|(a) Definitions. The following words and terms, when
used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) Consultant--A person with which the comptroller
has contracted under Government Code, Chapter 2115.
(2) Investment vehicle--Does not include real property.
(3) Overpayment--Has the meaning assigned by Government
(4) Recovery audit--An audit performed under Government
Code, Chapter 2115, to recover vendor overpayments made by state agencies.
(5) Retiree--An individual who has been granted a retirement
benefit under Government Code, Title 8, Subtitle B, C, D, E, or H.
(6) Retirement benefit--Includes a service retirement
benefit, a disability retirement benefit, an occupational disability
retirement benefit, a nonoccupational disability retirement benefit,
and a death benefit paid by or on behalf of a retirement system.
(7) Retirement system--The Employees Retirement System
of Texas, the Teacher Retirement System of Texas, the optional retirement
program, the Judicial Retirement System of Texas Plan One, the Judicial
Retirement System of Texas Plan Two, or the Texas Emergency Services
(8) State agency--Has the meaning assigned by Government
(9) State employee--An officer or an employee of a
state agency. The term does not include an independent contractor.
(10) USAS--The uniform statewide accounting system.
(11) Vendor payment--Does not include:
(A) a payment from money held outside the state treasury
if the payment was not reported to USAS as a cash expenditure;
(B) a payment that already has been cancelled, recalled,
refunded, or otherwise recovered;
(C) a payment that was made by warrant if it has not
yet been negotiated;
(D) a payment of the compensation earned by a state
(E) a payment of a retirement benefit by or on behalf
of a retirement system;
(F) the refund by or on behalf of a retirement system
of a member's accumulated contributions to the system;
(G) a payment of the amount deducted from:
(i) the compensation earned by a state employee; or
(ii) the payment by or on behalf of a retirement system
of a retirement benefit or the refund of a member's accumulated contributions;
(H) a payment to an individual because of the individual's
unemployment, under the Texas Unemployment Compensation Act, Labor
Code, Title 4, Subtitle A;
(I) a payment to a governmental entity of this state,
including a state agency, a municipality, a county, a public school
district, a public school, or a political subdivision;
(J) a payment made by the Texas Department of Insurance
in connection with the receivership of an insurance company;
(K) a payment for the purchase of a security or other
investment vehicle, except that the term includes a payment of a commission
or similar fee concerning the purchase;
(L) a payment of principal or interest, except that
the term includes any interest paid under Government Code, Chapter
(M) a payment of the premium to provide group insurance
coverage for state employees or retirees;
(N) a payment to a private person to administer a group
insurance program for state employees or retirees;
(O) a payment of a loan to a private person if, as
of the date of the payment, the entire amount of the loan is required
to be repaid;
(P) a payment of a judgment against the state or a
state agency or a payment to settle litigation involving the state
or a state agency;
(Q) a payment made by a person that is not a state
(R) any other type of payment that the comptroller
determines is not cost effective to include in the recovery audit.
(b) Exemption from the recovery audit process. A state
agency is exempt from the recovery audit process under Government
Code, Chapter 2115, if:
(1) the total amount of the state agency's cash expenditures
during the immediately preceding state fiscal biennium was equal to
or less than $50 million, as reported to USAS; and
(2) the total amount of the state agency's vendor payments
during the immediately preceding state fiscal biennium was less than
$40 million, as reported to USAS.
(c) Deposit of amounts recovered. A state agency that
recovers money as a result of a recovery audit conducted under Government
Code, Chapter 2115, shall deposit the money as required by applicable