PART 1. COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 20. STATEWIDE PROCUREMENT AND SUPPORT SERVICES
SUBCHAPTER E. SPECIAL CATEGORIES OF CONTRACTING
DIVISION 2. STATEWIDE PROCUREMENT DIVISION SERVICES - TRAVEL AND VEHICLES
The Comptroller of Public Accounts proposes amendments to §20.411, concerning state agency reimbursement and reporting and §20.413, concerning state travel credit cards.
In its planning and administration of the state travel program, the comptroller utilizes data collected through the state travel credit card. Because that data is sufficient for comptroller purposes, the amendment deletes the requirement for agencies to manually report travel data. Reference to agency reporting is deleted from §20.411(e) and §20.413(a).
The amendment substantially modifies §20.413(c), regarding issuance of state travel credit cards to state agency employees, in three ways. First, it clarifies the obligation imposed by the first sentence of the subsection. The phrase "should be issued" could be interpreted as an aspiration rather than a requirement, and does not specify whether it addresses employees, state agencies, or the financial institution administering the credit card program. The amendment replaces that phrase with a plain statement that a state agency shall encourage certain employees to obtain the state travel credit card.
Second, the amendment raises the level of annual travel spending that §20.413(c) addresses from $500 to $1,000. The $1,000 threshold better balances the administrative costs of establishing, monitoring, and terminating card accounts against the rebates generated from the cards.
Finally, the amendment to §20.413(c) eliminates the need to forecast the number of trips an employee will take in a fiscal year. Instead, agencies will use the expected monetary value of travel to determine whether §20.413(c) applies. Because the amount spent through the state travel credit card is the primary factor in calculating rebates, it is the best measure of value.
Section 20.413 is further revised to ensure consistent usage of the term "state travel credit card."
Brad Reynolds, Chief Revenue Estimator, has determined that during the first five years that the proposed amended rules are in effect, the rules: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rules' applicability; and will not positively or adversely affect this state's economy.
Mr. Reynolds also has determined that the proposed amended rules would have no significant fiscal impact on the state government, units of local government, or individuals. The proposed amended rules would benefit the public by updating the rule to update thresholds and eliminate unnecessary reports. The proposed amended rules would have no significant fiscal impact on small businesses or rural communities.
A public hearing will be held to receive comments on the proposed amendment. There is no physical location for this meeting. The meeting will be held at 10:00 a.m. on November 9, 2023. To access the online public meeting by web browser, please enter the following URL into your browser: https://txcpa.webex.com/txcpa/j.php?MTID=m22ca4d487d210a90f095abe7f2580780. To join the meeting by computer or cell phone using the Webex app, use the access code 2495 042 9928. Persons interested in providing comments at the public hearing may contact Mr. Gerard MacCrossan, Data Management, Analytics & Technology Manager - Statewide Procurement Division, Texas Comptroller of Public Accounts, at Gerard.MacCrossan@cpa.texas.gov or by calling (512) 463-4468 by Wednesday, October 8, 2023.
You may submit comments on the proposal to Gerard MacCrossan, Data Management, Analytics & Technology Manager, P.O. Box 13528, Austin, Texas 78711-3528, or Gerard.MacCrossan@cpa.texas.gov. The comptroller must receive your comments no later than 30 days from the date of publication of the proposal in the Texas Register.
These amendments are proposed under Government Code, §403.023, which authorizes the comptroller to adopt rules relating to the use of credit or charge cards by state agencies to pay for purchases, and Government Code, §2171.002, which authorizes the comptroller to adopt rules to efficiently and effectively administer Government Code, Chapter 2171.
These amendments implement Government Code, §§403.023, 2171.051, and 2171.055.
§20.411.State Agency Reimbursement and Reporting.
(a) State agency officials and employees shall adhere to applicable laws and the regulations and guidelines of the comptroller governing travel vouchers.
(b) Reimbursement for Travel Expenses. State agencies shall not approve and the comptroller shall not pay travel vouchers for services at rates higher than contract rates, unless an exception in §20.408 of this title (relating to Exceptions to the Use of Contract Travel Services) or §20.409 of this title (relating to State Agency Contracts and Requests for Exceptions) applies. Travel vouchers submitted for reimbursement shall indicate the claimed exception in a manner prescribed by the comptroller.
(c) Audits. The comptroller may conduct pre-payment and post-payment audits of travel reimbursement requests; the audits may include a review of the propriety of claimed exceptions from the use of contract travel services.
(d) False claims for reimbursement. All claims for travel reimbursement are subject to Government Code, §403.071 relating to claims and available money. Any person who knowingly makes a false claim against the state is subject to the penalties in Government Code, §403.071(f) and other applicable laws.
[(e) Monthly reporting. The reports
required by this subsection are for those travel services not charged
to a state travel credit card.]
[(1) State agencies shall report the expenditures, as the total dollars spent, and activities, as the total number of trips and days of rental or lodging, relating to travel services as follows:]
[(A) air, bus, and rail travel: total dollar spend and total number of trips;]
[(B) rental car: total dollar spend, total number of trips, and total rental days;]
[(C) hotel/lodging: total dollar spend, total lodging trips; total number of nights; and]
[(D) travel reservation and booking fees: total dollar spend and total number of reservations.]
[(2) Travel reports shall be submitted to the comptroller's Procurement Policy and Strategy Program on or before the 28th day following the reporting month.]
[(3) Travel reports shall be submitted on a compact or floppy disc in Excel format via United States Postal Service or e-mail. The comptroller may also adopt other reporting methods, including web based reporting.]
§20.413.State Travel Credit Cards.
(a) State travel credit card. State agencies,
officials, and employees shall use state travel credit cards to purchase
contract and non-contract travel services. Travel services for airfare
shall be charged to state travel credit cards. Travel services for
lodging, rental vehicles and other necessary travel expenses shall
be charged to state travel credit cards, when feasible[; purchases
by other methods shall be reported monthly pursuant to §20.411(e)
of this title (relating to State Agency Reimbursement and Reporting)].
(b) Eligibility. Any entity eligible to use contract travel services is also eligible to obtain state travel credit cards. State travel credit cards may be used only for official state business and may be issued to individuals and state agencies.
(c) State travel credit cards issued to individuals.
State agencies shall encourage an employee to obtain [agency
employees should be issued] a state travel credit card when
the employee is expected to [take at least three trips or]
spend at least $1000 [$500] per fiscal year
for official state travel [business]. State agencies may,
at their discretion, approve the issuance of the cards to any employee.
(d) State agencies shall ensure that:
(1) state travel credit cards are cancelled upon the employee's termination of employment;
(2) state travel credit cards are cancelled when the employee fails to timely pay the charges, uses the card for personal transactions, or any other misuse of the credit card; and
(3) individuals who are issued state travel credit cards understand that payment of charges on state travel credit cards is the sole responsibility of the individual and that the state shall not be responsible for the charges or for nonpayment by the employee.
(e) Individual billing. State travel credit cards issued to individuals shall be billed directly to the individual who may obtain reimbursement through properly submitted state travel vouchers that comply with this subchapter and the rules and guidelines of the comptroller. Other individuals eligible to use state travel credit cards shall comply with the reimbursement rules and procedures of their governing entity.
(f) Centralized billing. A state travel credit card issued to an eligible entity shall be billed to that entity which may receive reimbursement pursuant to applicable statutes and rules.
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 October 4, 2023.
TRD-202303708
Victoria North
General Counsel, Fiscal and Agency Affairs Legal Services Division
Comptroller of Public Accounts
Earliest possible date of adoption: November 19, 2023
For further information, please call: (512) 475-2220