are adopted without changes to the proposed text as published in the March 3, 2000, issue of the Texas Register (25 TexReg 1827). The text will not be republished.

The amendments to §117.51 are adopted in order to revise statutory citations, to update the terminology for "purchase voucher" to "interagency transaction voucher," and to clarify language.

The amendments to §117.51 will clarify language and bring statutory citations up-to-date.

No comments have been received concerning the proposed amendments to Title 1, T.A.C., §117.51.

The amendments to Title 1, T.A.C., §117.51 are adopted under the authority of the Texas Government Code, Title 10, Subtitle D, §2152.003 and §2172.001, which provides the General Services Commission with the authority to promulgate rules under the Code.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 27, 2000.

TRD-200002990

Ann Dillon

General Counsel

General Services Commission

Effective date: May 17, 2000

Proposal publication date: March 3, 2000

For further information, please call: (512) 463-3960

Chapter 273. STATE EMPLOYEE INCENTIVE PROGRAM

1 TAC §§273.15, 273.23, 273.27

The Texas Incentive and Productivity Commission adopts amendments to §273.15, §273.23, and §273.27 concerning the State Employee Incentive Program administration with changes to the text as published in the March 10, 2000, issue of the Texas Register (25 TexReg 1925-1927).

The amendments to the rules are being implemented to improve the employee incentive program and are required changes by the 76th Legislature (1999). The amendments recognize and reward further aspects of employee involvement, including efforts for which quantifiable savings cannot be determined. The amended rules will also effect the current methods of finance. This restructuring will allow participating agencies to retain the majority of any realized savings, and allow TIPC to focus on administering and promoting participation in its programs.

The rule amendments to §273.15, Suggestion Submissions, are being implemented to clarify submission guidelines allowing for electronic, online submissions and affect Texas Government Code §2108.026 regarding suggestion eligibility requirements, §2108.027 which concerns multiple and joint suggestions, and §2108.030 regarding procedures after submission.

The rule amendments to §273.23, Agency Level Appeals, are be implemented to simplify the appeals process and affect Texas Government Code §2108.032 regarding the re-evaluation of a suggestion, and §2108.029 which provides eligibility determination by agency coordinators.

The rule amendments to §273.27, Awards, are being implemented to allow the Commission to recognize and reward all aspects of employee involvement, including efforts for which quantifiable savings cannot be determined. The rule change will authorize a $50 recognition award for suggestions that improve state government and do not otherwise qualify for a cash award under the amended rules. These rule amendments will affect Texas Government Code §2108.021 Definitions, §2108.23 which provides for awards, and §2108.026 regarding suggestion eligibility requirements; code provisions newly enacted in the 1999 legislature in SB 355, that added §2108.0235 which provides for recognition awards; §2108.0236 which provides for bonuses for group suggestions; §2108.027 which concerns multiple and joint suggestions; §2108.037 which permits agencies to retain the amount of actual or projected savings attributable to implement suggestions.

One comment was received and considered by the Commission resulting in §273.23, subsection (b)(3), not being struck from the rules. The Commission will not strike §273.23 subsection (b)(3), until the paper submission format is completely extinct. In adopting these sections, the Commission makes minor modifications for the purpose of clarifying its intent.

The amendments are adopted under the authority of Tex. Gov't Code Ann., §2108.004 which directs the Commission to adopt rules to carry out Chapter 2108 and to adopt policies, procedures, and record-keeping measures to administer Chapter 2108.

§273.15.Suggestion Submissions.

(a)

Employee requirements. To be eligible for consideration under the State Employee Incentive Program the program, an employee suggestion must:

(1)

be submitted in the written form prescribed by the Commission.

(2)

propose a reasonable method of implementation and describe the type of savings or other benefits foreseen by the employee, if the suggestion is adopted by the agency.

(b)

Simultaneous suggestions.

(1)

If two or more employees submit the same or similar suggestions (for the same target agency), the first received by the target agency's coordinator in the prescribed written form is eligible for consideration.

(2)

If the same or similar suggestions are received on the same day from employees working at different locations (by target agency's coordinator), a bonus based on the implemented suggestion may be divided equally among the employees submitting the information.

(3)

Each of the employees may be eligible for a certificate of appreciation.

(c)

Group suggestions.

(1)

Two or more employees may submit a group suggestion using forms prescribed by the Commission.

(2)

A bonus based on such suggestion shall be divided equally among those employees.

(3)

Each of the employees may be eligible for a certificate of appreciation.

(4)

In the event that one or more of the employees in a group suggestion are determined to be ineligible, the suggestion may be resubmitted by the group of eligible employee(s).

(d)

Transmittal to the Commission. The agency coordinator shall transmit all employee suggestions, whether eligible or ineligible, and the evaluation of each to the Commission not later than the 90th day after the day on which the suggestion was received by the agency coordinator.

(e)

Extensions on transmittals. If the complexity of the suggestion prevents the agency from adequately evaluating it in 90 days, the agency may request an extension to the Commission. The Commission may grant such extension for a period of 90 days.

§273.23.Agency Level Appeals.

(a)

Employee's role.

(1)

An employee whose suggestion has been declined by an agency and who has reasonable grounds to believe that the importance of the suggestion has been overlooked, misunderstood, or misinterpreted may appeal the agency's evaluation.

(2)

The employee must appeal not later than the 30th day after the day on which the employee receives notification that the suggestion has been declined.

(3)

The employee shall provide any additional information that he or she considers useful to the re-evaluation.

(b)

Agency's role.

(l)

The agency shall re-evaluate the suggestion and report back to the employee within 30 days.

(2)

When possible, the re-evaluation shall be conducted by someone at the agency other than those persons involved in the initial evaluation.

(3)

The agency coordinator will forward the employee's appeal and the agency's re-evaluation to the Commission within 30 days of receipt of the employee's appeal.

(c)

Commission's role.

(l)

The Commission may review an agency-level appeal at its discretion.

(2)

The Commission may seek additional information from the employee's agency regarding the appeal or the re-evaluation.

§273.27.Awards.

(a)

Award. An award consists of a certificate of appreciation and, if a suggestion results in a first-year net savings or increase in revenue of $100 or more, a cash award.

(b)

Suggestion eligibility. Only an approved and implemented employee suggestion is eligible for an award.

(c)

Cash award amount. An employee whose suggestion results in a first-year net savings or increase in revenue of $100 or more is eligible for a cash award of ten percent (10%) of the first-year net savings or revenue increase, up to a maximum of $5,000. If two or three employees submit a suggestion, the $5,000 cash award shall be divided equally among the employees. If a state employee group of four or more employees submit a suggestion, the group is eligible for a total bonus of 10 percent of the first-year net savings or revenue increases, not to exceed an award of $5,000 for each member of the state employee group.

(d)

Recognition award. The Commission may grant a recognition award in the amount of $50 to the eligible state employee or employees who make a suggestion that is approved and otherwise ineligible for a cash award.

(e)

Award prior to full one-year implementation. The Commission may grant an award before the completion of the first year in which the suggestion is implemented, based on actual or projected first-year net savings or increased revenue that are certified by the affected state agency and the Commission.

(f)

Taxes on cash awards. Cash awards are considered wages for Social Security and income tax purposes.

(g)

Processing cash awards. Upon Commission receipt of notification that savings/revenue have been certified by the affected agency according to the allocations provided in the Government Code, §2108.037 (Retention of Funds), General Appropriations Act, and Comptroller's Accounting Policy Statement #22, the Commission shall notify the affected agency in writing of the amount the employee is eligible to be awarded. The Commission will process a supplemental pay transaction or cause a supplemental pay transaction to be made for the employee(s) submitting the suggestion. Necessary amounts for withholding of employee income and Social Security taxes will be deducted from the cash award. The originating agency will pay the employer share of Social Security taxes.

(h)

Processing cash awards for former employees. When an award is payable to a former employee who will not receive a W-2 form from an agency or institution of state government, the Commission processes the award as miscellaneous income to the employee. The individual receiving the award is responsible for paying applicable taxes.

(i)

Timing. All applicable transfers shall be made and awards shall be distributed to the suggester within 90 days of agency certification unless the Commission approves a request for alternate timing.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 25, 2000.

TRD-200002952

Ed Bloom

Executive Director

Texas Incentive and Productivity Commission

Effective date: May 15, 2000

Proposal publication date: March 10, 2000

For further information, please call: (512) 475-2393