HBA-NLM C.S.S.B. 928 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 928 By: Ratliff Appropriations 5/12/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, at the conclusion of each biennium, the State of Texas has a number of outstanding claims and judgments against it for varying amounts of money. The claims consist of warrants voided by the statute of limitations, outstanding invoices to private vendors, unpaid charges for Medicaid recipients, or court judgment settlements. These claims require additional appropriations to be made in order to honor the state's obligations under the law. C.S.S.B. 928 sets forth sums of money appropriated out of various accounts to pay certain miscellaneous claims and judgments against the State of Texas. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Sets forth sums of money appropriated out of the General Revenue Fund No. 0001 for payment of itemized claims and judgments plus interest, if any, against the State of Texas. SECTION 2. Sets forth sums of money appropriated out of the Confederate Pension Fund No. 0005 for payment of itemized claims and judgments plus interest, if any, against the State of Texas. SECTION 3. Sets forth sums of money appropriated out of the State Highway Fund No. 0006 for payment of itemized claims and judgments plus interest, if any, against the State of Texas. SECTION 4. Sets forth sums of money appropriated out of the Proportional Registration Distributive Trust Fund No. 0021 for payment of itemized claims and judgments plus interest, if any, against the State of Texas. SECTION 5. Sets forth a sum of money appropriated out of the Coastal Protection Account No. 0027 for payment of an itemized claim and judgment plus interest, if any, against the State of Texas. SECTION 6. Sets forth sums of money appropriated out of the Operators and Chauffeurs License Account No. 0099 for payment of itemized claims and judgments plus interest, if any, against the State of Texas. SECTION 7. Sets forth a sum of money appropriated out of the Community Affairs Federal Account No. 0127 for payment of an itemized claim and judgment plus interest, if any, against the State of Texas. SECTION 8. Sets forth a sum of money appropriated out of the Federal Alcoholism Account No. 0136 for payment of an itemized claim and judgment plus interest, if any, against the State of Texas. SECTION 9. Sets forth sums of money appropriated out of the Federal Adult Blind Account No. 0141 for payment of itemized claims and judgments plus interest, if any, against the State of Texas. SECTION 10. Sets forth sums of money appropriated out of the Compensation to Victims of Crime Account No. 0469 for payment of itemized claims and judgments plus interest, if any, against the State of Texas. SECTION 11. Sets forth sums of money appropriated out of the Hazardous and Solid Waste Fees Account No. 0549 for payment of itemized claims and judgments plus interest, if any, against the State of Texas. SECTION 12. Sets forth a sum of money appropriated out of the Judicial Fund No. 0573 for payment of an itemized claim and judgment plus interest, if any, against the State of Texas. SECTION 13. Sets forth a sum of money appropriated out of the Petroleum Storage Tank Remediation Account No. 0655 for payment of itemized claim and judgments plus interest, if any, against the State of Texas. SECTION 14. Sets forth a sum of money appropriated out of the Texas Agriculture Fund No. 0683 for payment of an itemized claim and judgment plus interest, if any, against the State of Texas. SECTION 15. Sets forth sums of money appropriated out of the Unemployment Compensation Clearance Account No. 0936 for payment of itemized claims and judgments plus interest, if any, against the State of Texas. SECTION 16. Sets forth sums of money appropriated out of the Workforce Commission Federal Account No. 5026 for payment of itemized claims and judgments plus interest, if any, against the State of Texas. SECTION 17. Sets forth a sum of money appropriated out of the General Revenue Fund No. 0001 for payment of an itemized claim and judgment plus interest, if any, against the State of Texas. SECTION 18. Sets forth a sum of money appropriated to the Department of Human Services, out of funds as provided by this section, for payment of itemized claims against the State of Texas. Requires the amounts appropriated by this section to be drawn out of the following sources: _$173,669.09 from the General Revenue Fund No. 001; and _$288,831.91 from federal funds. SECTION 19. Sets forth a sum of money appropriated to the Department of Human Services, out of funds as provided by this section, for payment of itemized claims against the State of Texas. Requires the amounts appropriated by this section to be drawn out of the following sources: _$2,250.02 from the General Revenue Fund No. 001; and _$2,250.01 from federal funds. SECTION 20. Sets forth an additional sum of money appropriated out of the General Revenue Fund No. 001 from receipts originating from the tobacco settlement to satisfy any and all claims against the State of Texas that were or could have been raised in The State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91, and provides that acceptance of these funds will release the state of any liability and responsibility: _to pay the Texas Association of School Boards Risk Management Fund $5,000,000.00; and _to pay the Texas Municipal League Group Boards Risk Management Fund $10,000,000.00. SECTION 21. (a) Requires a claim or judgment, except as provided by Subsection (c) of this section, to be verified and substantiated by the administrator of the special fund or account against which a claim is to be charged and approved by the attorney general and comptroller before any claim or judgment may be paid from money appropriated by this Act. Prohibits any claim or judgment itemized in this Act that has not been verified and substantiated by the administrator of the special fund or account and approved by the attorney general and comptroller by August 31, 2000, from being paid from money appropriated by this Act. (b) Requires each claim, except as provided by Subsection (c) of this section, to contain information required by the comptroller, but at a minimum must contain the specific reason for the claim. Requires the claim to include a specific identification of the goods, services, refunds, or other items for which the warrant was originally issued if the claim is for a void contract and a certification by the original payee or the original payee's successor, heirs, or assignees that the debt is still outstanding. Requires a claim to be accompanied by an invoice or other acceptable documentation of the unpaid account and any other information that may be required by the comptroller if the claim is for unpaid goods or services. (c) Requires the attorney general to approve the form and content of payments for a claim described by Section 20 of this Act. SECTION 22. Authorizes and directs the comptroller, subject to the conditions and restrictions in this Act and provisions stated in the judgments, to issue one or more warrants drawn on the state treasury, as soon as possible following the effective date of this Act, in favor of each the individuals, firms, or corporations named in Sections 1-17 or 20 of this Act, in an amount not to exceed the amount set opposite their respective names and to mail or deliver each of the individuals, firms, or corporations one or more warrants in payment of all claims included in this Act. Requires the comptroller to issue warrants to DHS for payment in favor of each of the individuals, firms, or corporations listed in Sections 18 or 19 of this Act. SECTION 23.Effective date: September 1, 1999. SECTION 24.Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.S.B. 928 modifies the original by adding a new SECTION 13, to set forth a sum of money appropriated out of the Petroleum Storage Tank Remediation Account No. 0655 for payment of itemized claims and judgments plus interest, if any, against the State of Texas. C.S.S.B. 928 redesignates SECTIONS 13- 16 of the original to SECTIONS 14-17 in the substitute. C.S.S.B. 928 modifies the original by adding a new SECTION 18, to set forth a sum of money appropriated to the Department of Human Services, out of funds as provided by this section, for payment of itemized claims against the State of Texas. Requires the amounts appropriated by this section to be drawn out of the following sources: _$173,669.09 from the General Revenue Fund No. 001; and _$288,831.91 from federal funds. C.S.S.B. 928 modifies the original by adding a new SECTION 19, to set forth a sum of money appropriated to the Department of Human Services, out of funds as provided by this section, for payment of itemized claims against the State of Texas. Requires the amounts appropriated by this section to be drawn out of the following sources: _$2,250.02 from the General Revenue Fund No. 001; and _$2,250.01 from federal funds. C.S.S.B. 928 modifies the original by adding a new SECTION 20, to set forth an additional sum of money appropriated out of the General Revenue Fund No. 001 from receipts originating from the tobacco settlement to satisfy any and all claims against the State of Texas that were or could have been raised in The State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91, and provides that acceptance of these funds will release the state of any liability and responsibility: _to pay the Texas Association of School Boards Risk Management Fund $5,000,000.00; and _to pay the Texas Municipal League Group Boards Risk Management Fund $10,000,000.00. C.S.S.B. 928 redesignates SECTIONS 17-20 of the original to SECTIONS 21-24 in the substitute. C.S.S.B. 928 modifies the original SECTION 17, redesignated as SECTION 21 in the substitute, by adding a new Subsection (c) to require the attorney general to approve the form and content of payments for a claim described by Section 20 of this Act. In addition, the substitute provides that new Subsection (c) is an exception to the provisions of Subsections (a) and (b). C.S.S.B. 928 modifies the original SECTION 18, redesignated as SECTION 22 in the substitute, to authorize and direct the comptroller to issue one or more warrants drawn on the state treasury, as soon as possible following the effective date of this Act, in favor of each the individuals, firms, or corporations named in Sections 1-17 or 20 of this Act in the manner provided. In addition, the substitute adds a new provision requiring the comptroller to issue warrants to DHS for payment in favor of each of the individuals, firms, or corporations listed in Sections 18 and 19 of this Act.