(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--A[" means
a] person with which the comptroller has contracted under Government
Code, Chapter 2115.
(2)["]Investment vehicle--Does[
" does] not include real property.
(3)["]Overpayment--Has["
has] the meaning assigned by Government Code, §2115.001(1).
(4)["]Recovery audit--An audit performed[
program" means the program established by the comptroller] under
Government Code, Chapter 2115, to recover vendor overpayments made
by state agencies.
(5)["]Retiree--An[" means
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[
" 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["
means 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 Retirement System.
(8)["]State agency--Has["
has] the meaning assigned by Government Code, §2115.001(2).
(9)["]State employee--An["
means an] officer or an employee of a state agency. The term
does not include an independent contractor.
(10)["]USAS--The[" means
the] uniform statewide accounting system.
(11)["]Vendor payment--Does["
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
employee;
(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
2251;
(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
agency; or
(R)any other type of payment that the comptroller
determines is not cost effective to include [a vendor
payment because the projected costs of including the payment type]
in the recovery audit [program exceeds the projected amount of
the recoveries from including the payment type in the program].
(b)Exemption from [Scope of]
the recovery audit process. A state agency is exempt from [
program.]
[(1)][Except as provided in paragraph
(2) of this subsection,] the recovery audit process under
Government Code, Chapter 2115, if: [program applies to
each state agency and each vendor payment made by a state agency.]
[(2)The recovery audit program does
not apply to a state agency or any vendor payment made by the agency
during a state fiscal year if:]
(1)[(A)] the total amount of
the state agency's cash expenditures during the immediately
preceding [two] state fiscal biennium [years]
was equal to or less than $50[$100] million,
as reported to USAS; and
[(B)the total amount of the agency's
vendor payments during the immediately preceding two state fiscal
years was less than 20% of the total amount of the agency's cash expenditures
during those years, as reported to USAS; or]
(2)[(C)] the total amount of
the state agency's vendor payments during the immediately
preceding [two] state fiscal biennium [years]
was less than $40 [$62.5] million, as reported
to USAS.
[(c)Cooperation with the recovery
audit program.]
[(1)A state agency that is subject
to the recovery audit program shall cooperate fully with:]
[(A)any requirement of the comptroller
established or adopted under Government Code, Chapter 2115; and]
[(B)any requirement of a consultant
if the requirement is established or adopted pursuant to the recovery
audit program.]
[(2)A state agency may direct a consultant
not to pursue recovery of a payment that the consultant determines
was an overpayment if:]
[(A)the agency determines that the
payment was not in fact an overpayment and the comptroller agrees
with the agency's determination; or]
[(B)the comptroller determines that
recovery of the overpayment would not be in the best interests of
the state.]
(c)[(d)] Deposit of amounts
recovered.
[(1)]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 law.[
, including the State Funds Reform Act, Government Code, Chapter 404,
Subchapter F. This paragraph applies only if:]
[(A)the agency did not receive the
money from the federal government before expending the money; and]
[(B)the federal government did not
reimburse the agency for the expenditure.]
[(2)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 law,
including the State Funds Reform Act, Government Code, Chapter 404,
Subchapter F, and federal law. This paragraph applies only if:]
[(A)the agency received the money from the federal
government before expending the money; or]
[(B) the federal government reimbursed the agency
for the expenditure.]
The agency certifies that legal counsel
has reviewed the proposal and found it to be within the state agency's
legal authority to adopt.
Filed with the Office
of the Secretary of State
on September 19, 2019
TRD-201903369 Victoria North
Chief Counsel, Fiscal and Agency Affairs Legal Services Division
Comptroller of Public Accounts
Earliest possible date of adoption: November 3, 2019
For further information, please call: (512) 475-0387
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