In Texas, the use of appropriated money by state agencies is governed by a comprehensive set of regulations outlined in the Government Code. This legal framework ensures accountability and transparency in how public funds are utilized. Understanding these rules is crucial for state employees, agencies, and taxpayers alike to ensure that state resources are managed responsibly and effectively. This article delves into the key provisions of Chapter 2113 of the Texas Government Code, providing a clear overview of the definitions, restrictions, and authorized uses of appropriated money within the state.
Defining Appropriated Money and State Agencies
To understand the regulations surrounding state funds, it’s essential to first define what “appropriated money” and “state agency” mean within the context of Texas law. According to Section 2113.001 of the Government Code, appropriated money refers to funds specifically allocated by the Texas legislature through the General Appropriations Act or other legislative enactments. This definition highlights that these are not just any funds, but those that have undergone a formal legislative process for allocation.
The term state agency is defined broadly to encompass various parts of the Texas government. This includes:
- Executive Branch Entities: Departments, commissions, boards, offices, and other organizations within the executive branch of the state government.
- Judicial Branch Entities: The Supreme Court, the Court of Criminal Appeals, other statewide judicial entities, and Courts of Appeals.
- Higher Education Institutions: University systems and institutions of higher education as defined by Section 61.003 of the Education Code. It’s important to note that while public junior colleges are generally included, there are specific exceptions within Subchapters C and D of Chapter 2113.
This broad definition ensures that the regulations regarding appropriated money apply across a wide spectrum of state operations, promoting consistent financial management across different branches and sectors of the Texas government.
Restrictions on State Officers and Employees
Subchapter B of Chapter 2113 places specific restrictions on the actions of state officers and employees regarding the use of appropriated money. These restrictions primarily aim to prevent the misuse of public funds for self-promotion or activities deemed inappropriate for state resources.
Prohibition on Publicity for Individuals
Section 2113.011(a) explicitly states that state agencies cannot use appropriated money to publicize or draw attention to individual officers or employees of state government. This provision is designed to prevent the use of taxpayer money for personal aggrandizement or to enhance the public image of specific individuals within state service. The focus must remain on the agency’s work and responsibilities, not individual recognition.
Restrictions on Publicity Offices and Agents
Further reinforcing the limitations on publicity, Section 2113.011(b) prohibits state agencies from using appropriated money to:
- Maintain a publicity office or department: Agencies cannot establish dedicated units focused on public relations at taxpayer expense.
- Employ public relations or press agents: Hiring individuals with titles or duties centered on public relations or media outreach using state funds is disallowed.
- Pay public relations agents or businesses: Contracting with external public relations firms or agents for publicity purposes is also prohibited.
These restrictions collectively aim to ensure that state agencies focus on their core functions and responsibilities, rather than investing in potentially self-serving publicity efforts.
Authorized Information Dissemination
While publicity in the traditional sense is restricted, Section 2113.011(c) acknowledges the need for agencies to communicate about their activities and legal responsibilities. It allows the executive head of a state agency to issue information, either orally or in writing, through official agency channels. However, this information must:
- Relate to the activities or legal responsibilities of the agency.
- Be issued in the name of the state agency, not an individual.
- Include the name of the authorized individual issuing the information.
This provision strikes a balance, allowing agencies to inform the public about their work while preventing the focus from shifting to individual employees. It ensures that communication is official, agency-driven, and accountable.
Exception for Higher Education News Services
Recognizing the unique role of higher education institutions, Section 2113.011(d) provides an exception. Institutions of higher education are permitted to operate news and information services for the public benefit, provided that this operation is authorized and approved by the institution’s governing body. This acknowledges the educational and public outreach missions of universities, allowing them to disseminate information through dedicated services while still being subject to institutional oversight.
Transportation Code and Texas State Guard Exceptions
Sections 2113.011(e) and (f) provide further specific exceptions to the publicity restrictions:
- Transportation Code: Publicity functions authorized under Chapter 204 of the Transportation Code are explicitly permitted, recognizing the need for certain transportation-related public information campaigns.
- Texas State Guard: The Texas State Guard is allowed to use appropriated money for recruiting and retaining service members, employees, and other personnel. This exception acknowledges the specific needs of the State Guard in maintaining its personnel strength.
These exceptions highlight that while general publicity is restricted, there are specific areas where the legislature recognizes a legitimate need for state funds to be used for public communication or recruitment purposes.
Prohibition of Alcohol-Related Compensation
Section 2113.012 is straightforward in its prohibition: state agencies cannot use appropriated money to compensate an officer or employee who uses alcoholic beverages while on active duty. This rule reinforces responsible conduct and prevents the use of public funds to indirectly support or condone alcohol consumption during work hours.
Restrictions on State Vehicle Use
Section 2113.013 addresses the use of state-owned or state-leased motor vehicles. (a) Except as provided by Subsection (b), an officer or employee of a state agency may not use a state-owned or state-leased motor vehicle except on official state business. This is a core principle of responsible use of state assets. State vehicles are meant for official duties, not personal use.
(b) The administrative head of a state agency may authorize an officer or employee to use a state-owned or state-leased motor vehicle to commute to and from work when the administrative head determines that the use may be necessary to ensure that vital agency functions are performed. This subsection provides a limited exception for commuting, but only when deemed essential for vital agency functions and authorized by the administrative head. Transparency is built in, as the names, job titles, and reasons for such authorizations must be included in a report required by Section 2101.0115.
(c) A state agency may not use appropriated money to compensate an individual who violates Subsection (a). This provision adds teeth to the restriction, preventing agencies from paying employees who misuse state vehicles for non-official purposes.
Employee Standards of Conduct
Section 2113.014 links appropriated money to employee conduct. (a) A state agency may not use appropriated money to compensate a state employee who violates a standard of conduct described by Section 572.051. This section integrates ethical conduct into the framework of appropriated fund usage. If an employee violates the standards of conduct outlined in Section 572.051, their compensation cannot come from appropriated funds.
(b) A state agency shall provide each state employee it employs a copy of this section and the standards of conduct described by Section 572.051 and require a signed receipt on delivery. A new copy and receipt are required if one of those provisions is changed. This mandates proactive communication and documentation. Agencies are required to inform employees about these standards and obtain proof of receipt, ensuring awareness and accountability. Updates to the provisions necessitate re-communication and new receipts.
(c) A state agency shall maintain receipts collected from current state employees under this section in a manner accessible for public inspection. Public accessibility to these receipts further enhances transparency and accountability, allowing for public scrutiny of compliance with these ethical conduct communication requirements.
Restrictions on Goods and Services
Subchapter C outlines restrictions on the types of goods and services that state agencies can purchase using appropriated money. These regulations aim to ensure responsible spending and prevent the use of public funds for items deemed inappropriate or unnecessary.
Alcoholic Beverages Purchase Restrictions
Section 2113.101 places strict limitations on alcohol purchases. A state agency may not use appropriated money to purchase an alcoholic beverage except for authorized law enforcement purposes. A state agency may not use appropriated money to pay or reimburse a travel expense that was incurred for an alcoholic beverage. This is a near-total prohibition on using state funds for alcohol, with a very narrow exception for law enforcement in specific authorized situations. It also extends to travel reimbursements, ensuring no indirect funding of alcohol consumption through travel expenses.
Limitations on Auditing Contracts
Section 2113.102 restricts the ability of state agencies to contract for audits of their financial records. (a) A state agency may not use appropriated money to contract with a person to audit the financial records or accounts of the agency except as provided by:
- Subsections (b), (c), and (d)
- Chapter 466 (state lottery)
- Chapter 2306 (Texas Department of Housing and Community Affairs)
- Chapter 361, Transportation Code (Texas Turnpike Authority division)
This section establishes a general prohibition, with specific enumerated exceptions. The exceptions primarily relate to federally required audits, audits related to grant programs, and internal audit functions.
(b) A state agency may use appropriated money to finance a supplemental audit of payments received from the government of the United States if the audit is required as a condition of receipt of the money and an amount for the audit is provided by the federal grant, allocation, aid, or other payment. This exception allows for federally mandated audits when federal funds are provided to cover the audit costs.
(c) A state agency providing grants, loans, or other money to an entity other than a state agency may require, as a condition of receipt of the money, that the recipient have an annual, independent audit performed and submitted to the agency. This allows state agencies to mandate audits for recipients of state funds, ensuring accountability for how those funds are used. It also allows for internal agency inspections of recipients. Furthermore, agencies are required to take action on exceptions noted in these audits and report to state oversight bodies, promoting follow-up and corrective measures.
(d) Subsection (a) does not apply to the appointment of an internal auditor under Section 2102.006 or to a contract with the state auditor. This clarifies that the restrictions do not apply to internal auditors within the agency or to contracts with the State Auditor’s Office, which has a distinct audit function.
Postage and Postal Services Regulations
Section 2113.103 focuses on cost-effective postal services. (a) A state agency should use the most cost-effective means of postal service available. This sets a general principle of frugality and efficiency in mail services. Agencies are encouraged to utilize USPS services that offer lower costs while maintaining comparable service quality. The Comptroller is tasked with assisting agencies in assessing postal service options.
(b) Except as provided by Subsections (c) and (d), a state agency may use appropriated money to purchase postage or rent a post office box only from the United States Postal Service. This generally mandates using USPS for postage and PO boxes, likely to leverage government postal rates and streamline services.
(c) An agency other than an institution of higher education… that spends for postage in a fiscal year an amount that exceeds the dollar amount set by the General Appropriations Act as the maximum expenditure for postage shall purchase or rent a postage meter machine and record all purchases of postage on the machine… This subsection mandates the use of postage meters for higher-volume postage users (excluding higher education), promoting tracking and potentially cost savings. Meter rentals must be from Comptroller-approved companies.
(d) Subsection (b) does not apply to a reimbursement… This subsection lists exceptions to the USPS-only rule, including petty cash reimbursements, emergency postage purchases, reimbursements received by agencies for authorized services, and postage included in Comptroller-approved mailing service contracts. These exceptions provide flexibility for practical operational needs.
Memberships and Dues in Professional Organizations
Section 2113.104 regulates memberships in professional organizations. (a) Except as provided by Subsection (b), a state agency may not use appropriated money to pay for membership in or dues for a professional organization unless the administrative head of the agency, or that person’s designee, first reviews and approves the expenditure. This requires a review and approval process for professional membership expenditures, ensuring that they are justified and aligned with agency needs.
(b) This section does not apply to a state library. State libraries are exempted, likely recognizing the professional development and resource needs of library staff and the value of library memberships in relevant organizations.
Restrictions on Indoor Plants
Section 2113.105 is a specific and perhaps surprising restriction: A state agency may not use appropriated money to purchase, lease, or maintain a live or artificial indoor plant unless the agency is an institution of higher education and the plant is to be used for educational or research purposes. This provision generally prohibits the use of state funds for indoor plants, except for higher education institutions when plants are directly related to their educational or research activities. This restriction appears aimed at preventing what might be considered non-essential or decorative spending.
State Facilities for Meetings and Conferences
Section 2113.106 promotes the use of state-owned facilities. A state agency shall use state-owned or state-occupied facilities for meetings, conferences, and administration of group examinations and may not use appropriated money to lease private facilities for these purposes unless state facilities are not available when needed, are not adequate, or are not an economically favorable alternative. This mandates a preference for state facilities, requiring agencies to justify leasing private facilities based on availability, adequacy, or economic considerations. This aims to maximize the utilization of existing state resources before incurring additional lease expenses.
Periodicals and Other Publications Restrictions
Section 2113.107 places several restrictions on agency publications. (a) Except as provided by Subsection (b), a state agency may not use appropriated money to publish a periodical or other publication… if the publication is:
- Intended for the general public
- Generally informational, promotional, or educational
- Not essential to a statutory objective
and its cost is not reimbursed through revenue. This complex subsection aims to restrict state-funded publications that are general public information, promotional, or educational in nature and not self-sustaining through revenue, unless they are essential to an agency’s statutory purpose.
(b) Subsection (a) does not apply to: This subsection then lists several exceptions, including:
- Texas Highways magazine
- Texas Parks and Wildlife magazine
- Publications of the Texas Commission on Alcohol and Drug Abuse
- Attorney general opinions, advisories, and decisions
- Comptroller opinions, revenue forecasts, and fiscal analyses
- Newsletters
- Compilations of statutes or rules
- Legally required annual reports and materials with legally mandated content
These exceptions recognize publications that are deemed to have specific public value, legal necessity, or are already established and potentially revenue-generating.
(c) A state agency may not use appropriated money to publish a publication that prominently displays the name or picture of a person holding an office elected statewide or an appointed officer… This prohibits publications that feature elected or appointed officials prominently, further reinforcing the restriction on individual publicity. An exception is made for the official state travel map.
(d) A state agency of which the executive head is an elected officer may not use appropriated money to publish a publication relating to the activities or legal responsibilities of the agency within the 120-day period preceding the date of an election at which the office held by the executive head will be filled. This “election blackout” period prevents agencies led by elected officials from publishing agency-related materials close to elections, mitigating potential political influence through state-funded publications.
(e) Except as provided by Subsection (f), a state agency may not use appropriated money to publish a publication on enamel-coated, cast-coated, or dull-coated printing stock or that contains an average of more than one picture for each two pages… unless the agency imposes a fee for the publication in an amount that recovers the cost of publication. This subsection restricts the use of higher-quality printing and image-heavy publications unless the agency charges a fee to recover costs. This aims to control spending on potentially extravagant publications.
(f) Subsection (e) does not apply to… This provides exceptions for brochures related to the federal special supplemental food program for women, infants, and children (WIC), publications promoting tourism or economic development, publications of the Texas School for the Deaf or Blind, and publications of higher education institutions. These exceptions recognize specific public interest or institutional needs that justify higher-quality publications without cost recovery.
(g) A state agency or political subdivision that uses an appropriation to publish a free periodical… shall insert annually in an issue of the periodical a notice that anyone wishing to continue receiving the periodical must so request in writing… This “opt-in” requirement for free periodicals aims to reduce waste and ensure that publications are only sent to those who actively want them.
Specifically Authorized Uses of Goods and Services
Subchapter D outlines specific uses of goods and services that are explicitly authorized for state agencies using appropriated money. These provisions clarify permissible expenditures within defined categories.
Employee Awards
Section 2113.201 allows for employee recognition. (a) A state agency may use appropriated money to purchase service awards, safety awards, or other similar awards to be presented to its employees for professional achievement or outstanding service under policies adopted by the agency. This authorizes agencies to use funds for employee recognition programs.
(b) The cost of awards purchased under this section may not exceed $100 for an individual employee. This sets a cap on the value of individual employee awards, ensuring reasonable spending in this area.
Volunteer Awards
Section 2113.202 extends award authority to volunteers. (a) A state agency may use appropriated money to purchase engraved certificates, plaques, pins, or other similar awards to be presented to volunteers for special achievement or outstanding service if the agency has established a volunteer program under Chapter 2109 or other law. This permits recognition of volunteer contributions, provided the agency has a formal volunteer program.
(b) The cost of awards purchased under this section may not exceed $50 for an individual volunteer. A lower cost limit is set for volunteer awards compared to employee awards.
Examination Fees
Section 2113.203 addresses examination administration. A state agency that conducts examinations shall collect all fees charged to the person being examined… and use appropriated money to pay a provider of goods or services for a cost incurred by the agency providing the examination. This section clarifies that examination fees collected can be used to cover the costs of administering those examinations, including payments to service providers.
Moving and Storage Expenses for State Employees
Section 2113.204 outlines conditions for covering moving and storage expenses for employees. (a) Except as otherwise authorized by the General Appropriations Act, a state agency may use appropriated money to pay the reasonable and necessary expenses incurred in moving the household property only for a state employee who:
- Is being reassigned to a new headquarters at least 25 miles away, if in the state’s best interest.
- Is accepting a position at a new headquarters at least 25 miles away due to facility closure or reduction in force.
This narrowly defines the circumstances under which moving expenses can be covered, primarily for reassignments or job relocations due to facility changes, with a minimum distance requirement.
(b) A state agency shall use state-owned equipment for a move… if it is available. If state-owned equipment is not available, the agency may pay for commercial transportation or self-service vehicles. This prioritizes the use of state resources for moves before resorting to external services.
(c) A state employee is entitled to reimbursement for reasonable and necessary expenses incurred in traveling by personally owned or leased motor vehicle for a move… at the rate provided by the General Appropriations Act for business-related travel. This allows for reimbursement for employee travel during authorized moves.
(d) A state agency may pay for or reimburse a state employee for storage expenses incurred if the employee is required to live in state-owned housing and the housing is not available when the agency requires the move to be made. This covers storage costs in specific situations where state housing is unavailable during a required move.
(e) Reimbursement or payment… is conditioned on the submission to the comptroller of receipts or invoices. Proper documentation is required for expense reimbursement.
(f) This section does not authorize payment or reimbursement of a transaction fee or sales commission for the sale of real property. Sale of real property related expenses are explicitly excluded.
Certain Expenditures Involving Multiple Fiscal Years
Section 2113.205 addresses expenditures that span fiscal years. (a) Except as provided by this subsection, a state agency may use money appropriated for a particular fiscal year to pay expenses related to conducting or attending a seminar or a conference only to the extent it occurs during that year. To the extent that it is cost-effective, a state agency may use money appropriated for a particular fiscal year to pay expenses related to conducting or attending a seminar or conference that will occur partly or entirely during a different fiscal year. This generally aligns seminar/conference expenses with the fiscal year in which they occur, with a cost-effectiveness exception for cross-fiscal year events.
(b) The comptroller may authorize a state agency to use money appropriated for a particular fiscal year to pay the entire cost or amount of a service… regardless of whether the service is provided over more than one fiscal year. This provides flexibility for the Comptroller to authorize multi-year service contracts (like internet, subscriptions, maintenance, insurance, PO box rental) to be paid from a single fiscal year’s appropriation.
(c) A state agency may use money appropriated for a particular fiscal year to pay for a utility service provided during that fiscal year and September of the next fiscal year. This allows for payment of utility services spanning fiscal years to align with billing cycles.
(d) The comptroller may establish procedures and adopt rules to administer this section. The Comptroller is given authority to implement and manage these multi-year expenditure rules.
(e) In this section: provides definitions for “institution of higher education,” “state agency” (expanded for this section to include legislative branch), and “utility service.” The definition of “state agency” is broadened for this section to include the legislative branch, indicating these multi-year expenditure rules apply broadly across state government. “Utility service” is defined broadly to include electricity, water, gas, telecommunications, wastewater, waste disposal, and similar services as determined by the Comptroller.
Restrictions on Capital Expenditures
Subchapter E focuses on capital expenditures and encourages cost savings.
Preference for Utility Cost Savings Financing
Section 2113.301 promotes financing capital expenditures through utility cost savings. (a) In this section: defines “state facility purpose” (maintenance of state buildings/facilities and projects) and “utility cost savings contract” (contracts guaranteeing utility cost savings through energy conservation measures).
(b) Before a state agency may use appropriated money to make a capital expenditure for a state facility purpose, the state agency must determine whether the expenditure could be financed with money generated by a utility cost savings contract. This mandates a prior assessment of utility cost savings contract financing before using appropriated funds for capital projects.
(c) If it is practicable to do so, a state agency… must finance a capital expenditure for a state facility purpose with money generated by a utility cost savings contract. This establishes a preference for utility cost savings financing when feasible.
(d) If it is not practicable… the state agency must provide justification to the comptroller. If utility cost savings financing isn’t used, justification must be provided to the Comptroller.
(e) …a state agency must consider whether utility cost savings generated by any department of that agency could be a potential means of financing a capital expenditure for any department of that agency. Money generated by utility cost savings in one department… may be used to finance capital expenditures… in any department of that agency. This encourages agency-wide consideration of utility cost savings for capital project financing, allowing savings in one department to fund projects in another.
(f) This section does not apply to an institution of higher education… Higher education institutions are exempted from this utility cost savings financing preference.
(g) This section does not apply to a capital expenditure… that requires expeditious action to:
- Prevent a hazard to life, health, safety, welfare, or property
- Avoid undue additional cost to the state
This provides exceptions for urgent capital expenditures needed for safety or to prevent further costs.
Conclusion: Ensuring Responsible Use of Taxpayer Money
Chapter 2113 of the Texas Government Code provides a detailed and comprehensive framework for managing appropriated money within state government. From defining key terms to outlining specific restrictions and authorized uses, these regulations are designed to promote fiscal responsibility, accountability, and transparency in the use of taxpayer funds. By understanding and adhering to these rules, state agencies and employees can ensure that state resources are used effectively and ethically, serving the best interests of the citizens of Texas. This detailed legal framework underscores the commitment to sound financial management and the careful stewardship of public money within the state government.
